Alcohol License Tax (Beer and Wine - $5,000) Bond - City of Decatur, AL in Alabama

Brief Summary

If your Decatur alcohol license covers only beer, table wine or both, the city lets you start with a $5,000 bond instead of the $10,000 every other alcohol licensee posts. Paying a yearly premium for the bond keeps that money in your business rather than tied up as certified funds with the city.

Decatur Code Sec. 2.5-39 requires every alcoholic beverage licensee with retail or wholesale sales to keep a bond or certified funds on file with the City of Decatur. The standard amount is $10,000, but a licensee whose only license is for on or off premises sale of beer, table wine or a combination of the two may post an initial bond of $5,000. The bond backs payment of the city's alcohol license taxes, privilege licenses and sales and use taxes.

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How to Apply for a Alcohol License Tax (Beer and Wine - $5,000) Bond:

• Confirm your license is limited to beer, table wine or both. That is what qualifies you for the $5,000 initial amount 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 $5,000 bond.
• File the bond with the City of Decatur Revenue Department as part of the alcohol licensing process.
• Keep the bond in force for as long as you hold the license, and respond within ten days if the city demands additional bond.

Detailed Information About the Alabama Alcohol License Tax (Beer and Wine - $5,000) Bond:

Which tier you fall into

Decatur sets one rule for alcohol licensees and then carves out a smaller starting amount. Under Sec. 2.5-39 of the Code of Decatur, any licensee who will make retail or wholesale sales of alcoholic beverages must deliver and maintain a bond or certified funds payable to the city in the penal sum of $10,000. A licensee whose only license is for on or off premises sale of beer, or on or off premises sale of table wine, or any combination of those, provides the bond in an initial amount of $5,000 instead.

The reduced tier is written around beer and table wine. If your license includes liquor, the $10,000 bond applies. Check your license type against the ordinance wording before ordering the bond.

What the bond guarantees

The bond is conditioned to pay the city promptly everything that becomes due under the alcoholic beverage chapter, plus any amount that becomes due for privilege licenses or sales and use taxes after the bond date. It must be written by a surety company authorized to do business in Alabama and in the city.

When the city asks for more

If claims against the bond eat into it, the city can demand additional bond. For beer and table wine licensees, any additional bond comes in increments of $3,000, and the licensee has ten days after the demand to furnish it. The ordinance makes it unlawful to do business in the city while in default on this security, no matter how much tax the licensee has already paid.

Cancellation notice

The bond must carry an endorsement that it cannot be canceled unless written notice is served on the city, to the attention of the Revenue Department, at least 30 days before the cancellation date.

Premium

The surety sets the annual premium after reviewing the owner's credit and the business. 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 and Wine - $5,000) Bond:

• City of Decatur named as obligee.
• Surety company authorized to do business in Alabama and in the city.
• Initial penal sum of $5,000 for licensees whose only license covers beer, table wine or a combination of the two.
• 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 and Wine - $5,000) Bond FAQs:

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