Renew tax licenses annually starting with your October 2020 return; renew between Nov. 1 and Dec. 31

Beginning Nov. 1, all sales and use tax licenses issued by the Alabama Department of Revenue must be renewed annually and online through the, or MAT, portal. There is no charge to renew these licenses required for:

  • Sales Tax
  • Rental Tax
  • Sellers Use Tax
  • Lodgings Tax
  • Utility Gross Receipts Tax
  • Simplified Sellers Use Tax

Prior to 2020, tax licenses did not expire.  A new departmental rule (810-6-5-.01-.01) that became effective in February created the renewal process. The process requires verification that the business is continuing to operate in the same business entity type for which the existing license was issued. If the entity type has changed, applications must be made for a new license.

When filing October 2020 tax returns, starting in November, retailers and other businesses will be prompted to renew their tax licenses. There is no charge, but the licenses must be renewed by Dec. 31. Tax licenses will be renewed annually going forward.

The online renewal process in MAT will allow retailers to print their licenses on-demand and quickly verify their licensing status with their vendors,” an Oct. 28 Revenue Department news release states. “One renewal process will update all the required licenses for a given entity.

>> Alabama Revenue Department tax rule 810-6-5-.01-.01

>> Step-by-step instructions | FAQs

>> 810-6-5 Administrative Code chapter;
See pages 5 & 6 for annual tax license rule

Surety Bonds for Beer, Wine and Tobacco Retailers
Since Jan. 1, 2020, a $25,000 surety bond covering a two-year period has been required of:

  • retailers selling beer, wine and tobacco products who are applying for an initial tax license or the renewal of an expired or canceled license. This is a one-time requirement for these retailers; or
  • any retailer with an unpaid sales tax assessment for which the appeal period has expired. The surety bond for these retailers can be more than $25,000.

The surety bond requirement was signed into law in 2018.

Originally posted Aug. 10, 2020

An abbreviated  version of this article can be found on Page 17 0f the November 2020 Alabama Retailer