Alcohol Ordinance Tax or Fee Bond - City of Hamilton, AL in Alabama

Brief Summary

Hamilton will not approve, renew or transfer an alcohol license without this bond on file with the city clerk. It is $10,000 for each licensed premises, it has to stay in force the whole time you hold the license, and a surety can usually issue it the same day for an annual premium.

Section 4-102 of the City of Hamilton Code of Ordinances requires every person, association or corporation subject to a city alcohol license fee, privilege tax or excise tax to deliver a bond to the city. The bond is $10,000 for each licensed premises, guarantees prompt payment of those fees and taxes, and must be on file with the city clerk before the council grants consent for a license.

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How to Apply for a Alcohol Ordinance Tax or Fee Bond:

• Get the current bond form from the City of Hamilton city clerk.
• Count your licensed premises. The bond is $10,000 for each one.
• Give the surety the legal name of the person, association or corporation holding the license.
• Pay the premium and have the bond executed on the city form.
• Deliver the bond to the city clerk with the license application and proof of liability insurance.
• Keep the bond in force continuously for as long as you hold the license.

Detailed Information About the Alabama Alcohol Ordinance Tax or Fee Bond:

Who has to post this bond

Hamilton adopted this requirement in Ordinance No. 2012-13, now Section 4-102 of the city code. It applies to every person, association or corporation subject to a city alcohol license fee, privilege tax or excise tax under Chapter 4. The amount is $10,000 for each licensed premises, so an operator with more than one location needs coverage for each one.

What the bond guarantees

The City of Hamilton is the obligee. The bond is conditioned on the licensee promptly paying the city every alcohol license fee, privilege tax and excise tax that comes due after the bond date. Annual license fees are due January 1 and become delinquent after January 31, and license taxes based on gross receipts are due the 15th day of the month set in each levy under Section 4-77. If those payments are missed, the city can claim against the bond and the surety will seek repayment from the licensee.

It has to stay in force

The bond must remain in place continuously for the entire period the licensee is subject to these fees and taxes. Without a valid bond, no license will be granted, renewed, maintained or transferred. The bond is written on the form the city council prescribes, which is available in the office of the city clerk.

What goes with it

Under Section 4-101, the license application must include proof of the bond and of the liability insurance required by Section 4-103, which calls for alcohol liability insurance and premises liability insurance, each with an aggregate limit of at least $100,000. Ask the city clerk for the current bond form before the bond is issued.

Eligibility and Requirements for a Alabama Alcohol Ordinance Tax or Fee Bond:

• City of Hamilton named as obligee on the form prescribed by the city council.
• Bond amount of $10,000 for each licensed premises.
• Alcohol liability and premises liability insurance, each with an aggregate limit of at least $100,000.
• Annual license fees paid by January 31 to avoid delinquency.
• Gross receipts license taxes paid by the 15th day of the month set in each levy.

Alabama Alcohol Ordinance Tax or Fee Bond FAQs:

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