Texas Alcohol Beverage Commission (TABC) Bonds
Texas Alcohol Beverage or Conduct (TABC) Bonds Information
Various bonds required by the TABC that govern tax payments, business conduct, and performance for those operating in the alcoholic beverage industry.
Businesses engaged in the sale, manufacture, distribution and warehousing of alcoholic beverages in the state of Texas may be subject to various bond requirements. The surety bonds are governed by the Texas Alcoholic Beverage Commission (TABC) and include; Fee Interest Bonds for Contract/Alternating Resident and Non-Resident Brewers and Manufacturers, Conduct Bonds, Liquor Tax Bonds, Tax Bonds, and Performance Bonds. In addition to TABC Bonds, certain permittees may also need to furnish Mixed Beverage Bonds to the Texas Comptroller.
How Much Does an Alcohol Beverage Bonds Cost in Texas?
Most Common Bonds
What does an Alcohol Beverage Bonds Protect Against?
Fee Interest Bonds for Contract/Alternating Resident and Non-Resident Brewers and Manufacturers
A Texas Fee Interest Bond guarantees professional business conduct as defined by the Texas Alcoholic Beverage Commission (TABC). In the event that the principal violates TABC rules and regulations, a claim can be made for damages incurred by a third party.
The Fee Interest surety bond amount (penalty) is $30,000 and the bond is required by those who hold a brewer’s permit, non-resident brewer’s permit , manufacturer’s license, or non-resident manufacturer’s license.
A Conduct Bond is a permit surety bond required to guarantee professional conduct. The bonded principal shall comply with state laws relating to alcoholic beverages, and commission rules as defined by the Texas Alcoholic Beverage Commission (TABC). Bonds are typically required for the following types of permits and licenses; mixed beverage permits, private club permits, beer retailer’s license, wine and beer retailer’s permit, and package store permits.
The bond amount is $5,000 or $10,000, depending on the businesses proximity to a public school. In the event that third party damages result from non-compliance by the bonded principal, a claim may be filed against the bond. The bonded principal agrees to indemnify the surety company for any losses paid. The surety can cancel the bond with 30 days written notice provided to the TABC.
Conduct bonds are required for the following permit types: Mixed Beverage Permit (MB) Private Club Registration Permit (N) Private Club for Beer and Wine Permit (NB) Private Club Exemption Certificate Permit (NE) Wine and Beer Retailer's Permit-Excursion Boat (V) Wine and Beer Retailer's Permit-Railway Car (Y) Wine and Beer Retailer's Permit (BG) Retail Dealer's On Premise License (BE), Package Store Permit (P) Wine Only Package Store Permit (Q) and Wine & Beer Retailer's Off Premise Permit (BQ).
Liquor Tax Bonds
A liquor tax bond is required by permit holders to guarantee payment of all applicable taxes, permit fees, service fees, and penalties mandated by the Texas Alcoholic Beverage Commission (TABC). Non-payment of these financial obligations by constitutes a violation of the surety bond. Any resulting damages paid by the surety company are the ultimate financial responsibility of the bond principal.
The liquor tax bond amount (penalty) is calculated by the TASB based on an estimate of recent liquor sales and subject to a minimum of $1,000. The TASB reserves the right to assess bond requirements and increase them as needed. A liquor tax bond is required by brewer, wholesaler, wine bottler, and winery permit holders.
Tax Bonds are required by Texas permit holders to ensure proper business conduct consistent with the rules and guidelines established by the Texas Alcoholic Beverage Commission (TABC). The bond is required for those holding the following licenses or permits; brewpub, branch distributor, general distributor, local distributor, manufacturer, or non-resident manufacturer.
The bond amount (penalty) is calculated by the TASB based on the amount of beer sold in a 30-day period and subject to a $500 minimum. The TASB reserves the right to reassess bond amounts periodically.
Performance Bonds are required by Texas permit holders to ensure conduct in accordance with requirements defined by the Texas Alcoholic Beverage Commission (TABC). These bonds are required by wine and beer retailers in certain counties and under certain conditions as specified by the TABC.