Indiana § 6-2.5-3.5-18 Bond associated with a permit

Indiana Statutes

§ 6-2.5-3.5-18 — Bond associated with a permit

Indiana § 6-2.5-3.5-18

Art. 2.5STATE GROSS RETAIL AND USE TAXES

Ch. 3.5Collection of Use Tax on Gasoline

This text of Indiana § 6-2.5-3.5-18 (Bond associated with a permit) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 6-2.5-3.5-18 (2026).

Text

(a)The department may require a distributor, refiner, or terminal operator to file, concurrently with the filing of an application for a permit, a bond:

(1)in an amount of at least two thousand dollars ($2,000) and not more than an amount equal to a three (3) month gasoline use tax liability for the distributor, as estimated by the department;

(2)in cash or with a surety company approved by the department;

(3)upon which the distributor is the principal obligor and the state is the obligee; and

(4)conditioned upon the prompt filing of true electronic reports and payment of all gasoline use taxes collected by the distributor, together with any penalties and interest, and upon faithful compliance with this chapter. The department shall determine the amount of the distributor's bond, if a

Free access — add to your briefcase to read the full text and ask questions with AI

(a) The department may require a
distributor, refiner, or terminal operator to file, concurrently with the
filing of an application for a permit, a bond:
(1) in an amount of at least two thousand dollars ($2,000) and not
more than an amount equal to a three (3) month gasoline use tax
liability for the distributor, as estimated by the department;
(2) in cash or with a surety company approved by the department;
(3) upon which the distributor is the principal obligor and the
state is the obligee; and
(4) conditioned upon the prompt filing of true electronic reports
and payment of all gasoline use taxes collected by the distributor,
together with any penalties and interest, and upon faithful
compliance with this chapter.
The department shall determine the amount of the distributor's bond,
if any.
(b) If after a hearing (conducted after at least five (5) days written
notice) the department determines that the amount of a distributor's
bond is insufficient, the distributor shall upon written demand of the
department file a new bond.
(c) The department may require a distributor to file a new bond with
a satisfactory surety in the same form and amount if:
(1) liability upon the old bond is discharged or reduced by
judgment rendered, payment made, or otherwise; or
(2) in the opinion of the department, any surety on the old bond
becomes unsatisfactory.
(d) If a new bond obtained under subsection (b) or (c) is
unsatisfactory, the department shall cancel the permit of the distributor.
If the new bond is satisfactorily furnished, the department shall release
in writing the surety on the old bond from any liability accruing after
the effective date of the new bond.
(e) Sixty (60) days after making a written request for release to the
department, the surety of a bond furnished by a distributor is released
from any liability to the state accruing on the bond. The release does
not affect any liability accruing before expiration of the sixty (60) day
period. The department shall promptly notify the distributor furnishing
the bond that the surety has requested release. Unless the distributor
obtains a new bond that meets the requirements of this section and files
the new bond with the department within the sixty (60) day period, the
department shall cancel the distributor's permit.
(f) The department may require a distributor to furnish certified
public accountant reviewed or audited annual financial statements to
determine if any change is required in the amount of the distributor's
bond.