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. (Section 40-12-410, Code of Alabama 1975)
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 Motor Vehicle Division, Dealer License Section, P.O. Box 327643, Montgomery, AL 36132-7643. To receive the license, applicants must submit an application electronically via Motor Vehicle Regulatory License Portal and remit the required fees. The surety bond must be in the amount of $50,000 and include a Power of Attorney. If the bond is not on file with the Dealer License Section, the signed bond and Power of Attorney must be submitted with the dismantler license transmittal document. The bond form will be available when the electronic application has been completed.
The application fee for a license as an automotive dismantler and parts recycler is $225. Payment must be made online with a credit card. Dismantler licenses renewed after September 30th will be subject to a 15% penalty.
The license year runs from October 1 through September 30 and it must be renewed by October 31st of each year. After October 31st, a 15% penalty and applicable interest will be charged. (Section 40-12-415, Code of Alabama 1975)
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 (Section 40-12-419, Code of Alabama 1975).
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. THE NMVTIS NUMBER IS MANDATORY.
Persons requiring a Buyer’s Identification (BID) Card must submit the application by logging into their account via Motor Vehicle Regulatory License Portal and upload the following documents:
Dealers are limited to 3 BID cards per license year. The application fee is $10.00 per card.