Section 316-73-005 - SECURITY - CASH BOND TRUST FUND005.01 An applicant for a fuels producer, supplier, distributor, wholesaler, exporter or importer or compressed fuel retailer license may be required to furnish and maintain security as defined in Reg-73-002.10 for the first year of the new license to assure the required reporting and payment of tax, interest, or penalties. Security may also be required from a licensed producer, supplier, distributor, wholesaler, exporter, importer or compressed fuel retailer when necessary to ensure compliance with Nebraska fuels tax laws.005.02 For a producer, supplier, distributor, wholesaler, importer or compressed fuel retailer, security, when required, is computed in an amount approximating three times the monthly tax liability of the licensee rounded to the next higher multiple of $1,000. In the case of an exporter, the amount and duration of the security shall be fixed by the department. The security requirement for all licensees cannot be less than the amounts shown below: 005.02A For licensees of motor vehicle fuels, diesel fuels or both - $20,000;005.02B For licensees of aircraft fuels - $10,000;005.02C For a compressed fuel retailer - $1,000. Furthermore, security, when required, is computed in an amount approximating two times the estimated average quarterly tax liability payable by such retailer pursuant to the act.005.02D There shall be no security requirement for licensees in the Petroleum Release Remedial Action Fee program, for licensees in the liquid fuel carriers program or for licensees participating in the tax program discussed in Reg-73-001.02.005.02E For any producer who reasonably estimates its annual production of fuels to be less than 20,000 gallons, the amount and duration of the security shall be fixed by the department.005.03 Security in the form of a surety bond may be executed by filing a properly completed Nebraska Motor Fuels Tax Bond, Form 70.005.04 A license is not valid unless security in the proper amount is on file when required by the department.005.05 In the event the department determines that the licensee is likely to default in the payment of taxes or fails to increase the amount of security as required, the license may be suspended or revoked.005.06 A fuels licensee who holds additional licenses or permits for any other fuels program requiring security may make application to the department on a Form 70 for filing and maintaining a combined security. The amount of such security shall not be less than the cumulative total which would be required for the individual securities.005.07 All licensed fuels producers, suppliers, distributors, wholesalers, importers and compressed fuel retailers shall jointly furnish a cash bond to the state to secure payment of all fuel taxes. The contributions for the cash bond shall be collected each tax period with the tax return. The contributions are deemed to be tax for the purpose of collection or refund.005.08 The contribution for each tax period is that portion of the commission allowed which equals 1/4 of one percent of the total tax due. The contributions to the cash bond trust fund continue until the amount in the trust fund, including interest earned, is equal to one percent of the total fuels tax collected during the preceding year. Contributions resume whenever the amount in the trust fund is less than 1/2 of one percent of the total fuels taxes collected during the preceding year. The State Tax Commissioner shall notify the fuels producers, suppliers, distributors, wholesalers, importers and compressed fuel retailers whenever it is necessary for the contributions to the trust fund to resume. Contributions begin with the first tax return that is due at least thirty days after notice is provided by the State Tax Commissioner.316 Neb. Admin. Code, ch. 73, § 005
Sections 3-148, R.R.S. 1997, 66-483, 66-485, 66-6,106, 66-733 and 66-734, R.S.Supp. 2004, 66-482, R.S.Supp. 2005. January 8, 2007.