A Mississippi sales tax bond is security the Mississippi Department of Revenue (DOR) can require before it issues a sales tax permit. Under Miss. Code Ann. § 27-65-27, the Commissioner shall require, of every person who wants to do business in the state but maintains no permanent place of business in Mississippi, and of every person who wants to engage in the business of making retail sales of mobile homes, “a cash bond or an approved surety bond in an amount sufficient to cover twice the estimated tax liability for a period of three (3) months.” The bond can in no case be less than $100. DOR can also require a bond from other applicants: its own guidance says that “depending upon the nature of the business, or past history of the applicant, a bond may be required to be posted before a permit is issued.” So this is not a bond every Mississippi retailer posts. It targets transient sellers without a fixed Mississippi location, mobile home dealers, and higher-risk applicants. You satisfy it with a surety bond (DOR Form 72-901), a cash bond (Form 72-900), or, if the Commissioner approves, by prepaying the tax in lieu of a bond.
| Item | Detail |
|---|---|
| Who requires it | The Mississippi Department of Revenue, through the Commissioner of Revenue, under Miss. Code Ann. § 27-65-27 |
| Who must post it | A person engaging in business in Mississippi who maintains no permanent place of business in the state; a person making retail sales of mobile homes; and any applicant DOR flags based on the nature of the business or the applicant’s past history. Established in-state retailers with a permanent location generally get a permit without a bond. |
| Governing law | Miss. Code Ann. § 27-65-27 (Sales Tax Law, Title 27, Chapter 65) |
| Official form | DOR Form 72-901, Sales Tax Surety Bond, or Form 72-900, Sales Tax Cash Bond |
| Bond amount | An amount sufficient to cover twice the estimated tax liability for a three-month period, and in no case less than $100 |
| Premium basis | [CLIENT FLAG: insert All n One premium structure, e.g. percentage of bond amount by credit tier] |
| Coverage term | Continuous. The bond stays in force until cancelled; no new liability accrues 60 days after the surety gives DOR written notice of cancellation |
| Obligee | The State of Mississippi. Claims under the bond are made by the Mississippi Department of Revenue |
How much is the bond, and how is the amount set?
Section 27-65-27 ties the bond to the tax the state expects you to collect, not to a flat schedule. The required amount is “sufficient to cover twice the estimated tax liability for a period of three (3) months,” with a floor of $100. In plain terms, DOR estimates the sales tax you would owe over three months of operating in Mississippi, then doubles it. A seller expected to owe $2,000 in sales tax over a three-month period would post a bond around $4,000; a smaller operation still cannot go below the $100 minimum.
| Situation | How the bond amount is set |
|---|---|
| Seller with no permanent Mississippi location (the standard 27-65-27 case) | Twice the estimated sales tax liability for a three-month period, minimum $100. DOR estimates the tax from your expected Mississippi sales. |
| Mobile home dealer | Same formula: twice the estimated three-month tax liability, minimum $100. |
| Applicant flagged for the nature of the business or past history | DOR may require a bond before issuing the permit. The statutory measure is the same twice-three-months figure; DOR sets the amount from the estimated liability. [VERIFY against Mississippi DOR (dor.ms.gov) Business Tax FAQ and § 27-65-27: confirm DOR applies the same twice-three-months calculation to discretionary/high-risk applicants rather than a separate figure.] |
| Established in-state retailer with a permanent location | Generally no bond. The business registers for a sales tax permit without posting security. |
| Prepayment in lieu of a bond | Section 27-65-27 lets the tax be prepaid in lieu of filing a bond if the amount is approved by the Commissioner. This is an alternative to bonding, not a change to the bond amount. |
Because the amount is estimated per applicant rather than fixed by statute, the exact dollar figure comes from DOR when you register. [VERIFY against Mississippi DOR (dor.ms.gov): confirm how DOR communicates the required bond amount to an applicant during TAP registration.]
What does the bond cover?
The bond guarantees that the state gets paid the Mississippi sales tax the bonded seller collects or owes. Form 72-901 binds the principal (the seller) and the surety to the State of Mississippi “for the payment when due of sales taxes, damages, interest and penalties which may accrue to the State of Mississippi under Miss. Code Ann. § 27-65-1 et seq.” If the seller collects sales tax from Mississippi customers and fails to remit it, or otherwise leaves unpaid tax, damages, interest, or penalties, the Department of Revenue can make a claim against the bond up to its full amount.
Key points about coverage:
- It protects the State of Mississippi and its tax collection, not your customers.
- It covers sales tax, damages, interest, and penalties that accrue while the bond is in force, up to the bond amount.
- Section 27-65-27 lets you satisfy the requirement with an approved surety bond (Form 72-901) or a cash bond (Form 72-900). A surety bond lets you avoid tying up cash with the state.
- The surety bond is continuous. Under Form 72-901, no new liability accrues 60 days after the surety gives DOR written notice that it wants to cancel, so coverage does not simply lapse on a fixed date.
- A bond is not a substitute for filing and paying your tax. You still file returns and remit tax; the bond is the state’s backstop if you do not.
