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Alcohol Tax Bonds in Alabama
In addition to obtaining a state retail liquor license and the necessary surety bond, over fifteen Alabama cities and counties require retailers of alcohol to be locally licensed and bonded under the community’s government ordinances. The limit of the Alcohol Sales Tax License and Permit Bond will depend on the local jurisdiction that requires the retail alcohol license or permit.
Jet Insurance Company offers Alcohol Tax Bonds to provide an assurance to local jurisdictions that the licensed business will collect and pay all alcohol sales taxes, interest, and any additional fees and comply with the obligations of the license.
If you are looking to be licensed in your local community, Jet can help you secure the surety bond you need quickly and at an affordable rate!
What Is the Lowest Price for a Local Alabama Alcohol Tax License or Permit Bond?
With Jet, Alcohol Tax Bonds start at $100 annually or $10 monthly. Our approved rates are only a small percentage of the bond limit that is based on the personal credit score of the applicant. Refer to the chart below for rates offered at different bond limits and terms for preferred credit tiers.
| Bond Term | Cost |
|---|---|
| Monthly | $10 |
| 1 Year | $100 |
| 2 Years | $175 |
| 3 Years | $250 |
The Jet team believes in efficiently providing affordable surety bonds to all applicants, which is why we offer annual, monthly, and multi-year payment options to our bondholders.
Alabama Cities and Counties That Require an Alcohol Tax License or Permit Bond:
City of Arab- Under Arab, AL Ordinance Code No. 2006-08, a $10,000 Alcohol Ordinance Tax or Fee Bond is required in order to be approved for an ABC License with the City Clerk-Treasurer.
City of Athens- Under Athens, AL Ordinance Code No. 2005-1529, a $10,000 Alcohol Ordinance Tax or Fee Bond is required in order to be approved for an Alcoholic Beverage License with the City Council.
City of Boaz- Under Boaz, AL Ordinance Code No. 2017-1123, a $5,000 Alcohol Ordinance Tax or Fee Bond is required in order to be approved for an ABC License with the City Clerk-Treasurer.
City of Cullman- Under Cullman, AL Ordinance Code No. 2011-09, a $10,000 Alcohol Ordinance Tax or Fee Bond is required in order to be approved for an Alcohol License with the City Clerk-Treasurer.
City of Decatur- Under Decatur, AL Ordinance Code No. 84-2412, a $5,000 or $10,000 Alcohol License Tax Bond is required in order to be approved for an ABC License with the City Clerk-Treasurer. The $5,000 bond limit is eligible for licensees who only sell on or off-premise beer or table wine. The $10,000 bond limit is for licensees who sell any alcoholic beverage at retail and wholesale prices.
City of Good Hope- Under Good Hope, AL Ordinance Code No. 003-2012, a $10,000 Alcohol Ordinance Tax or Fee Bond is required in order to be approved for an Alcohol License with the City Clerk.
City of Guntersville- Under Guntersville, AL Ordinance Code No. 1068, a $2,500 Retail Liquor Tax Bond is required in order to be approved for a Beer, Wine, or Liquor License with the City Clerk.
City of Haleyville- Under Haleyville, AL Ordinance Code No. 2010-04, a $10,000 Alcohol Ordinance Tax or Fee Bond is required in order to be approved for an ABC License with the City Clerk-Treasurer.
City of Hamilton- Under Hamilton, AL Ordinance Code No. 2012-13, a $10,000 Alcohol Ordinance Tax or Fee Bond is required in order to be approved for an ABC License with the City Clerk-Treasurer.
City of Homewood- Under Homewood, AL Ordinance Code No. 1970, a $3,000 Retail Liquor Tax Bond is required in order to be approved for an ABC License with the City Clerk.
City of Huntsville- Under Huntsville, AL Ordinance Code No. 11-654, an $8,000 Liquor License Tax Bond is required in order to be approved for an Alcoholic Beverage License with the City Clerk-Treasurer.
City of Jacksonville- Under Jacksonville, AL Ordinance Code No. 1975, a $2,500 Retail Liquor Tax Permit Bond is required in order to be approved for a Retail Liquor Drinking Places Permit with the City Council.
City of Moulton- Under Moulton, AL Ordinance Code No. 2010-01, a $10,000 Alcohol Ordinance Tax or Fee Bond is required in order to be granted an Alcoholic Beverage License with the City Clerk-Treasurer.
Madison County- Under Madison, AL Ordinance Code No. 1979, an $8,000 Liquor License Tax Bond is required in order to be granted an ABC License with the County Administrator.
City of New Hope- Under New Hope, AL Ordinance Code No. 401, a $5,000 or $10,000 Alcohol License Tax Bond is required in order to be approved for an ABC License with the City Clerk. The $5,000 bond limit is eligible for licensees who only sell on or off-premise beer or table wine. The $10,000 bond limit is for licensees who sell any alcoholic beverage at retail and wholesale prices.
Each city or county listed above will require the appropriate surety bond for each retail business location of the licensee. For example, a licensee in the City of Guntersville will be required to have a Retail Liquor Tax Bond for each location that conducts retail alcohol transactions.
How Does the Application Process Work With Jet for Alcohol Tax Bonds?
Jet Insurance Company takes pride in our online application process for the Alcohol Tax Bonds. Applying is simple; each step will ask for general information such as your business address and personal social security number. To approve the rate, a soft credit check will be completed in just a few minutes. But, don't worry, this won't affect your credit score! Once a Jet rate is provided, simply choose your term and make payment — the Jet team will take care of the rest!
How Are Local Alabama Alcohol Sales Tax License and Permit Bonds Filed?
