Utah Sales and Use Tax Bond
What it is & who requires it
Businesses that must hold a Utah sales and use tax license — contractors among them, since a contractor owes tax on the materials it consumes on a job — where the Commission conditions the license on security. Utah does not ask this of every licensee. It falls on an applicant whose license, or whose fiduciary’s license, was previously revoked for a delinquency under the sales and use tax act, and on any licensee where the Commission determines security is needed to ensure compliance. A separate license is required for each place of business where a person transacts business at two or more separate locations.
Obligee: Utah State Tax Commission. Citation: Utah Code 59-12-106(2)(e)–(f) (Sales and use tax license requirements — Bonds).
Bond amount
Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
How to get it
This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
Request a bond quote
Tell us about the bond and the project. A licensed producer follows up — these bonds are individually underwritten, so they are not issued instantly.
Term & renewal
Term: Held while the Commission considers it necessary to ensure compliance with the sales and use tax act.
Renewal: Maintained with the Commission rather than renewed on a fixed cycle; the Commission may require an existing bond to be increased where it determines that is necessary to ensure compliance.
Filing
Filed with the Utah State Tax Commission before a sales and use tax license is issued or restored, and executed by you as principal with a corporate surety, payable to the Commission and conditioned on faithful performance of the sales and use tax act — the tax itself, any penalty or interest, and your other obligations under the act. It is conditional rather than universal: Utah requires it where a license has been revoked for a delinquency, or where the Commission decides it needs security. The Commission calculates the amount itself, from its estimate of your tax liability plus the amount of any delinquency, and the statute caps that calculation between a floor and a ceiling rather than naming a set sum — so the bond is listed and the exact figure is confirmed when you apply. The Commission may waive the requirement if you are in compliance with a Commission-approved payment agreement covering the delinquency. Authority: Utah Code 59-12-106.
Source
This bond requirement is corroborated by multiple public sources; Utah State Tax Commission sets the exact amount, which we confirm when you start your bond.
Related Utah bonds
Frequently asked questions
- Who requires the Utah Sales and Use Tax Bond?
- It’s required by Utah State Tax Commission (Utah Code 59-12-106(2)(e)–(f) (Sales and use tax license requirements — Bonds)). Businesses that must hold a Utah sales and use tax license — contractors among them, since a contractor owes tax on the materials it consumes on a job — where the Commission conditions the license on security. Utah does not ask this of every licensee. It falls on an applicant whose license, or whose fiduciary’s license, was previously revoked for a delinquency under the sales and use tax act, and on any licensee where the Commission determines security is needed to ensure compliance. A separate license is required for each place of business where a person transacts business at two or more separate locations.
- How much is the Utah Sales and Use Tax Bond?
- Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
- How do I get the Utah Sales and Use Tax Bond?
- This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
- What is the term?
- Held while the Commission considers it necessary to ensure compliance with the sales and use tax act. Renewal: Maintained with the Commission rather than renewed on a fixed cycle; the Commission may require an existing bond to be increased where it determines that is necessary to ensure compliance.
- Is this bond insurance for me?
- No. It protects the obligee and the public — not you. If a valid claim is paid, you repay the surety.
- How is this requirement verified?
- This bond requirement is corroborated by multiple public sources. The obligee sets the exact amount, which we confirm automatically when you start your bond in the portal or with a producer.
