What Is the Bond Requirement in Georgia for Sales and Use Taxes?
Georgia's Department of Revenue requires certain businesses to obtain a Sales and Use Tax Bond to ensure that the business will pay all sales tax and unemployment insurance to the State of Georgia. The 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 Bond: $5,000
Brokers Distilled Spirits License Performance & Tax Liability Bond $2,500
Importers Distilled Spirits License Performance & Tax Liability Bond $5,000
Liquor Broker Tax Bond $2,500
Liquor Importer Tax Bond $5,000
Liquor Manufacturer Distillery Tax Bond $10,000
Liquor Wholesalers Tax Bond: $5,000
Malt Beverage Bond Performance and Tax Liability Bond $5,000
Malt Beverage Wholesalers Tax Bond $5,000
Manufacturers Distilled Spirits License Performance & Tax Liability Bond $10,000
Registered Producers License Performance & Tax Liability Bond $10,000
Retailers and Consumption on Premises Liquor License Performance and Lax Liability Bond $2,500
Wholesalers Distilled Spirits License Performance & Tax Liability Bond (bond amount determined by the Department)
Wholesalers Malt Beverage License Performance & Tax Liability Bond (bond amount determined by the Department)
Wholesalers Wine License Performance & Tax Liability Bond (bond amount determined by the Department)
Winery Manufacturer – Broker – Importer Performance & Tax Bond $5,000
Non-Resident Contractor Performance Tax 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 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 bond.
Tobacco Products bond requirements as follows:
Tobacco Distributors Tax Stamp Bond (bond amount determined by the Department)
Cigar and Cigarette Distributors License Performance and Liability Tax 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 Bond is dependent on credit and the bond amount required.
How Do I Get a Surety Bond?
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday