Alabama Auto Dealer Bond Requirement Increase
A new bill was enacted in Alabama titled HB 393, which changes the amount of the license bond for a new motor vehicle dealer, used motor vehicle dealer, motor vehicle rebuilder, or motor vehicle wholesaler so that it must be for not less than $50,000 or another amount that the Department of Revenue requires. Prior law required a $25,000 bond.
The new law specifies that the bond would secure the payment of the dealer’s tax liability and any penalties imposed on the dealer. The bill also would require a wholesale motor vehicle auction dealer to meet the license bond requirements.
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