The Jet team can file your bond for you! Each city and county require an original signed and sealed Alcohol Tax Bond to be filed with their designated offices such as the local City Council or City Clerk. The bond must remain on file with the local jurisdiction to maintain an active alcohol sales tax license or permit.
Once the payment of the bond is complete, Jet will immediately file the bond to its respective destination. If you would prefer to file the bond yourself, our application process allows you to select that option at checkout.
The original signed and sealed bond form (as well as the accompanying license or permit application) should be sent to the appropriate address. You can find the mailing address of each city and county in the chart below.
| Local Jurisdiction | Mailing Address and Contact Information |
|---|---|
| City of Arab | Arab City Council 740 North Main Street Arab, AL 35016 256-586-3544 |
| City of Athens | Athens City Council PO Box 1089 Athens, AL 35612 256-233-8004 |
| City of Boaz | Boaz City Council PO Box 537 Boaz, AL 35957 256-593-9537 |
| City of Cullman | Cullman City Council PO Box 278 Cullman, AL 35056 256-775-7109 |
| City of Decatur | Decatur Department of Revenue 402 Lee Street NE Decatur, AL 35601 256-341-4500 |
| City of Good Hope | Good Hope City Council 135 Municipal Drive Cullman, AL 35057 256-739-5340 |
| City of Guntersville | Guntersville City Clerk 341 Gunter Avenue Guntersville, AL 35976 256-571-7560 |
| City of Haleyville | Haleyville City Council 1901 11th Avenue Haleyville, AL 35565 205-486-3121 |
| City of Hamilton | Hamilton City Council PO Box 188 Hamilton, AL 35570 205-921-2121 |
| City of Homewood | Homewood City Clerk 2850 19th Street South Homewood, AL 35209 205-332-6108 |
| City of Huntsville | Huntsville City Clerk-Treasurer 308 Fountain Circle Huntsville, AL 35801 256-427-5082 |
| City of Jacksonville | Jacksonville City Council 320 Church Avenue SE Jacksonville, AL 36265 256-435-7611 |
| City of Moulton | Moulton City Council 720 Seminary Street Moulton, AL 35650 256-974-5191 |
| Madison County | Madison County Administrator 100 North Side Square Huntsville, AL 35801 256-532-3300 |
| City of New Hope | New Hope City Council 5484 Main Drive New Hope, AL 35760 256-723-2616 |
What Happens if I Need to Cancel My Local Alabama Alcohol Tax Bond?
You can cancel your Alcohol Tax Bond with Jet at any time! Just send us over a written cancellation request (an email to [email protected] is fine), and the Jet team will move forward with sending a cancellation notice to the appropriate department by certified mail.
Liability of the bond will be released within the bond’s set grace period after the cancellation has been requested. The typical cancellation period lasts 30 days, with the exception of the City of Guntersville which has a 60-day cancellation period.
Do Alcohol Sales Tax Bonds Expire in Alabama?
With Jet’s monthly payment option, there is no need to worry about your Alcohol Tax Bond expiring! Payments will continue to come out of your preferred account and keep your bond running until cancellation is officially requested.
For licensees who choose to pay in full for an annual or multi-year bond term, the Jet team will send you a renewal invoice prior to the expiration of your term. To renew your bond, all you have to do is make payment by clicking the link in the emailed renewal notice or sending back the filled-out notice.
Retail alcohol businesses without an active bond will automatically have their license or permit suspended until the surety bond requirement is restored.
How May Alcohol Tax Bond Claims Arise?
Licensed and permitted retail alcohol businesses are expected to follow all rules and regulations for alcohol sales of the local city or county that they are licensed in. Failure to follow these legal requirements can lead to a local government entity (such as the City Council or Department of Revenue) inflicting large fines upon the business, suspension or permanent revocation of the business’s license or permit, possible misdemeanor charges with a maximum penalty of six months served in the local jail, or a claim on the Alcohol Tax Bond.
Typically, a bond claim will only be filed if the retail business fails to pay all alcohol sales taxes, interest, or fees due to the local government entity in charge. This may be caused by keeping inaccurate records that lead to insufficient payments to the jurisdiction in question.
Each city and county ordinance is different from another, so the penalty process will vary depending on the jurisdiction. The Jet team recommends that you thoroughly review your local ordinances in order to stay informed on the standards that need to be met and what to expect if such regulations are broken.
It is likely that the government agency in charge will first notify you of any violations found with a chance to resolve the issue through immediate action, such as payment of all past-due fees or a request for a hearing to discuss how the violations can be resolved. It is in your best interest to settle the violation and pay what is due before your license or permit is revoked and a bond claim is filed. The surety bond will cover past due alcohol sales taxes as well as accrued interest, additional fees, and any violation penalties charged.
What Happens if I Get a Claim on My Alcohol Tax Bond?
Contact Jet immediately upon receipt of an Alcohol Tax Bond claim notice! Our team will brief you on how our claim process works, and then will proceed with a thorough review of claim details: all information provided by the obligee (government department that filed the claim) and any other supporting documentation for your defense that you can provide.
For claims that are found to be valid, Jet is obligated by the bond’s terms to make payment up to the full limit of the bond. The licensee is ultimately responsible for their actions and must reimburse Jet Insurance Company for the full amount paid on their behalf. Failure to do so will lead to future difficulties in purchasing a surety bond, particularly alcohol sales tax license and permit bonds, which are required to maintain a local alcohol sales tax licensure status in various Alabama cities and counties.
Are There Other Bonds That a Retail Alcohol Business Needs in Alabama?
Yes, the Alabama Department of Revenue requires retail businesses who sell beer, wine, or tobacco products to file one of the applicable Alabama Sales Tax Bonds with their office. The appropriate sales tax surety bond must be obtained in order to be licensed at the state level.
