California Alcoholic Beverage Tax Bond
Bond Requirements & Rates
| Bond Amount Required | Annual Premium |
| Varies | Varies |
Businesses responsible for accurately reporting alcohol sales, collecting and remitting excise taxes, and maintaining proper records in accordance with California regulations are required to secure a surety bond.
Required by the California Department of Tax and Fee Administration (CDTFA), the California alcoholic beverage tax bond guarantees payment of alcohol-related taxes and protects the state from revenue loss if a business fails to meet its tax obligations.
Cost of a California Alcoholic Beverage Tax Bond
The cost of a California alcoholic beverage tax bond is a small percentage of the bond amount set by the CDTFA. The liability amount is typically based on your projected or historical tax liability. The bond amount does not equal the premium you pay.
Who Needs a California Alcohol Tax Bond
The following businesses may need to get a California alcohol tax bond:
- Alcohol manufacturers and producers
- Importers and wholesalers of beer, wine, or distilled spirits
- Retailers or distributors liable for alcoholic beverage excise taxes
If your business owes or may owe alcohol excise taxes to the state, CDTFA may require this bond as a condition of permitting or ongoing operation.
How California Alcoholic Beverage Tax Bonds Work
The California surety bond involves the following parties:
- Principal: Alcohol business required to post the bond
- Obligee: California Department of Tax and Fee Administration
- Surety: Bonding company that issues and guarantees the bond
If a business fails to pay its alcohol taxes, the CDTFA may file a claim against the bond. The surety investigates the claim and, if valid, compensates the state up to the bond amount. The business is then legally obligated to reimburse the surety for any paid claims.
How to Get a California Alcoholic Beverage Tax Bond
Getting the California alcoholic beverage tax bond is a simple process. Complete this form with your personal and business details and provide payment. An email with your bond form will be sent to you in which you can download the bond form for quick filing.
Get Your California Alcoholic Beverage Tax Bond Today
NNA Surety’s streamlined bonding process can help you meet CDTFA requirements with ease. For questions, call 855-215-2160 to speak to one of our surety experts.