Mixed Beverage Gross Receipts Tax Bond is a surety bond required by the State Comptroller’s office for all businesses holding a new Mixed Beverage liquor license bond issued by the Alcoholic Beverage Commission.
For example in Texas, TABC issues a new Mixed Beverage liquor license, the State Comptroller will send a letter to the business requesting that a “Continuous” Mixed Beverage Gross Receipts Tax Bond be posted to insure the State against non-payment of liquor taxes up to an amount of $7,500.
This type of a bond is generally considered a high risk bond because of the high rate of default by new businesses holding a Mixed Beverage liquor license and the fact that there are fewer surety companies investing in this field. Consequently, the cost of the bond can vary greatly depending on the business owner’s credit rating and typically ranges 10% to 20% of the face value of the bond.
The term “continuous” means that the bond is automatically renewed at the end of the first year for one additional year at no additional charge for a total term of two years, after which if a good tax payment history has been established by the business then it may become exempt from having to post another bond
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What is A Mixed Beverage Permit Bond?
A Mixed Beverage Permit bond, certificate of deposit or letter of credit is required of all new applicants acquiring a Mixed Beverage Permit in Texas. While required under the Texas Alcoholic Beverage Code, it is actually filed with the office of the State Comptroller of Public Accounts. The bond or financial guarantee covers:
- A minimum statutory limit of $7,500 and protects the state against the non payment of the 14% Gross Receipts Tax that is paid on the alcoholic beverage sales of these permits
- The amount of the bond or financial guarantee can be raised to an amount that represents two times the amount of tax paid in within any 30 day period by the permittee
It is required for the first two years of operations of the permittee and will be released after that period as long as taxes and reports have been received on a timely basis.
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Get a free quote for a Mixed Beverage Tax Bond or call one of our agents for any questions or how to apply for a mixed beverage tax bond.