- Required by the state or Federal goverment
- Considered a financial guarantee bond
- Guarantees that the seller pays taxes on the sale
- Known as: Alcohol Tax bond, Liquor Tax Bond
An Alcohol tax or liquor bond is required by the government to participate in the sale, manufacturing, or warehousing of liquor. The bond protects the government in the event that the principal is maintaining fraudulent records or is unable to pay on previously collected funds. State governments typically require this bond, which is considered a financial guarantee.
Though as a rule the surety bond industry tends to shy away from writing financial guarantee bonds, the liquor tax bond seams to be the exception for those who qualify. There are two main reasons for this exception:
First, taxes are typically held aside at the time of sale therefore lowering risk, and second, this bond is required by the state, which also helps in elevating the risk in the eyes of the bonding company (as opposed to financial guarantees to the private sector).
A Bad Credit Surety Bond program is available for liquor bonds allowing us to offer standard, middle and high risk markets. If you have poor credit, or are just starting out and have no credit, please apply for this program.
Alcohol Tax (Retailers)