The Texas Continuous Bond of Seller is required by the State of Texas Controller of Public Accounts.
The Texas Continuous Bond of Seller states that the bond holder shall comply with all the provisions of the statutes and pay all taxes including interest, penalties, and costs. The penal sum for this bond will vary depending on the person or entity applying, but it will be in the greater amount of the following options: $100,000 or four times the amount of the average monthly tax liability.
A bond of seller guarantees to the obligee, the person or entity who requires the bond, that the bond principal (the person or entity who has to buy the bond) will pay the full amount of sales taxes due to the state. The State and the the Controller of Public Accounts require this bond because it helps ensure that all revenue earned from sales tax is given to the state. If you apply for a tax permit in the State of Texas, you are required to have a continuous bond of seller on file in order to get and maintain that tax permit.