Alcohol License Tax (Beer, Wine and Liquor - $10,000) Bond - City of Decatur, AL in Alabama

Brief Summary

Any Decatur alcohol license that includes liquor carries the full $10,000 bond. Posting it as a surety bond means you pay an annual premium instead of handing the city $10,000 in certified funds, which keeps that cash available for inventory and opening costs.

Decatur Code Sec. 2.5-39 requires each alcoholic beverage licensee with retail or wholesale sales to deliver and maintain a bond or certified funds of $10,000 payable to the City of Decatur. The only reduced tier is for licensees limited to beer and table wine, who start at $5,000. The bond secures the city's alcohol license taxes along with later privilege license and sales and use tax liabilities.

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How to Apply for a Alcohol License Tax (Beer, Wine and Liquor - $10,000) Bond:

• Confirm your license includes liquor or otherwise falls outside the beer and table wine only tier. That puts you at $10,000 under Sec. 2.5-39.
• Have the legal business name and premises address exactly as they appear on the city alcohol license application.
• Provide owner name, home address and Social Security number for the surety's credit review.
• Review the quote, pay the premium and receive the executed $10,000 bond.
• File the bond with the City of Decatur Revenue Department during the licensing process.
• Keep the bond at full strength and furnish any additional bond within ten days of a city demand.

Detailed Information About the Alabama Alcohol License Tax (Beer, Wine and Liquor - $10,000) Bond:

Who posts the $10,000 bond

Sec. 2.5-39 of the Code of Decatur requires every alcoholic beverage licensee who will have retail or wholesale sales to deliver and maintain with the city a bond or certified funds in the penal sum of $10,000. The code gives one exception: a licensee whose only license is for on or off premises sale of beer or table wine, or a combination of the two, starts at $5,000. Once liquor is part of the license, the $10,000 amount applies.

What the bond guarantees

The bond is conditioned to pay promptly to the city every amount that becomes due under the alcoholic beverage chapter, along with any amount that becomes due for privilege licenses or sales and use taxes after the date of the bond. Decatur's Revenue Department lists its liquor tax at 15 percent, due on or before the 15th of each month. The surety must be authorized to do business in Alabama and in the city.

Keeping the full $10,000 in place

The city expects the bond to provide full security of $10,000 after existing liabilities are deducted. If claims bring it below that, the city will demand additional bond of $3,000 or more, and the licensee has ten days to furnish it. Doing business in Decatur while in default on this security is unlawful under the ordinance, regardless of taxes already paid.

Cancellation notice

The bond must include an endorsement that it cannot be canceled without written notice served on the city, to the attention of the Revenue Department, at least 30 days before the cancellation date.

Before you file

Liquor licenses in Decatur also go through council approval, an alcohol license review committee and published notice under Article II of Chapter 2.5. Confirm the current bond form and filing steps with the Decatur Revenue Department before the bond is issued.

Eligibility and Requirements for a Alabama Alcohol License Tax (Beer, Wine and Liquor - $10,000) Bond:

• City of Decatur named as obligee.
• Surety company authorized to do business in Alabama and in the city.
• Penal sum of $10,000.
• Endorsement requiring 30 days written notice to the city, attention Revenue Department, before cancellation.
• Certified funds payable to the city are accepted by the ordinance in place of a surety bond.

Alabama Alcohol License Tax (Beer, Wine and Liquor - $10,000) Bond FAQs:

Official and Additional Resources for the Alabama Alcohol License Tax (Beer, Wine and Liquor - $10,000) Bond: