                                 CODE OF VIRGINIA

BOND REQUIRED TO SECURE EXCISE TAX LIABILITY ON BEER AND WINE COOLERS, AND WINE
STORED IN BONDED WAREHOUSES (§ 4.1-238)

A. Every manufacturer, bottler, or wholesaler, as a condition precedent to
obtaining a license to sell beer or wine coolers to a licensed retailer, shall
file a bond with the Board in such sum and with such surety as the Board deems
adequate to cover the tax liability of each such manufacturer, bottler, or
wholesaler. The sum of such bond shall be proportioned to the volume of business
of each such manufacturer, bottler, or wholesaler, but shall in no event be less
than $1,000 or more than $100,000. Such bond shall be conditioned upon the
payment by such manufacturer, bottler, or wholesaler of the tax imposed by
&#xA7; 4.1-236.

B. Every holder of a bonded warehouse permit, issued in accordance with
subdivision 13 of &#xA7; 4.1-212, as a condition to obtaining the permit, shall
file a bond with the Board in such sum and with such surety as the Board deems
adequate to cover the tax liability of each such permittee. The sum of such bond
shall be proportioned to the volume of business of each such manufacturer,
bottler, or wholesaler, but shall in no event be less than $1,000 or more than
$10,000. Such bond shall be conditioned upon the payment by the permittee of the
tax imposed by &#xA7; 4.1-234.

C. The Board may waive the requirement of both the surety and the bond, in cases
where a manufacturer, bottler, or wholesaler has previously demonstrated his
financial responsibility.

D. Upon the termination of the bond, its guaranty or surety, the Board, upon
reasonable notice to the manufacturer, bottler, or wholesaler so licensed, may
suspend the license so granted until such times as the required bond is filed or
the proper surety or guaranty is given.

HISTORY: 1988, c. 261, § 4-138; 1993, c. 866; 2003, c. 564; 2020, cc. 1113,
1114.