Alcohol Tax Bond
Bonds for alcohol related taxes (also Mixed Beverage (Gross Receipts/Sales) Tax, Liquor Tax, Alcoholic Beverage Tax) are a type of financial guarantee surety bond and are typically required by an individual state or local governmental entity to guarantee payment of any taxes due or that may become due from the sale, manufacturing, and/or distribution of alcoholic beverages including beer and wine. There are also Federal requirements depending on the type of business and operations. The U.S. Department of Treasury regulates the Federal permits through the Alcohol and Tobacco Tax Trade Bureau (TTB).
The bond amount will be set by the Obligee (TTB, State, City, Town, etc.) that is requiring the bond. Some States have minimum amounts required, or they may calculate the bond required based on the anticipated taxes due for any stated period. Usually tax bonds are either required for every applicant applying for a permit or based on a disciplinary basis. For example, if the taxpayer pays their taxes on time and per the terms of their agreement with the Obligee, then the bond requirement may be reduced or removed. If the taxpayer is past due or has late payment history, the bond requirement may be increased and/or extended. Other Obligees may require the bond for the life of the permit regardless of payment history.
Many alcohol related bond requests are for $10,000.00 or less and are usually approved with just a quick credit check. We also have several markets that will offer approval on these bonds with no credit! All we need is an application completed with basic information. The cost for bonds $10,000.00 and under will usually qualify for a minimum premium ranging from $150.00 to $500.00 annually.
Bond Amount over $10,000.00? No Problem! We have programs for those too! Like most tax bonds, as the bond amount increases, so does the amount information needed to gain approval. Generally, bonds up to $25,000.00 can be approved with just a credit check and bonds over $25,000.00 will require financial statements to be reviewed. Rates start at 1-2% for preferred applicants with strong personal credit and financial statements (if required) but are often rated between 3-5% of the required bond limit. Non-standard rates are also available if necessary.
Call us at 1-888-518-8011 or apply online today!