HB 151 Summary

• Requires retail sellers applying for initial or renewal sales tax licenses on or after January 1, 2020, to obtain a $25,000 surety bond for a two-year period, executed by a corporate surety company qualified in Alabama.

• Exempts related parties and controlled groups of corporations from the surety bond requirement if the existing licensee has been compliant over the previous two-year period.

• Requires licensees who become non-compliant with sales tax collection and remittance to purchase and maintain a surety bond for two years in an amount equal to actual sales tax liability for the three months preceding non-compliance, with a minimum of $25,000.

• Defines non-compliance as failure to pay a final tax assessment within 30 days after it is no longer subject to appeal; allows licensees 30 days to file the required bond or appeal to the Alabama Tax Tribunal before license cancellation.

• Exempts licensees from surety bond requirements after two years of continuous compliance with sales tax collection and remittance obligations.