What does the Iowa Class A Beer Wholesale Permit Bond cover?
The bond guarantees that beer wholesalers will comply with Iowa Code Chapter 123 and related alcohol regulations. It specifically ensures payment of beer barrel taxes (such as the $5.89 per 31-gallon barrel tax) and adherence to all requirements set by the Iowa Alcoholic Beverages Division. If a wholesaler fails to pay taxes or violates permit conditions, claims can be made against the bond.
How much does the Iowa Class A Beer Wholesale Permit Bond cost?
The bond amount is fixed at $10,000, but you don't pay the full amount. Premium costs typically start around $100 annually for applicants with good credit, calculated as a percentage of the bond amount (usually 1-5%). Your actual premium depends on your credit score, financial strength, and the surety company's underwriting. Those with credit challenges may pay higher rates.
Who needs the Iowa Class A Beer Wholesale Permit Bond?
This bond is required for beer wholesalers in Iowa who operate under a Class "A" Beer Wholesale Permit (BA). If you distribute beer to retailers, restaurants, bars, or other licensed establishments in Iowa, you'll need this $10,000 bond for new applications and renewals. Existing permit holders without bonds are exempt until their next renewal.