The surety bond premium of the tax collector shall be paid by whom?

• A. Municipality
• B. State
• C. Taxpayers
• D. Federal government

Answer: (A)

A surety bond for a tax collector is a protection for the government against losses from improper handling of public funds. The cost to obtain that protection—the premium—is treated as a government expense, not a personal charge on the official or on taxpayers. For a local tax collector, the municipality is responsible because the bond protects the local government and the public it serves. The state or federal government would cover bond costs only for their own employees, and taxpayers are not directly billed for the municipal bond premium.