Iowa Class A Wine Wholesale Permit Bond

The Iowa Class A Wine Wholesale Permit Bond is required for wine wholesalers, wine distributors, and wine manufacturers selling at wholesale in Iowa. If your business engages in the wholesale distribution of wine to retailers, other Class A permit holders, or out-of-state distributors, you must post this $5,000 bond when applying for or renewing your Class A Wine Permit through the Iowa Alcoholic Beverages Division.

The Iowa Class A Wine Wholesale Permit Bond has a bond amount of $5,000, but the premium (cost to you) is typically much less. Most applicants with good credit pay around $100 annually for this bond. The exact premium depends primarily on your personal credit score—higher credit scores qualify for lower rates. Multi-year payment options may offer additional discounts on subsequent years.

If you violate Iowa's Alcoholic Beverage Control Act, fail to pay required taxes, or cause financial harm to the state or others, a claim can be filed against your $5,000 bond. The surety company investigates the claim, and if valid, pays the claimant up to the full bond amount. However, you (the permit holder) are ultimately responsible for reimbursing the surety for all paid claims, investigation costs, and legal fees through your indemnity agreement. Bond claims can also jeopardize your permit status.