Surety Bond Encyclopedia

Alcohol Ordinance Tax or Fee ($10,000) Bond - City of Athens, AL in Alabama

Brief Summary

The alcohol license tax bond is item 7 on the City of Athens application checklist, and it must be written on the City of Athens form, which the city provides. Getting the $10,000 bond lined up early keeps it from holding up your file at the City Clerk while the background check, council vote and ABC approval move forward.

The City of Athens, Alabama requires an alcohol license tax bond from every applicant for a city alcoholic beverage license. This page covers the $10,000 Alcohol Ordinance Tax or Fee bond. It names the City of Athens as obligee, must be on the city's own bond form, and is submitted to the City Clerk's Office at 200 W. Hobbs Street with the $300 application fee.

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How to Apply for a Alcohol Ordinance Tax or Fee ($10,000) Bond:

Receive zoning approval from the Athens Planning Department.
Request the City of Athens alcohol license tax bond form from the City Clerk's Office.
Owner name, home address and Social Security number for the credit review.
Complete the bond application and review the quoted premium.
Pay the premium and have the $10,000 bond executed on the City of Athens form.
Submit the bond with the Alcohol Beverage License Application, the $300 application fee and the $125 advertising fee to the City Clerk's Office.

Detailed Information About the Alabama Alcohol Ordinance Tax or Fee ($10,000) Bond:

Who has to post this bond

Any business applying for a City of Athens license to sell beer, wine or spirits posts this bond. The city's Alcohol Beverage License Application lists an alcohol license tax bond as a required attachment and states that it must be on the City of Athens form, which the city provides. A bond on a generic surety form will not satisfy that checklist item.

What the bond guarantees

The City of Athens is the obligee. The bond guarantees that the licensee will pay the alcohol license taxes and fees owed to the city under its alcohol ordinance. If a licensee fails to pay, the city can make a claim on the bond, and the licensee must repay the surety for any valid claim paid.

Buying an existing bar, restaurant or store

Purchasing a business from a current alcohol license holder does not skip the city process. The checklist asks for the transfer agreement along with the rest of the package, including the tax bond in the new owner's name.

How the city process runs

Start with a Verification of Zoning Application at the Planning Department, 200 W. Hobbs Street. If zoning is not approved, the process stops there. Once zoning clears, submit the City of Athens Alcohol Beverage License Application to the City Clerk's Office at the same address or by email to licensing@athensal.us, and file your pre-application with the State of Alabama ABC office. The city then runs an ALEA criminal history check, which typically takes 4 to 6 weeks. The Alcohol License Review Committee makes a recommendation and the City Council votes. After Building, Fire and Health inspections, the City Clerk releases the approval to the State ABC Board, and the city license is issued once you present your state ABC license. The city estimates about 45 days for the full process.

Fees that go with the application

The city lists a $300 application fee payable to the City of Athens, a $125 advertising fee for the public hearing notice, and a $25 background check per owner by money order or cashier's check payable to ALEA. Building inspection and fingerprinting fees are set by those departments.

How premium is set

Premium is paid yearly. The surety prices it from the owner's personal credit, time in business and any prior bond claims, measured against the $10,000 bond amount. You see the quote before you pay anything. Confirm the current bond form with the City Clerk's Office before the bond is issued.

Eligibility and Requirements for a Alabama Alcohol Ordinance Tax or Fee ($10,000) Bond:

City of Athens named as obligee.
Bond amount of $10,000.
The City of Athens bond form, not a generic surety form.
Business name on the bond matching the Articles of Incorporation or LLC formation papers filed with the application.
Owner credit review, which sets the premium rate.

Alabama Alcohol Ordinance Tax or Fee ($10,000) Bond FAQs:

Can I use my surety company's standard bond form?

No. The City of Athens application states the alcohol license tax bond must be on the City of Athens form, which the city provides. Get the form from the City Clerk's Office at 200 W. Hobbs Street or licensing@athensal.us and have the surety execute that form.

I am buying a business that already has an alcohol license. Do I need a new bond?

Plan on it. The city checklist asks buyers for the transfer agreement with the existing license holder along with the rest of the application package, which includes the alcohol license tax bond.

When in the process do I file the bond?

The bond is part of the application package submitted to the City Clerk after zoning approval. Having it ready at submission keeps the file moving into the ALEA background check and the City Council vote.

What does the $10,000 bond cost?

The surety sets the annual premium from the owner's credit, business history and any prior claims. The city fees are separate from the premium. Apply online and you will see your quote before paying.