Special Events ($5,000) Bond - City of Mobile, AL in Alabama

Brief Summary

If your event will host 75 vendors or fewer, this $5,000 tax bond is the one the City of Mobile Revenue Department asks the promoter to post with the special event license. A surety bond keeps your cash free for the event itself, and the bond form goes to the Revenue Department along with the license application.

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 Revenue Department. The bond is $5,000 for events with 1 to 75 vendors and $10,000 for events with more than 75 vendors. It backs the promoter's duty to collect vendor sales tax envelopes and remit them to the city within 10 days after the event ends.

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How to Apply for a Special Events ($5,000) Bond:

• Count the vendors expected at the event. The $5,000 bond covers 1 to 75 vendors.
• Complete the City of Mobile Special Event License application from the Revenue Department.
• Apply for the $5,000 tax bond in the promoter's exact legal name and review the premium quote.
• Submit the executed bond, or certified funds instead, to the Revenue Department with the license fee and $10 issue fee.
• Pick up tax envelopes from the Revenue Department and give one to every vendor.
• Collect all completed envelopes and tax money and remit them to the Revenue Department within 10 days after the event ends.

Detailed Information About the Alabama Special Events ($5,000) Bond:

Which amount applies to your event

The bond amount depends on how many vendors will sell at the event. The Revenue Department's Special Event License form sets this schedule:

• 1 to 25 vendors: $5,000 bond, $120 license fee
• 26 to 75 vendors: $5,000 bond, $150 license fee
• 76 to 125 vendors: $10,000 bond, $250 license fee
• Over 125 vendors: $10,000 bond, $300 license fee

Each license also carries a $10 issue fee. This page covers the $5,000 bond for events with 75 or fewer vendors. If your vendor count grows past 75, the requirement moves to $10,000.

What the bond guarantees

This is a tax bond. Vendors at a licensed special event do not need their own City of Mobile business license, but they still owe tax on everything they sell, from food to merchandise. The promoter carries the collection job. The promoter hands each vendor a tax envelope supplied by the Revenue Department, gathers every completed envelope and the tax due, and turns them in to the Revenue Department within 10 days after the event closes. If the promoter fails to do that, the city can recover what it is owed through the bond.

Bond or certified funds

The city accepts either a tax bond or certified funds. A surety bond means you pay a premium instead of tying up $5,000 in cash before the event. The premium is set by the surety after reviewing the applicant, mainly personal credit and the business history of the promoter.

Filing

The bond is held by the City of Mobile Revenue Department, 205 Government St., South Tower Room 243, Mobile, AL 36602. Mailing address is PO Box 3065, Mobile AL 36652. Phone 251.208.7462, email revenue@cityofmobile.org. Confirm the current bond form and how far ahead the department wants the license and bond before the event date.

Eligibility and Requirements for a Alabama Special Events ($5,000) Bond:

• City of Mobile Revenue Department named as the party the bond is held by.
• Bond amount of $5,000 for 1 to 75 vendors, or $10,000 for more than 75 vendors.
• Promoter name on the bond matching the special event license application.
• License fee of $120 for 1 to 25 vendors or $150 for 26 to 75 vendors, plus the $10 issue fee.
• Personal credit review of the promoter by the surety.

Alabama Special Events ($5,000) Bond FAQs:

Official and Additional Resources for the Alabama Special Events ($5,000) Bond: