Tennessee Alcohol Wholesaler Gallonage Tax Surety Bond

The State of Tennessee Alcoholic Beverage Commission is responsible for licensing and has regulatory authority pertaining to alcoholic beverages. The commission has oversight of alcohol manufacturers, distillers, warehousemen, dealers, sales, mixing, taxes, wholesaler, and the transportation of beer and other alcoholic beverages. The Tennessee Code Annotated Section 57-1-102 thru 57-5-407 defines alcoholic beverages and beer tax requirements. Wholesalers that import alcoholic beverages into Tennessee or acquire from a Tennessee alcohol manufacturer are required to pay a tax on each gallon or portion of gallon sold or distributed (exception of wine for religious purpose).

Surety Bond Requirements:

1. Obtain a surety bond. Instead of a bond, provide cash or another form of security in the same amount.
2. Bonds (or other security) will not be less than 110% of the average monthly tax liability based on the prior 12-month period.
3. The initial surety bond (or other security) will be determined by the Commission, but no less than $75,000 for the first four-month period.
4. At the end of the fourth month following the initial startup, the Commission will adjust the bond or security amount required for a 12-month period or until the following July 1, whichever comes first.
5. Taxes are due monthly on the first day of the following month and are delinquent if not paid by the 15th day of the following month.

How Much Will This Bond Cost?

The premium that you pay for a Tennessee Wholesaler Gallonage Tax Surety Bond is dependent on credit and the the bond amount required.

Did You Know?

Effective January 1, 2017 alcoholic beverages with a content of 8% by weight that are sold for consumption on military bases and other US government properties are tax exempt in the form of a tax credit.

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