Section 142.884

Title X TAXATION AND REVENUE

Chapter 142

Effective - 01 Jan 1999, see footnote   

  142.884.  Supplier's license — supplier's bond for financial responsibility required. — 1.  Before becoming a position holder in any terminal in this state or engaging in any terminal bulk transfers any person shall first obtain a supplier's license.  A valid supplier's license allows the holder of the license to engage in all other activities without having to obtain any other license.

  2.  Any person who desires to precollect the tax imposed by this chapter as a supplier and who meets the definition of a permissive supplier may obtain a permissive supplier's license.  Application for or possession of a permissive supplier's license shall not in itself subject the applicant or licensee to the jurisdiction of this state for any other purpose than administration and enforcement of this chapter.

  3.  Suppliers and permissive suppliers shall be required to post a bond of not less than three months' potential tax liability based on the number of gallons handled as estimated by the director, but in no event shall the bond be less than one hundred thousand dollars nor more than two million dollars.  An applicant may alternatively show proof of financial responsibility acceptable to the director in the following amounts in lieu of posting of bond or in lieu of posting of the full amount of bond, which shall constitute evidence of financial responsibility in the absence of circumstances indicating the director is otherwise at risk with respect to collection of taxes from the applicant:

  (1)  Proof of five million dollars net worth shall constitute evidence of financial responsibility in lieu of posting of bond;

  (2)  Proof of two million five hundred thousand dollars net worth shall constitute financial responsibility in lieu of posting one-half of the bond; and

  (3)  Proof of one million two hundred fifty thousand dollars net worth shall constitute financial responsibility in lieu of posting one-fourth of the bond.  Net worth is calculated on a company, not individual state, basis.

  4.  For the purpose of determining the amount of precollected motor fuel tax due, every supplier shall file with the director, on forms prescribed and furnished by the director, a verified statement.  The director may require the reporting of any information reasonably necessary to determine the amount of precollected motor fuel tax due.

  5.  The director may require every licensed supplier or permissive supplier to separately disclose and identify, in a written statement to the director with the supplier or permissive supplier report, any removal and sale from the bulk transfer/terminal system in another state by that supplier to a person other than a licensed supplier, permissive supplier or distributor of gallons of motor fuel, other than diesel fuel dyed in accordance with this chapter, and which gallons are destined for this state, as shown by the terminal-issued shipping paper, and as to which gallons the tax imposed by this chapter has not been collected or accrued by the supplier upon the removal.

  6.  The reports required by this section shall be filed on or before the second day of the current month with respect to information for the second preceding calendar month.

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(L. 1998 S.B. 619)

Effective 1-1-99