What is a Minnesota Liquor Manufacturer or Wholesaler Bond?
All manufacturers and wholesaler licensees or license applicants of the following alcoholic beverages in the State of Minnesota are required to post and maintain a surety bond:
- Intoxicating liquor
- 2 percent malt liquor
- Wine with up to 25 percent alcohol by weight
- Beer with more than 3.2 percent alcohol by weight
- Manufacturers and wholesalers of less than 20,000 proof gallons
- Manufacturers and wholesalers of 20,000 to 40,000 proof gallons
The surety bond is mandated by the Division of Alcohol and Gambling Enforcement of the Minnesota Department of Public Safety by § 340A.301 of the Minnesota Statutes.
The purpose of the bond is to ensure that the manufacturer or wholesaler licensee will lawfully fulfill his or her duties.
What is the bond amount?
The bond amount varies. It will depend on your type of alcohol license. See the chart below for the types of licenses and the corresponding bond amount:
Those who have excellent credit scores may qualify for a very low bond premium!
Find out what you need to pay by getting your FREE quote here!
What are the Alcohol Tax bond conditions?
- The surety bond should be issued by a corporate surety who is authorized to conduct business in the State of Minnesota such as Surety Bond Authority
- The surety bond should be approved by the Minnesota Commissioner of Public Safety
- The surety bond should be made payable to the State of Minnesota
- The licensee/license applicant is obligated to comply with all the provisions of § 340A of the Minnesota Statutes, the rules and regulations of the Division of Alcohol and Gambling Enforcement of the Minnesota Department of Public Safety, and all the other applicable rules
- If the licensee commits a valid violation, the aggrieved party will be eligible to file a claim on the bond
How can I obtain this bond?
To secure this type of bond, the licensee or license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate your financial strength, job/business performance history, and your credit score.
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Ready to apply? Call us now!