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Alabama bonds

Alabama — Sales Tax Bond

If Alabama Revenue has asked for a sales tax surety bond, use the form sent for your business to prepare the application. Match the legal owner and covered retail activity, then continue through Purchase Now.

Continue to our secure checkout partner, Propeller (opens in a new tab).

Recorded state
Alabama
Bond type
Sales & Use Tax Bond
Category
Business operations & taxes

What this bond does

The sales tax surety bond provides security for the tax reporting and payment duties described in the Department's form. It addresses your business's sales tax obligation even when the business sells products that also have separate licensing or tax requirements.

Who needs it
Alabama businesses responding to a Department of Revenue sales tax bond request. The Department's S&U: BOND form specifically describes retailers of beer, wine or tobacco products.
Who it protects
The State of Alabama is the obligee on the sales tax form. The security supports the covered tax obligation and does not grant permission to sell regulated products.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Use the form for your sales tax request

A store selling beer, wine or tobacco may receive paperwork for more than one obligation. Check that the request you are satisfying is for sales tax security. The products sold do not turn this application into an alcohol or tobacco excise bond.

This page has one Propeller application route, with no amount or term displayed. Use the amount and dates on the Department's actual request and required form. Do not assume a form intended for a different taxpayer situation is the right one for your account.

Sources

Have these ready

  1. Keep the sales tax bond request and the form Alabama Revenue wants you to use.
  2. Have the business's legal name, trade name, ownership type and physical location ready.
  3. Gather the tax identifier, requested amount and beginning and ending dates where specified.

Questions about this bond

Does every Alabama retailer need this bond?

Use the Department's requirement for your business. The sales tax bond form cited here describes a particular retail activity; it is not evidence of a universal bond requirement for Alabama stores.

Does this bond replace my alcohol or tobacco licensing paperwork?

Keep those obligations separate. This application concerns sales tax security and does not issue a product license or satisfy a different tax bond request.

How do I get the application underway?

Select Purchase Now to open Propeller in a new tab. Review the applicant, form, amount and dates before completing the application. After issuance, check the executed bond and deliver it as Alabama Revenue directs.

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