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What Is A Liquor Tax Bond?

A liquor tax bond is a form of insurance that is required by the state of any person who sells alcohol. The surety bond assures that the business owner will pay all taxes owed to the state and protects against illegal actions. If the business owner fails to do so, the bond will reimburse the state.

Before liquor sellers purchase a bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.

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