Rental company tax bond cost
If your rental company’s yearly tax liability exceeds $5,000, you are required to post a surety bond. Bond amounts are determined by using the total of the 2 highest months of liability in the preceding year. New rental companies will be required to post a $1,000 surety bond. Bond amounts shall not exceed $400,000.
Bond amounts are given by the Commissioner of Motor Vehicles. Be sure to have your given bond amount prior to speaking with a surety specialist. This information is vital in determining your bond quote.This specific bond type is subject to underwriting, meaning that premiums are based on the financial credentials of your credit report. Speak with a bond expert by calling 1 (800) 308-4358 or send a bond request.
Why this bond
By posting a bond, the principal (rental company) agrees to pay all monies required under Title 32 Chapter 219 of Vermont Statutes Annotated. This includes taxes, penalties and fines, in addition to rendering all reports.All bonds expire annually on December 31. Any liability that has accrued under this bond will remain effective after the bond’s expiration.
All rental company applicants must send a completed rental company application to the Department of Motor Vehicles. Each application must be accompanied by the following attachments:
- surety bond
- a listing that gives the VIN and plate number for each unit in the rental fleet
- rental tax report
Apply for your surety bond
Get a FREE Vermont Rental Company Tax Bond Quote Today! Click here to begin