California Sales and Use Tax (Bond of Seller)
Overview
California's security requirement for sellers comes from Revenue and Taxation Code section 6701: whenever the California Department of Tax and Fee Administration (CDTFA) deems it necessary to ensure compliance with the Sales and Use Tax Law, it may require any person subject to that law to place security with the department. A surety bond of seller is one accepted form of that security. The statute caps how much the department can demand — generally no more than twice the estimated average quarterly liability or three times the estimated average monthly liability, or $50,000, whichever is less — and the department fixes the exact amount case by case.
Who Needs This Bond?
Sellers holding or applying for a California seller's permit who are told by the CDTFA to post security need this bond. Section 6701 gives the department discretion — security is required 'whenever it deems it necessary to ensure compliance' — so the requirement typically lands on permit holders the department has flagged, including those who have been noticed for permit revocation proceedings under section 6070 or whose permits have been suspended or revoked, situations the statute addresses with higher security limits. If the CDTFA's notice says to furnish security for your seller's permit, this bond satisfies it.
What is this Bond For?
The bond secures the State of California's sales and use tax revenue. It guarantees that the tax you collect from customers actually reaches the CDTFA; if you fail to remit, the department can look to the security to cover the unpaid amounts. Section 6701 provides that security is held to be used solely in the manner the statute prescribes, and it exists to protect the state — not the business. Any amount a surety pays out on the bond remains a debt you owe back to the surety.
When is it Required?
The requirement arises when the CDTFA issues its security determination — often at permit registration for accounts it considers higher risk, or after compliance problems on an existing account. The statute also directs that, in general, security held by the department is released after a three-year period in which the person has filed all returns and paid all tax on time, so consistent compliance is the statutory route to having the requirement lifted.
Where Does it Apply?
This is a statewide California requirement administered by the California Department of Tax and Fee Administration under the Sales and Use Tax Law. It applies to sellers anywhere in the state, and the amount is fixed by the department within the statutory ceilings of section 6701 — up to twice the estimated average quarterly liability or three times the estimated average monthly liability, capped at $50,000, with higher multipliers (three times quarterly or five times monthly, same $50,000 cap) for permit holders in revocation or suspension situations.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Have your CDTFA security notice handy — it states the amount the department has fixed for your account, and the bond must be written to match. Complete the short application, review the documents, and pay online; your executed bond is ready to deliver to the CDTFA.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and this page cites the CDTFA's own published law guide for section 6701 in the Official Sources section below, so you can read the exact security rules on the department's website. When you are ready, the fully online purchase gets your bond to the CDTFA without slowing down your permit.
Official Sources
The requirements described on this page are verified against the official sources below.
- CDTFA authority to require security; statutory ceilings (2x quarterly / 3x monthly average liability or $50,000, higher multipliers in revocation cases); three-year compliance release rule: California Revenue & Taxation Code §6701 (CDTFA Sales and Use Tax Law guide) (verified July 16, 2026)