2023 Nevada Revised Statutes › Chapter 366 - Tax on Special Fuel › NRS 366.235 - Form, conditions and amount of bond; deposit in lieu of bond.

1. An applicant for or holder of a license as a special fuel supplier or special fuel dealer shall provide a bond executed by him or her as principal, and by a corporation qualified pursuant to the laws of this State as surety, payable to the State of Nevada, and conditioned upon the faithful performance of all the requirements of this chapter and upon the punctual payment of all excise taxes, penalties and interest due the State of Nevada. The total amount of the bond or bonds of any holder of such a license must be fixed by the Department at not less than three times the estimated maximum monthly tax, determined in such a manner as the Department deems proper, but the amount must not be less than $1,000 for a special fuel supplier and must not be less than $100 for a special fuel dealer. If a special fuel supplier or special fuel dealer is habitually delinquent in the payment of amounts due pursuant to this chapter, the Department may increase the amount of his or her security to not more than five times the estimated maximum monthly tax. When cash or a savings certificate, certificate of deposit or investment certificate is used, the amount required must be rounded off to the next larger integral multiple of $100.
2. If a special fuel user or special fuel manufacturer is habitually delinquent in the payment of amounts due pursuant to this chapter, the Department shall require the special fuel user or special fuel manufacturer to provide a bond executed by him or her as principal, and by a corporation qualified pursuant to the laws of this State as surety, payable to the State of Nevada, and conditioned upon the faithful performance of all the requirements of this chapter and upon the punctual payment of all excise taxes, penalties and interest due the State of Nevada. The total amount of the bond must not be less than $2,500.
3. No recovery on any bond, execution of any new bond or suspension or revocation of any license as a special fuel supplier, special fuel dealer, special fuel user or special fuel manufacturer affects the validity of any bond.
4. In lieu of a bond or bonds, an applicant for or holder of a license as a special fuel supplier or special fuel dealer, or a person required to provide a bond pursuant to subsection 2, may deposit with the State Treasurer, under such terms as the Department may prescribe, an equivalent amount of lawful money of the United States or any other form of security authorized by NRS 100.065. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the certificate must state that the amount is unavailable for withdrawal except upon order of the Department.
5. If the holder of a license as a special fuel supplier or special fuel dealer is required to provide a bond of more than $5,000, the Department may reduce the requirements for the bond to not less than $5,000 upon the faithful performance of the special fuel supplier or special fuel dealer of all the requirements of this chapter and the punctual payment of all taxes due the State of Nevada for the 3 preceding calendar years.
6. The Department shall immediately reinstate the original requirements for a bond for a holder of a license as a special fuel supplier or special fuel dealer upon his or her:
(a) Lack of faithful performance of the requirements of this chapter; or
(b) Failure to pay punctually all taxes, fees, penalties and interest due the State of Nevada.
7. For the purposes of this section, a person is "habitually delinquent" if, within any 12-month period, the person commits each of the following acts or commits either of the following acts more than once:
(a) Fails timely to file a monthly or quarterly special fuel tax return, unless the Department determines that:
(1) The failure to file was caused by circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care; and
(2) The person has paid any penalty and interest imposed by the Department because of the failure to file.
(b) Fails timely to submit to the Department any tax collected by the person pursuant to this chapter.
[4:364:1953]—(NRS A 1957, 605; 1967, 854; 1969, 580; 1973, 703; 1977, 380; 1981, 1057; 1983, 132; 1987, 967; 1989, 30, 1070; 1993, 1985; 1995, 2376; 1997, 3403; 1999, 1274; 2007, 1580; 2009, 2636)