California Alcoholic Beverage Tax Bond

Get the right information you need about this surety bond below!

What is a California Alcoholic Beverage Tax Bond?

This bond is needed to ensure the payment of the per-gallon excise tax that will be collected due to sale, distribution, or importation of alcoholic beverages within the State of California.

You need this surety bond if you’ve applied or will apply to the California Department of Alcoholic Beverage Control for a license as a:

  • Craft distiller
  • Customs Broker
  • Distilled spirits manufacturer's agent
  • Importer (Beer and Wine; Beer and Wine Importer’s General, Brandy, and Distilled Spirits)
  • Industrial alcohol dealer
  • Manufacturer (Beer, Small Beer, Brandy, and Distilled Spirits)
  • On-sale general brew pub
  • On-Sale general for airplanes
  • On-Sale general for trains
  • Rectifier
  • Wholesaler (Distilled Spirits, Brandy)
  • Wine blender
  • Wine direct shipper
  • Winegrower

This bond is also required of common carriers or persons who will transport alcoholic beverages into California.

As part of the bond’s conditions, the applicant is required to comply with Part 14 of Division 2 of the Revenue and Taxation Code, Chapter 2 of Title 14 of Part 2 of the Code of Civil Procedure, and other relevant laws, rules, and regulations.

This bond must be submitted to the California Department of Tax and Fee Administration (CDTFA) along with the rest of the registration requirements.

How does a California Alcoholic Beverage Tax Bond work?

There are three parties to this bond:

Principal – the CDTFA registrant

Obligee – People of the State of California

Surety – surety bond provider

The Principal is the party who will obtain this bond and the one who is responsible for fulfilling the bond’s conditions while the Obligee is the party who’s requiring the bond. The Surety will provide the necessary support to the Principal by guaranteeing the Principal’s performance to the Obligee.

If a default occurs, the Surety will make sure that the Obligee will be able to recover its losses by filing a claim against this bond. The Surety will have to investigate if the claim is covered by the bond before any payment is made. The Principal will then have to reimburse the Surety for all the payments made by the latter to the Obligee.

How much does an Alcoholic Beverage Tax Bond cost?

The bond cost or bond premium will vary per applicant. This will depend on the applicant’s credit score.

If the applicant has a good credit score, he or she will be able to pay as little as 1% of the bond amount.

The bond amount will be determined by the California Department of Tax and Fee Administration.

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How can I get a California Alcoholic Beverage Tax Bond?

SEND US A BOND APPLICATION – We begin the bonding process with an application. You may send your application for this bond HERE!

UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:

  • Proof of your financial capability
  • Your business’ history
  • Your credit score

In order to avoid any delay, make sure that your requirements are complete prior to submitting them.

ISSUANCE – You will be asked to sign an indemnity agreement as soon as the underwriter has completed the necessary in-depth check. After that, your bond will be issued and sent to you!

Need this bond ASAP? APPLY NOW!

California Alcoholic Beverage Tax Bond

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