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

Brief Summary

If you sell or distribute alcohol in Reform, the city collects its own alcohol taxes and fees on top of the state's, and this $10,000 bond is the city's guarantee that those payments will arrive. You pay a premium instead of posting cash, and the bond can usually be issued as soon as the city's form is in hand.

The City of Reform in Pickens County requires a $10,000 Alcohol Tax or Fee bond from businesses that owe the city alcohol taxes or license fees. Alabama Code Section 28-3-190(b) gives wet municipalities the authority to require a tax bond conditioned on payment of local beer taxes. Confirm the current bond form and filing steps with Reform City Hall before the bond is issued.

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

• Call Reform City Hall to confirm the current bond form and filing steps before the bond is issued.
• Have your legal business name and address exactly as they appear on your alcohol license.
• Provide owner names and details for the surety's credit review.
• Pay the premium and receive the executed $10,000 bond.
• File the signed bond with the City of Reform.

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

What this bond does

The Alcohol Tax or Fee bond guarantees the City of Reform that a business will pay the local alcohol taxes and fees it owes. If the business collects tax from customers and fails to send it in, or falls behind on a city license fee, the city can make a claim on the bond. The surety pays valid claims and then looks to the business for repayment, so the bond protects the city rather than the licensee.

Where the authority comes from

Alabama lets wet cities collect their own beer tax under Section 28-3-190 of the Code of Alabama. That tax is added to the sales price and collected from the buyer, with the wholesaler acting as the city's collection agent and filing a return by the 15th of the following month. Subsection (b) of the same section allows a municipality to require a wholesale beer licensee who sells or delivers beer in its area to file a bond with the tax collection authority, conditioned on payment of the beer tax. Section 28-3-194 separately lets each city set a reasonable license fee on retail, importer and wholesale licensees.

The amount

This bond is written for $10,000 with the City of Reform as obligee. Reform does not publish its alcohol ordinance online, so ask the city clerk which license holders must post it and whether the city has its own bond form.

Before you file

The city bond is separate from your Alabama ABC Board license. Holding a state license does not satisfy the city's bond requirement, and the city bond does not replace any bond the state requires.

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

• Bond amount of $10,000.
• City of Reform, Alabama named as obligee.
• Business name on the bond matching the alcohol license.
• A surety company authorized to write bonds in Alabama.
• Premium set by the surety after reviewing the owner's credit and the business's history.

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

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