Special Events ($10,000) Bond - City of Mobile, AL in Alabama

Brief Summary

If your event will have 76 or more vendors, Mobile requires the $10,000 tier of the special event tax bond, not the $5,000 tier. The bond lets you post that security without handing the Revenue Department $10,000 in certified funds before the gates open.

The City of Mobile requires the promoter of a special event to obtain a Special Event License and post a tax bond, or certified funds, with the City of Mobile Revenue Department. The bond is $10,000 for events with 76 or more vendors and $5,000 for events with up to 75. It guarantees that sales tax owed by the event's vendors is collected and remitted to the City.

We can help with all Alabama bonds!

How to Apply for a Special Events ($10,000) Bond:

• Count vendor booths to confirm you are in the 76 or more vendor tier.
• Complete the City of Mobile Special Event License application.
• Gather driver's license copies, Secretary of State documents, FEIN or 501(c)(3) letter, Alabama Revenue tax ID letter and the vendor list.
• Apply for the $10,000 tax bond naming the City of Mobile, and pay the premium.
• File the bond, application and license fee with the City of Mobile Revenue Department.
• After the event, collect all vendor tax envelopes and remit them to the Revenue Department within 10 days.

Detailed Information About the Alabama Special Events ($10,000) Bond:

Which tier you are in

The City's Special Event License application sets the tax bond by vendor count. Events with up to 75 vendors post $5,000. Events with 76 or more vendors post $10,000. This page covers the $10,000 tier. Count booths carefully, because the license fee also steps up with the vendor count.

License fees

1 to 25 vendors, $120 plus a $10 issue fee. 26 to 75 vendors, $150 plus a $10 issue fee. 76 to 125 vendors, $250 plus a $10 issue fee. Over 125 vendors, $300 plus a $10 issue fee.

What the bond guarantees

Vendors at a licensed special event do not need their own City business license, but each remains responsible for the tax due on its sales. The promoter must hand out the tax envelopes supplied by the Revenue Department, collect every completed envelope with the tax money in sealed envelopes, and remit them to the Revenue Department within 10 days after the event ends. The bond backs that promise. If the tax is not turned in, the City can claim against the bond.

Nonprofits are not excused

Tax exempt status does not relieve an organization from remitting tax on event proceeds, including ticket sales and vendor gross receipts.

What to file

The completed application, copies of driver's licenses, Secretary of State business documents, an FEIN or 501(c)(3) letter, the Alabama Revenue tax ID letter, the vendor list, and alcohol documents if alcohol will be sold.

Premium

The bond amount is fixed by the tier. Premium depends on the promoter's credit and event history.

Eligibility and Requirements for a Alabama Special Events ($10,000) Bond:

• Bond amount of $10,000 for events with 76 or more vendors.
• City of Mobile named as obligee, held by the Revenue Department.
• Posted by the event promoter.
• Certified funds accepted in place of the bond.
• Tax remitted within 10 days after the event, including by tax exempt organizations.

Alabama Special Events ($10,000) Bond FAQs:

Official and Additional Resources for the Alabama Special Events ($10,000) Bond: