Tennessee Consumption on Premises - Alcohol Tax Surety Bonds
Each person or entity seeking a license to make sales for consumption on the premises or liquor by the drink must, as a condition prior to the granting of the license, post a Consumption on Premises - Alcohol Tax Surety Bond. This bond is also referred to as a Liquor By The Drink tax bond.
For all licensees, the amount of the initial Consumption on Premises - Alcohol Tax Surety Bond must be as follows in accordance with Tenn. Code Ann. § 57-4-302 (3) (A):
- $10,000 bond required for restaurants selling beer, liquor and or wine (Full Liquor Bond)
- $2,000 bond required for restaurants selling only wine
After the first 3 months of operations and timely submission of all required reports and returns, the licensee can submit a written request to have the security adjusted to no less than 4 times the average monthly tax liability of the first 3 months of operation. The Consumption on Premises - Alcohol Tax Surety Bond cannot be adjusted to less than $1,000.
The purpose of the surety bond is to guarantee that the licensee shall properly pay all taxes, penalty and interest connected with the sale of alcoholic beverages for consumption on the premises for which they may become liable during the effective period of the obligation.
How much does a TN Consumption on Premises Surety Bond cost?
The base rate for this particular bond is 1.2% of the required amount with a minimum premium of $100 annually and only requires underwriting and credit report review for amounts in excess of $25,000. Complete our online application for a Liquor by the Drink bond to receive a copy of your bond the same day!