Texas Alcohol Tax Bond
Businesses involved with the Texas alcohol industry may need a special type of surety bond known as a Texas mixed beverage bond (also called an alcohol tax bond).
What is a Texas Mixed Beverage Bond?
This surety bond holds the bond holder accountable if they fail to pay their mixed beverage tax bill to Texas state officials. When that happens, those officials may file a claim against the bond seeking a settlement equal to the unpaid tax bill.
How does a Mixed Beverage Tax Bond in Texas work?
When the surety agency that issues and backs the bond receives a valid claim, it guarantees payment in full. Essentially, the surety covers the unpaid tax bill. The bond holder must then pay the surety back the full settlement amount plus interest and fees. It will always be cheaper for the bond holder to pay the tax bill rather than letting it lead to a claim against the surety bond.
What is the purpose of a Texas Mixed Beverage Bond?
This surety bond helps the State of Texas regulate the alcohol industry by holding anyone accountable who doesn't pay their tax bill. Tax payments fund important state services. They're also an important part of a level playing field since every business has to pay taxes.
Who needs a Bond for Texas Mixed Beverage sales tax?
Businesses engaged with the production, sale, or distribution of alcoholic beverages in Texas, to any degree, may need one of these surety bonds. If you're unsure whether the bond for Texas mixed beverage sales tax applies to your business, contact Viking Bond Service to find out.
Who are the parties involved in a Mixed Beverage Tax Bond in Texas?
All surety bond agreements involve three parties:
- Principal - The bond holder. Also the party that is financially responsible for claims.
- Obligee - The state of Texas. The obligee has the right to file claims against the bond.
- Surety - The party bonds the principal and settles claims to the obligee. The principal must reimburse the surety for any claims settled.
How to get a Texas Mixed Beverage Bond?
Getting a surety bond starts by submitting an application, agreeing to a credit check, and supplying a copy of the bond requirements. Additional documentation may also be necessary. Underwriters at the surety will use this information to calculate a premium price. The bond activates once the premium is paid, and it must be renewed every 12 months.
How Much Does a Mixed Beverage Tax Bond Cost in Texas
Texas determines how large the bond must be, meaning the maximum amount the surety agency agrees to pay out to settle claims on the principal's behalf. The surety determines the cost of the surety bond based on the applicant's credit score and financial history. Expect to pay a small percentage of the bond's total size. People with bad credit will pay a higher percentage. However, thanks to a special program run by Viking Bond Service, people with bad credit won't necessarily be denied the Texas alcohol tax bond they need to run their business.
Why you should get your Texas Mixed Beverage Tax Bond from Viking Bond Service
Bond requirements are a small but important part of running a business. Make sure you check this box with the help of a trusted surety agency serving business owners all across the Lone Star State. Viking Bond Service has resources to make bonding easy from beginning to end and affordable for more applicants. Rely on us for all your surety bond needs.
Request a Quote Today
What would a Texas alcohol tax bond cost you? Request a quote to find out. It costs you nothing and obligates you to nothing either. If you need more information, our team has answers. Contact us or call 1-888-278-7389.
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