Alcohol / Liquor Bond Definition

When you start your liquor business, you’ll be required to obtain an alcohol tax bond by the state or federal government. It is a prerequisite for participating in the sale, manufacturing and warehousing of alcohol. So what exactly is the alcohol bond?

The alcohol bond, also known as a liquor bond, is a type of tax bond that guarantees the payment of taxes on all transactions with liquor. Thus it protects the authority requiring it, in case you are unable to pay collected taxes or you keep fraudulent records.

In practical terms, it is a three-party contract between your liquor business as the principal, the state or federal government as the obligee, and the surety as the underwriter of the bond.

Unlike other surety bonds, the alcohol tax bond acts as a financial guarantee, which is a type of bond often avoided by sureties. The reason is that financial guarantee bonds involve a higher level of risk, since they entail financial reimbursement rather than full performance of services or abiding by certain laws and regulations. However, in the case of a liquor bond, the state is the obligee and taxes are usually collected and stored separately, which reduces the risk of fraud.

In case you still transgress the rules of tax collection on liquor, a claim can be made on your bond. If a discrepancy is proven, the surety will cover the expenses up to the penal sum of the bond. Afterwards you will need to fully reimburse the underwriter, however. It makes sense to collect and pay your liquor taxes diligently, as bond claims can be of great financial and reputational harm to your business.

You can apply for your liquor bond from the table below or continue reading the sections that follow for more information.

Find the Bond You Need

The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".

