Section 15 AAC 40.610 - Bonding requirement(a) A person applying for a qualified dealer license must file a bond with the department in an amount equal to twice the estimated average monthly tax or $5,000, whichever is greater. A person applying to renew a qualified dealer license must file either a new bond or a bond continuation certificate on a form or in a format prescribed by the department. The bond may not be cancelled and must remain in effect until the department determines that the assessment or collection of the motor fuel tax is satisfied or prohibited by the applicable statute of limitations. The department may accept other security in the amount required by this section instead of a bond, including a certificate of deposit, a cash deposit, or bank letter of credit.(b) If at any time the qualified dealer learns information that would lead a reasonable person to believe that the estimate required in 15 AAC 40.610(a) is understated, the qualified dealer shall file a corrected estimate with the department, recalculate the amount of bond due under (a) of this section, and file an additional bond with the department. The qualified dealer shall file the corrected estimate and provide the additional bond within 30 days after the date on which the qualified dealer learned the information that would have resulted in a higher original estimate.(d) The department may require an additional bond if the qualified dealer's average tax liability over the last 12 months exceeds the estimated tax liability upon which the bond is based.(e) A qualified dealer that has shown a consistent history of timely filing of monthly tax returns and payment of monthly tax to the department over the last three years is not required to maintain a bond if the qualified dealer continues to remain in compliance with AS 43.40. The department will notify the qualified dealer of any noncompliance that would require the qualified dealer to file a bond under this subsection. The qualified dealer must file with the department the bond required by this subsection within thirty days of the date of issuance of the notice.Eff. 4/1/2001, Register 157; am 10/16/2013, Register 208; am 7/8/2020, Register 235, October 2020 Authority:AS 43.05.080
AS 43.40.100