What is a Pennsylvania Malt and Brewed Beverage Bond?
Distributors, importers, manufacturers, and retailers of malt and brewed beverages must file a surety bond before being able to conduct business in Pennsylvania.
The Malt and Brewed Beverage Bond guarantee faithful compliance with state laws in the manufacture, sale, exchange, and distribution of malt and brewed beverages.
The bond also serves as a financial assurance that imposed state taxes upon the sale of malt beverages will be paid monthly in a full and timely manner.
Under the general provisions of the Malt Beverage Tax, Chapter 74, malt or brewed beverages are “alcoholic beverages, which include beer, lager beer, ale, porter or similarly fermented malt liquor, containing 0.5% or more of alcohol, by whatever name the liquors may be called.”
What is the bond amount?
The bond amount is not less than $5,000. The amount is equal to the highest two months’ average tax liability of the previous 12-month period.
The cost of the bond is a percentage of the bond amount. The cost typically ranges between 1% and 5% of the bond amount, which will serve as your bond premium.
How do I obtain a Malt and Brewed Beverage Bond?
To secure this type of bond, the professional fundraising applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. For an accurate estimate of your bond price, get a FREE quote HERE!
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 usually evaluate your credit score to gauge your bonding capacity. You may also get a copy of the BOND FORM, which can be obtained from the Pennsylvania Department of Revenue, Bureau of Business Trust Fund Taxes.
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
What are the bond conditions?
- The Surety must be authorized to transact business in the Commonwealth of Pennsylvania.
- The Principal (manufacturer or importing agents for foreign manufacturers) must be engaged in the manufacturing of malt or brewed beverages for sale.
- The Principal must be approved by the Pennsylvania Department of revenue to report and pay taxes on malt or brewed beverages in accordance with terms and provisions of the Malt Beverage Tax Law.
- If the Principal acts in accordance with the rules and regulations of the PA Department of Revenue and files timely reports and taxes, then the obligation will be void. Otherwise, it will remain in full force and effect.
- The Surety holds the right to cancel the bond upon giving 30 days delivery of the written request to the Department indicating the intent of cancellation.
Talk to us and let us get you bonded right away!