{"id":2633,"date":"2017-07-03T00:09:55","date_gmt":"2017-07-03T00:09:55","guid":{"rendered":"http:\/\/suretyone.com\/blog\/?p=2633"},"modified":"2023-06-21T12:00:11","modified_gmt":"2023-06-21T12:00:11","slug":"brewers-bond","status":"publish","type":"post","link":"https:\/\/suretyone.com\/blog\/brewers-bond\/","title":{"rendered":"Brewer’s Bond"},"content":{"rendered":"

The rise in the popularity of small craft breweries (microbrewers) and brewpubs has prompted many states to pass legislation requiring a brewer’s bond from operators. Until recently, the ATF’s Tax and Trade Bureau (TTB<\/a>) also required breweries to file surety bonds. Pressure from the increasing number of microbreweries that produce very small amounts of beer and the TTB’s perception that compliance for small operators will not present a tax collection problem, the federal rules were changed under the provisions of the PATH Act<\/a>. As of January 1, 2017, brewers\u00a0who reasonably expect to be liable for not more than $50,000 in taxes\u00a0on\u00a0beer for the calendar year (and who were liable for not\u00a0more than $50,000 in such taxes in the preceding calendar year) will be allowed to pay those taxes annually\u00a0rather than quarterly. Further, those parties are now\u00a0exempt from the requirements to file brewer’s bonds or brewpub bonds covering operations or\u00a0withdrawals. Breweries that are currently licensed or seeking a license must specifically request the exemption. The program is NOT available for brew operations that are delinquent with tax payments or under other TTB regulatory orders.<\/p>\n

Although the Federal Revenue Code has been amended effectively exempting a large number of brewers, most states still require an alcohol tax surety bond and several\u00a0localities require on-premises consumption bonds from\u00a0brewpubs. The following states have instituted a\u00a0surety bond requirements that apply to\u00a0brewers specifically.<\/p>\n