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
How much does getting bonded cost?
The surety bond price that you have to pay depends on the bond amount that you have to obtain. Your state authorities will determine the exact bond requirement that you have to meet.
In the case of Oklahoma mixed beverage sellers, the bond amount should be less than three times of your average gross tax receipts liability for one quarter, or less than your quarterly gross tax receipts liability.
As for Texas, if you want a mixed beverage permit, your bond can be between $3,750 and $100,000. If you need a private club permit, the bond amount can be between $2,250 and $100,000.
To get bonded, however, you do not need to cover the whole amount. You just have to pay a bond premium. It is a small percentage of the bond amount. If your finances are stable, you can expect bond rates in the range of 1% and 5%.
Besides the required bond amount, your bond cost is also formulated on the basis of on your personal and business finances. When you apply with a surety, it has to consider your personal credit score, company financials, and any liquidity and assets that you showcase. In this way, it can measure the level of risk associated with bonding you. Your bond price will be lower the more stable your profile is.
Need more information about the way your bond cost is set? Make sure to read through our surety bond cost page.
Can I get a bond with bad credit?
Yes, it is possible to get bonded even if your finances are problematic. At Lance Surety Bonds, we run our Bad Credit Surety Bonds program to help businesses with financial issues such as low credit scores, tax liens, bankruptcies, and civil judgements.
For sales tax bonds, the bad credit rates are in the range of 15%-17%. The higher price compensates for the increased risk in getting you bonded. Since we have close partnerships with numerous A-rated, T-listed surety companies, we can still shop around for you and offer you a great bond price.
How do I get bonded?
Whether you need a sales tax or a gross receipts bond, you can apply online today for a free, no-obligations quote. Your exact bond price is available once you submit your full application and paperwork.
Do you want to learn more about the way bonding works? Just consult our How to Get Bonded page for further details.
Need help with the process or your application? Just call us at (877) 514-5146. Lance Surety Bonds’ experts are here to help you.