SB253 Alabama 2018 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

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

SB 253 would require a one-time, two-year surety bond (generally $25,000) for new or renewing Alabama sales tax licenses to ensure collected taxes are remitted to the state.

What This Bill Does

It adds a requirement that new initial licenses or renewals for selling tangible personal property must obtain a two-year, one-time $25,000 surety bond. If a licensee becomes non-compliant with collecting/remitting sales tax, they must purchase a two-year bond equal to the prior three months' tax liability (minimum $25,000). There are bond waivers for related parties under certain conditions, and the department can cancel licenses if the bond is not provided or timely appealed; after two years of continuous compliance, the bond requirement can end.

Who It Affects

• New and renewing licensees selling tangible personal property must obtain and maintain a two-year, $25,000 surety bond.
• Licensees who become non-compliant in collecting/remitting sales tax must obtain a two-year bond equal to the prior three months' tax liability (minimum $25,000), with potential license cancellation if they do not bond or timely appeal.

Key Provisions

• Initial license or renewal (on/after January 1, 2020) requires a one-time $25,000 bond for two years, conditioned on collecting/remitting sales tax.
• Waiver available for related parties or members of a controlled group if criteria are met and the related licensee has been compliant in the previous two years.
• Non-compliant licensees must purchase and maintain a two-year bond equal to actual sales tax liability for the prior three months (minimum $25,000).
• The department may cancel a license if the bond is not provided or timely appealed; cancelled licenses cannot be renewed until the bond is provided.
• After two years of continuous compliance, the bond requirement is waived for licensees who continue to collect/remit sales tax on time.

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