Have a question? 
+1 815-826-6324 (815-8-BondAI) 
phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Most new Oregon wineries assume their federal TTB bond covers this. It does not. The OLCC privilege tax bond is a separate state filing, required for each winery production location, with a $1,000 minimum. A surety bond meets it for an annual premium, so you are not leaving cash, a letter of credit or securities on deposit with the state.
ORS 471.155 requires every Oregon winery licensee to keep a bond on file with the Oregon Liquor and Cannabis Commission, written by a corporate surety authorized in Oregon and payable to the OLCC. The OLCC sets the amount, publishes a minimum of $1,000 and requires a bond for each winery production location. A winery that owed no privilege tax last year and expects none this year, or a new winery that expects none, gets the bond waived under ORS 473.065(4) unless the OLCC finds an unusual risk of nonpayment.
We can help with all Oregon bonds!
The OLCC publishes a short guide called Bonded Premises vs. Privilege Tax Bond that separates the two. Bonded premises is a federal term for the place where wine is made and held before federal excise tax is paid. The privilege tax bond is a state requirement. It lets the OLCC collect if Oregon privilege taxes go unpaid. The OLCC lists Winery (each production location) among the license types that must post it before approval, unless the licensee qualifies for a waiver.
ORS 471.155(1) says the bond must be in a form and amount acceptable to the commission. The OLCC guide states that the minimum bond amount is $1,000. Ask the OLCC bond desk (olcc.bonds@olcc.oregon.gov) for the amount assigned to your license before the bond is written, so the surety issues it at the right figure the first time.
The bond is payable to the OLCC. It guarantees that the licensee will pay any fine imposed for a violation of the Liquor Control Act, and all license fees, privilege taxes, taxes imposed under ORS 473.045 and other taxes on alcoholic liquors, together with penalties and interest.
Under ORS 473.065(4) the commission shall waive the bond for a winery if the winery was not liable for privilege tax in the preceding calendar year and does not expect to be liable in the current year, or if the winery was established this calendar year and does not expect to be liable this year. The OLCC can still require the bond if it finds the winery presents an unusual risk of nonpayment.
ORS 471.155(2) lets a licensee deposit cash, bank letters of credit recognized by the State Treasurer, or negotiable securities approved by the State Treasurer instead of a bond. ORS 473.065(1) adds a smaller option. If total privilege tax liability for the previous calendar year was less than $1,000, the winery may deposit cash equal to that liability in place of the bond. Excess can be refunded or applied to next year, and any shortfall is paid to the OLCC.
OAR 845-008-0060 lets a winery that produces less than 100,000 gallons in a calendar year, holds a federal basic permit and produces at least 1 gallon that year exempt up to 40,000 gallons of wine from privilege tax. Wineries using the exemption should ask the OLCC how it affects their bond or waiver status.
No. The OLCC treats federal bonded premises and the Oregon privilege tax bond as two different things. The privilege tax bond is filed with the OLCC and guarantees payment of Oregon taxes, fees and fines.
ORS 471.155 leaves the amount to the OLCC, and the OLCC states a minimum of $1,000. Get the exact figure for your license from the OLCC bond desk at olcc.bonds@olcc.oregon.gov before the bond is issued.
Yes, if the winery owed no privilege tax in the preceding calendar year and expects none this year, or is a new business this year that expects none. ORS 473.065(4) says the OLCC shall waive the bond in those cases unless it finds an unusual risk of nonpayment.
Yes. ORS 471.155(2) allows cash, a bank letter of credit recognized by the State Treasurer, or approved negotiable securities. If last year's privilege tax was under $1,000, ORS 473.065(1) lets you deposit cash equal to that liability instead.
The OLCC lists the winery bond as required for each production location, so plan on a bond for each site unless the OLCC tells you otherwise in writing.
The surety prices the bond from the amount the OLCC assigns and an underwriting review of the owners, including credit. You see the actual premium on the quote before you buy.
This website is a referral and marketing platform that connects users with licensed insurance agents. We do not issue surety bonds directly except in states where we are licensed. All bond applications are processed and fulfilled by licensed agents. By using this site, you agree to our Terms & Conditions, Privacy Policy, and the use of cookies. If you do not agree, please exit the site.
