SB253 Summary

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

• Provides a waiver from the surety bond requirement for applicants and current licensees that are related parties, controlled group members, or similarly structured businesses, provided the related party's current licensee has been compliant over the previous two years.

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

• Defines non-compliance as a final assessment against the licensee that is no longer subject to appeal and unpaid within thirty days, and allows the Department of Revenue to cancel a license if the licensee fails to provide the required bond or timely appeal within thirty days of notification.

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