WHO IS REQUIRED TO SUBMIT AN APPLICATION UNDER SECTION 40-12-412, CODE OF ALABAMA 1975?
A. Every person, firm, or corporation desiring to engage in the business of an automotive dismantler and parts recycler shall apply by completing a registration form and submitting the required application and fee at www.MyAlabamaTaxes.alabama.gov.
WHO IS AN AUTOMOTIVE DISMANTLER AND PARTS RECYCLER?
A. "A person, firm, or corporation engaged in the business of purchasing and dismantling, disassembling or repairing, wrecked, abandoned, or repairable motor vehicles and selling usable parts thereof, or selling such wrecked, abandoned, or repairable motor vehicles as a unit at wholesale, or selling the hulk of the vehicle after the salvageable parts have been removed. For the purposes of this article, a person, firm, or corporation shall be presumed to be engaging in the business of an automotive dismantler and parts recycler if such person, firm, or corporation shall possess 10 or more inoperable motor vehicles for more than 30 days, except where such inoperable motor vehicles are being held by a licensed junk dealer or scrap processor for the purpose of recycling scrap metal, or are being held by a licensed repair business awaiting repairs, not shall this term include any person, firm, or corporation which repairs, reconstructs, or reconditions its own motor vehicles for its own use, nor shall it include any person, firm, or corporation disposing of a motor vehicle acquired for its own use." Section 40-12-410(1), Code of Alabama 1975.
WHAT IS THE PRINCIPAL PLACE OF BUSINESS?
A. "The place owned or leased and regularly occupied by a person, firm, or corporation licensed under the provisions of this article for the principal purpose of engaging in the business of an automotive dismantler and parts recycler, where the products for sale are displayed and offered for sale and where the books and records required for the conduct of the business are maintained and kept." Section 40-12-410(3), Code of Alabama 1975.
WHAT MUST I DO TO BECOME A LICENSED AUTOMOTIVE DISMANTLER AND PARTS RECYCLER?
AFTER SECURING THIS LICENSE UNDER SECTION 40-12-411 CODE OF ALABAMA 1975, AM I REQUIRED TO OBTAIN ANY OTHER BUSINESS LICENSES IN ORDER TO ENGAGE IN THE BUSINESS OF AN AUTOMOTIVE DISMANTLER AND PARTS RECYCLER?
A. A licensed automotive dismantler and parts recycler may conduct his business without obtaining the following specific licenses:
The junk dealers license may be needed if a person, firm or corporation engages in other lines of business in addition to that of an automotive dismantler and parts recycler. Such license, when required, would be secured from the Judge of Probate or License Commissioner of the county of one's business locations.
The license exemption as an automobile dealer under Code Section 40-12-51 only applies to wholesale sales to licensed motor vehicle dealers. In order to retail a vehicle, one must be licensed under Code Section 40-12-51. In order to be licensed under Section 40-12-51, one must be qualified under the provisions of Sections 40-12-390 through 40-12-400, Code of Alabama 1975, as a retail dealer.
Finally, Code Section 40-12-411 does not exempt your company from municipal licenses or municipal zoning ordinances.
WHAT ARE THE PENALTY PROVISIONS OF THE LAW?
A. Code Section 40-12-424 provides that "Any person violating any provision of this article shall be guilty of a misdemeanor and, upon conviction thereof, may be punished by a fine of not less than $25 nor more than $1,000, or by imprisonment in the county jail for not more than six months, or by both such fine and imprisonment." Code Section 40-12-415 provides that the license is to be renewed October 1st and that failure to secure the license by October 31st results in a 15 percent delinquency penalty charge plus interest, Code Sections 40-2A-11(b) and 40-1-44.
In addition to the above, Section 40-12-29 provides the following penalty: "Any person who willfully fails to comply with the provisions of Article 8 and Article 9 of Chapter 12, Code of Alabama 1975, shall for each such failure be subject to a penalty of not less than $500 nor more than $1000."
This page last updated September 27, 2012.