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.