Kansas Liquor License Surety Bonds for Retailers, Distributors & Manufacturers

The Kansas Department of Revenue, Alcohol Beverage Control Division (the Division) is responsible for the issuing and renewal of licenses, and ensuring the compliance of state laws, and public awareness information. Liquor retailers, beer distributors, spirits distributors, wine distributors, farm wineries, microbreweries, micro distilleries, alcohol manufacturers, non-beverage users, and alcohol and winery special order shippers are required to apply for a license and obtain a surety bond in order to operate a business.

Obligee and Bond Conditions:

The obligee is the entity that requires the bond. The Kansas Department of Revenue, Alcohol Beverage Control Division requires a surety bond for any liquor retailer, beer distributor, spirits distributor, wine distributor, farm winery, microbrewer, micro distiller, alcohol manufacturer, non-beverage user, and alcohol and liquor special order shipper. The applicant has the option of either a surety bond or an escrow bond. The surety bond is issued by a surety and an escrow bond is signed by a bank or financial institution approved by the state. The escrow bond requires a letter of credit from an approved bank or financial institution for the required bond amount.

A surety bond ensures compliance of state regulations and laws and payment of liquor drink taxes. Failure to comply or perform as required by state laws and regulations may result in a claim filed against the bond by the Division. If the Division files a claim against the surety bond, the owner (named as the principal on the bond form) will be responsible for repayment of the claimed amount if the claim is paid out by the surety.

The surety bond must be in place along with the license application and during all business operations. The premium will renew on the bond on an annual basis. If the applicant business changes ownership, a replacement bond is required to fulfill the surety bond conditions. Failure to maintain the bond will result in penalties by the Division.

Surety Bond Requirements:

The original surety bond and power of attorney (provided by the issuing surety) will need to be submitted along with the license application to the Kansas Alcohol Beverage Control Division, 915 SW Harrison Street, Topeka, KS 66612-1588.

The Kansas Liquor License Surety Bond amount is based on the type of license the applicant is applying for and in some cases, to the monthly tax liability. If the applicant is a distributor who needs more than license type, only one surety bond will be required. The surety bond amount will be based on the highest bond amount required. The bond form will be completed by the surety and will be signed, have a corporate seal and will include a notarized signature by the surety. The applicant will also need to sign the bond in the presence of a notary before sending the surety bond to the state.

License Types and Surety Bond Amounts:

• Liquor Manufacturer- $25,0000 surety bond.
• Spirits Distributor- $15,000 surety bond or in an amount equal to the highest month tax liability for the 12 months immediately preceding, whichever is greater.
• Beer or Wine Distributor- $5,000 surety bond or in an amount equal to the highest month tax liability for the 12 months immediately preceding, whichever is greater.
• Liquor or Alcohol Retailer- $2,000 surety bond.
• Non-beverage Users- $200 surety bond for class 1, $500 surety bond for class 2, $1,000 surety bond for class 3, $5,000 surety bond for class 4 and $10,000 surety bond for class 5.
• Microbrewery, Micro Distillery, or Farm Winery- $2,000 surety bond.
• Winery Special Shipping License- $750 surety bond.

License Requirements:

1. Prior to completing the application, applicants must first obtain a Federal Employer Identification Number (FEIN) from the US Internal Revenue Service, then register for a business taxes through the Kansas Department of Revenue to obtain a Tax Clearance Certificate.
2. Obtain and complete the Kansas Liquor License Application (form ABC-800), Financial Disclosure (form ABC-801), Request for Permanent Premise Approval (form ABC-806) and provide a copy of your completed TTB Alcohol Dealer Registration (form TTB F 5630.5d).
3. Pay the applicable license and registration fees. The fees are required for each license type that is checked. Applicants have the option to pay half the license fee in the first year and the other half the second year. The full registration fee is due the first year. Refer to the license application to determine your fees that will be due.

How Much Will This Bond Cost?

The premium that you pay for a Kansas Liquor License surety bond is dependent on credit and the bond amount required. Rates for bond amounts under $10,000 start at $100 with good credit. Premiums for bond amounts over $10,000 start at 1% with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

Kansas liquor licenses renew every two years from the date of issuance.

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