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

Brief Summary

Cleveland will not sign off on an alcohol license until the town's $10,000 tax bond is on file. You pay a yearly premium instead of setting aside $10,000 in cash, and once the Town Clerk confirms the form, the bond can usually be issued the same day.

The Town of Cleveland in Blount County regulates alcohol sales through its Ordinance Regulating the Sale and Distribution of Alcoholic Beverages, last amended by Ordinance 2023-01. Businesses licensed to sell or distribute alcohol in town post a $10,000 Alcohol Ordinance Tax or Fee bond payable to the Town of Cleveland, which guarantees payment of the town's alcohol license fees and taxes. Confirm the current bond form and filing steps with the Town Clerk before the bond is issued.

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

• Ask the Cleveland Town Clerk for the town's bond form or required wording.
• Have the legal business name and location address exactly as they appear on the alcohol license application.
• Provide the owner's name, home address and Social Security number for the credit review.
• Complete the bond application and review the quoted premium.
• Pay the premium and get the signed bond with the surety's power of attorney.
• File the original bond with the Town Clerk with your town alcohol license application.

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

What this bond covers

Cleveland charges its own alcohol license fees and collects local taxes on alcohol sold inside town limits under its Alcohol Ordinance. The Alcohol Ordinance Tax or Fee bond backs those payments. If a licensee fails to pay a fee or tax owed to the town, Cleveland can claim on the bond and the surety pays the town, up to $10,000. The licensee then has to repay the surety.

Who posts it

The business holding the alcohol license posts the bond. That includes package stores, restaurants and bars, and wholesalers selling into town. Town approval comes before the state license from the Alabama Alcoholic Beverage Control Board, so the bond is normally filed with the Town Clerk with your local application.

Know the hours rule too

Ordinance 2023-01, adopted September 14, 2023, rewrote Article IX of the Alcohol Ordinance. It bars sales from 12:00 a.m. to 6:00 a.m. Monday through Saturday, from 12:00 a.m. to 10:00 a.m. on Sunday, and on any town election day until the polls close. Selling during those hours is a violation of the same ordinance the bond secures.

Before you buy

The town's ordinance page posts the 2023 amendment but not the full alcohol ordinance with the bond section. Ask the Town Clerk whether there is a required bond form and whether the $10,000 applies to each location.

How the premium is set

You pay a premium, not the $10,000 face amount. The rate is driven mainly by the owner's credit and the business's finances.

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

• Bond amount of $10,000.
• Town of Cleveland, Alabama named as obligee.
• Surety company authorized to write bonds in Alabama.
• Business name and location matching the alcohol license application.
• Compliance with the Alcohol Ordinance, including the sales hours set by Ordinance 2023-01.

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: