Alcohol Sales Tax Bond (State Bond)

What is an Alcohol Sales Tax Bond

An alcohol sales tax bond is a financial guarantee ensuring that a business that produce, store, or sell alcohol (beer, wine, liquor, etc.) will pay all applicable sales taxes by a deadline subject to state requirements.

This type of bond is purchased by any merchants that produce, store, or sell alcohol per requirements by the state in which they operate

If you are looking for the federal TTB bond, please refer to this page: federal TTB alcohol bond

Who Need a Alcohol Sales Tax Bond

Many businesses across the US are required to obtain an alcohol sales tax bond in order to operate legally, depending on your state regulations.

Typically, you may need an alcohol sales tax bond if you produce, store or sell any type of alcohol products. The following types of business may need alcohol sales tax bond:

Restaurant that sells beer, liquor, wine, and other types of alcohol products
Bars
Alcohol storing facilities
Alcohol production facilities

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Types of Alcohol Sales Tax Bond

There are many different kinds of alcohol sales tax bonds, but below are the most common types:

Wine
Beer
Liquor

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How does an Alcohol Sales Tax Bond Work?

An alcohol sales tax is a financial guarantee with three parties:

The principal of the bond is the alcohol business owner purchasing the bond
The obligee is the local or state government requiring the bond
The surety is the insurance company backing up the bond with a financial guarantee

Alcohol sales tax bond is used as a protection for the obligee in case your alcohol business does not pay sales taxes by the deadline set by the government. In this case, the obligee can make a claim against the bond and the surety company will pay the obligee. However, ultimately, the principal (the alcohol business) is still liable to recover the claim amount to the surety company

How Much Does Alcohol Sales Tax Bond Cost?

The cost of alcohol sales tax bond is a fraction of the total bond amount. Therefore, the exact cost depends on two factors, the bond amount and your credit score and financial strength

The bond amount is typically determined by your annual state sales tax liability and the state where your business operates. Before you start the bonding process, we recommend you to consult with the appropriate government authority that requested a sales tax bond from you.

Your credit score and financial strength will affect the premium as a % of the total bond amount. The better your credit score and financial situation, the lower the premium %.

How to Get an Alcohol Sales Tax Bond

You can get started now by filling out a 2-minute form and you can receive your bond within a day. Alternatively, you can call us at (512) 856-7739 and get started with your bonding process.

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