Businesses that engage in operating parking lots are required to get a parking lot tax bond. The bond ensures that loss from theft, damage, and taking of a vehicle that is in custody of the parking lot owner/operator will be repaid to the customer. Each city and county within a state requires a particular form of a parking lot tax bond.
For example, listed below are some California cities that require this bond form. To find out if a particular city requires this bond type, contact the city/county representative.
In San Francisco, a parking tax collection surety bond ensures that parking lot owners and operators will abide by the laws and rules implemented by the city of San Francisco. The bond guarantees the parking lot owner or operator will follow the San Francisco’s City Law Code. One of the regulations of the SF City Law Code is that all taxes and fees must be paid in full and on time to the city.
The city of Los Angeles enforces a parking lot tax occupancy surety bond which was passed in 2012 by Ordinance No. 182283. The Los Angeles Municipally Code requires every parking lot operator or owner to post a bond in order to ensure they will pay any delinquent parking occupancy taxes. Also, the bond allows the City to look into anyone that collects parking taxes will pay the taxes to the City. Although, this bond is not required for a parking lot that offers the payment option of credit cards for customers. Also,the California Office of Finance must have full access to the credit card transaction records.
Bond amount and premium.
The bond amount and premium are calculated by the amount of the prior calendar year’s parking fee gross receipts or the estimated annual gross for a new parking facility. The bond premium (price of the bond) is only a small portion of the bond amount.
To apply for this bond and other bond types, visit Surety 1’s free online application page.