Alabama Selling Alcoholic, Spirituous, Vinous or Fermented Jefferson County Dept. of Revenue Apply Now
Alabama Alcohol Ordinance Tax of Fee Bond (Priceville, AL) City of Priceville Apply Now
Federal Government Distilled Spirits Department of the Treasury Alcohol and Tobacco Apply Now
Federal Government Brewer's Bond Alcohol and Tobacco Tax and Trade Bureau Apply Now
Federal Government Brewer's Collateral Bond Dept of Treasury Alcohol and TTB Apply Now
Federal Government Wine TTB Apply Now
Georgia Malt Beverage License Georia Department of Revenue Apply Now
Georgia Winery Manufacturer, Broker, Importer Georgia Department of Revenue, Alcohol and Tobacco Apply Now
Georgia Liquor Manufacturer Distillery Tax Bond Georgia Dept. of Revenue Apply Now
Georgia Wholesale and/or Retail Liquor Bond (Macon-Bibb, G Macon-Bibb County Apply Now
Georgia Malt Beverage Wholesalers Tax Bond Georgia Department of Revenue Apply Now
Georgia Retailers and Consumption Performance and Tax Georgia Dept. of Revenue Alcohol & tobacco Tax Uni Apply Now
Georgia Retailer's Malt Beverage and/or Wine Bond (Macon-B Macon-Bibb County Apply Now
Georgia Manufacturers Distilled Spirits License Performanc GEORGIA DEPARTMENT OF REVENUE ALCOHOL & TOBACCO Apply Now
Georgia Importers Distilled Spirits License Performance an Georgia Dept of Revenue, Alcohol & Tobacco Divisio Apply Now
Georgia Brokers Distilled Spirits Performance and Tax Liab Georgia Dept of Revenue Apply Now
Georgia Liquor Broker Tax Bond Georgia Dept of Revenue Apply Now
Georgia Liquour Wholesalers Tax Bond Georgia Department of Revenue Apply Now
Illinois Financial Responsibility Bond ILLINOIS DEPARTMENT OF REVENUE Apply Now
Indiana Alcohol Beverage Indiana Alcoholic Beverage Commission Apply Now
Iowa Commerical Liquor License Iowa Alcohlic Beverages division Apply Now
Kansas Liquor Drink Tax Bond Department of Revenue, Customer Relations, Miscell Apply Now
Kansas Liquor Licenses Bond Department of Revenue - Alcoholic Beverage Control Apply Now
Local Government Alcohol Beverage Control Surety Alcoholic Beverage Control Division Permit Dept Apply Now
Local Government Liquor License Tax Bond City Of Huntsville, Alabama Apply Now
Local Government Alcohol Ordinance Tax or Fee City of Aliceville Apply Now
Local Government City of Oglesby, IL Liquor License Bond City of Oglesby Apply Now
Local Government Alcohol License Tax Bond (City of Decatur) City of Decatur, Alabama Apply Now
Maryland Beer (Non Resident or Resident Dealer Bond State of Maryland Apply Now
Maryland Direct Wine Shipper Bond Comptroller of MD - Revenie Administration Div. Apply Now
Maryland Wine and Liquor Bond Comptroller of MD - MATT Reg. Division A&T Apply Now
Massachusetts Bond for Liquor License Commonwealth of Massachusetts ABCC Apply Now
Massachusetts Brewer's Nat'l Revenue Ctr - Alcohol/Tobacco Tax Bureau Apply Now
Michigan MLCC Non-Retail License Michigan Liquor Control Commission Apply Now
Michigan Retailer or Applicant for Retail License Bond MLCC - MICHIGAN LIQUOR CONTROL COMMISSION Apply Now
Michigan Special License for Sale of Beer, Wine, and Spirit MI Department of Licensing and Regulatory Affairs Apply Now
Minnesota Alochol & Gambling Enforcement direcor Manufactors Department of Public Safety Alcohol and Gambling E Apply Now
Mississippi Alcohol (Retailers) Bond Alcoholic Beverage Control Div. of the Tax Comm. Apply Now
Mississippi Brewer's Bond Mississippi Department of Revenue Apply Now
Missouri Corporate Bond (Intoxicating Liquor, Wine & 5% Bee Director of Revenue Apply Now
Nebraska Alcoholic Liquor Tax Bond Nebraska Liquor Control Commission Apply Now
Nevada Liquor Excise Tax Bond Dept of Taxation Apply Now
New Jersey Beverage Tax Bond NJ Dept of Treasury Apply Now
New Jersey Beverage Tax Bond Dept. of Treasury, Beverage Tax Branch Apply Now
New York New York Alcoholic Beverage Control State Liquor Authority Apply Now
New York Alcohol (Retailers) Bond Apply Now
Oklahoma Alcoholic Beverage Tax Oklahoma Tax Commission Apply Now
Oklahoma Mixed Beverage Gross Receipts Tax Bond OK Tax Commission Apply Now
Oregon Liquor Control Commission Licensee Oregon Liquor Control Commission Apply Now
Oregon Liquor Control Commission Licensee's Bond Oregon Liquor Control Commission Apply Now
Pennsylvania Malt and Brewed Beverage Bond Dept of Revenue, Bureau of Business Trust Fund Tax Apply Now
Rhode Island Alcohol Beverage Bond State of Rhode Island Dept. of Business Regulation Apply Now
Tennessee Warehousmen, Dealers, Wholesalers, Manufacturers o Department of Revenue Apply Now
Tennessee Sale of Alcoholic Beverages For Consumption On Pre State of Tennessee ABC Apply Now
Tennessee Sale of Alcoholic Beverages For Consumption On Pre State Tennessee Apply Now
Tennessee License For Consumption On Premises Department of Revenue State of Tennessee Apply Now
Tennessee Alcohol (All Others) Bond Department of Revenue Apply Now
Texas Liquor Tax Texas Alcoholic Beverage Commission Apply Now
Texas Grain Warehouse Schedule D- Operator Bond Texas Department of Agriculture Apply Now
Texas Contract/Alternating Resident and Non Resident Bre Texas Alcoholic Beverage Commission Apply Now
Texas Gross Receipts Tax Bond Texas Comptroller of Public Accounts Apply Now
Texas Sales Tax Bond Texas Comptroller of Public Accounts Apply Now
Texas Conduct Surety Bond Texas Alcoholic Beverage Commission Apply Now
Texas TABC - Performance Texas Alcoholic Beverage Commission Apply Now
Texas Tax Bond Texas Alcoholic Beverage Commission Apply Now
Utah Restaurant Liquor Utah Department Of Alcoholic Beverage Control Apply Now
Utah Limited Restaurant UT Dept of Alcoholic beverage Control Apply Now
Utah Liquor Warehousing Bond Utah Department of Alcoholic Beverage Control Apply Now
Utah On Premise Beer Dept. of Alcohol Beverage Control Apply Now
Vermont Agent to Sell Spirituous Liquors Bond Vermont Dept of Liquor Control Apply Now
Virginia Malt Beverage Manufacturer, Bottler or Wholesaler Department of Alcohol Beverage Control Apply Now
Virginia Wholesale Wine Distributor's Bond (Individual or P Department of Alcohol Beverage Control Apply Now
Virginia Wholesale Wine Distributor Bond (Corporation Form) Department of Alcohol Beverage Apply Now
West Virginia Permit Carrier Bond (WVABCA) WV Department of Revenue Apply Now
West Virginia Non-Intoxicating Beer Alcohol Beverage Control Administration Apply Now
West Virginia Alcohol Beverage Control Alcohol Beverage Control Administration Apply Now
Wisconsin Alcohol Bond Department of Revenue- Excise Tax Section 6-107 Apply Now

Liquor Bond Cost

The cost of your alcohol tax bond will largely depend on the state or government authority requiring the guarantee. The bonding amounts may be somewhere between $2,500 and $7,500, but in some cases they may differ, as they are set by the relevant obligee.

