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Georgia subcontractor sales & use tax bonds.
From $100.

A subcontractor can post a sales and use tax bond with the Georgia Department of Revenue under O.C.G.A. 48-8-63 so the prime contractor releases payments in full instead of withholding tax. The amount runs $5,000 to $50,000; the premium is 2% of the bond amount, with a $100 minimum, confirmed via a soft credit check that never affects your score.

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Authorized under O.C.G.A. 48-8-63 — posted with the DOR Sales and Use Tax Division
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Lets the prime release your payments instead of withholding tax — that is the point of the bond
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A quick soft credit check may apply — never a hard inquiry, no impact on your score, and the premium is 2% of the bond amount, $100 minimum
2% + $100 minpriced by your bond amountSoft pullnever a hard inquiryInstantissued the moment you pay
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
How it works

Three steps to filed.

Your payments are waiting on this bond. Here's the whole process — no broker phone tag:

TODAY · ONLINE

Apply once, online

Your business details and the bond amount the Commissioner set. The only extra step is a one-time consent to a soft credit pull.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.

WHEN YOU PAY

File with the DOR

Pay online and receive the executed bond, ready to file with the Department of Revenue so the prime contractor can release your payments. Wet-ink originals mailed on request.

About this bond

What it is and who needs it.

What the subcontractor bond covers

On a Georgia construction job, a prime or general contractor may have to withhold a portion of a subcontractor's payments as security for the sub's sales and use tax. Under O.C.G.A. 48-8-63, the sub can avoid that withholding by posting a sales and use tax bond directly with the Commissioner.

The bond is in an amount not less than $5,000 nor more than $50,000, as the Commissioner determines from the subcontractor's projected yearly gross receipts, conditioned that all sales and use taxes are paid when due. The annual bond runs the calendar year and expires December 31.

If the tax goes unpaid, the state recovers against the bond — and if the surety pays, you repay the surety. We issue the amount the Commissioner set from $100, with a soft credit check that never affects your score.

O.C.G.A. 48-8-63Under O.C.G.A. 48-8-63 a subcontractor may post a surety bond with the Commissioner — not less than $5,000 nor more than $50,000, as determined from projected yearly gross receipts — conditioned that all sales and use taxes are paid when due, so the prime contractor need not withhold the sub's payments. The annual bond expires December 31. Confirm your amount and bond form with the Department of Revenue.

You need this bond if you are

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A subcontractor whose prime would otherwise withhold sales-and-use tax from your payments
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Wanting full payment released rather than having tax held back
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Registering with the DOR for a calendar-year sales-and-use-tax bond
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Renewing for a new year after your prior bond expired December 31

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.

Start the application →
FAQ

Common questions.

How much is the Georgia subcontractor sales and use tax bond?The premium is 2% of your bond amount, with a $100 minimum. The bond amount itself runs $5,000 to $50,000 as the Commissioner determines from your projected gross receipts. Enter your figure at the application and your exact price appears.
Why post this bond?So the prime or general contractor does not have to withhold part of your payments as security for your sales and use tax. With the bond on file under O.C.G.A. 48-8-63, your payments can be released in full.
Is there a credit check?A quick soft credit check may apply — never a hard inquiry, no impact on your score. It's the only extra step beyond the application; the premium itself is 2% of your bond amount, with a $100 minimum.
When does it expire?The annual bond covers a calendar year and expires December 31. If you still need coverage the following year, a new bond is filed — we send renewal notices ahead of the deadline.
How is this different from the performance tax bond?The nonresident contractor performance tax bond (O.C.G.A. 48-13-32) covers all state and local taxes on a contract over $10,000 and is a condition of starting work. This sales-and-use-tax bond (O.C.G.A. 48-8-63) specifically backs your sales and use tax so the prime need not withhold your payments.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
Related bonds

Other Georgia bonds.

GA Nonresident Subcontractor Sales & Use Tax
The $5k–$50k sales-and-use-tax bond filed with the DOR. 2% of the bond amount, $100 minimum.
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GA Nonresident Contractor Tax
The Department of Revenue performance/tax bond for out-of-state contractors. From $100.
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GA Registered Producer Tax Liability ($10,000)
The $10,000 Alcohol & Tobacco Division tax-liability bond. $100 flat.
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GA Motor Carriers C.O.D. ($5,000)
The $5,000 household-goods C.O.D. delivery bond. $100 flat.
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Stop the withholding. Post the bond today.

Pricing from $100, soft pull only. Free until issued.

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Your premiumfrom $100
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