Sales/leasing/rental tax licenses to be renewed annually starting with your October 2020 return

In 2020, businesses collecting and remitting sales, leasing and rental taxes are required to begin renewing their tax license accounts annually with the Alabama Department of Revenue, according to a new departmental rule (810-6-5-.01-.01). Prior to 2020, your tax license did not expire. The annual renewal process will be conducted through the department’s system.

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

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.

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

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