Mixed Beverage Gross Receipts Tax Bond
What is a Mixed Beverage Gross Receipts Tax Bond?
The Texas Alcoholic Beverage Commission (TABC) requires businesses that sell mixed beverages to acquire two types of tax bonds:
- 6.7% Gross Receipts Tax: A tax that mixed beverage businesses must pay on their total gross receipts (revenue) of mixed beverages.
- 8.25% Sales Tax: A tax that business owners must pay. Most businesses will pass this tax on to their customers in the form of increased prices.
Businesses must acquire these two bonds in addition to the conduct surety bond the TABC requires.
How Mixed Beverage Gross Receipts and Sales Tax Bonds Work
Texas requires mixed beverage business operators to go through the bonding process to protect their tax stake.
If a business fails to pay the gross receipts or sales tax, the Texas state government can file a claim against the business via its gross receipts and sales tax bonds.
The surety company will then evaluate the claim and pay it if the state makes a valid argument.
If this occurs, the surety will pursue the principal for the full value of the claim.
Successful claims may also result in increased annual bonding fees.
The most successful mixed beverage business owners will avoid successful gross receipts or sales tax claims by the state by keeping proper track of revenue and expenses.
Pricing & Terms
Since 2014, Texas has required mixed beverage businesses to acquire a gross receipts bond for an amount between $3,750 and $100,000 (or four times the business’s monthly average tax liability, whichever is greater). Majority of the time the $3,750 amount is required.Â
Texas requires this same amount of bonding for the sales tax bond.
The cost of these bonds depends on several factors, including:
- The personal credit report and history of the business owner
- Previous successful claims by the state of Texas against either gross receipts or sales tax obligations
- The experience level of the operator
Texas may periodically change these bonding requirements.
Prices start at $175 for the full year, depending on credit strength. You can also opt to purchase a two-year bond term at a discounted price.
How to Purchase a Mixed Beverage Gross Receipts Tax Bond
- Click the Buy Now button.
- Fill out the easy bond form.
- Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
- Pay for your bond.
If you chose to have your documents emailed, you will receive them within minutes.
It’s that simple and fast!
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