Motor Vehicle Dealer Bond in Utah

What this bond requires in Utah

Utah Code § 41-3-205 requires every motor vehicle dealer, body shop, and crusher to file a corporate surety bond with the Motor Vehicle Enforcement Division on Form TC-450 before being licensed. Bond amounts are $75,000 for new or used motor vehicle dealers and special equipment dealers, $20,000 for body shops, and $10,000 for motorcycle, off-highway vehicle, or small trailer dealers and crushers. The surety must be licensed in Utah and rated at least B+ by A.M. Best. Operating without a current bond on file with MVED is illegal.

Who requires it

The motor vehicle dealer bond is required by the Utah State Tax Commission - Motor Vehicle Enforcement Division (MVED) under Utah Code Ann. § 41-3-205.

How to file in Utah

Applicants complete the MVED dealer application packet (Form TC-300) and file the executed corporate surety bond on Form TC-450 with the Motor Vehicle Enforcement Division, along with proof of an established place of business, zoning compliance, sales tax registration, fingerprints/background checks, and license fees. The original bond is delivered to MVED at 210 N 1950 W, Salt Lake City.

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FAQ

Common questions

Is a motor vehicle dealer bond required in Utah?

Yes. Utah requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $10,000 to $75,000.

How much is the bond in Utah?

The bond amount is $10,000 to $75,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Utah State Tax Commission - Motor Vehicle Enforcement Division (MVED).

How is the bond filed?

Applicants complete the MVED dealer application packet (Form TC-300) and file the executed corporate surety bond on Form TC-450 with the Motor Vehicle Enforcement Division, along with proof of an established place of business, zoning compliance, sales tax registration, fingerprints/background checks, and license fees. The original bond is delivered to MVED at 210 N 1950 W, Salt Lake City.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.