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

Brief Summary

Blountsville will not issue your town business license for alcohol sales until it holds this bond or a bank letter of credit. A surety bond keeps your credit line free for opening inventory, and it is written on the Town's own form, so it can be ready by the time your ABC license comes through.

The Town of Blountsville requires every business subject to its alcohol license fee, privilege tax or excise tax to deliver a $10,000 bond for each business location, guaranteeing prompt payment of those amounts to the Town. A bank letter of credit is accepted instead. The bond must stay in force the whole time the business owes the tax, and no privilege license is granted, renewed or transferred without it.

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

• Complete zoning verification and the Alabama ABC Board application.
• Meet with the Mayor and finish the Town's alcoholic beverage license application.
• Pay the $200 application fee and the $50 advertising fee.
• Order a $10,000 bond for each business location on the Town's Alcohol Ordinance Tax or Fee Bond form.
• After the ABC license issues, bring it to Town Hall with the bond or a bank letter of credit.
• Keep the bond in force for as long as the business owes the Town's alcohol taxes.

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

The amount is per location

The Town's license tax bond rule sets the bond at $10,000 for each location of the business that sells or handles alcohol subject to the Town's license or excise tax. One store needs one $10,000 bond. A second location needs coverage for that location too. This is the detail applicants most often miss.

What the bond guarantees

The bond, titled Alcohol Ordinance Tax or Fee Bond on the Town's form, names the Town of Blountsville, Alabama as obligee. It guarantees that the licensee will promptly pay all license fees, privilege taxes and excise taxes due under the Town's ordinance, along with any other such amounts that come due after the bond date, and will comply with Town laws and ordinances. If the business falls behind, the Town can claim against the bond. The surety pays and then recovers the money from the business.

When you need it

Blountsville's application runs a minimum of about 45 days. You verify zoning, apply with the Alabama ABC Board, meet with the Mayor, complete inspections and an ABI background check, then go through the Alcohol License Review Committee, a public hearing and a Town Council vote. After the ABC Board issues its license, you bring that license to Town Hall along with the Alcohol License Tax Bond or a letter of credit from your bank. The Town then issues a temporary business license. The Town Council will not consent to an alcohol license, and no privilege license will be granted, renewed, kept or transferred, unless the Mayor or designated representative holds a valid bond.

Fees and the ordinance

The application package lists a $200 nonrefundable application fee and a $50 nonrefundable advertising fee, and the applicant acknowledges the requirements of Ordinance No. 2014-002-0, as amended. Confirm the current form and filing steps with Blountsville Town Hall at (205) 429-2406 before the bond is issued.

Cancellation and cost

The surety may cancel the bond by certified mail to the Mayor with 30 days notice, and stays liable for anything covered up to the cancellation date. Because the bond must stay in place continuously, a cancellation notice means you need a replacement bond before the 30 days run out. The premium is set by the surety from the bond amount and the owner's credit.

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

• Town of Blountsville, Alabama named as obligee.
• $10,000 for each location subject to the Town's alcohol license or excise tax.
• Town's own bond form, signed and sealed by principal and surety.
• Bond issued by an insurance company, or a bank letter of credit instead.
• Continuous coverage, with 30 days certified mail notice to the Mayor for any cancellation.

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

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