2005 Idaho Code - 63-2428 — BONDING

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 24
                                  FUELS TAX
    63-2428.  BONDING. (1) At the time an application for a distributor's
license under section 63-2427A, Idaho Code, is submitted to the commission,
the applicant shall file a bond with the commission conditioned upon faithful
performance of all of the requirements of this chapter. The total amount of
the bond shall be fixed by the commission and shall be equivalent to at least
twice the estimated average tax liability for the reporting period for which
the applicant will be required to file a distributor's report under section
63-2406, Idaho Code. The bond required by this section shall in no case be
less than one thousand dollars ($1,000) nor more than two hundred thousand
dollars ($200,000). Based on prior years' experience, the total amount
required to be secured by the bond may be increased or reduced by the
commission at any time. The bond will be waived if the commission is satisfied
that the distributor has the financial responsibility to meet the required
bond amount. Financial responsibility may be determined by the commission upon
review of all relevant public documents including appropriate county records
and records of tax payments to the state of Idaho. The distributor can be
required to provide a commercial credit rating, balance sheet, or income
statement to demonstrate present financial solvency,  i.e. ownership of real
and/or personal property, the unencumbered value of which exceeds the bond
amount otherwise required.  If such financial solvency is established, and if
the distributor has been doing business in Idaho as a licensed distributor for
five (5) or more consecutive years without a default in the payment of taxes
imposed in this chapter, financial responsibility shall be presumed.  Any bond
given in conjunction with this chapter shall be a continuing instrument, and
shall cover the period during which the license in connection with which the
bond is given is in effect, unless the surety on the bond is released or
discharged by the commission. Any surety on any bond furnished by a licensee
shall be discharged and released from any and all liability to the state
accruing on the bond after the expiration of thirty (30) days from the date
upon which the surety shall have lodged with the commission a written request
to be released and discharged. The request shall not operate to relieve,
release or discharge the surety from any liability accrued, or which will
accrue, before the expiration of the thirty (30) day period. The commission
shall promptly, upon receipt of the notice of the request, notify the licensee
and require him to furnish a new bond. Unless the licensee files a new bond
with the commission in the amount provided in this section before the
expiration of the thirty (30) day period, the commission shall immediately
cancel the licensee's license.
    (2)  In the event that any taxes due under the provisions of this chapter
are not paid by a licensed distributor, and the unpaid taxes are assessed by
the commission, and after all avenues for appeal of the assessment have been
exhausted, the commission may apply the unpaid tax liability against the bond
required by this section.