Gas/Butane or Propane Contractor ($2,500) Bond - City of Birmingham, AL in Alabama

Brief Summary

Birmingham will not issue a butane or propane license until a $2,500 bond is posted with the Director of Finance. The amount is flat, and you pay a small yearly premium instead of setting aside the full $2,500.

Schedule 114 of the Birmingham business license code covers each person, or agent, engaged in manufacturing or distributing butane or propane gas in the city. The license costs two percent of the prior year's gross receipts from that business, with a $200 minimum, and no license is issued until the applicant posts a $2,500 bond with the Director of Finance. Confirm the current bond form and filing steps with the Tax and License Division before the bond is issued.

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How to Apply for a Gas/Butane or Propane Contractor ($2,500) Bond:

• Confirm your business manufactures or distributes butane or propane gas in Birmingham.
• Get the current bond form from the Tax and License Division.
• Provide the business name exactly as it will appear on the city license.
• Provide owner name and address for the credit review.
• Pay the premium and receive the executed $2,500 bond.
• Post the bond with the Director of Finance and pay the license fee.

Detailed Information About the Alabama Gas/Butane or Propane Contractor ($2,500) Bond:

Who this applies to

Birmingham lists the butane and propane license as Schedule 114, under NAICS 325 in the business license appendix of the General Code. It reaches each person, or agent for one, engaged in manufacturing or distributing butane or propane gas. If you deliver or distribute propane in the city, you are in this schedule, whatever you call your company.

The bond comes before the license

The schedule is direct about the order. No license will be issued until the applicant posts a $2,500 bond with the Director of Finance. The amount does not scale with sales volume. A small dealer and a large distributor post the same $2,500.

The license fee is separate

The bond is not the license fee. The license itself costs two percent of gross receipts from the business for the previous year, with a minimum of $200. A new business with no prior year receipts should expect the minimum and should ask the division how the first year is figured.

Where to file

The Tax and License Division of the Birmingham Finance Department collects license fees and handles renewals, with online renewal available. The office is in Room TL-100 and is open 8:00 a.m. to 5:00 p.m., Monday through Friday. Ask the division for its current bond form before you apply so the obligee wording matches.

What the bond guarantees

The bond backs your obligations to the city as a licensee. If the city has a valid claim, it can collect from the surety up to $2,500, and you repay the surety.

Eligibility and Requirements for a Alabama Gas/Butane or Propane Contractor ($2,500) Bond:

• Bond amount of $2,500, the same for every applicant under Schedule 114.
• City of Birmingham Director of Finance as the filing office.
• Bond on file before the license is issued.
• License fee of two percent of prior year gross receipts, $200 minimum.
• Owner credit review sets the premium rate.

Alabama Gas/Butane or Propane Contractor ($2,500) Bond FAQs:

Official and Additional Resources for the Alabama Gas/Butane or Propane Contractor ($2,500) Bond: