Tax & Customs
Parking Tax Collection Bond
A bond a parking lot or garage operator posts with a city to guarantee it will pay over the parking tax it collects from customers.
- Required by
- City or county tax collectors in places that levy a parking tax
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the city (the obligee) that the operator will collect the local parking tax and remit it on time. If the operator keeps the tax or fails to pay it, the city can claim against the bond to recover the unpaid tax.
Who needs it
- Parking garage operators
- Surface parking lot operators
- Valet and event parking companies
What the underwriter looks at
- Gross parking receipts at each location
- Credit of the owners
- Tax payment history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Do I need a separate bond for each lot?
In some cities, yes. San Francisco, for example, requires an approved bond for each parking station before it issues a Certificate of Authority. Check your city's rules.
Are small operators exempt?
Some cities exempt small operators. San Francisco says operators with $40,000 or less a year in parking revenue may qualify as Small Operators and do not need a parking bond.