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NOTE: Effective November 21, 2019, non-retail liquor licensees are no longer required to have a surety bond associated with them pursuant to Public Act 131 of 2019. Please see our Michigan page for more information regarding surety bonds that are currently required in the state.
How much does a $1,000 liquor tax bond cost in Michigan?
A liquor tax bond in Michigan costs just $100 with no underwriting required.
Why do I need this bond?
The Michigan Department of Licensing and Regulatory Affairs, Michigan Liquor Control Commission requires non-retail liquor license surety bonds in the greater amount of $1,000 or 1/12 of the total liquor taxes paid to the state during the last year.
All persons engaged in the manufacturing, warehousing, or wholesaling of alcoholic beverages in Michigan are required to post a Michigan non-retail liquor license surety bond. Under the conditions of this bond, the licensee must pay all taxes and fees on all liquors handled on time and in full.
What’s the fine print?
This bond is continuous until canceled. In the event of cancellation or termination, 30 days’ notice prior to the cancellation date is required of the surety. The license must be renewed every year by May 1.
The principal’s (liquor manufacturer’s, storer’s, or wholesaler’s) name on the bond must exactly as it appears on the license application. The bond must be effective on or before the date the license is issued.