How to Purchase a Surety Sales Tax Bond

Bonds are used by many entities as a way to raise funds quickly. Most municipalities issue bonds in order to pay for projects which need to be completed throughout the township or county. Surety sales tax bonds are a specific type of bond issued by a government agency and is one of the most common types of issuances used to raise funds. Surety sales tax bonds also help municipalities keep taxes low.

Difficulty: Moderate

Instructions

1. Understand how a sales tax surety bond works. If a municipality is in need of funds for a particular project, they can use the future projected income tax revenue to pay for the interest owed to bondholders and investors.

2. Contact a bond agent or an insurance agent. You can conduct a search online or request a referral from your professional network.

3. Request the forms necessary to apply for the bond. These forms include the bond application. In most cases, you will also need to fill out a personal financial statement and credit report release form.

4. Fill out the form to the best of your ability and as accurately as possible. The form will serve as the basis for all information to go on the bond---any mistakes will become a part of a legal document.

5. Sign and date the application in the presence of a witness. In general, you will be required to have a notary public sign the application (financial statement). Notary publics usually come free of charge at your bank.

6. Make copies of all documents before surrendering to the agent. Use overnight delivery if you cannot hand deliver.

References

• How Surety Bonds Work
• Surety Bond Types