The California Alcoholic Beverage Tax Bond is required by the California Department of Revenue for any business that requires a liquor license. This bond guarantees that the bond holder will pay all taxes and fees required by the state and local laws. This can be for people who sell, store, manage, and produce alcohol.
Like all bonds, the California Alcoholic Beverage Tax Bond is a legal contract between three parties.
- The Principal is the bond holder who wishes to get into the liquor industry.
- The Obligee is the governing body that requires the taxes to be paid. In this case, it is the California Department of Revenue.
- The Surety is the underwriter who issues the bond and agrees that the principal party will uphold their obligations.
If, for whatever reason, the principal fails to fulfill the terms of the bond, a claim against the principal can be made by the oblige. The Surety and the Principal will then be responsible for either paying the claim or fighting the claim if they feel there was a wrongful claim filed.
The Alcoholic Beverage Tax bond goes by many names, including but not limited to:
- Alcohol Beverage Control Bonds
- Brewer’s Bond
- Liquor Bond
- Liquor License Bond
- Malt Beverage License Bond
- On-premise Beer Bond
- Wine Bond