HB151 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Ron Johnson
Republican
Session: Regular Session 2018
Title: Sales tax, licenses from Revenue Dept., two-year surety bond required with new or renewal sales tax license registration under certain conditions and certain non-compliant licenses, Sec. 40-23-6 am'd.
Summary: The bill requires a two-year surety bond for certain sales tax licenses and for non-compliant licensees to help ensure collected sales taxes are remitted to the state.
What This Bill Does
If you apply for a new sales tax license or renew an expired or cancelled license on or after January 1, 2020, you must buy a one-time two-year bond of $25,000 to guarantee you collect and send the taxes to the state. If a licensee becomes non-compliant with tax collection/remittance, they must obtain a two-year bond equal to their actual tax liability for the three months before the non-compliant period (minimum $25,000). The Department of Revenue can cancel a license and block renewal if the bond isn’t provided or a timely appeal isn’t filed. After two years of continuous compliance, the bond requirement is dropped as long as taxes are collected and remitted on time.

Who It Affects
New or renewing license applicants for sales tax who must purchase and maintain a $25,000 two-year bond starting in 2020.
Licensees who become non-compliant in collecting/remitting sales tax and must post a two-year bond equal to their recent tax liability (minimum $25,000).
Related parties or members of controlled groups may receive a waiver from the bond requirement if the related licensee has been compliant for two years.
The Alabama Department of Revenue, which enforces the bond requirement, notifies licensees, cancels licenses if bonds aren’t provided, and handles renewals.

Key Provisions
Initial license or renewal after January 1, 2020 requires purchase and maintenance of a one-time two-year surety bond of $25,000 to ensure timely collection and remittance of sales tax.
Waiver available for related parties or controlled groups if the related licensee has shown two years of compliance; bond waived in these cases.
Licensees who become non-compliant must obtain a two-year bond equal to the actual sales tax liability for the prior three months (minimum $25,000); bond is conditioned on collecting/remitting taxes and is payable to the commissioner.
Department must notify the licensee and provide 30 days to post the bond or appeal; failure to bond or appeal can lead to license cancellation and non-renewal.
After two consecutive years of compliance, the bond requirement is waived, provided the licensee continues to collect and remit taxes on time.
The act becomes effective immediately after governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation