Security for payment of tax collected
Sec. 12. (a) Whenever the department feels it necessary to insure
the payment of the state gross retail or use taxes, the department may
require a retail merchant to post security for that payment in any
amount not to exceed twice the department's estimate of the retail
merchant's quarterly state gross retail and use tax liability.
(b) If necessary to recover any tax, interest, or penalty which the
retail merchant owes under this article, the department may sell the
security. If the security is in the form of a bearer bond which is
issued by a governmental unit and which has a prevailing market
price, the department may sell the security at a private sale for not
less than that market price. If the security is in any other form, the
department shall sell it at a public auction.
(c) Before the department may sell a retail merchant's security, the
department shall give the retail merchant notice of the time, place,
and date of the sale. The department shall send the notice by certified
mail to the retail merchant's most recent address according to the
department's records.
(d) If the proceeds of the security sale exceed the tax, interest, and
penalties owing, the department shall refund the remainder to the
retail merchant.
As added by Acts 1980, P.L.52, SEC.1.
Last modified: May 28, 2006