Alabama Sales Tax Surety Bond
Meet Alabama Sales Tax Bond Requirements Easily
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Why Do I Need an Alabama Sales Tax Bond?
Retailers in Alabama may be required to post a $25,000 surety bond when applying for or renewing a sales tax license, particularly if they sell beer, wine, or tobacco products, or if they have become non-compliant in collecting or remitting sales tax. BondAbility provides fast quotes and competitive rates for these bonds.
The Alabama Department of Revenue mandates a $25,000 surety bond for:
- New applicants for a sales tax license who sell beer, wine, or tobacco
- Businesses renewing expired or canceled licenses for retail alcohol or tobacco sales
- Any licensed retailer who becomes non-compliant in the remittance of sales tax
This bond serves as a financial guarantee that sales taxes will be properly collected and paid to the state.
Fast & Simple Bond Solutions
- Fast turnaround and electronic quotes
- No obligation to proceed after receiving a quote
- Digital delivery of your completed bond
- Personalized service from surety bond specialists
- We have various sureties willing to write bonds for applicants with less than perfect credit, including a special program with very competitive prices for those with just a few credit blemishes
- Competitive rates from A-rated surety companies
Bond Pricing
| Bond Amount | Term | Price | Apply Now |
|---|---|---|---|
| $25,000 | 2 Years | Starts at $875 | Apply Now |
How To Get Licensed for Sales Tax in Alabama
- Visit the Alabama Department of Revenue website: https://revenue.alabama.gov/sales-use/
- Complete the sales tax license application or renewal form
- If required, submit a $25,000 surety bond executed by an approved surety company
- Bond must be submitted within 30 days of receiving notice, or you must appeal
Bond Details at a Glance
- Bond Amount: Minimum $25,000
- Obligee: Alabama Department of Revenue
- Obligee Address: P.O. Box 327790, Montgomery, AL 36132-7790
- Bond Term: 2 Years
- Required For: Sales tax license applicants selling beer, wine, tobacco, or non-compliant retailers
- Executed By: Surety company licensed in Alabama
Frequently Asked Questions
Who needs this bond?
Any retailer applying for or renewing a sales tax license to sell beer, wine, or tobacco in Alabama, or any retailer who has become non-compliant in sales tax payments.
Is this bond required for all retailers?
No. It only applies to specific categories of sellers and non-compliant retailers as outlined by the Alabama Department of Revenue.
What bond form is used?
We will write your bond on the state-mandated Sales Tax Surety Bond Form S&U: Bond.
How long is the bond valid?
The bond is valid for 2 years from the date of issuance.
What happens if I don’t submit the bond?
Failure to submit the bond within 30 days of notice may result in penalties or license denial. You may also appeal the requirement within the same time frame.
How do I get started?
Click on the No Obligation Quote button to complete our simple, one-page online bonding application. Completing the following application allows the underwriters at BondAbility to provide you with a specific quote for the exact bond you need. After you submit our online application, we will respond with your personalized quote within the hour!