Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-5-12 - DEALER LICENSE
Section 810-5-12-.01 - Application For Master Dealer License

Universal Citation: AL Admin Code R 810-5-12-.01

Current through Register Vol. 42, No. 11, August 30, 2024

(1) A master dealer license, as required pursuant to § 40-12-391, Code of Ala. 1975, entitles a new motor vehicle dealer to operate as a new motor vehicle dealer, used motor vehicle dealer, motor vehicle wholesaler, and motor vehicle rebuilder. A master dealer license, as required pursuant to § 40-12-391, Code of Ala. 1975, entitles a used motor vehicle dealer to operate as used motor vehicle dealer, motor vehicle wholesaler, and motor vehicle rebuilder. All applications for a master dealer license must be filed electronically.

(a) The application must include, but not be limited to the following information:
1. Legal name of business and trade name or DBA (if applicable) and mailing address.

2. Physical address(es) of business and telephone number(s).

3. Form of organization.
(i) Individual

(ii) Partnership

(iii) Limited Liability Company (LLC)

(iv) Limited Liability Partnership (LLP)

(v) Corporation

4. Federal Employer Identification Number (FEIN) -not required for individual owners.

5. Type(s) of dealership(s) that will be operated pursuant to the master dealer license as follows:
(i) New motor vehicle dealer, as defined in § 40-12-390, Code of Ala. 1975. Applicants who will be operating a new motor vehicle dealership must also provide the name(s) of manufacturer(s) or distributor(s), and line(s) that applicant is authorized to represent.

(ii) Used motor vehicle dealer, as defined in § 40-12-390, Code of Ala. 1975.

6. State sales tax number.

7. Number of motor vehicles sold during the previous calendar year.

8. Name, resident home address, home telephone number, driver license number or non-driver identification card number, and state of issuance and social security number for all owner(s), partners, members, officers and directors.

9. Email address of the person completing the application. (The notice of license issuance or notice or request for additional information will be sent to this email address.)

10. Any supplemental locations as defined in § 40-12-395, Code of Ala. 1975.

(b) The applicant must pay the one hundred and twenty-five-dollar ($125) application fee(s) as determined under § 40-12-392, Code of Ala. 1975.

(c) A five-dollar ($5) fee must be remitted for each supplemental location as provided for in § 40-12-395, Code of Ala. 1975.

(d) The applicant must provide the following documents in order to complete the application:
1. Properly executed surety bond explained in rule 810-5-12-.02 Motor Vehicle Surety Bond.

2. Evidence of blanket motor vehicle liability insurance coverage explained in rule 810-5-12-.05 Evidence of Blanket Liability Insurance Coverage for Licensed Motor Vehicle Dealers.

3. A copy of the driver license or non-driver identification card for all owner(s), partners, members, officers and directors.

4. A photograph of the motor vehicle dealership and principal sign displayed and situated on the dealer's permanent location or locations, as defined in § 40-12-392, Code of Ala. 1975, apprising the public that a motor vehicle sales business is being conducted at the location. Any motor vehicle dealer having more than one (1) location shall submit a photograph for each location. The photograph shall be of such visual quality and size that a reasonable viewer of the photograph could discern all lettering appearing on the sign or signs. Note: A photograph shall only be required for the initial license application and shall not be required for renewals unless the sign or location has been modified or changed.

(e) The sign must meet the following requirements:
(i) Include the name under which the applicant is licensed.

(ii) Clearly identifies the applicant's location as being the place of business of a motor vehicle dealer. For a new motor vehicle dealer, a sign containing the trade name of the product(s) it sells is sufficient.

Note: The letters identifying the type of seller cannot be less than six (6) inches high.

(iii) Be a sufficient size to be legible from the street fronting the display area, or from a distance to fifty yards, whichever is greater, so as to apprise a reasonable consumer that a retail motor vehicle sales business is being conducted at said location.

(iv) Be erected at the location stated on the license application.

Note: The sign may be either free standing, a permanent structure, or attached to the face of a building.

(f) To establish a permanent location as provided in § 40-12-390, Code of Ala. 1975, an applicant must demonstrate to the department the satisfaction of at least three (3) of the following:
1. If the applicant is an individual, that his or her driver's license or non-driver identification card is issued by Alabama.

2. If the applicant is a corporation, partnership, LLC, or LLP that it is incorporated in Alabama or registered to conduct business in Alabama as a foreign corporation. Proof of incorporation or registration with the Alabama Secretary of State must be provided.

3. If the applicant is a corporation, that the principal owner is a resident of Alabama.

4. The applicant has filed an Alabama income tax return for the previous tax year.

5. The applicant has paid real estate or personal property taxes to Alabama in its name.

6. The applicant receives utility bills in Alabama in its name.

7. The applicant has an Alabama certificate of title or motor vehicle registration.

8. The applicant has a lease agreement/mortgage statement for the address reflected on the application.

9. Other factors that clearly evidence the applicant's legal residence in Alabama.

(g) A permanent location does not include the following:
1. A shared or common space with other tenants.

2. Space rented by the hour or day.

3. Cubicles.

4. Temporary, virtual, or rotating office spaces.

5. More than one (1) dealer under the same roof.

(h) Each location must adhere to the following requirements:
1. Be properly zoned for business.

2. Have posted operating days/hours.

3. Have an area designated as display space for the dealer's inventory.

(i) Upon review of the information provided in the application and accompanying documents, the department will issue the appropriate license(s) with a unique license number and notify the applicant of the issuance and provide a method for the licensee to electronically print the license. The department will also notify the applicant if additional information is required or if the application is refused. Additional information may include any documentation deemed necessary by the department to verify any of the information provided in the application and accompanying documents.

(j) Licenses must be renewed on October 1 each year and thirty (30) days of grace shall be allowed without penalty. After thirty 30 days, a penalty of fifteen percent (15%) of the license amount as provided in § 40-12-392(b), Code of Ala. 1975, shall be applied.

Authors: Lisa Blankenship, Mike Gamble

Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-12-390, 40-12-391, 40-12-392, 40-12-395, 40-12-398. Rules 810-5-12-.05 and 810-5-12.

Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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