Mixed Beverage Sales Tax and Gross Receipts Bonds

What Are Mixed Beverage Sales Tax and Gross Receipts Bonds?

In some states, producers and sellers of mixed alcoholic beverages need to post surety bonds, so that they are given an alcohol permit. The commonly used bonds in these cases are the mixed beverage sales tax bond and the mixed beverage gross receipts bond.

The purpose of these sales tax bonds is to ensure that when mixed beverages are sold, the seller will pay all taxes legally due to the state. For mixed beverages sales tax bonds, this means full payment of taxes on all sales. As for gross receipts tax bonds, the obligation is to pay to state authorities all collected gross receipts tax from customers purchasing mixed beverages.

The bonds guarantee that relevant authorities will be able to collect incurred taxes. In case of non-compliance by mixed beverage sellers, the bonds can serve to reimburse the permit-issuing body.

The two types of mixed beverage bonds work similarly to other surety bonds. They represent a contractual agreement between three entities. Your business which wants to sell mixed beverages is the principal, and the state authority that requires the bonds is the obligee. The third party is the surety, which provides the bonds.

Texas mixed beverage sales tax and gross receipts bonds

Producers and sellers of mixed beverages in Texas have to get both a sales tax bond and a gross receipts bond. Some types of businesses that may need to get bonded to obtain a permit are private clubs, caterers, distillers, and rectifiers. The bonds guarantee that they will pay all incurred taxes, interests, and penalties related to selling of mixed beverages as set in the Texas Tax Code.

They have to present the bonds to the Texas Comptroller of Public Accounts. The sales tax for mixed beverages in Texas is 8.25% and is imposed on all conducted sales of mixed beverages. The bond should be presented in the required bond form. The gross receipt tax is 6.7%, and is included in the beverages’ price to be paid by consumers.. Both bonds have to be renewed every year before December 31st.

Oklahoma mixed beverage gross receipts tax bond

If you want to sell mixed beverages in Oklahoma, you will need to post a bond as well. The mixed beverage gross receipts tax bond has to be presented to the state Tax Commission prior to engaging in sales. It is required by the Oklahoma Tax Law. Licensees have to use the official bond form.

Questions about Mixed Beverage Sales Tax Bond