Alcohol Ordinance Tax or Fee Bond - City of Scottsboro, AL in Alabama

Brief Summary

Scottsboro sets this bond at $2,500 for each location, so a business with two licensed stores needs $5,000 in total coverage, not one bond for the company. The city clerk will not grant, renew or transfer an alcohol privilege license without it, and you pay a small premium instead of handing the city cash.

Scottsboro City Code Sec. 4-65 requires every business subject to a city alcohol license fee, privilege tax or excise tax to deliver a bond to the city guaranteeing payment of those amounts. The bond is $2,500 for each business location and must stay in place for as long as the business owes the tax. It is written on the city's own Alcohol Ordinance Tax or Fee Bond wording and delivered to the city clerk.

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How to Apply for a Alcohol Ordinance Tax or Fee Bond:

• Count your licensed locations in Scottsboro. The bond is $2,500 for each one.
• Use the City of Scottsboro Alcohol Ordinance Tax or Fee Bond wording printed in City Code Sec. 4-65(c).
• Provide the business name exactly as it appears on the city license application, plus owner details for the surety.
• Pay the premium and receive the executed bond.
• Deliver the bond to the Scottsboro city clerk before the council considers your license or before renewal.
• File the city license application with the $150 filing fee and pay the annual license fee by January 31.

Detailed Information About the Alabama Alcohol Ordinance Tax or Fee Bond:

The amount is per location

The most common mistake is buying one bond for the whole company. Sec. 4-65 of the Scottsboro City Code sets the bond at $2,500 for each location of the business that is engaged in activity subject to a city alcohol license or excise tax. Each licensed store, restaurant or lounge needs its own $2,500 of coverage.

Who has to post it

Any person subject to a license fee, privilege tax or excise tax under Article III of Chapter 4 must deliver the bond to the city. That covers retailers, restaurants, lounges, clubs and wholesalers who pay Scottsboro alcohol fees or remit monthly beer and table wine taxes under Sec. 4-72. The code makes no exception for businesses that were already licensed when Ordinance No. 586 was adopted on February 23, 2015. The bond must stay in force the entire time the business is subject to those taxes.

No bond, no license

Where city council approval is needed for an alcoholic beverage license, the council will not give it until the bond has been delivered to the city clerk. The clerk will also refuse to grant, renew, maintain or transfer a privilege license unless the city holds a valid bond.

The bond wording

Sec. 4-65(c) prints the form the bond must substantially follow, titled City of Scottsboro Alcohol Ordinance Tax or Fee Bond, with the City of Scottsboro as obligee. It guarantees the principal will follow city laws and ordinances and promptly pay every license fee, privilege tax and excise tax that becomes due after the bond date. The surety can cancel by certified mail to the city clerk with 30 days' notice, and stays liable for anything the principal did before the cancellation date.

A second bond for liquor licenses

Sec. 4-153(b)(4) adds a separate $2,500 bond for council approved retail or wholesale alcohol licenses, other than ABC Board stores. That one is a liquidated damages bond conditioned on obeying state alcohol law, cannot be cancelled without city council consent, and can be replaced with a $2,500 cash deposit with the city clerk. Posting the tax bond does not satisfy it, and posting it does not satisfy the tax bond.

Fees and deadlines

Sec. 4-71 sets a $150 filing fee for each city license application, or $75 for a special events license. Annual city alcohol license fees are due January 1 and delinquent after January 31, with penalties that rise through the year.

Eligibility and Requirements for a Alabama Alcohol Ordinance Tax or Fee Bond:

• $2,500 bond for each business location subject to city alcohol license or excise tax.
• City of Scottsboro, Alabama named as obligee.
• Bond wording that substantially matches the form in Sec. 4-65(c).
• Bond kept in place continuously while the business owes city alcohol taxes or fees.
• Surety cancellation only by certified mail to the city clerk with 30 days' notice.

Alabama Alcohol Ordinance Tax or Fee Bond FAQs:

Official and Additional Resources for the Alabama Alcohol Ordinance Tax or Fee Bond: