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

Brief Summary

Trinity will not give its consent to an alcohol license, and will not grant or renew a privilege license, until the Town Clerk holds this bond. It is $10,000 for each location, it stays on file for as long as you owe the town alcohol fees or taxes, and you pay a premium instead of tying up $10,000 in cash.

Under Section 1-17 of the Trinity Alcoholic Beverage Ordinance, every business that owes the Town of Trinity an alcohol license fee, privilege tax or excise tax must deliver a surety bond of $10,000 for each business location. The bond guarantees prompt payment of those amounts and is filed with the Town Clerk before the Town Council will approve an alcoholic beverage license.

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

• Count your Trinity business locations. The bond is $10,000 for each one.
• Have the legal business name exactly as it will appear on the town and ABC Board license applications.
• Complete the bond application and review the quoted premium.
• Have the bond written on the Alcohol Ordinance Tax or Fee Bond wording from Section 1-17, with the Town of Trinity as obligee.
• Deliver the signed bond to the Trinity Town Clerk with your license application and the $300 filing fee.
• Keep the bond in force for as long as you owe the town alcohol license fees or taxes.

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

Who has to post this bond

The Town of Trinity regulates alcohol sales through the Trinity Alcoholic Beverage Ordinance, posted on the town website as Ordinance 2016-02. Section 1-17 makes it the duty of each person subject to a license fee, privilege tax or excise tax under that ordinance to deliver a bond to the town. That covers package stores, restaurants and restaurant lounges, beer and wine retailers, wholesalers and distributors, warehouse licensees, manufacturers and special retail licensees.

How much

The bond is $10,000 for each location of the business that is engaged in the licensed or taxed activity. A business with two locations in Trinity needs $20,000 of total coverage. The bond must stay in effect the entire time the business owes the town these fees or taxes.

What the bond guarantees

The principal promises to pay the town everything owed under the ordinance, including annual alcohol license fees and the monthly taxes that come due after the bond is dated. The ordinance sets, for example, a $2,000 annual fee for package stores and a $1,500 annual privilege fee for restaurant liquor licensees, each plus a monthly license tax of 15 percent of gross receipts from covered alcohol sales. Wholesalers remit the state beer and table wine excise taxes to the Town Clerk each month. If a licensee does not pay, the town can claim against the bond.

Why it holds up your license

The Town Council will not consent to an alcoholic beverage license until the bond is delivered to the Town Clerk. No privilege license can be granted, renewed, maintained or transferred unless the Clerk holds a valid bond. The ordinance prints the bond wording, titled Alcohol Ordinance Tax or Fee Bond, and the bond must follow it in substantially the same form.

Cancellation

The surety may cancel by certified mail notice to the Town Clerk. Cancellation takes effect 30 days later, and the surety stays liable for anything that happened before that date.

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

• Bond amount of $10,000 for each business location.
• Town of Trinity, Alabama named as obligee.
• Surety acceptable to the town.
• Bond form in substantially the same wording as the ordinance form.
• Credit review of the owners, which mainly affects the premium rate.

Alabama Alcohol Ordinance Tax or Fee Bond FAQs:

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