Parking Tax Collection Bond - City of San Francisco, CA in California

Brief Summary

Most San Francisco parking operators get the bond amount wrong because it is set per location by that station's annual gross receipts, from $20,000 up to $800,000. Look up each lot on the City's bond table, bond each one at the right tier, and the Certificate of Authority goes through without a request for a corrected bond.

San Francisco requires every parking operator to post a Parking Tax Collection Bond for each parking station before the Treasurer and Tax Collector issues a Certificate of Authority to collect the 25 percent parking tax, under Article 6, Section 6.6-1 of the Business and Tax Regulations Code. The amount is tiered by the station's annual gross receipts, from $20,000 to $800,000. Operators with $40,000 or less a year in parking revenue may qualify as Small Operators and need no bond.

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How to Apply for a Parking Tax Collection Bond:

• Check whether annual parking revenue is $40,000 or less and the station qualifies as a Small Operator.
• Find each station's annual gross receipts and its bond amount on the City's Bond Table.
• Have the surety complete the City's Parking Tax Collection Bond template for each location.
• Use the same legal name on the bond as on the Business Registration Certificate and Declaration of Responsibility.
• Attach the original bond to the Certificate of Authority initial or renewal application.
• Raise the bond by April 1 if the prior year's receipts move the station into a higher tier.

Detailed Information About the California Parking Tax Collection Bond:

Start with the Small Operator exemption

The Treasurer and Tax Collector says an operator that receives $40,000 or less per year in parking revenue may qualify as a Small Operator. Small Operators do not need a Certificate of Authority or a parking bond and file parking tax once a year by January 31. The 2010 amendment to Section 6.6-1 also says the bond requirement does not apply to an applicant that is a governmental entity. Everyone else posts a bond for each parking location.

Bond amount by station

The bond is figured per parking station using that station's annual gross receipts. The City's current Bond Table sets these amounts.

• Less than $100,000: $20,000
• $100,000 to $250,000: $50,000
• $250,000.01 to $500,000: $100,000
• $500,000.01 to $750,000: $150,000
• $750,000.01 to $1,000,000: $200,000
• Above $1,000,000 the bond rises $50,000 for each additional $250,000 of receipts, reaching $800,000 at $3,750,000.01 to $4,000,000
• $4,000,000.01 and greater: $800,000

The Tax Collector may set a station's gross receipts independently and assign the bond tier from that figure. If receipts grow enough at year end to require a larger bond, the operator must post the higher bond by the following April 1. If receipts fall, the operator may ask for a reduction.

Reduced bond option

The 2026 renewal application lets established operators request a reduced bond under Section 6.6-1(i). You must have been a registered San Francisco parking operator for at least 3 years, held a valid Certificate of Authority for your lots, filed a monthly return every month for every location and never received a parking tax deficiency determination. Approval is at the Tax Collector's discretion and is rescinded automatically if a deficiency is later issued.

The bond form

The City publishes its own Parking Tax Collection Bond template for the surety to complete. It runs to the City and County of San Francisco, covers the 25 percent parking tax under Article 9 and the revenue control equipment rules under Article 22, and is continuous for the calendar year stated. The surety may cancel on 30 days written notice. Deficiency determinations against the operator are also issued against the surety, up to the face of the bond. The name on the bond must match the legal name on the Business Registration Certificate and the Declaration of Responsibility, and the original bond is attached to the Certificate of Authority application.

How premium is set

The surety looks at the operator's credit, financial statements and tax filing history along with the bond amount. Larger stations carry larger bonds and closer underwriting.

Eligibility and Requirements for a California Parking Tax Collection Bond:

• One bond per parking location.
• Bond amount matching the station's tier on the City Bond Table.
• City and County of San Francisco as obligee on the City's bond template.
• Surety licensed to transact surety business in California.
• Current San Francisco Business Registration Certificate.
• Certificate of Authority renewed each year with a bond in force for the year.

California Parking Tax Collection Bond FAQs:

Official and Additional Resources for the California Parking Tax Collection Bond: