In Alabama, certain cities and counties require a Transient Merchant Bond for peddlers, vendors, solicitors, canvassers, and transient merchants selling goods and/or services within the city or county limits. The surety bond, provided by Jet, is a guarantee to the counties and cities (obligee) that all due taxes and fees will be paid and the merchant will act in accordance with the applicable statutes.
Whether applying for a first-time permit or renewing a permit, Jet will help you get the required Transient Merchant Bond at an affordable rate.
The lowest price for the Transient Merchant Bond at Jet is $100 for one year. Applicants with bond limits up to $25,000 will be approved automatically and can purchase the bond instantly online. Any limits exceeding $50,000 will require a quick review of the applicant’s credit and the approved rate will be sent to you via email shortly after.
Depending on where your permit is issued, the bond limit varies. Refer to the table below for the bond limit and corresponding legislation:
|City/County||Bond Name||Bond Limit Calculation|
|City of Birmingham||Transient Dealer||$5,000 or 4% of estimated sales, whichever is more|
|City of Dothan||Transient Merchant||$2,500 - $25,000, depending on estimated sales, or 10% of estimated sales, whichever is more|
|City of Homewood||Peddler/Itinerant Merchant||$5,000 or 10% minimum of estimated sales, whichever is less|
|All Alabama Counties||Transient Merchant||$2,000 or 5% of the wholesale value of merchandise/services offered|
Alabama cities and counties rely on businesses to pay their taxes and license fees. The government expects transient merchants to follow the applicable statutes to operate their business legally and ethically. Should damages occur to the public the governing entity must apply the investigation and subsequent disciplinary action if necessary.
The Transient Merchant Bond is a tool used to provide financial relief to anyone harmed by a merchant’s actions. By Jet issuing this license bond, the obligee (governing entity) is protected from not receiving due taxes, fees, and fines, and the public is protected from a merchant’s misrepresentation or fraud.
Jet’s application process can be completed in just minutes. Click the button below to be taken through the step-by-step application which asks for basic information such as your name, city/county of operation, and a few other quick items. The application may ask for your social security number for higher bonding limits, but don’t worry as the soft credit pull doesn’t affect your score.
A copy of the bond will be available immediately after purchase. If you have a bond limit over $50,000, Jet will send you an approved rate which can be purchased online and then you will receive a copy of the bond and receipt.
Yes! Once payment is made, Jet will send the original bond to the appropriate city or county for you free of charge. If you wish to send in the bond yourself, that option is given during payment.
Based on your business location, find the different addresses below for where to send in paperwork:
City of Birmingham
Tax and License (Revenue) Administration Division
City Hall, Room TL-100
710 North 20th St
Birmingham, AL 35203
Dothan City Clerk
P.O. Box 2128
Dothan, AL 36302
Homewood Police Department
2850 19th St S
Homewood, Al 35209
It depends where the permit is issued. Some obligees require the bond to be in effect for one year following the date of the last sale and until any open judgments or actions have been paid and satisfied. If a transient merchant fails to pay for the bond, Jet can request cancellation with the governing entity.
The bond will stay active as long as payments when the bond term expires are made. Jet sends you a notice via both email and mail to have ample time to make payment if you plan to continue the permit. You are able to go online and pay or send in payment through the mail. No additional paperwork is required.
Some obligees require the bond to stay in effect for an additional year after the last purchase is made to account for any owed payments to the city/county or claims filed by a customer. Jet will require payment for the additional year as the bond must remain active.
If you have questions, just email [email protected].
Although each city and county has unique statutes, the Transient Merchant Bond generally protects both the obligee (government entity such as the county or city) and the public from monetary loss. Following the statutes governing transient trade is the best way to ensure a smooth process.
Merchants can receive a bond claim for actions such as nonpayment of taxes, fines, and fees to the county or city. Selling faulty items or making false claims about a product/service will land the merchant in hot water from the public. Both a merchant’s customer and the governing entity can file bond claims. Prior to a claim being filed on the bond, merchants may be subject to permit suspension or revocation, civil fines, and other disciplinary actions from the obligee. If disciplinary action is being taken against the permit, it is in the best interest of the merchant to be responsive and comply with the county or city.
If a claim is filed on your Transient Merchant Bond, Jet takes the time to review all details to ensure the allegation is not false and provide a defense. However, if the claim is valid, Jet will pay the claimant up to the full bond amount to reimburse them for their losses. The bond is essentially an extension of credit, and you are responsible for your actions, so the amount paid out for the claim must be paid back to Jet. Failure to resolve a claim will result in future difficulties receiving the permit and bond needed to be a merchant, peddler, vendor, solicitor, or canvasser.