The Alcoholic Beverage Tax Bond, commonly referred to as the Alcohol Tax Bond, is a requirement for alcoholic beverage wholesalers and importers that must be filed with the North Carolina Department of Revenue (NCDOR). The surety bond is held as protection for the NCDOR against missed payments or taxes.
Applying for an Alcohol Tax Bond can be done quickly with Jet’s step-by-step application.
The cost for an Alcohol Tax Bond starts at $100 annually or $10 monthly with Jet, but will vary based on a soft credit check and the bond limit that is required for your permit. The bond limit is determined by your three highest monthly tax payments and will fall into one of the five limits, ranging from $5,000–$50,000.
Lower bond limits carry less risk and will result in a rate for immediate purchase upon finishing the application, which is something no other surety company currently does. Higher bond limits carry greater risk to Jet and require a review of your application before a rate can be offered.
The Alcohol Tax Bond limit is determined by the wholesaler/importer’s three highest tax-paying months in the previous year. Once the three highest months have been identified and the tax total has been calculated, the following chart indicates the bond limit that is required.
|Three Highest Months’ Tax Payments||Bond Limit|
|Up to $5,000||$5,000|
The limit of the bond may vary from year to year, depending on the amount of business the wholesaler or importer conducts. Upon renewal of the Alcoholic Beverage Control (ABC) permit, the NCDOR may increase or decrease the bond limit to ensure there is adequate financial protection for the Department.
If you are filing for a new ABC permit as a wholesaler or importer, your bond limit will be the minimum of $5,000. Any out-of-state vendors must hold an Alcohol Tax Bond in an amount no more than $2,000.
The Alcohol Tax Bond must be completed by you and Jet before it can be submitted to the NCDOR. All signatures, seals, and any corporate letterheads holding additional information are required for the bond to be considered “completed”. After you purchase the bond, Jet fills out all the information and sends the bond to your address of preference to complete and add any necessary attachments.
A corporation is obligated to provide:
An LLC is obligated to provide:
Once the bond has been fully completed, the original bond and any attachments must be sent to:
North Carolina Department of Revenue
Attention: Alcohol Registration and Bonding
1429 Rock Quarry Road, Suite 105
Raleigh, NC 27610
Yes, you can cancel the bond at any time with Jet and get a refund! Unlike other companies, Jet only takes premium for the time that is used on the bond, as well as the 30 days that the NCDOR keeps the bond on file after cancellation, and refunds the remaining amount. Since Jet is the surety company, no cancellation fees or broker commissions are counted against your refund!
However, monthly payments extend your bond for another month each time the payment is processed. When you decide to cancel your bond, Jet will stop the payments right away. Since the NCDOR keeps the bond on file for an additional 30 days, you may be responsible for one more payment to cover the additional time on the bond.
The NCDOR is charged with managing tax laws and collecting funds to assist local governments. The NCDOR oversees the permitting and surety bond requirement for alcoholic beverage wholesalers and importers. A portion of the taxes received from the sale or distribution of alcohol by wholesalers and importers is sent back to the cities or counties to benefit North Carolina’s people. Alcohol wholesalers and importers are obligated to hold an Alcohol Tax Bond to guarantee that the NCDOR will receive all excise taxes and payments that are owed to the state. Should the wholesaler or importer fail to pay the excise taxes, the bond acts as an extension of credit to the wholesaler or importer and will pay the NCDOR for financial losses. The wholesaler or importer is still responsible for paying back Jet (the Surety), as they are liable for their actions.
The Alcohol Tax Bond is required to ensure that wholesalers and importers pay their taxes to the NCDOR. The bond is used as a backup and is only put into play when the wholesaler or importer doesn’t follow regulations and misses their tax payments. Taxes are due on the 15th of each month along with a report of the sales records. If more than one wholesaler or importer is in possession of the beverages, the wholesaler or importer who first manages the beverages in North Carolina is obligated to pay the excise tax. The tax on beverage sales is as follows:
The failure to pay the taxes will result in the NCDOR penalizing you. Penalties start from 5% of the amount of taxes due and can go up to 50% of the amount due if there is evidence of fraud, according to Article 9 of the General Administration. Additionally, a wholesaler or importer can be found guilty of a Class 1 misdemeanor for the willful failure to pay taxes, keep records, or supply information to the Department as needed. It is in the best interest of the alcohol importer or wholesaler to respond to complaints before reaching the point of a civil penalty or bond claim.
If a complaint is filed against your Alcohol Tax Bond, Jet will work on your behalf to keep the complaint from escalating into a claim. An investigation will take any evidence from you, the wholesaler or importer, and the claimant, the NCDOR. Although Jet will defend you against faulty claims, a government agency that is filing a complaint against you usually has sufficient evidence for a valid claim.
If the claim is found valid, Jet will pay the NCDOR in the amount that was due, up to the bond’s full limit. This payment puts the bond into play and acts as an extension of your credit. The Department will receive the funds it requires to distribute to local governments right away, but you are still responsible for paying Jet back in the amount that was paid out.
Getting your Alcohol Tax Bond is easy through Jet’s online application. Jet only asks for basic permit information to ensure that your bond is issued correctly, such as the bond limit required for your permit by the NCDOR. Your social security number must also be provided for a soft credit check to get you an approved rate.
While the application process remains the same, the result of your application will go one of two ways to accommodate the risk of your Alcoholic Beverage Tax Bond. Lower bond limits are less risk so an approved rate will be provided for immediate purchase. Higher bond limits require further evaluation to obtain an appropriate rate. Once a rate is determined it will be sent to you instantly for online purchase!
When it is time to renew your Alcohol Tax Bond, our team will notify you ahead of time with a mailed and emailed notice. For emailed notices, simply click the link and provide payment to process your renewal. For mailed notices, fill out the renewal form and send it back to Jet. Any changes to the bond can be addressed at renewal.
Those making monthly payments will also receive renewal notices to check in and verify the bond amount that is required. Likewise, any changes to the bond can be addressed at renewal and may alter your rate.
If there is an increase or decrease in your bond limit at the time of renewal, you will need to complete and submit an Increase or Decrease Rider for the Alcoholic Beverage Tax Bond. The rider will adjust the amount that the NCDOR requires for protection. To submit the rider, it must be completed and filed with signatures and seals as the original bond.