Tennessee Alcohol Tax Bond

What is a liquor tax bond?

The state of Tennessee requires professionals who sell alcoholic beverages for consumption on specific premises to post a $10,000 surety bond. If you plan on selling wine only, you will need a $2,000 surety bond. If you plan on being an alcoholic beverage wholesaler or distributor, you will need a $75,000 surety bond.

Tennessee tax bonds for sale of alcohol on the premises ensure that principals (licensed sellers of alcohol) adhere to the provisions of the Tennessee Code Annotated, Section 57-4-101. This specific bond also protects the State of Tennessee by ensuring that the principal will properly pay all state taxes, sales taxes, interest and penalties that are connected with selling alcoholic beverages for consumption on the premises.

The Tennessee alcohol tax bond form can be used for multiple bonds. You can use this form if you need a full liquor bond, wine-only bond, beer manufacturers or wholesalers bond, alcoholic beverages tax bond, tobacco affixing agent bond, or a tobacco manufacturer’s warehouse bond. If you need a tobacco bond, visit our Tennessee Tobacco Tax Stamp Affixing Agent Bond page.

How to get a Liquor-by-the-drink tax bond

To get your alcohol tax bond, you must fill out the Tennessee tax bond form with all of the necessary information. The company’s FEIN and county must be listed on the bond form. The signature of whoever signs the bond on behalf of the company must be notarized. Tennessee tax bonds for sale of alcohol on the premises are continuous until canceled, and the surety company must provide written notice of the bond’s cancellation to the Commission at least 60 days in advance.

How to get a Liquor License in Tennessee

The state of Tennessee requires Liquor-by-the-drink licensing, meaning depending on what beverages you intend on serving and what type of business you run, the licensing process will differ. To get a liquor license in Tennessee, follow these steps:

1. Determine what type of license you will need. Follow the links below for requirements and restrictions for each type:

   • Restaurant

   • Special Occasion

   • Hotel & Motel

   • Wine Only Restaurant

   • Airline, Boat, & Train

   • Caterer

   • Club

   • Limited Service Restaurant

   • Festival License

2. Apply for your license through the Regulatory Licensing and Permitting System.

3. The building and business will be inspected by the Tennessee Alcoholic Beverage Commission. The documentation you will need to provide includes:

   • Lease or deed

   • Health Inspection

   • Zoning Approval

   • Final Use & Occupancy

   • Food Menu

   • Surety Bond

   • Price Schedule of Drinks

4. Pay all necessary fees. Fees can be paid online through RLPS or by check. Fees differ depending on your business. For a list of fee amounts, visit the Alcoholic Beverage Commission Fees page.

Liquor-by-the-drink licenses, also known as On-premise consumption licenses, need to be renewed on a yearly basis. The renewal date will be printed on the license, and inspections will need to be completed yearly as well. Renewals can be made through the RLPS website. For all other questions on licensing, visit the Tennesee Alcoholic Beverage Commission FAQ page.

Additional Resources

Tax Bond For Licensee For Sale Of Alcoholic Beverages For Consumption On The Premises

Department of Revenue Liquor-by-the-drink Tax

Tennessee Department Of Revenue Application For Registration

Report of Gross Sales, Alcoholic Beverages for Consumption on Premises - For Periods 11/1/15 and After

Price Schedule for Sales of Alcoholic Beverages for Consumption on Premises