Arkansas Code § 26-55-222 - Bonds -- Requirement -- Amounts -- Waiver

(a) (1) Every distributor shall file with the Director of the Department of Finance and Administration a surety bond of not less than one and one-half (11/2) times or one hundred fifty percent (150%) of the prior six (6) months average motor fuel tax due, based upon the gallonage of motor fuel to be sold or distributed as shown by the application for a permit if the applicant has not heretofore been engaged in the business of a distributor as herein defined, or as shown by sales for the previous year if the applicant theretofore has been engaged in the business in this state.

(2) However, no bond shall be filed for less than one thousand dollars ($1,000).

(3) If the director deems it necessary to protect the state in the collection of gasoline taxes, the director may require any distributor to post a bond in an amount up to three (3) times or three hundred percent (300%) of the prior six (6) months average motor fuel tax due.

(b) (1) Provided further, the director or the director's authorized agent is authorized to waive the posting of bond by any licensed motor fuel distributor that is organized and operating under the laws of Arkansas and that is wholly owned by residents of this state and who has been licensed for a period of at least three (3) years and who has not been delinquent in remitting motor fuel taxes during the three-year period immediately preceding application by the distributor for waiver of bond.

(2) If any motor fuel distributor whose bond has been waived by the director or the director's agent as authorized in this subsection subsequently becomes delinquent in remitting motor fuel taxes to the director, the director or the director's agent may require that the distributor post a bond in the amount required in this section, and the distributor shall not be eligible to petition for a waiver of bond for a period of three (3) years thereafter.

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Last modified: November 15, 2016