Meal Tax Bond
Typically, bonds required for food or meal taxes are required on a City, Town or Village level. Most commonly, this type of bond is required in Virginia Cities including the Cities of Hampton, Norfolk, Virginia Beach, Portsmouth, and Fairfax. The purpose of this bond is to guarantee the repayment of any local taxes due to the named City for local food sales. It is typically required of all applicants applying for a permit with the City before the City will issue the permit.
The bond amount will be set by the Obligee (usually the City) that is requiring the bond. The minimum bond requirement is $500.00 as set by each local government. Each City should have their own sample bond form to review and the City should advise of the required bond limit. Both are very important to have before applying for the bond! Make sure to check with the City’s local offices to verify the required bond limit for your permit and ask for a copy of their sample bond form. This can help ensure that the City gets exactly what they are looking for without causing any delay to the permit application.
Many local meal tax bond requests are for $5,000.00 or less and are usually approved with just a quick credit check. Instant issue programs are also available in certain cities for approval without a credit check! All we need is an application completed with basic information. The cost for bonds $10,000.00 and under will usually qualify for a minimum premium ranging from $150.00 to $500.00 annually. Non-standard rates are also available if necessary.
Bond Amount over $5,000.00? No Problem! We can help with those too! Like most tax bonds, as the bond amount increases, so does the amount information needed to gain approval. Call us at 1-888-518-8011 for more information or apply online today!