Alabama Sales Tax Bonds
Alabama Sales Tax Bond Information
Sales Tax Bonds are required in Alabama for businesses selling retail beer, wine or tobacco products. The surety bond must be in a coverage amount of $25,000 and a two-year bond term. The Sales Tax Bond ensures merchants pay the required sales taxes to the Alabama Department of Revenue for merchandise sold to customers.
What Does a Sales Tax Bond Protect Against?
The purpose of the sales tax surety bond is to provide a limited guarantee that those in the business of selling at retail beer, wine or tobacco products in Alabama as defined in Title 40, Chapter 23, Article 260, Code of Alabama pay all sales taxes, penalties, interest and fees as required by the state. The sales tax surety bond also ensures prompt filing with the Alabama Department of Revenue true reports, as required by law and complies with the applicable provisions of Title 40, Chapter 23, Article 1, of the Code of Alabama.