The Los Angeles Parking Occupancy Tax Collection Bond is required by City of Los Angeles, Office of Finance, Tax & Permit Division.
The Los Angeles Parking Occupancy Tax Collection Bond is needed when a company operates a parking facility, for which it collects parking fees. The principal sum of this bond will vary based on the size of parking structure.
The City of Los Angeles created this bond because the city was facing some problems regarding lot operator tax evasion and fraud. This bond ensures that the bond principal (the person or entity that buys the bond, in this case the lot operator) will pay the full amount of his or her Parking Occupancy Tax (POT) to the city.
To read more about the lost revenue the City of Los Angeles was facing and their response to it, you can read this Commission on Revenue Efficiency (CORE) report written by a group of Los Angeles legislators.
This bond was established to help fight the problems identified and ensure that the city was payed its due taxes and to protect the people of Los Angeles from fraud, deceit or unlawful omissions.