Surety Bond Encyclopedia

Liquor License Tax Bond - City of Huntsville, AL in Alabama

Brief Summary

Huntsville collects its own 12 percent liquor privilege license fee directly, outside the state's online filing system, and this bond is the City's assurance that the fee reaches City Hall every month. Posting it costs an annual premium rather than a cash deposit held by the City, and it keeps your liquor tax account in good standing with the Finance Office.

The City of Huntsville Liquor License Tax bond guarantees that a business selling liquor or drinks containing liquor will pay the City's 12 percent liquor privilege license fee. The City of Huntsville is the obligee. The bond amount and the current bond form are set by the Huntsville Finance Office, so confirm both with that office before the bond is issued.

We can help with all Alabama bonds!

How to Apply for a Liquor License Tax Bond:

Confirm with the Huntsville Finance Office the bond amount and the bond form it currently accepts.
Have the legal business name exactly as it appears on your City of Huntsville license and tax account.
Provide 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 receive the signed bond with power of attorney.
Deliver the bond to the Finance Office, Huntsville City Hall, 3rd Floor, 305 Fountain Circle, Huntsville, AL 35801.

Detailed Information About the Alabama Liquor License Tax Bond:

What the bond backs

Huntsville levies a 12 percent liquor privilege license fee on businesses and private clubs that sell liquor or alcoholic drinks containing liquor. The fee is charged on all ingredients of the drink, not just the liquor, and the business must still collect sales tax from the customer on top of it. The surety bond guarantees the City that the licensee will report and pay this fee. If a business stops paying, the City can make a claim against the bond, and the surety then looks to the business owner for repayment.

Who files, and who does not

The fee applies to bars, restaurants, private clubs and other businesses that serve liquor. Privately owned retail liquor stores and state operated Alabama Alcoholic Beverage Control Board stores are not subject to it.

How the return is filed

This is the detail most new licensees miss. Huntsville liquor tax cannot be filed electronically through the Alabama Department of Revenue website. A paper Liquor Tax return must be completed and mailed directly to the City with payment. City tax returns are due by the 20th day of the month following the reporting period.

Before you buy the bond

The Finance Office sets the required bond amount and supplies the bond form it will accept. Call or email the office first, then have the bond written in the exact legal name on your City license account. Premium is priced on the bond amount the City requires and on the owner's credit and business history.

Eligibility and Requirements for a Alabama Liquor License Tax Bond:

City of Huntsville named as obligee.
Bond amount as set by the Huntsville Finance Office.
Surety company authorized to write bonds in Alabama.
Principal name matching the City license and liquor tax account exactly.
Monthly paper Liquor Tax return mailed to the City with payment by the 20th of the following month.

Alabama Liquor License Tax Bond FAQs:

What tax does this bond guarantee?

The City of Huntsville liquor privilege license fee, which is 12 percent and applies to all ingredients of a drink that contains liquor. Sales tax is collected from the customer separately.

Does my liquor store need this bond?

The City states that the liquor privilege license fee does not apply to privately owned retail liquor stores or to state operated ABC Board stores. It applies to businesses and private clubs that sell liquor or drinks containing liquor.

Can I file the liquor tax online with the state?

No. Huntsville liquor tax cannot be filed through the Alabama Department of Revenue website. A paper return must be completed and mailed directly to the City with payment.

How much is the bond and what does it cost?

The Finance Office sets the bond amount, so confirm it there before ordering. Your premium is based on that amount and on the owner's credit and business history.

Who do I contact at the City?

The Finance Office at Huntsville City Hall, 3rd Floor, 305 Fountain Circle, Huntsville, AL 35801. Phone 256-427-5080 or email License-Tax@HuntsvilleAL.gov, Monday through Friday, 8 a.m. to 5 p.m.