Certain businesses must post a bond with TABC before they can get their license or permit.
The easiest way to submit your bond information is when you apply for a license through the Alcohol Industry Management System (AIMS). AIMS will guide you through this process. You can also submit paper forms, but they will take longer to process. Use this page to learn more about the different bonds you might need for your business. For questions, contact your local TABC Office.
Types of Bonds:
- Conduct Surety Bond
- Performance Bond
Conduct Surety Bond
You will need this if you’re a retailer who does not hold a Food and Beverage (FB) Certificate. The amount of the bond is based on your business’ distance from a public school:
- $5,000 bond — Businesses more than 1,000 feet from a public school.
- $10,000 bond — Businesses less than 1,000 feet from a public school.
You can submit the Conduct Surety Bond as a bond, letter of credit or assignment of a certificate of deposit (CD).
Performance Bond:
You’ll only need this bond if you meet all of the following criteria:
- Your business is located in Bexar, Harris, Dallas or Tarrant counties.
- You’re a holder or applicant for a Retailer Dealer’s On-Premise License (BE) or a Wine and Beer Retailer’s Permit (BG).
- You do not hold a Food and Beverage (FB) Certificate.
If all the above points apply to you, you’ll need a $2,000 bond. This amount will increase if you violate the Alcoholic Beverage Code or TABC Rules.
You can submit the Performance Bond as a bond, letter of credit, or assignment of a certificate of deposit (CD).
Other Bonds that Might be Needed:
Mixed Beverage Gross Receipt Bond
Mixed Beverage Gross Receipts Tax Bond is a surety bond required by the State Comptroller’s office for all businesses holding a new Mixed Beverage liquor license bond issued by the Alcoholic Beverage Commission.
For example in Texas, TABC issues a new Mixed Beverage liquor license, the State Comptroller will send a letter to the business requesting that a “Continuous” Mixed Beverage Gross Receipts Tax Bond be posted to insure the State against non-payment of liquor taxes up to an amount of $3,750 and up.
This type of a bond is generally considered a high risk bond because of the high rate of default by new businesses holding a Mixed Beverage liquor license and the fact that there are fewer surety companies investing in this field. Consequently, the cost of the bond can vary greatly depending on the business owner’s credit rating and typically ranges 10% to 20% of the face value of the bond.
The term “continuous” means that the bond is automatically renewed at the end of the first year for one additional year at no additional charge for a total term of two years, after which if a good tax payment history has been established by the business then it may become exempt from having to post another bond
We at All State Bonds offer the most affordable rates for mixed beverage surety bonds and all bonds are issued in house on the same day upon final approval.
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What is A Mixed Beverage Permit Bond?A Mixed Beverage Permit bond, certificate of deposit or letter of credit is required of all new applicants acquiring a Mixed Beverage Permit in Texas. While required under the Texas Alcoholic Beverage Code, it is actually filed with the office of the State Comptroller of Public Accounts. The bond or financial guarantee covers:
- A minimum statutory limit of $3,750 and up protects the state against the non payment of the 14% Gross Receipts Tax that is paid on the alcoholic beverage sales of these permits
- The amount of the bond or financial guarantee can be raised to an amount that represents two times the amount of tax paid in within any 30 day period by the permittee
It is required for the first two years of operations of the permittee and will be released after that period as long as taxes and reports have been received on a timely basis.