State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Texas > Alcoholic-beverage-code > Title-5-taxation > Chapter-204-bonds

ALCOHOLIC BEVERAGE CODE

TITLE 5. TAXATION

CHAPTER 204. BONDS

Sec. 204.01. BOND REQUIRED. (a) Except as otherwise provided

in this section, the following licensees and permittees shall

furnish a bond:

(1) those authorized to import alcoholic beverages into the

state;

(2) manufacturers of beer and brewers of ale or malt liquor in

the state; and

(3) all other permittees.

(b) No bond is required of a holder of a mixed beverage, private

club registration, carriers, local cartage, wine and beer

retailers, nonresident seller's, manufacturer's agent's, or

agent's permit.

not responsible for the primary payment of an alcoholic beverage

excise tax to this state.

(d) The holder of a wholesaler's or class B wholesaler's permit,

or the holder of a distributor's license may furnish, in lieu of

all or part of the amount of the bond required:

(1) one or more certificates of deposit or savings assigned to

the state, issued by one or more banks or savings institutions

authorized to do business in this state; or

(2) one or more letters of credit issued by one or more banks or

savings institutions authorized to do business in this state.

(e) If certificates of deposit or savings or letters of credit

are furnished under Subsection (d) of this section, the

administrator shall keep them in his possession. Interest earned

on a certificate of deposit or savings is not subject to the

assignment and remains the property of the owner of the

certificate.

(f) The holder of a wholesaler's or class B wholesaler's permit,

the holder of a winery or wine bottler's permit, or the holder of

a distributor's license is not required to furnish a bond if for

the preceding 36 months the permittee or licensee has paid all

taxes and fees required by this code on or before the due date.

(g) An exemption under Subsection (f) of this section terminates

and the permittee or licensee must furnish a bond or tax security

if the permittee or licensee fails to pay a tax or fee imposed by

this code on or before the due date.

(h) A permittee or licensee required to furnish a bond or tax

security under Subsection (g) of this section is again entitled

to exemption from the surety requirement if the permittee or

licensee:

(1) pays all delinquent taxes and fees and any applicable

penalties; and

(2) pays all taxes and fees required by this code on or before

the due date for 18 consecutive months after the month in which

the delinquent taxes and fees and the penalties are paid.

(i) A permittee or licensee who qualifies for an exemption under

Subsection (f) of this section is also exempt from the bonding

requirement for any other wholesaler's permit, class B

wholesaler's permit, winery permit, wine bottler's permit, or

distributor's license currently held by or subsequently issued to

the same permittee or licensee for use at licensed premises

different from and additional to those covered by the permit or

license under which the permittee or licensee qualified for

exemption. However, if a permittee or licensee fails to pay a tax

or fee imposed by this code on or before the due date and the

permittee or licensee holds multiple permits or licenses, the

requirement for a bond or tax security shall be imposed or

reimposed under Subsection (g) of this section only on the permit

or license covering the licensed premises for which the tax or

fee and any applicable penalty were not timely paid.

Acts 1977, 65th Leg., p. 541, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1977, 65th Leg., p. 1183, ch. 453, Sec. 11,

eff. Sept. 1, 1977; Acts 1979, 66th Leg., p. 732, ch. 325, Sec.

1, eff. June 6, 1979; Acts 1983, 68th Leg., p. 5053, ch. 914,

Sec. 1 to 5, eff. Sept. 1, 1983; Acts 1991, 72nd Leg., ch. 436,

Sec. 1, eff. June 8, 1991; Acts 1993, 73rd Leg., ch. 934, Sec.

99, eff. Jan. 1, 1994; Acts 1999, 76th Leg., ch. 584, Sec. 1,

eff. Sept. 1, 1999.

Sec. 204.02. FORM AND CONDITIONS. (a) A bond required under

this chapter must be executed with the permittee or licensee as

principal, a qualified surety company doing business in this

state as surety, and the state as payee. All bonds of permittees

must be payable in Travis County.

(b) The bond must be conditioned as required by the commission.

Bonds required of permittees must be conditioned that as long as

the applicant holds the permit he will not violate any law of

this state relating to the traffic in or transportation, sale, or

delivery of liquor or any valid rule of the commission. The bonds

of permittees who are required to account for taxes and fees must

also be conditioned that the permittee will account for and pay

all permit fees and taxes levied by this code.

general.

(d), (e) Repealed by Acts 1993, 73rd Leg., ch. 934, Sec. 110,

eff. Jan. 1, 1994.

Acts 1977, 65th Leg., p. 541, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1977, 65th Leg., p. 1184, ch. 453, Sec. 12,

eff. Sept. 1, 1977; Acts 1993, 73rd Leg., ch. 934, Sec. 110, eff.

Jan. 1, 1994.

Sec. 204.03. AMOUNT OF BOND. (a) The commission or

administrator shall set the amount of all bonds required under

this chapter.

(b) Repealed by Acts 1993, 73rd Leg., ch. 934, Sec. 110, eff.

Jan. 1, 1994.

by Subsection (d) of this section, may not be set at an amount

less than $1,000 or more than $25,000.

(d) Bonds, letters of credit, or certificates of deposit to

insure the payment of the tax on distilled spirits imposed by

Section 201.03 of this code, the tax on vinous liquor imposed by

Section 201.04 of this code, the tax on ale and malt liquor

imposed by Section 201.42 of this code, or the tax on beer

imposed by Section 203.01 of this code, shall be set at an amount

that will protect the state against the anticipated tax liability

of the principal for any six-week period.

Acts 1977, 65th Leg., p. 541, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1977, 65th Leg., p. 1184, ch. 453, Sec. 13,

eff. Sept. 1, 1977; Acts 1993, 73rd Leg., ch. 934, Sec. 100, eff.

Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 110, eff. Jan.

1, 1994.

Sec. 204.04. MULTIPLE PERMITS, ONE BOND. If another permit is

required, incidental to the operation of a business for which a

basic permit is procured, the commission may accept one bond to

support all of the permits. The commission shall determine the

amount of the bond.

Acts 1977, 65th Leg., p. 542, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 204.05. CANCELLATION OF BOND. The commission may not

cancel a surety bond until the surety company has paid and

discharged in full all of its liabilities on the bond to the

state as of the date of cancellation.

Acts 1977, 65th Leg., p. 542, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds both

a winery permit and a wine bottler's permit may execute a single

bond in an amount determined by the commission instead of

multiple bonds to secure the performance of different activities

by the holder.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 101, eff. Sept. 1,

1993.

Sec. 204.07. WAIVER OF BOND REQUIREMENT. The commission may

waive the requirement that a licensee or permittee furnish a bond

under this chapter if the commission by rule determines the

submission of the bond is no longer necessary.

Added by Acts 2001, 77th Leg., ch. 751, Sec. 1, eff. Sept. 1,

2001.