SECTION 33.44. Excise Tax Bonds

(a) Excise Tax Bond Required.

(1) Each holder of a general distributor's license, local distributor's permit, or branch distributor's license, and each holder of a brewer's license acting under the authority of Texas Alcoholic Beverage Code §62.122, who has not made, on or before the due date, a required payment of $500 or more for a tax or fee imposed by the Alcoholic Beverage Code shall furnish a bond to ensure the payment of the tax on malt beverage imposed by the Texas Alcoholic Beverage Code, §203.01.

(2) Each holder of a winery permit who has not made, on or before the due date, a required payment of $500 or more for a tax or fee imposed by the Alcoholic Beverage Code shall furnish a bond to ensure the payment of the tax on vinous liquor imposed by Texas Alcoholic Beverage Code §201.04.

(b) Each bond required under this section shall be set by the executive director at an amount determined pursuant to §41.42 of this title that will protect the state against the anticipated tax liability of the principal for any six-week period based on previous average alcoholic beverage sales or estimates of the future average volume of sales.

(c) The requirement under this section to furnish a bond shall be imposed at the next renewal of the license or permit after the failure to make a timely payment of the amount specified in subsection (a) of this section.

(d) A finding of deficiency as a result of an audit does not constitute a failure to pay a tax when due, if the deficiency and any applicable penalty are paid within 10 days of the date of demand for payment by the commission.

(e) A licensee or permittee required to furnish a bond under subsection (a) of this section is again entitled to exemption from the surety requirement if the licensee or permittee:

(1) pays all delinquent taxes and fees and any applicable penalties; and

(2) pays all taxes and fees required by the Texas Alcoholic Beverage Code on or before the due date for 18 consecutive months after the month in which the delinquent taxes and fees and penalties are paid.

(f) If a licensee or permittee fails to pay a tax or fee imposed by the Texas Alcoholic Beverage Code on or before the due date and the licensee or permittee holds multiple licenses or permits, the requirements for a bond shall be imposed under subsection (a) of this section only on the license or permit covering the licensed or permitted premises for which the tax or fee and any applicable penalty were not timely paid.

(g) If another license or permit is required, incidental to the operation of a business for which a basic license or permit is procured, the executive director may accept one bond to support all of the licenses and permits. The executive director shall determine the amount of the bond.

(h) All bonds or other forms of security under this section that are in place on the effective date of this section, as amended, shall remain in place for the length of time specified on the bond or other form of security when it was furnished to the commission.

Source Note: The provisions of this §33.44 adopted to be effective December 31, 2020, 45 TexReg 8771; amended to be effective September 1, 2021, 46 TeReg 5178