Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.05 - IDAHO MOTOR FUELS TAX ADMINISTRATIVE RULES › Section 35.01.05.310 - EXEMPTION FROM REQUIREMENT FOR BONDS

Current through August 31, 2023
Section
				63-2428, Idaho Code
01.
Exemption to Bond Requirements for
			 Licensed Distributors
. Bonds are required of all licensed distributors
			 unless the distributor is found to be financially responsible. A licensed
			 distributor seeking exemption from the bonding requirement must apply for the
			 exemption by filing a written petition with the Tax Commission. The petition
			 must contain information relating to the requirements of Section
			 63-2428, Idaho Code, for
			 establishing financial solvency and responsibility. Together with the petition,
			 the distributor must submit any information required in the following
			 Subsections 310.01.a. through 310.01.e.
			 (3-31-22)
a. If all or any part of the
			 unencumbered property offered to show financial solvency is real property, the
			 petition must include both a title report from an independent title company
			 reporting on the state of the title of the real property as of a time not more
			 than fifteen (15) days before the filing of the petition and a copy of the most
			 recent valuation notice issued by the county assessor for ad valorem property
			 tax purposes. (3-31-22)
b. If all
			 or any part of the unencumbered property is licensed motor vehicles, the
			 petition must include copies of the titles of the vehicles and evidence of the
			 value of the vehicles from a source independent from the distributor.
			 (3-31-22)
c. If all or any part of
			 the unencumbered property is personal property other than motor vehicles, the
			 petition must include a description of the property, evidence of ownership of
			 the property, an independent appraisal of the property, and evidence that the
			 property is unencumbered. Copies of all documents relating to all of the
			 distributor's current and long-term liabilities, including contingent
			 liabilities, lawsuits or potential lawsuits to which the distributor is or may
			 become a party, are required to establish that no security interests or other
			 encumbrances exist. (3-31-22)
d.
			 The petitioner must arrange, at the petitioner's expense, for an established,
			 independent commercial credit rating company to submit directly to the Tax
			 Commission a current and complete credit report about the licensed distributor;
			 or, the distributor must include with the petition its most recent financial
			 statements, including a current income statement, balance sheet, and statement
			 of cash flows. If the petitioner is a publicly held company, the financial
			 statements must be accompanied by an opinion issued by an independent certified
			 public accountant and a responsible company officer must also certify that the
			 financial statements provided present fairly the financial position of the
			 company. If the petitioner is a privately held company, the financial
			 statements must be reviewed by a certified public accountant or licensed public
			 accountant and a responsible company officer must also certify that the
			 financial statements provided present fairly the financial position of the
			 company. (3-31-22)
e. The Tax
			 Commission may require the distributor to supplement its petition with such
			 further information as the Tax Commission, in its discretion, finds necessary
			 to determine financial responsibility. If incomplete or substitute submissions
			 are received by the Tax Commission, the information submitted is reviewed on a
			 case-by-case basis to determine whether an exemption from the bonding
			 requirement is granted. (3-31-22)