Tennessee Alcohol Tax Bond Guide
Learn how alcohol permit and tax bonds work in Tennessee with this complete guide.
Quick Bond Facts
- Purpose: To ensure compliance with liquor licensing laws and guarantee payment of state alcohol taxes
- Who Needs It: Alcohol retailers, wholesalers, distributors and manufacturers in Tennessee
- Regulating Body: The Tennessee Alcoholic Beverage Commission
- Required Amount: $1,000–$75,000 depending on the bond type
- Premium Rates: Typically 1–10% of the total bond coverage amount
What Are Tennessee Alcohol Tax Bonds?
Tennessee alcohol tax bonds ensure that liquor licensees will properly pay all taxes associated with the distributing, manufacturing, selling, storing, or wholesaling of alcohol in Tennessee. These surety bonds protect consumers and the state by holding alcohol-related companies accountable for:
- Paying all taxes, interests, fines and fees owed to the state
- Following Tennessee Alcoholic Beverage Commission rules and regulations
- Complying with liquor licensing ordinances
The Tennessee DOR requires this bond to guarantee sales tax payments are made to the state for alcohol sales. The DOR enforces a separate Tennessee tobacco tax bond requirement to ensure tobacco tax payments are made to the state.
How Much Do Alcohol Tax Bonds Cost in Tennessee?
Tennessee alcohol tax bond costs start at $100 annually but vary depending on your license type and its required bond amount.
- The $75,000 alcoholic beverages tax bond starts at $593.
- Beer manufacturer bonds start at $120.
- Beer wholesaler bonds start at $240.
- On-premises liquor consumption bonds start at $120.
- Retail liquor license bonds are $100 for all applicants.
- Individual wholesaler alcoholic beverage tax bonds are $120 for all applicants.
- State business tax bonds start at $100 and vary based on the bond amount.
- Town of Arlington beer license bonds cost a flat rate of $100.
Select your bond below to start your purchase or application now.
SuretyBonds.com works with the top surety providers nationwide to provide the most affordable Tennessee alcohol tax bond rates with no added fees.
How Does a Tennessee Alcohol Tax Bond Work?
A Tennessee alcohol tax bond protects the state and the public by creating a legally-binding contract between three parties:
- Principal: The company or individual purchasing the bond
- Obligee: The state or local government department requiring the bond
- Surety: The provider issuing the alcohol tax bond
If the principal breaks the bond terms and creates damages, the obligee or consumers can file a claim for reimbursement. The surety will investigate and pay out valid claims, which the principal must eventually refund.
Who Needs an Alcohol Tax Bond in Tennessee?
Tennessee Code Annotated Section 57-4-302 requires individuals to file a surety bond to apply for a liquor license with the Tennessee Alcoholic Beverage Commission. Your required bond amount depends on your liquor license type:
- Retail liquor license bond: $1,000
- Wine and liquor consumption on premises bond: $10,000
- Individual or sole proprietorship wholesale alcoholic beverages tax bond: $10,000
- Beer wholesaler bond: $10,000
- Beer manufacturer bond: $20,000
- Alcoholic beverages tax bond: $75,000
- State business tax bond: Coverage varies based on volume of alcohol sales.
The town of Arlington, TN also requires a local beer license bond with $2,500 coverage.
If you need a Tennessee surety bond not listed above, please call 1 (800) 308-4358 for assistance.
How Do I Get an Alcohol Tax Bond in Tennessee?
With SuretyBonds.com, you can get most Tennessee alcohol tax bonds instantly online. Simply enter your information and checkout online. We’ll email your official bond documentation immediately after purchase.
If your bond requires an application, we’ll respond with a free quote within one business day or less. Submit a request now to get started.
If you sell or distribute alcohol in other states, we also offer alcohol tax bonds nationwide.
Who Regulates Alcohol Tax Payments in Tennessee?
The Tennessee Department of Revenue monitors if alcohol tax payments are made in full and on time. If you have questions about your tax rate or status of your sales tax payments, you can contact the DOR by calling 1 (615) 253-0600.
Note that the Tennessee Alcoholic Beverage Commission manages the state's liquor licenses and processes new liquor license applications.
How to Get an Alcohol Beverage Control License in Tennessee?
Complete the steps below to apply for your Tennessee liquor license with the Tennessee Alcoholic Beverage Commission. You'll complete your liquor license application process online through the Regulatory Licensing & Permitting System (RLPS).
- Determine which Tennessee liquor license you need.
- Purchase and file the appropriate Tennessee alcohol tax bond.
- Meet all building requirements, which you can find on each individual liquor license page.
- Submit all forms required by the Alcoholic Beverage Commission, which are license-specific.
- Pay all fees online through RLPS.
Any alcoholic beverage brand distributed in Tennessee needs to register with the Department of Revenue. If you work as a manufacturer or importer, you must register each brand and pay an annual tax.
More Resources
- Tennessee Code §§ 57-3-101 — 57-3-1103: Intoxicating Liquors
- Tennessee Code §§ 57-4-101 — 57-4-308: On-Premises Alcoholic Beverage Consumption
- TABC: Liquor By-the-Drink Licenses
- TABC: Licensing Homepage
- Tennessee DOR: Alcoholic Beverages for Consumption on the Premises Liquor by the Drink Tax Report Form
- Tennessee DOR: Application For Registration
- Tennessee DOR: Liquor-by-the-Drink Tax Overview
- Tennessee DOR: Price Schedule Report for Liquor-By-The-Drink Tax
- Tennessee DOR: Tax Bond Form
