Tennessee alcoholic beverages tax bonds.
$750 flat to start.

A Tennessee alcoholic beverage wholesaler beginning business files an initial $75,000 gallonage-tax bond with the Department of Revenue under Tenn. Code Ann. § 57-3-303. Ours is $750 flat — the price you see is the checkout price. The Department resets the amount after your first four months.

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Required to begin wholesaling alcohol in Tennessee — filed with the Department of Revenue

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Initial amount is $75,000 for the first four months, then reset to at least 110% of your average tax liability

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Soft credit pull only — a quick check that never affects your score, and the price stays $750 either way

A-ratedA.M. Best carriersInstantissued the moment you pay1–3 yrterms available

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How it works

Three steps to wholesaling.

Your wholesaler account is waiting on this bond. Here is the entire process — no broker phone tag:

TODAY · ONLINE

Apply once, online

Business details, your FEIN, the county where the business sits, and an effective date. The only extra step is a one-time consent to a soft credit pull.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.

WHEN YOU PAY

E-sign & file with the Department of Revenue

Pay online and receive the executed bond ready to file with your wholesaler application. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the bond actually guarantees

Tennessee taxes alcoholic beverages by the gallon, and a wholesaler collects and remits that tax to the Department of Revenue. The bond guarantees proper payment of all state taxes, penalty, and interest connected with wholesaling and distributing alcoholic beverages — it stands behind the tax you owe before it is settled.

It's a three-party arrangement: you (the principal), the surety carrier, and the State of Tennessee (the obligee). If a wholesaler fails to remit the gallonage tax it owes, the state can recover against the bond — and if the surety pays, you repay the surety.

A new wholesaler files an initial $75,000 bond for the first four months. After that period, the Department resets the bond to not less than 110% of your average tax liability for those four months, for the rest of the year. We re-issue at the new amount at the same $750 flat price whenever the Department adjusts it.

Tenn. Code Ann. § 57-3-303Tennessee's wholesaler gallonage-tax bond is executed under Tenn. Code Ann. § 57-3-303 and conditioned on the proper payment of all state taxes, penalty, and interest connected with wholesaling and distributing alcoholic beverages. Per the Department of Revenue's Alcohol Tax Manual, a wholesaler beginning business files an initial $75,000 bond for four months, after which the Department adjusts the amount to not less than 110% of the average tax liability for that period. Confirm your current required amount on your Department of Revenue notice.

You need this bond if you're

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Starting an alcohol wholesale business in Tennessee — the initial $75,000 bond opens your account

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Importing alcoholic beverages into Tennessee or acquiring from a Tennessee manufacturer for distribution

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Renewing a wholesaler bond at the amount the Department of Revenue reset based on your tax liability

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Re-entering after a lapse that reset your bond requirement to the start-up figure

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.

Start the application →

FAQ

Common questions.

Why is the bond $75,000?$75,000 is the initial start-up amount the Department of Revenue requires for the first four months of wholesaling. After that, the Department resets it to at least 110% of your average tax liability for those four months. We issue the current required amount at $750 flat.

Do I pay the $75,000?No. You pay $750 on the initial bond — a flat price, not a percentage of the bond amount. The $75,000 is the surety's maximum liability to the state; it's not a deposit, and nobody holds your money.

What happens when the Department resets my amount?After your first four months, the Department of Revenue adjusts the bond to not less than 110% of your average tax liability. Send us the new figure and we re-issue the bond at that amount for the same $750 flat price.

Is there a credit check?Yes — one soft credit pull, which never affects your score. It informs approval, not price. The price is $750 flat either way: credit can affect whether we approve the bond, never what it costs.

Which statute requires it?Tenn. Code Ann. § 57-3-303. The bond is conditioned on proper payment of all state taxes, penalty, and interest connected with wholesaling and distributing alcoholic beverages, payable to the State of Tennessee.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Tennessee bonds.

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$750 flat to start, short application, bond issued when you pay. Free until issued.

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Tennessee alcoholic beverages tax bonds.$750 flat to start.