Savannah Precious Metal Dealer Bond: A Comprehensive Guide
February 1, 2023
This guide provides information for insurance agents to help their customers obtain a Savannah Precious Metal Dealer bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $10,000
- Who Needs it: All precious metal dealers operating in Savannah, Georgia
- Purpose: To protect the public from financial harm if the dealer engages in unethical business practices
- Who Regulates Precious Metal Dealers in Savannah: The Savannah Revenue Department
The City of Savannah requires all precious metal dealers operating in the city to obtain a business tax certificate, also known as a business license, with the Savannah Revenue Department before conducting business. The Savannah City Council enacted the certification requirement to ensure that precious metal dealers pay all required taxes and engage in ethical business practices. To provide financial security for the enforcement of the certification law, precious metal dealers must purchase and maintain a $10,000 surety bond to be eligible for a business tax certificate.
What is the Purpose of the Savannah Precious Metal Dealer Bond?
Savannah requires precious metal dealers to purchase a surety bond as part of the application process to obtain a business tax certificate. The bond ensures that the public will be protected from financial harm if the dealer fails to comply with the regulations set forth in Savannah Revenue Ordinance 35-28. Specifically, the bond protects the public in the event the dealer engages in any acts of fraud or breaches any consumer contracts. In short, the bond is a type of insurance that protects the public if the precious metal dealer engages in unethical business practices.
How Can an Insurance Agent Obtain a Savannah Precious Metal Dealer Surety Bond?
BondExchange makes obtaining a Savannah Precious Metal Dealer bond easy. Simply log in to your account and use our keyword search to find the “Precious Metal Dealer” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Savannah Precious Metal Dealer Bond?
No, a credit check is not required for the Savannah Precious Metal Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all dealers operating in the city, regardless of their credit history.
How Much Does the Savannah Precious Metal Dealer Bond Cost?
The Savannah Precious Metal Dealer bond costs just $100 per year.
Who is Required to Purchase the Bond?
Savannah requires precious metal dealers to purchase a surety bond as a prerequisite to obtaining a business tax certificate. To paraphrase Georgia Code 43-37-1, a precious metal dealer is a person who purchases precious metals or gems such as gold, silver, platinum, or palladium from the general public.
How do Precious Metal Dealers Apply for a Business Tax Certificate in Savannah?
Precious metal dealers in Savannah must navigate several steps to secure a business tax certification. Below are the general guidelines, but applicants should refer to the Revenue Department’s website for details on the process.
Certificate Term– All Savannah Business Tax Certifications expire on December 31st of each year and must be renewed before the expiration date.
Step 1 – Contact the Revenue Department
To obtain a business tax certificate, precious metal dealers must contact the Revenue Department. The department will walk them through the application process, provide them with all required forms, and answer any questions they may have. All applications will, at a minimum, require the following items:
- The dealer’s full name and business name
- Criminal conviction history
- An original surety bond
- State sales/use tax number
- Federal tax ID
Precious metal dealers are required to pay a $500 regulatory fee and all applicants will be subject to a background check by the Savannah Police Department.
Step 2 – Purchase a Surety Bond
Precious metal dealers in Savannah must purchase and maintain a $10,000 surety bond.
How do Savannah Precious Metal Dealers Renew Their Business Tax Certificates?
Precious metal dealers should contact the Revenue Department to obtain a renewal application. All Savannah Business Tax Certificates expire on December 31st of each year and should be renewed annually by March 1st. Renewal applications submitted after March 1st will be subject to late penalty fees.
What are the Insurance Requirements for Savannah Precious Metal Dealers?
Savannah does not require precious metal dealers to purchase any form of liability insurance as a prerequisite to obtaining a business tax certificate. Precious metal dealers must purchase and maintain a $10,000 surety bond.
How Do Savannah Precious Metal Dealers File Their Bonds?
Precious metal dealers should submit their completed bond forms, including the power of attorney, to the Revenue Department at the following address:
305 Fahm Street
Savannah, Georgia 31401
The surety bond requires signatures, including witness signatures, from both the surety company that issues the bond and from the dealer. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name
- Term year of the business tax certificate
- Date the bond goes into effect and signed
What Can Savannah Precious Metal Dealers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, precious metal dealers in Savannah must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
What Other Insurance Products Can Agents Offer Precious Metal Dealers in Savannah?
Savannah does not require precious metal dealers to purchase liability insurance as a prerequisite to obtaining a business tax certificate. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Savannah Precious Metal Dealer Customers?
Savannah unfortunately does not provide a public database of active precious metal dealers in the city. We suggest contacting the Revenue Department for this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.