What is a New Jersey Beverage Tax Bond?
Learn about the importance of this surety bond today!
It is a requirement needed for the issuance of the following licenses:
Class A – Manufacturer’s license
Class B – Wholesaler’s license
Class C – Retailer’s license
Class D – Transportation license
Class E – Public warehouse license
Each license applicant should file a sufficient surety bond to the Director of the Division of Taxation of the State of New Jersey along with the license application.
The surety bond is set in place to ensure that the licensee will legitimately conduct business, and fulfill its obligations to the state which includes promptly paying for the necessary taxes.
Since absolute compliance cannot be guaranteed, the surety bond will also serve as a safety net in case the licensee defaults on its legal duties, such as reneging on tax payment.
When this happens, the Obligee of the surety bond will have the right to file for a claim to recuperate the unpaid tax amount.
This requirement is in pursuance of Section 33:1-17 of the New Jersey Revised Statutes.
What is the Beverage Tax Bond amount?
The bond amount will be determined by the Director of the Division of Taxation of the State of New Jersey.
The bond amount will not be more than 3 times the tax on the greatest amount of alcoholic beverages handled during a bimonthly period of the previous 12-month period by the licensee.
$1,000 – minimum bond amount
$1,000,000 – maximum bond amount
If you have determined your bond amount, you may check your bond premium by getting your FREE QUOTE HERE from us!
How can I get a Beverage Tax Bond?
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An expert underwriter will take a thorough look at all those.
STEP 3: Bond execution
Once the underwriter is done with the prequalification process, we will immediately issue the bond and send it to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of New Jersey
- The surety bond should be made payable to the State of New Jersey
- The licensee should comply with the provisions of Title 33 of the New Jersey Revised Statutes, as well as the rules and regulations of the Division of Taxation of the State of New Jersey
- In case of a violation, the aggrieved party will be eligible to file a claim on the surety bond
- In case of cancellation, a 30-day notice is required
Ready to apply? START HERE!