Alcohol Tax Bonds in Alabama

Alabama Alcohol Tax Bonds

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. 

APPLY FOR YOUR BOND

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 TermCost
Monthly$10
1 Year$100
2 Years$175
3 Years$250
Alabama Alcohol Tax Bond Pricing

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!

VIEW YOUR BOND PRICE

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 JurisdictionMailing Address and Contact Information
City of ArabArab City Council
740 North Main Street
Arab, AL 35016
256-586-3544
City of AthensAthens City Council
PO Box 1089
Athens, AL 35612
256-233-8004
City of BoazBoaz City Council
PO Box 537
Boaz, AL 35957
256-593-9537
City of CullmanCullman City Council
PO Box 278
Cullman, AL 35056
256-775-7109
City of DecaturDecatur Department of Revenue
402 Lee Street NE
Decatur, AL 35601
256-341-4500
City of Good HopeGood Hope City Council
135 Municipal Drive
Cullman, AL 35057
256-739-5340
City of GuntersvilleGuntersville City Clerk
341 Gunter Avenue
Guntersville, AL 35976
256-571-7560
City of HaleyvilleHaleyville City Council
1901 11th Avenue
Haleyville, AL 35565
205-486-3121
City of HamiltonHamilton City Council
PO Box 188
Hamilton, AL 35570
205-921-2121
City of HomewoodHomewood City Clerk
2850 19th Street South
Homewood, AL 35209
205-332-6108
City of HuntsvilleHuntsville City Clerk-Treasurer
308 Fountain Circle
Huntsville, AL 35801
256-427-5082
City of JacksonvilleJacksonville City Council
320 Church Avenue SE
Jacksonville, AL 36265
256-435-7611
City of MoultonMoulton City Council
720 Seminary Street
Moulton, AL 35650
256-974-5191
Madison CountyMadison County Administrator
100 North Side Square
Huntsville, AL 35801
256-532-3300
City of New HopeNew Hope City Council
5484 Main Drive
New Hope, AL 35760
256-723-2616
Mailing Addresses for Alcohol Tax Bonds in Alabama

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 bonddept@jetsurety.com 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.  

Alabama Alcohol Tax Bonds Form

Notary Bond Application:

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: