Alcohol and Liquor Tax Bond - Jefferson County, AL in Alabama

Brief Summary

If you sell liquor or wine in Jefferson County, the county collects its own alcoholic beverage taxes on top of what the state collects, and it can ask for a tax bond before it lets you report and remit those taxes. The bond stands behind your monthly tax payments so the county does not have to hold your cash as a deposit.

The Jefferson County Alcohol and Liquor Tax bond is a tax bond in favor of the Jefferson County Department of Revenue. It guarantees that a business selling alcoholic beverages in the county will file its county alcohol tax returns and pay the tax, penalties and interest it owes. The county sets the bond amount, so get the required figure and the county's bond form from the Department of Revenue before the bond is issued.

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How to Apply for a Alcohol and Liquor Tax Bond:

• Contact the Jefferson County Department of Revenue and get the required bond amount and bond form.
• Have the legal business name, trade name and county tax account number ready, exactly as the county has them.
• Complete the bond application and review the premium quote.
• Sign the bond and have it executed by the surety.
• File the original bond with the Jefferson County Department of Revenue.
• Keep the bond in force for as long as the county requires it.

Detailed Information About the Alabama Alcohol and Liquor Tax Bond:

This is a county bond, not your ABC license

The most common mix up is assuming the state liquor license covers everything. It does not. Your retail or wholesale alcohol license comes from the Alabama Alcoholic Beverage Control Board, which handles Jefferson County through its Division G office at 234 Aquarius Drive, Suite 103, in Homewood. Jefferson County runs its own revenue department and collects its own taxes on alcoholic beverage sales. The bond on this page is owed to the county, and the county is the party that decides whether you need one and for how much.

What the bond guarantees

A tax bond is a promise from a surety company to the Jefferson County Department of Revenue. If the business fails to file its county alcohol tax returns or fails to pay the tax due, the county can make a claim against the bond to recover what it is owed. The surety pays valid claims and then collects that money back from the business owner. The bond is not insurance for the business. It protects the county's tax revenue.

Who usually posts it

Businesses that sell liquor, wine or other alcoholic beverages subject to the county's alcohol taxes, such as lounges, restaurants, package stores and wholesalers, are the ones typically asked for this bond. Whether a particular business must post it, and the amount, is up to the county. Ask the Department of Revenue for its requirement, its bond form and the exact name it wants shown as obligee.

What it costs

You pay a premium rather than the full bond amount. The surety sets the premium after looking at the owner's credit, the business's financial history and the size of the bond the county requires.

Eligibility and Requirements for a Alabama Alcohol and Liquor Tax Bond:

• Jefferson County Department of Revenue named as obligee.
• Bond amount set by the county.
• Surety company authorized to write bonds in Alabama.
• Business names on the bond matching the county tax account.
• State ABC license from the Alabama ABC Board, which is separate from this bond.

Alabama Alcohol and Liquor Tax Bond FAQs:

Official and Additional Resources for the Alabama Alcohol and Liquor Tax Bond: