Who needs a Medical Marijuana Surety Bond in the municipality of Anchorage?
Anyone who wishes to sell marijuana or marijuana-based products in the municipality of Anchorage must register with the treasury department. A surety bond is required as a financial guarantee before the certificate of registration can be granted to the business.
What is the purpose of an Anchorage Municipality Medical Marijuana Surety Bond?
These surety bonds ensure that retailers fulfill their tax obligations, in accordance with Anchorage Ordinance 2016-49 and the Chapter 12.50 of the Anchorage Municipal Code, as well as all additionally applicable laws and regulations. This requirement coincides with the municipality’s 2016 ruling of a 5% sales tax on cannabis and its derivative products. These surety bonds protect the municipality in the event that a retailer fails to satisfy their financial obligations.
This surety bond provides compensation to the municipality if the licensed cannabis business (principal) fails to pay all retail marijuana sales taxes. If the municipality files a claim against the bond and it is found to be valid, the surety company will pay out up to the penal sum of the bond to resolve the claim. The principal must reimburse any monies paid out by the surety, including attorney’s fees.
How much are Anchorage Municipality Medical Marijuana Surety Bonds written for?
The penalty amount for an Anchorage Municipality Medical Marijuana Surety Bond varies. The issued amount of this bond is determined by the Chief Fiscal Officer and is representative of the average annual sales tax collection of the retailer, comparable peers, industry averages or a standard $10,000. Please contact the treasury department for the exact bond amount you will require.
How much does an Anchorage Municipality Medical Marijuana Surety Bond cost?
Pricing for Anchorage Municipality Medical Marijuana Surety Bonds will differ from applicant to applicant. An underwriter will review your application, and your premium will be based on a number of different factors including:
• Amount of the bond
• Personal credit of the applicant
Individuals with good credit can expect to pay between 1% and 5% of the bond amount. This means qualified applicants could pay as little as $100 annually for a $10,000 Anchorage Municipality Medical Marijuana Bond. To find out how much your Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get an Anchorage Municipality Medical Marijuana Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Anchorage Municipality Medical Marijuana Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-15% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I get a quote for a Anchorage Municipality Medical Marijuana Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
ADDITIONAL RESOURCES
- Municipality of Anchorage – Marijuana Retail Sales Tax Page
- Application for a Certificate of Registration Retail Sales Tax on Marijuana and Marijuana Products
- Renewal Application for a Certificate of Registration Retail Sales Tax on Marijuana and Marijuana Products
- Municipality of Anchorage Tax Liability Bond
- Anchorage Municipal Code 12.50