Distributor permittees; bond; financial statements
Sec. 8. (a) The department may require a distributor to file,
concurrently with the filing of an application for a permit, a bond:
(1) in an amount of not less than two thousand dollars ($2,000)
nor more than a three (3) month prepayment tax liability for the
distributor, as estimated by the department;
(2) in cash or with a surety company approved by the
department;
(3) upon which the distributor is the principal obligor and the
state is the obligee; and
(4) conditioned upon the prompt filing of true reports and
payment of all prepayment of gross retail taxes collected by the
distributor, together with any penalties and interest, and upon
faithful compliance with this chapter.
The department shall determine the amount of the distributor's bond,
if any.
(b) If after a hearing (after at least five (5) days written notice) the
department determines that the amount of a distributor's bond is
insufficient, the distributor shall upon written demand of the
department file a new bond.
(c) The department may require a distributor to file a new bond
with a satisfactory surety in the same form and amount if:
(1) liability upon the old bond is discharged or reduced by
judgment rendered, payment made, or otherwise; or
(2) in the opinion of the department any surety on the old bond
becomes unsatisfactory.
(d) If a new bond obtained under subsection (b) or (c) is
unsatisfactory, the department shall cancel the permit of the
distributor. If the new bond is satisfactorily furnished, the department
shall release in writing the surety on the old bond from any liability
accruing after the effective date of the new bond.
(e) Sixty (60) days after making a written request for release to
the department, the surety of a bond furnished by a distributor is
released from any liability to the state accruing on the bond. The
release does not affect any liability accruing before expiration of the
sixty (60) day period. The department shall promptly notify the
distributor furnishing the bond that the surety has requested release.
Unless the distributor obtains a new bond that meets the
requirements of this section and files the new bond with the
department within the sixty (60) day period, the department shall
cancel the distributor's permit.
(f) The department may require a distributor to furnish audited
annual financial statements to determine if any change is required in
the amount of the distributor's bond.
As added by P.L.94-1987, SEC.5. Amended by P.L.71-1993, SEC.11.
Last modified: May 28, 2006