What is a Mixed Beverage Sales 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.
A mixed beverage sales tax bond is a kind of surety bond that pays sales taxes for people who sell mixed beverages in the event they fail to pay them on their own. It’s common for state and local governments to ask those who provide goods and services to purchase bonds to ensure the government either gets the service they pay for or the money they’re owed through taxes. By requiring those who sell mixed beverages to get this bond, the government helps ensure they get the taxes the business owes — even if they’re unable to pay them.
How Does a Mixed Beverage Sales Tax Bond Work?
There are three parties that make a mixed beverage sales tax bond work: the obligee, which, in this case, is the Texas Controller of Public Accounts; the principal, which is the entity who has to obtain the bond; and the surety, which refers to the company that provides the bond.
The obligee, or the Texas Controller of Public Accounts, requires the bond to be paid before someone is granted a mixed beverage permit. If that person doesn’t pay their sales taxes, the surety company pays it on their behalf.
Who Needs a Mixed Beverage Sales Tax Bond?
Anyone who wants to sell mixed beverages needs to get a mixed beverage sales tax bond. The bond is required before a business is granted a mixed beverages license.
More Information
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.
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 Do You Get a Mixed Beverage Sales Tax Bond?
To purchase the bond, simply fill out our quote form. We will then be able to obtain the best approval rate for you, same day. You will be emailed your approval with purchase instructions through our site. The bond will then be emailed to you to print, sign, and ready to submit to the state. The amount your bond will cover will be based on your average monthly sales tax liability, so you should have an estimate of that ready as well. Majority of the time it is $3,750 for new ventures but it can vary if the bond is required due to delinquency.
To get started:
- 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!
Bond Purchase Process
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Frequently Asked Questions
For most bonds, you can get instantly approved and print bonds at your home or office. However, we do not offer instant approvals for a select number of bonds, as the underwriting process generally involves a more extensive review of the applicant.
There are hundreds of different bonds for all kinds of purposes—but regardless the industry or project—they all operate essentially the same way. A surety bond guarantees that you will operate professionally and if you break the rules, a claim can be made on your bond which you’re responsible to pay.
You must fulfill the terms of the bond obligations, which vary immensely depending on bond type. Where you obtain your surety bond is important when it comes to understanding claims and avoiding them entirely. If you have any questions about what your bond does or doesn’t guarantee, reach out to our experts to help guide you along the way.
Looking to Get Started or Have Questions?
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!