Steps Necessary To Become An Automotive Dismantler
Definition: For the purpose 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. This does not include licensed repair businesses holding vehicles awaiting repairs, or licensed junk dealers holding vehicles for the purpose of recycling scrap metal. Further, it does not include any entity which repairs reconstructs or reconditions its own vehicles for its own use or which disposes of a vehicle acquired for its own use.
No person, firm, or corporation, unless licensed by the Alabama Department of Revenue, shall engage in the business of an automotive dismantler and parts recycler.
Licenses are issued by the Business & License Tax Division, Severance & License Tax Section, P.O. Box 327550, Montgomery, AL 36132-7550. To receive the license, applicants must submit an application via www.MyAlabamaTaxes.alabama.gov and remit the required fee. The surety bond must be in the amount of $10,000 and include a Power of Attorney. If the bond is not on file with the Severance & License Section, the bond and Power of Attorney must be uploaded and attached to the application for an automotive dismantler license.
The application fee for a license as an automotive dismantler and parts recycler is $225 and a $1 issuing fee is required. A license year runs from October 1 through September 30. The license must be renewed by October 31st of each year. Thereafter, penalties prescribed by law and applicable interest for delinquent licenses shall be imposed. There is no half or part-year license.
Every automotive dismantler and parts recycler must keep a register of all purchases and sales of motor vehicles for five years from the date of purchase or sale (Code of Alabama 1975, Section 40-12-419).
All persons applying for an automotive dismantler and parts recycler license shall provide to the Alabama Department of Revenue the applicant’s unique registration number provided by the Administrator of the National Motor Vehicle Title Information System known as the NMVTIS Id Number. Additional information regarding the NMVTIS ID number can be found at the following site: http://www.vehiclehistory.gov/nmvtis_auto.html.
Persons requiring a buyer’s identification (bid) card must submit the application via www.MyAlabamaTaxes.alabama.gov and upload the following documents:
1. Copy of the automotive dismantler and parts recycler license (out-of-state applicants only).
2. Copy of the applicant’s driver’s license.
Dealers are limited to 3 BID cards, per license year. The application fee is $10.00 per card
If you have any questions regarding the steps necessary to become an automotive dismantler or BID cardholder, you may contact the Severance & License Section office at (334) 353-7827.