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Georgia Sales and Use Taxes Surety Bond

Child's building blocks spell out the word 'tax'

Georgia's Department of Revenue requires certain businesses to obtain a Sales and Use Tax Surety Bond to ensure that the business will pay all sales tax and unemployment insurance to the State of Georgia. The surety bond rate is set by the Department based on the volume of sales.

Businessess may need to register online as a business with the Georgia Department of Revenue Tax Center (GTC).

Sales and use tax registration allows any business entity that sells tangible property, offers of sale or solicits sales of tangible property, offers services that are taxable, and for contracts to provide services in Georgia. The registration will provide the applicant with a Sales and Use Tax number and more than one number may be required depending on the business. The registration does not require renewal and is in effect as long as the business exists without ownership changes.

Surety Bonds May be Required for the Following:

Motor Fuel Distributors Including Gasoline: a minimum $1,000 surety bond or a bond in an amount sufficient to cover three times the monthly business tax liability, based on the preceding 12 months. The monthly tax liability is based on the number of taxable gallons times 10.5 cents (7.5 cents + 3%).

Alcohol Sales of Beer, Wine, and Liquor: retail or wholesale bulk sales and consumption on premises bond requirement as follows:

Brewpub License Performance and Tax Liability Surety Bond: $5,000

Brokers Distilled Spirits License Performance & Tax Liability Surety Bond $2,500

Importers Distilled Spirits License Performance & Tax Liability Surety Bond $5,000

Liquor Broker Tax Surety Bond $2,500

Liquor Importer Tax Surety Bond $5,000

Liquor Manufacturer Distillery Tax Surety Bond $10,000

Liquor Wholesalers Tax Surety Bond: $5,000

Malt Beverage Bond Performance and Tax Liability Surety Bond $5,000

Malt Beverage Wholesalers Tax Surety Bond $5,000

Manufacturers Distilled Spirits License Performance & Tax Liability Surety Bond $10,000

Registered Producers License Performance & Tax Liability Surety Bond $10,000

Retailers and Consumption on Premises Liquor License Performance and Lax Liability Surety Bond $2,500

Wholesalers Distilled Spirits License Performance & Tax Liability Surety Bond (bond amount determined by the Department)

Wholesalers Malt Beverage License Performance & Tax Liability Surety Bond (bond amount determined by the Department)

Wholesalers Wine License Performance & Tax Liability Surety Bond (bond amount determined by the Department)

Winery Manufacturer – Broker – Importer Performance & Tax Surety Bond $5,000

Non-Resident Contractor Performance Tax Surety Bond: required when compensation for work performed is more than $10,000.

Non-Resident Sub-Contractor: annual gross receipts must exceed $250,000 for the surety bond requirement. General contractors are required to withhold 2% of amounts due for sub-contractor services and property for contracts $250,000 or more unless the sub-contractor posts a sales and use tax surety bond.

Tobacco Products surety bond requirements as follows:

Tobacco Distributors Tax Stamp Surety Bond (bond amount determined by the Department)

Cigar and Cigarette Distributors License Performance and Liability Tax Surety Bond: no less than $1,000

Additional requirements: Motor fuel distributors will also need to register for a motor fuel distributor number, and alcohol sellers will need to register for an alcohol license.

How Much Will This Bond Cost?

The premium that you pay for a Georgia Sales and Use Tax Surety Bond is dependent on credit and the bond amount required. Rates start as low as $100 for bond amounts less than $10,000 with your good credit.

Georgia Sales and Use Taxes Surety Bond

Surety Bonds May be Required for the Following:

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