Alcohol Ordinance Tax or Fee Bond - Town of Priceville, AL in Alabama

Brief Summary

Priceville's bond is not one flat number. A beer and wine only location posts $5,000, everyone else posts $10,000, and it is per location. Get the tier right and the bond is a quick filing. You pay a yearly premium, the bond follows the wording printed in the city code, and it goes straight to the City Clerk with your license paperwork.

Section 4-23 of the Priceville Code of Ordinances requires every person subject to a city alcohol license fee, privilege tax or excise tax to deliver an Alcohol Ordinance Tax or Fee bond to the City of Priceville. The bond is $10,000 for each location, or $5,000 for each location engaged only in on-premises or off-premises beer and wine sales. It must stay in force the whole time you owe those taxes, and the City Council will not approve a license or renewal without it.

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

• Decide your tier: $5,000 per location for beer and wine only sales, $10,000 per location for everything else.
• Have the legal business name and each location address exactly as on the 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.
• Have the surety issue the bond on the Alcohol Ordinance Tax or Fee Bond wording in Sec. 4-23.
• Deliver the original bond to the Priceville City Clerk with the application and the $300 filing fee.

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

Which amount applies to you

The amount turns on what you sell and how many locations you have. Under Priceville Code Sec. 4-23, adopted by Ordinance 2023-09 on September 11, 2023:

• $5,000 for each location that only sells beer and/or wine, on-premises or off-premises, under licenses issued for that purpose.
• $10,000 for each location of any other business subject to a license or excise tax under the alcohol chapter. That includes liquor retailers, restaurants and lounges with liquor licenses, and beer, wine and liquor wholesalers.

A business with two liquor locations posts $20,000 in total, not $10,000.

What the bond guarantees

The bond is payable to the City of Priceville. It guarantees that the licensee will promptly pay every license fee, privilege tax and excise tax due to the city under the alcohol chapter, and will comply with the city's laws and ordinances. Wholesalers, for example, remit the local beer and table wine excise taxes to the City Clerk monthly under Sec. 4-32. If those payments stop, the city claims on the bond.

When the city checks for it

Where the City Council's consent is needed for an alcohol license, it will not be granted until the bond is delivered to the City Clerk. The clerk also will not grant, renew, maintain or transfer a privilege license without a valid bond on file. The bond has to remain in place continuously, so a lapse puts the license at risk.

Bond wording and cancellation

The code prints the bond form to be used, titled Alcohol Ordinance Tax or Fee Bond. The surety may cancel only by certified mail to the City Clerk with 30 days' notice, and it stays liable for anything that happened before cancellation.

Other city requirements that do not replace the bond

Sec. 4-31 sets a $300 nonrefundable filing fee for each city license application ($200 for a special events license), plus publication and background check costs. Sec. 4-7 separately requires retail licensees to show liquor liability (dram shop) insurance of at least $300,000 per incident. The insurance and the bond are two different requirements.

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

• Bond of $10,000 per location, or $5,000 per location for beer and wine only sales.
• City of Priceville, Alabama named as obligee.
• Bond form substantially in the form printed in Priceville Code Sec. 4-23.
• Coverage kept in force continuously while city alcohol fees or taxes are owed.
• Retail licensees also show at least $300,000 in liquor liability insurance under Sec. 4-7.

Alabama Alcohol Ordinance Tax or Fee Bond FAQs:

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