2023 Nevada Revised Statutes › Chapter 365 - Taxes on Certain Fuels for Motor Vehicles and Aircraft › NRS 365.290 - Form, conditions and amount of bond; deposit in lieu of bond.

1. Before granting any application for a license as a dealer or supplier, the Department shall require the applicant to file with the Department a bond executed by the applicant as principal, and by a corporation qualified under the laws of this State as surety, payable to this State and conditioned upon the faithful performance of all the requirements of this chapter and upon the punctual payment of all excise taxes, penalties and other obligations of the applicant as a dealer or supplier.
2. The total amount of the bond or bonds required of any dealer or supplier must be fixed by the Department at three times the estimated maximum monthly tax, determined in such a manner as the Department deems proper, or $1,000, whichever is greater. If a person 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, within the same upper limit.
3. The Department may increase or decrease the amount of security required by this section subject to the limitations provided in this section.
4. No recovery on any bond, execution of any new bond, or revocation, cancellation or suspension of any license, affects the validity of any bond.
5. In lieu of any bond or bonds, a dealer or supplier may deposit with the Department, under such terms and conditions 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.
6. If the amount of security required by this section is decreased pursuant to subsection 3, the Department shall immediately reinstate the original requirements for a bond for a holder of a license as a dealer or supplier 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 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.
[Part 4:74:1935; A 1955, 170]—(NRS A 1967, 853; 1975, 1694; 1977, 197; 1985, 949; 1989, 1069; 1991, 1901; 1999, 1012; 2003, 2906; 2007, 1572)