Alabama Sales Tax Bond
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What Is an Alabama Sales Tax Bond?
An Alabama sales tax bond guarantees payment of all taxes, interest and penalties due to the state. The Alabama Department of Revenue, Sales and Use Tax Division requires these bonds for beer, wine and tobacco product retailers applying for a first-time license.
If you are a tobacco products wholesaler or jobber, visit our Alabama tobacco tax bond page instead.
How Much Do Alabama Sales Tax Bonds Cost?
$25,000 Alabama alcohol and tobacco sales tax bond premiums start at $875 for the two-year term, or $437.50 per year. Exact pricing varies per applicant based on credit score. Apply now for a free, personalized quote.
How Does an Alabama Sales Tax Bond Work?
An Alabama sales tax bond joins three parties in a legally-binding contract:
- Principal: The new beer, wine or tobacco products retailer licensee purchasing the bond
- Obligee: The Alabama Department of Revenue, Sales and Tax Use Division requiring the bond from the principal
- Surety: The company issuing the bond and backing the principal’s obligation
If the bonded principal fails to pay their sales tax liabilities to the state, the bond acts as a line of credit to pay the obligee. However, the principal must ultimately reimburse the surety for any claims.
Who Needs a Sales Tax Bond in Alabama?
Beer, wine and tobacco product retailers who are applying for a first-time Alabama state sales tax license need to file a two-year, $25,000 surety bond.
Additionally, if your initial license is revoked or expires, the DOR will notify you that you need a surety bond of at least $25,000 or the sum of three months sales tax liability — whichever is greater. Visit our Alabama non-compliant sales tax bond page to learn more and apply.
How Do I Get a Sales Tax Bond in Alabama?
SuretyBonds.com provides the fastest and easiest way to get your Alabama sales tax bond. Provide the following information when you apply online:
- Reason for needing the bond
- Line of business
- SSN or tax ID
- County where business is located
We’ll provide a free quote in one business day or less. Then, you can purchase anytime through our secure, online checkout.
How Fast Can I Get My Sales Tax Bond?
Most Alabama alcohol or tobacco product retailer sales tax bond orders placed before 4 PM CST Mon–Fri are processed same-day. You’ll receive your official bond form via email.
Do I Need to Renew My Bond?
No, Alabama sales tax bonds are one-time purchases. However, if you violate your license terms or let your business license expire, you may need to purchase a new Alabama non-compliant sales tax bond.
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