Alcohol Tax Bond

Alcohol and liquor tax bonds are essentially the same things. Depending on the state requiring the bond, you will hear both terminologies used. These bonds are required by state obligees, and each state that might require the bond has a bond penalty (amount) that they will require. It is important to know the bond penalty of which you are being required.

Generally, these bonds are required of any company that has applied for a license to sell alcoholic beverages for consumption on the premises. Alcohol and liquor tax bonds hold the principal (bond holder) responsible for paying all taxes, fees, and other charges required by the state. These bonds serve to place the liability on the surety and principal so that the state is not held under this liability.

Depending on the state in which the bond is required, alcohol or liquor tax bonds can be considered continuous until cancelled, or they may require a continuation certificate. If a certificate is required, we will issue one upon receipt of the renewal payment. This certificate will be sent to the principal. It is then the responsibility of the principal to make sure that this certificate reaches the obligee as required.