Arizona’s statewide sales tax is a crucial source of revenue for its government, with many purchases including a 5.6 percent surcharge that eventually ends up in the general fund. The state government requires business owners to collect this tax on its behalf at the point of sale, with many cities in Arizona assessing a levy of their own that will be added to the total. In some cases in the past, businesses have failed to live up to their obligations to the state, not by refusing to collect the tax but by declining to submit the resulting balance to the appropriate authorities when required. This can result in hundreds of thousands of dollars or more essentially being stolen from the state and its residents, with customers of a business paying for a tax that never ends up in the possession of its rightful owner.
A Tax Bond in Arizona is meant to make this less likely. While the requirements vary from one situation to the next, a bond of this kind is meant to protect against both businesses that fail to collect the tax at all and those that refuse to submit it when due. By creating a financial stake that cannot simply be overlooked, a tax bond makes it quite a bit less likely that problems like these will arise.
Some entrepreneurs might assume that this requirement would make it significantly more difficult to start a new business. Browse our website, however, and it will become clear that this will rarely need to be a significant hurdle. With specialized bond writing companies dealing with such matters on a regular basis, in fact, arranging to post a tax bond in Arizona generally turns out to be a routine matter.
Especially for those with strong personal credit histories or records of responsible, law-abiding business, securing approval will not normally be difficult at all. The amount that will need to be paid to post a tax bond of a certain required amount will vary, both according to factors like these and the nature of the business in question. While the vast majority of businesses in Arizona today happily live up to their obligations regarding the collection and submission of sales tax, this requirement helps to keep the few who might normally not in line.
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