As with other types of bonding, you’ll have to pay only a percentage of the required bonding amount. Thus, if you qualify for the standard market, you’re likely to pay a premium between 1% and 5%.

You can’t control the required bonding amount, but there are ways to lower the percentage you’ll have to pay from it. One of the most important factors that sureties consider when they examine your application is your credit score. That’s why it’s a good idea to try to improve your financial profile. Showing proof of your liquidity and assets is another way to present your business in the best light and get a lower bond premium.

It’s also important to carefully choose your surety underwriter. Bryant Surety Bonds works with multiple A-rated, T-listed surety companies, which allows us to shop around for the best bonding rate for your specific situation.

To get an estimate of your bond cost, you can use our surety bond cost calculator in the right sidebar or consult our surety bond cost page to see how the bond premium is calculated.

Bad Credit Program

If you have a lower credit score, tax liens, bankruptcies or civil judgments, you might have a harder time to get your liquor bond. Still, there are options to get bonded.

Our bad credit surety bond program is a really good one. We strive to give you the opportunity to get your alcohol tax bond and stay in business even if your financial situation is not so perfect. Getting bonded with bad credit means you’ll have to pay a bit more for your bond premium - in the range of 5%-17%. This is needed to compensate for the higher risk involved in the underwriting. However, our bonding experts will examine your specific situation and will offer you the best solution for your case.

Get Your Alcohol Bond Today

It’s easy to start your bonding process today. You can apply online to get a free, no-obligation quote in minutes. If you need more information, don’t hesitate to call us at (866)-450-3412. You can get help and receive answers by our bonding experts, so that getting bonded involves no hassle for you.

Alcohol Tax (Retailers)

Department of the Treasury

  • Bond: Brewers Bond
  • Obligee: Department of the Treasury: Alcohol and Tobacco Tax and Trade Bureau (TTB)
  • Form: OMB 1513-0015
  • Amount: Set by Obligee

Georgia

  • Bond: Retailers and Consumption on Premises Liquor License Performance and Tax Liability Bond
  • Obligee:Georgia Department of Revenue: Alcohol and Tobacco DivisionPO Box 49512 Atlanta, GA 30359-1512
  • Form: ATT-59 (BOND FORM REQUIRES A 12/31 EXPIRATION DATE)
  • Amount: $2,500

Iowa

  • Bond: Beer Permit Bond, Wine Permit Bond
  • Obligee:Department of Commerce: Alcoholic Beverages Division1918 S.E. Hulsizer Ankeny, Iowa 50021
  • Form:
  • Amount: $5,000

Kansas

  • Bond: Kansas Liquor Drink Tax Surety Bond
  • Obligee:Kansas Department of Revenue: Customer Relations – Miscellaneous Segment915 SW Harrison St. Topeka, Kansas 66625-5000
  • Form: LD-400
  • Amount: Set by Obligee

Mississippi

  • Bond: Surety Bond (generic form)
  • Obligee: State of Mississippi Department of Revenue: Alcoholic Beverage Control
  • Form:
  • Amount: Set by Obligee

New Jersey

  • Bond: New Jersey Beverage Tax Bond
  • Obligee:NJ Department of the Treasury, Division of Taxation: Beverage Tax License UnitCN-252 Trenton, New Jersey 08646
  • Form: B-7-1800
  • Amount: Set by Obligee

Texas

  • Bond: Texas Continuous Bond-Mixed Beverage Gross Receipts Tax
  • Obligee:Texas Comptroller of Public AccountsAustin, Texas
  • Form: 67-102 (BOND FORM REQUIRES A 12/31 EXPIRATION DATE)
  • Amount: Set by Obligee

Utah

  • Bond: Limited Restaurant Bond
  • Obligee:Utah Department of Alcoholic Beverage Control1625 s 900 W PO Box 30408 Salt Lake City, UT 84130-0408
  • Form:
  • Amount: $5,000