Surety Bond Encyclopedia

Alcohol Ordinance Tax or Fee ($10,000) Bond - City of Oneonta, AL in Alabama

Brief Summary

Oneonta will not approve an alcoholic beverage license until this bond is in the city's hands. The bond is $10,000 for each location you operate, so a second store means a second $10,000 of coverage. You pay a premium for the bond instead of tying up cash with the city, and it stays in force for as long as you hold the license.

Under Sec. 14-20 of the Oneonta Code of Ordinances, anyone subject to the city's alcoholic beverage license fee, privilege tax or excise tax must deliver a bond to the City of Oneonta guaranteeing prompt payment of those amounts. The bond is $10,000 for each business location where the taxed activity takes place, and the City Council will not consent to the license without it.

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How to Apply for a Alcohol Ordinance Tax or Fee ($10,000) Bond:

  • Count every location where you will sell alcohol in Oneonta. The bond is $10,000 for each one.
  • Have the legal business name and each location address exactly as they appear on the city alcohol license application.
  • Provide owner or principal name, home address and Social Security number for the credit review.
  • Complete the bond application, review the quote and pay the premium.
  • Deliver the signed bond to the City of Oneonta before the City Council considers the license.
  • Keep the bond in force continuously and replace it before any cancellation date.

Detailed Information About the Alabama Alcohol Ordinance Tax or Fee ($10,000) Bond:

The amount is per location

The figure most applicants get wrong is the multiplier. Oneonta Code Sec. 14-20 sets the bond at $10,000 for each location of the business that is engaging in activity taxed or licensed under the city's alcoholic beverage article. One location means $10,000. Three locations means $30,000 of total coverage.

What the bond guarantees

The bond runs to the City of Oneonta and is conditioned on the licensee promptly paying the city every license fee, privilege tax and excise tax required by Chapter 14, including amounts that come due after the bond date. If a licensee falls behind on those payments, the city can make a claim against the bond, and the licensee must repay the surety for anything it pays out.

Approval depends on it

Oneonta alcohol licenses require consent and approval from the City Council, and the code states that consent will not be granted until the bond has been delivered to the city's designated representative. Sec. 14-28, the license fee section, also directs the applicant to post the bond required by Sec. 14-20.

Keep it in force

The bond must stay in place continuously for as long as the licensee is subject to these taxes. A surety may cancel by giving 30 days written notice by certified mail to the City Manager or the designated representative, but it remains liable for anything that happened before the cancellation date. A cancelled bond needs a replacement before that date to protect the license.

Confirm the current bond form and delivery steps with the City of Oneonta before the bond is issued.

Eligibility and Requirements for a Alabama Alcohol Ordinance Tax or Fee ($10,000) Bond:

  • City of Oneonta named as obligee.
  • Bond amount of $10,000 for each business location, per Oneonta Code Sec. 14-20.
  • Conditioned on prompt payment of all city alcohol license fees, privilege taxes and excise taxes under Chapter 14.
  • Continuous coverage for as long as the licensee is subject to the taxes.
  • Owner credit review, which shapes the premium.

Alabama Alcohol Ordinance Tax or Fee ($10,000) Bond FAQs:

I have two stores in Oneonta. Is one $10,000 bond enough?

No. Sec. 14-20 sets the bond at $10,000 for each location where the licensed or taxed activity happens. Two stores need $20,000 of total coverage.

Can I get council approval first and post the bond later?

No. The code says the City Council will not grant consent and approval for the alcohol license until the bond has been delivered to the city's designated representative.

What happens if my surety cancels the bond?

The surety must give 30 days written notice by certified mail to the City Manager or the designated representative. It stays liable for events before the cancellation date, but you need a replacement bond in place by then to stay in compliance.

How is the premium set?

The surety prices the bond from the total bond amount and an underwriting review of the owners, mainly personal credit. You see the actual quote when you apply.

Official and Additional Resources for the Alabama Alcohol Ordinance Tax or Fee ($10,000) Bond:

Alcohol Ordinance Tax or Fee ($10,000) in Other Alabama Locations

City of Athens, ALCity of Cullman, ALCity of Good Hope, ALCity of Moulton, ALTown of Blountsville, ALTown of Carrollton, ALTown of Cleveland, AL

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