Tax & Customs
Alcoholic Beverage Tax Bond
A bond that guarantees a brewer, distiller, winery, wholesaler, or retailer will pay the alcohol taxes it owes to the state or federal government.
- Required by
- State alcohol and revenue agencies (for example, the Florida Division of Alcoholic Beverages and Tobacco) and the federal TTB
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the taxing agency, such as a state alcohol or revenue department or the federal TTB, that the licensee will pay the alcohol excise or sales taxes due. If the licensee fails to pay, the agency can claim on the bond to recover the unpaid tax. The licensee must repay the surety for any claim paid.
Who needs it
- Alcohol manufacturers and distributors
- Breweries, wineries, and distilleries
- Retailers of beer and wine in states that require a bond for a sales tax license
What the underwriter looks at
- Expected monthly tax liability
- Owner's personal credit
- Business financial statements
- Tax payment history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much bond do I need?
It depends on the state, the license type, and your tax volume. In Florida, for example, the default for a manufacturer or distributor is $25,000 and the Division can lower it based on volume. Your licensing agency tells you the amount.
Do small breweries still need a federal bond?
Not always. Since 2017, a TTB permittee that owed less than $50,000 in excise tax the prior year and expects the same this year can apply to operate without a federal bond. State bonds may still apply.