The state of California requires sellers of alcohol to have a bond. You may find out more about this requirement at the California Board of Equalization. In the case of alcohol tax bonds, the bond guarantees the payment of taxes for alcohol wholesalers, vendors, or dealers. If a seller of alcohol commits fraud by misrepresenting his or her tax amounts on alcohol sales, then the state of California can cash out on the surety bond. This is also known as a “claim.”
In short, tax bonds protect the state from alcohol tax fraud. They also provide a safety net for the wholesaler or dealer; if they get in tax trouble, they will not be left holding the bag and their surety bond will pay out the damages until being reimbursed by the business.
If you apply for a bond through Surety1.com, the annual premium for a tax bond varies on a case-by-case basis. Surety1’s application processs administers a soft credit inquiry in order for our markets to determine a loss ratio in the event of a claim. Those reflecting excellent credit may get as low as a 1-3 percent value premium of the total bond amount. For example if California is requiring you to get a 10,000 dollar bond and you have excellent credit, your premium could be as low as 150 for the whole year. At Surety1 we value our customers and we offer competitive bond premiums for challenged credit. Do not let your credit history stop you from applying for your alcohol tax bond.
You’ll want to complete our application to get started.
We would love to talk to you more about the process of getting your alcohol tax bond, go ahead and give us a call: 877-654-2327