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Liquor Tax Bonds

This bond is required by the government to ensure that the bond principal will pay all taxes brought in as a result of alcoholic beverage sales. In common with the terms of other bond types, the government (known here as the obligee) can claim against the bond if such funds are not paid by the bond holder (the principal). This may also occur if incorrect records are kept of alcohol sales.

The current market

Liquor tax bonds are a type of financial guarantee. While the industry as a whole is not keen on writing such bonds, this particular type is not included in that group. You should find it quite easy to get such a bond underwritten for you. Surety companies accept that in most cases people put money aside to pay such taxes, and so the risk incurred is low. The fact that the government is the party requiring the bond also reduces the level of risk associated with liquor tax bonds.

Does your agency have a special program available for liquor tax bonds?

Yes, we can cater for those principals who cannot qualify for their liquor tax bond under standard circumstances. Please contact us for a quotation if you are deemed to be of high risk.

 
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  Fantastic experience. I will use you again next year! Thanks for the quick turn-around, couldn't be happier.

~James H, MI