Nevada Revised Statutes Section 366.235 - Revenue and Taxation

Form, conditions and amount of bond; deposit in lieu of bond.

1. An applicant for or holder of a special fuel supplier’s or special fuel dealer’s license shall provide a bond executed by him as principal, and by a corporation qualified pursuant to the laws of this state as surety, payable to the State of Nevada, and conditioned upon the faithful performance of all of the requirements of this chapter and upon the punctual payment of all excise taxes, penalties and interest due to the State of Nevada. The total amount of the bond or bonds of any holder of a special fuel supplier’s or special fuel dealer’s license must be fixed by the Department at not less than three times the estimated maximum monthly tax, determined in such a manner as the Department deems proper, but the amount must not be less than $1,000 for a special fuel supplier and must not be less than $100 for a special fuel dealer. If the Department determines that a person is habitually delinquent in the payment of amounts due to the Department, it may increase the amount of his security to not more than five times the estimated maximum monthly tax. When cash or a savings certificate, certificate of deposit or investment certificate is used, the amount required must be rounded off to the next larger integral multiple of $100.

2. No recovery on any bond, nor the execution of any new bond, nor the suspension or revocation of any special fuel supplier’s or special fuel dealer’s license affects the validity of any bond.

3. In lieu of a bond or bonds, an applicant for or holder of a special fuel supplier’s or special fuel dealer’s license may deposit with the State Treasurer, under such terms as the Department may prescribe, a like amount of lawful money of the United States or any other form of security authorized by NRS 100.065. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the certificate must state that the amount is unavailable for withdrawal except upon order of the Department.

4. If the holder of a special fuel supplier’s or special fuel dealer’s license is required to provide a bond of more than $5,000, the Department may reduce the requirements for the bond to not less than $5,000 upon the supplier’s or dealer’s faithful performance of all the requirements of this chapter and the punctual payment of all taxes due the State of Nevada for the 3 preceding calendar years.

5. The Department shall immediately reinstate the original requirements for a bond for a holder of a special fuel supplier’s or special fuel dealer’s license upon his:

(a) Lack of faithful performance of the requirements of this chapter; or

(b) Failure to pay punctually all taxes, fees, penalties and interest due the State of Nevada.

Last modified: February 27, 2006