How much does the bond cost?
You do not pay the full bond amount. You pay a premium, which is a small percentage of the bond amount and is set mainly by the bond size and your credit.
[CLIENT FLAG: insert All n One Insurance pricing for the Mississippi sales tax bond, e.g. premium rate range by credit tier and one worked example such as “a $X bond for $Y.” Do not publish a premium number until All n One provides it.]
Because § 27-65-27 sizes the bond to twice your estimated three-month Mississippi tax, your premium scales with the bond amount DOR requires. [CLIENT FLAG: confirm whether All n One quotes this bond on a flat fee or as a percentage of the bond amount.]
Is this the same as a sales tax permit?
No. The permit and the bond are two different things, and most sellers deal only with the permit.
- The Mississippi sales tax permit is what authorizes you to make taxable sales in the state. There is no fee to obtain it, and you register through the Taxpayer Access Point (TAP) at tap.dor.ms.gov. DOR mails a packet with your permit after you register.
- The Mississippi sales tax bond is the extra security that a seller without a permanent Mississippi location, a mobile home dealer, or a higher-risk applicant must post before DOR issues that permit. An established in-state retailer with a permanent location generally gets the permit without a bond.
This bond is also different from the Mississippi contractor’s tax job bond under Miss. Code Ann. § 27-65-21. That is a separate instrument tied to the 3.5% contractor’s tax on large construction contracts, not the sales tax permit. If you are a contractor looking for a bond on a specific job, that is a different requirement from the sales tax bond described on this page.
How do I get bonded and file for my Mississippi sales tax permit?
- Register for your Mississippi sales tax account through the Taxpayer Access Point (TAP) at tap.dor.ms.gov, or contact DOR. Indicate that you do not maintain a permanent Mississippi location, or that you sell mobile homes, if that applies to you.
- Find out the bond amount DOR requires. The statutory measure is twice your estimated sales tax liability for a three-month period, minimum $100. [VERIFY against Mississippi DOR (dor.ms.gov): confirm how and when DOR states the required bond amount to the applicant.]
- Get a surety bond quote. Apply with All n One Insurance for the required amount. Approval and premium depend mainly on the bond size and your credit.
- Receive and sign your bond. All n One issues DOR Form 72-901, the Sales Tax Surety Bond, naming the State of Mississippi as obligee, with the surety’s power of attorney attached.
- File the original bond with DOR. Per Form 72-901, the original bond and power of attorney must be mailed or delivered to your designated DOR district office (determined by the county where your business is located). Copies are not accepted. The bond must be on file before DOR issues the permit.
- Keep the bond in force. The surety bond is continuous, so there is no fixed renewal date; it stays in force until cancelled on 60 days’ written notice. Pay your premium when it is due to keep the bond active.
Frequently asked questions
Who has to post a Mississippi sales tax bond?
A person who wants to do business in Mississippi but maintains no permanent place of business in the state, and a person making retail sales of mobile homes, must post a bond under § 27-65-27. DOR can also require a bond from other applicants depending on the nature of the business or the applicant’s past history. Established in-state retailers with a permanent location generally register for a permit without this bond.
How does Mississippi decide how big my bond must be?
The bond must be sufficient to cover twice your estimated sales tax liability for a three-month period, and it can never be less than $100. DOR estimates the three-month tax from your expected Mississippi sales and doubles it.
Is being out of state what triggers the bond?
Not by itself. The trigger in § 27-65-27 is having no permanent place of business in Mississippi. An out-of-state company that operates a permanent Mississippi location is not caught by that clause, while a transient or temporary seller with no fixed Mississippi location is. Mobile home dealers and applicants DOR flags for risk can also be required to bond.
How long does the bond last?
The surety bond is continuous. It stays in force until it is cancelled, and no new liability accrues 60 days after the surety gives DOR written notice of cancellation. There is no fixed one-year term.
Can I post cash or prepay instead of a surety bond?
Yes. Section 27-65-27 allows a cash bond (Form 72-900) instead of a surety bond, and it lets you prepay the tax in lieu of filing a bond if the Commissioner approves the amount. A surety bond (Form 72-901) is usually preferred because it does not tie up your cash with the state.
Do established Mississippi retailers need this bond?
Generally no. The bond targets sellers without a permanent Mississippi location, mobile home dealers, and higher-risk applicants. A retailer with a permanent location in the state typically gets its sales tax permit without posting this bond.
Does the bond replace my sales tax or my permit?
No. You still register for a permit and file and pay your Mississippi sales tax. The bond is the state’s backstop if you collect tax and fail to remit it, or leave unpaid tax, damages, interest, or penalties.
Where do I file the bond?
The original Form 72-901 and the surety’s power of attorney are mailed or delivered to your designated DOR district office, which is set by the county where your business is located. Copies are not accepted, and the bond must be on file before DOR issues the permit.
What happens if there is a claim on my bond?
If you fail to remit the sales tax you owe, the Department of Revenue can claim against the bond up to its full amount for the tax, damages, interest, and penalties. You would then owe the surety back for what it pays out, which is why credit matters when you apply.
