What is a Texas Mixed Beverage Bond?
Understand the what, how, and who of these bonds!
The Tax Code of Texas requires all permittees – persons who are given a permit - who are in the business of selling and preparing mixed beverages, ice, and non-alcoholic beverages to procure a surety bond to ensure that the proper taxes will be paid. Private Club permittees are required to furnish this bond as well.
There are two kinds of Mixed Beverage Tax Bonds that you, the permittee, will have to obtain. One is for Gross Receipts Tax, and the other is for Sales Tax.
Mixed Beverage Gross Receipts Tax Bond vs. Mixed Beverage Sales Tax Bonds
The Mixed Beverage Gross Receipts Tax Bond is the percentage of the total revenue of the aforementioned mixed beverage activities that will be paid by the business owner to the state. It has a tax rate of 6.7%. The permittee may include in the sales receipt the following:
- An additional line showing the mixed beverage gross receipts tax that will be paid by the permittee will be incorporated in the sales price
- An additional line showing the combined amount of the mixed beverage gross receipts tax and the mixed beverage sales tax
On the other hand, the Mixed Beverage Sales Tax Bond is the percentage of the mixed beverage sold, prepared, or served that is added to the price of the products, and paid by the customer. The tax rate is 8.25%. The permittee may include in the sales receipt the following:
- An additional line showing the mixed beverage sales tax that will be paid by the customer will be included in the sales price
- An additional line showing some mixed beverage sales tax
- An additional line showing the combined amount of the mixed beverage gross receipts tax and the mixed beverage sales tax
- An additional line showing the combined amount of the taxes on all items
The bond amount is determined by the comptroller. However, it will not be more than $100,000, or four times the permittee’s monthly tax liability, whichever is greater.
MIXED BEVERAGE TAX BOND AMOUNT
|
PERMIT TYPE |
MIXED BEVERAGE
GROSS RECEIPT TAX BOND
|
MIXED BEVERAGE
SALES TAX BOND
|
| Mixed Beverage | $3,750 to $100,000 | $3,750 to $100,000 |
| Private Club | $2,250 to $100,000 | $2,250 to $100,000 |
| Private Club Exemption | $1,500 to $100,000 | $1,500 to $100,000 |
How can I get both bonds?
You must seek the assistance and guidance of a reliable surety bond company that is authorized to conduct business in Texas such as Surety Bond Authority.
Before we give you the necessary bonds that you need, we will require a couple of valuable information from you first. This will be needed during the prequalification process in which an underwriter will do a thorough check on your financial history, business history, and credit score.
Once qualified, the bonds are yours!
Call us today to learn more!