Consumption on the Premises (Liquor-by-the-Drink) Tax Bond
Every licensee permitted to sell alcoholic beverages for consumption on the premises (e.g., restaurants, hotels, clubs, and wine-only establishments). Required when: Required as a condition precedent to the granting or renewal of a liquor-by-the-drink license.
Overview
What it is.
Every licensee permitted to sell alcoholic beverages for consumption on the premises (e.g., restaurants, hotels, clubs, and wine-only establishments). Required when: Required as a condition precedent to the granting or renewal of a liquor-by-the-drink license.
Who usually needs it
Every licensee permitted to sell alcoholic beverages for consumption on the premises (e.g., restaurants, hotels, clubs, and wine-only establishments).
Pricing & timing
What to expect.
Generic pricing
Tax bonds guarantee payment of taxes or compliance with tax regulations. Typical Pricing:. • Standard tax bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Credit check: Required for most tax bonds. Common types include sales tax bonds, fuel tax bonds, and cigarette/tobacco tax bonds. Quick approval is typical for applicants with good credit. Some tax bonds…
Typical timeframe
Credit-based approval — typically 1–2 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateTNBond amount$10,000Term lengthContinuousObligeeTennessee Department of RevenueRenewalThe Department of Revenue performs annual bond reviews (typically in September and October). Licensees are notified via TNTAP or email if their bond amount must be increased or decreased based on their tax liability.Bond classTax BondCategoryAlcohol & BeverageBondConsumption on the Premises (Liquor-by-the-Drink) Tax BondStatutory referenceTenn. Code Ann. § 57-4-302JurisdictionState
