Mississippi contractor tax riders.
From $100.

A tax rider is an endorsement on the performance and payment bond you already carry on a Mississippi contract. Filed with the Department of Revenue on Form 72-440, it makes that bond also guarantee the sales, use, income, franchise, withholding and special fuel taxes on the job. 1% of the bond amount, $100 minimum.

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Accepted by the Mississippi Department of Revenue in place of a job bond (72-441) or blanket bond (72-442)

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Rides on your performance and payment bond — public or private contract, with a copy of that bond on file with DOR

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The application collects no credit information — if a check ever runs, it’s a soft pull that won’t affect your score

From $1001% of the bond amountSoft pull onlynever a hard inquiryInstantissued the moment you pay

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How it works

Apply to filed in one sitting.

No underwriting queue for a standard contractor tax rider — enter the bond amount, pay, and file with the Department of Revenue alongside your performance and payment bond. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount, the effective date, the contract date, and the project name and description — so the rider points at the right contract and the right bond.

INSTANTLY

Issued on the spot

The application collects no credit information. If a check ever runs on a larger amount, it is a soft pull that never affects your score.

SAME DAY

File with the Department of Revenue

Submit the executed rider (Form 72-440) to the Mississippi Department of Revenue with a copy of the performance and/or payment bond it is executed for. DOR wants the bonding company’s original seal and a legible agent signature, so wet-ink originals are mailed whenever the Department insists.

About this bond

What it is and who needs it.

What a contractor tax rider actually does

Mississippi levies a 3.5% contractor’s tax on non-residential construction contracts over $10,000, and the Department of Revenue wants that tax — and the other taxes the job generates — guaranteed before work begins. Its guide for construction contractors says the prime contractor on a non-residential contract over $75,000, taxable under Section 27-65-21 of the Sales Tax Law, must furnish a bond guaranteeing the sales, use, income, franchise, withholding, and other motor fuel (diesel) taxes due on the contract, or prepay the sales and use tax. A contractor without a physical location in Mississippi must bond or prepay on any contract over $10,000.

There are three ways to post that guarantee. A job bond (Form 72-441) covers one contract; a blanket bond (Form 72-442) covers every contract outstanding at once. The third is this one: a tax rider (Form 72-440), an endorsement that extends a performance and/or payment bond you already have on the contract so it also guarantees the taxes. The Department’s rule accepts it “in lieu of a job or blanket bond,” provided a copy of the performance and/or payment bond for which the rider is executed is on file with the Department, and its guide says that bond may be on a public or private contract.

A rider carries no amount of its own. The Department’s guide is explicit: no limitation — contract amount, tax amount, or anything else — may appear on the face of the rider, and a rider that states one will not be accepted. That is why the carrier prices it on the bond it rides on: enter the penal sum of that performance and payment bond and the premium is 1% of it, $100 minimum.

It is not insurance for you. The rider guarantees the contract’s taxes to the Department of Revenue, and as with any surety bond, a surety that pays looks to you for repayment. And if the performance surety ever steps in to complete a defaulted contract, the Department’s rules make that surety liable for the taxes its own completion work generates.

Miss. Admin. Code Title 35, Part IV, Subpart 10, Ch. 01, Rule 603 · DOR Form 72-440The Mississippi Department of Revenue’s Guide for Construction Contractors states: “A Tax Rider, Form 72-440, with a copy of a performance and/or payment bond for either public or private construction contracts is acceptable.” It adds that “no limitation (contract amount, tax amount, etc.) should be included on the face of either the tax rider, the job bond or power of attorney,” and that any rider carrying such an amount will not be accepted. Miss. Admin. Code Title 35, Part IV, Subpart 10, Chapter 01, Rule 603 provides that, in lieu of a job or blanket bond, a tax rider may be accepted when a copy of the performance and/or payment bond for which it is executed is on file with the Department; Rule 601 requires a bond on taxable contracts over $75,000 performed in the state, and on any taxable contract over $10,000 for a person without a permanent place of business in Mississippi, unless the tax is prepaid. The guide ties the requirement to contracts taxable under Miss. Code §27-65-21 and requires a legible agent signature and the bonding company’s original seal.

You need this rider if you are

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A prime contractor with a P&P bond on a taxable, non-residential Mississippi contract over $75,000

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Without a Mississippi location on a taxable contract over $10,000, and would rather not prepay the tax

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Choosing a rider over a separate bond — one endorsement instead of a 72-441 job bond or 72-442 blanket bond

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Applying for a Material Purchase Certificate and need the contract taxes guaranteed before work begins

After you buy

Claims, renewal, filing, and what sets the price.

If a claim is made

A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.

The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.

Renewal and term

The premium covers a one-year term from the effective date you choose.

Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.

How to file it

File with the Department of Revenue. Submit the executed rider (Form 72-440) to the Mississippi Department of Revenue with a copy of the performance and/or payment bond it is executed for. DOR wants the bonding company’s original seal and a legible agent signature, so wet-ink originals are mailed whenever the Department insists.

What sets the price

The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.

One application, issued on the spot.

Submit the application with the penal sum of the performance and payment bond the rider attaches to and the contract it covers — the executed rider is generated instantly, ready to file.

Start the application →

FAQ

Common questions.

What amount should I enter?The penal sum of the performance and/or payment bond the rider attaches to. The rider itself states no amount on its face — the Department of Revenue will not accept one that does — so the carrier prices it on the bond it rides on: 1% of the amount you enter, with a $100 minimum.

What does the rider guarantee?That the sales, use, income, franchise, withholding, and special (diesel) fuel taxes due on the contract get paid. It extends your performance and payment bond to cover those taxes, so the Department of Revenue can recover against it if they go unpaid — and if the surety pays, you repay the surety.

Rider, job bond, or blanket bond — which do I need?Any one of the three satisfies the Department. Choose the rider if you already have a performance and/or payment bond on the contract and want that same bond to carry the tax guarantee. Without one, file a job bond (Form 72-441) for a single contract or a blanket bond (Form 72-442) for every contract outstanding at once.

Where do I file it?With the Mississippi Department of Revenue, on Form 72-440. The Department accepts the rider only when a copy of the performance and/or payment bond it is executed for is on file with it, so send that copy along. The rider needs a legible agent signature and the bonding company’s original seal; wet-ink originals are mailed when the Department requires them.

Do I pay the full bond amount?No. You pay the premium — 1% of the bond amount you enter, with a $100 minimum — not the bond amount itself. The application collects no credit information; if a check ever runs, it’s a soft pull that won’t affect your score.

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 Mississippi bonds.

Contractor tax rider, issued today.

Pricing from $100. Enter the amount of the bond the rider attaches to and file with the Department of Revenue the same day. Free until issued.

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Mississippi contractor tax riders.From $100.