Arizona Liquor Wholesalers for Luxury Privilege Taxes Bond

Arizona Liquor Wholesalers Luxury Privilege Tax Bond

The Arizona Liquor Wholesalers for Luxury Privilege Taxes Bond (also known as the Liquor Luxury Tax Bond) is a requirement set by the Arizona Department of Revenue (ADOR), Liquor Tax Section to guarantee payment of excise taxes and other obligations of liquor wholesalers pursuant to the Arizona Revised Statutes (ARS) Title 42, Chapter 3, Article 8.

QUOTE

Jet Insurance Company’s exclusive monthly payment plan makes it affordable to get your Liquor Luxury Tax Bond with even the highest of required bond limits.

How Is the Price for the Liquor Luxury Tax Bond Determined?

The cost of the Liquor Luxury Tax Bond starts as low as $10 per month or $100 per year. The cost depends on the amount required for the bond (twice the estimated monthly tax payment) and a soft credit check, but the cost will always be a small percentage of the bond limit. Larger limit bonds may need additional information for Jet to determine the rate.

When you purchase your bond with Jet, you are buying directly from the insurance carrier — no brokers, agents, or middlemen involved to spike up your cost with commissions or fees.

Why Is the Liquor Luxury Tax Bond Required?

The DOR uses the Liquor Luxury Tax Bond as a backup if you don’t pay the taxes that are due each month or any penalties that may incur. The ADOR relies on taxes collected from liquor wholesalers to redistribute funds to local governments for the benefit of the public.

This bond is mandatory for at least 2 years; the ADOR may waive the requirement if consecutive on-time payments are received for 24 months.

How Does the Application Process Work With Jet for the Liquor Luxury Tax Bond?

Applying for a Liquor Luxury Tax Bond with Jet is quick and easy! Our online application will take you through each step of the process, asking only for necessary information, such as business information and a social security number for a soft credit check. Once the application is complete, one of the following will occur: 

  1. You will receive a quote right away and be able to purchase your bond instantly; or
  2. Because of a larger limit, your application will need to be reviewed by a Jet team member. If additional information is needed, it will be requested. Once the quote is ready, it will be sent out to you via email for purchase. 

After you have completed the purchase, you will receive an email with the receipt and a digital copy of your bond.

How Does the Liquor Luxury Tax Bond Get Filed to the Arizona DOR?

The Liquor Luxury Tax Bond must be turned into the ADOR after it has been completed by you and Jet. Jet will sign and seal the bond before mailing it to you, to also sign and seal it. 

The original bond must be mailed to: 

Arizona Department of Revenue
Liquor Tax Section
1600 West Monroe
Phoenix, AZ 85007

Can I Cancel My Liquor Luxury Tax Bond and Get a Refund?

With Jet, you can! If you send a written request to cancel your Liquor Luxury Tax Bond of a prepaid term before coverage ends, Jet will notify the ADOR right away. The ADOR will hold the bond in effect for an additional 30 days, which will not be included in the refund. Once the cancellation is final, you will receive a prorated refund for the time left on the bond. 

For the monthly payment plan, cancellation will work in a similar fashion: a written request must be made and Jet will notify the ADOR to begin the 30-day cancellation period. An additional payment may be required to account for this extra time, but payments will cease following complete cancellation of the bond.

How Do I Renew My Liquor Luxury Tax Bond?

Jet will send you a renewal notice through mail and email to keep your Liquor Luxury Tax Bond active. The bond can be renewed as long as you are required to have it. During the renewal process, you can notify Jet of any changes to your bond limit as indicated by the ADOR to receive the rates for the updated bond limit.

Monthly payment plans are renewed automatically. If you receive notice from the ADOR about a change in your bond limit, you must notify Jet to adjust your limit and monthly payment.

How Does a Liquor Wholesaler Avoid Liquor Luxury Tax Bond Claims?

The best way to avoid claims on a Liquor Luxury Tax Bond is to obey the agreement of the bond: pay all taxes (including any penalties or interest for late payments) and follow the obligations of a liquor wholesaler in Article 8 of ARS 42, Chapter 3. As long as you follow the rules laid out and make sure to fulfill payments (on time!), you will not have any issues with the DOR.

Late payments will be subject to a penalty under ARS 42-3353 and 42-3354 and interest compounded according to 42-1123. The ADOR will look for payment of taxes with the addition of penalties and interest before seeking restitution from the bond. You can satisfy the tax payments at this time before it escalates into a bond claim.

What Happens if I Get a Liquor Luxury Tax Bond Claim?

If you receive a claim against your Liquor Luxury Tax Bond, Jet will work with you to determine the validity of your claim. Since claims are filed by the DOR, it is likely that they have enough evidence to back up their claim. However, Jet is obligated to conduct an investigation under the Arizona Administrative Code R20-6-801, up to 30 days (unless a conclusion can’t be reached and additional time is needed). 

Once a decision has been made, Jet is obligated to pay the ADOR within 30 days of receival of an acceptable proof of loss. Since Jet acts as a guarantor, you are still responsible for paying Jet back in the amount of the claim. Failing to restore the bond to its full limit may result in license suspension.

Arizona Liquor Wholesalers Luxury Privilege Tax Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: