Mixed Beverage Gross Receipts Tax Bond - Statewide in Oklahoma

Brief Summary

If you sell alcohol by the drink in Oklahoma, the Tax Commission wants security for the gross receipts tax before it lets the permit stand. A surety bond covers that without locking up a certificate of deposit, and it keeps your mixed beverage tax permit alive. Tell us the amount OTC Business Tax Services gives you and we will quote it.

The Oklahoma Tax Commission requires security for mixed beverage gross receipts tax from licensees authorized to sell alcohol by the drink, including BAW, MXB and CMB license holders. Under OAC 710:20-5-9 the security runs from one to three times the average estimated quarterly gross receipts tax liability, with a $1,500 minimum for new permit holders. It can be a corporate surety bond from a surety licensed in Oklahoma or a bank certificate of deposit.

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How to Apply for a Mixed Beverage Gross Receipts Tax Bond:

• Call OTC Business Tax Services at (405) 522-9440 for the bond amount on your permit.
• Legal business name and FEIN exactly as registered with the Oklahoma Tax Commission.
• ABLE license type and number (BAW, MXB or CMB).
• Owner name, home address and Social Security number for the credit review.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the executed bond naming the Oklahoma Tax Commission as obligee.
• Submit the bond with your mixed beverage tax permit registration through OkTAP.

Detailed Information About the Oklahoma Mixed Beverage Gross Receipts Tax Bond:

How the amount is set

There is no single statewide figure. OAC 710:20-5-9 says the security may not be less than the average estimated quarterly gross receipts tax liability and may not be more than three times that amount. For a new permit holder the minimum is $1,500. The OTC and ABLE Commission bond fact sheet tells licensees to contact OTC Business Tax Services to get the specific dollar amount required. For mixed beverage tax, that line is (405) 522-9440. Get the figure before you apply so the bond is written once.

Who posts it and who does not

The fact sheet lists mixed beverage tax bonds as required for license holders authorized to sell alcohol by the drink, including BAW, MXB and CMB licenses. Retailers of packaged goods and certain permit holders do not need a tax bond, specifically REW, REB and RET licenses and direct wine shippers. Wholesalers, distributors, brewers, winemakers and importers deal with a different instrument, the alcohol excise tax bond.

What happens if the bond lapses

This is the part most owners miss. Under OAC 710:20-5-9, forfeiture or cancellation of the bond or security results in the automatic revocation of the mixed beverage tax permit. Letting the bond cancel for nonpayment of premium can shut down bar service.

What the bond guarantees

The bond secures payment of the gross receipts tax owed on mixed beverage sales. If the permit holder does not pay, the Tax Commission can collect from the surety, and the surety will then look to the business and its owners for repayment.

Where it is filed

All taxpayers apply online through OkTAP. Ask Business Tax Services how it wants the executed bond submitted with your mixed beverage tax permit.

Eligibility and Requirements for a Oklahoma Mixed Beverage Gross Receipts Tax Bond:

• Corporate surety bond written by a surety licensed to do business in Oklahoma.
• Amount between one and three times the average estimated quarterly gross receipts tax liability.
• Minimum of $1,500 for a new permit holder.
• A bank certificate of deposit is the alternative form of security.
• Bond kept in force continuously, since forfeiture or cancellation revokes the permit.
• Premium set by the surety after reviewing owner credit, business financials and the bond amount.

Oklahoma Mixed Beverage Gross Receipts Tax Bond FAQs:

Official and Additional Resources for the Oklahoma Mixed Beverage Gross Receipts Tax Bond: