Requirement of Distributor's License; Validity and Nonassignability; Application; Procedure; Contents; Filing Fee; Bond; Amount; Conditions; Release and Discharge of Surety

  1. Law
  2. Georgia Code
  3. Revenue and Taxation
  4. Motor Fuel and Road Taxes
  5. Motor Fuel Tax
  6. Requirement of Distributor's License; Validity and Nonassignability; Application; Procedure; Contents; Filing Fee; Bond; Amount; Conditions; Release and Discharge of Surety

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  1. It is unlawful for any person to act as a distributor unless the person holds an uncanceled distributor's license issued by the commissioner. Any license issued under this article shall indicate the type of motor fuel the distributor is licensed to distribute. The license issued by the commissioner under this article is not assignable and is valid only for the distributor to whom issued. The license shall remain in force until canceled by the commissioner. Any distributor who holds a valid license on January 1, 1980, shall not be required to obtain a new license under this article.
    1. To obtain a license, every distributor shall file with the commissioner an application under oath and in such form as required by the commissioner.
    2. The application shall contain, but not be limited to, the following information:
      1. The name of the legal entity;
      2. The trade name of the legal entity;
      3. The location or locations, with street address, of all principal office or business locations of the legal entity within and outside this state; and
      4. The name and address of the owner or owners of the legal entity or, in the case of a corporation, trust, or association, the principal officers of the corporation, trust, or association.
    3. Upon filing of the application, a filing fee of $10.00 shall be paid to the commissioner.
    1. Concurrent with the filing of an application for a license, a surety bond shall be filed with the commissioner:
      1. In an amount of three times the average monthly motor fuel taxes due during the preceding 12 months and in no case shall the bond be in an amount of less than $1,000.00 or more than $150,000.00;
      2. With a surety company approved by the commissioner;
      3. Upon which the distributor shall be the principal obligor and the state shall be the obligee; and
      4. Conditioned upon the timely filing of true reports and payments by the distributor to the commissioner of all motor fuel taxes together with all penalties and interest imposed by this article and upon faithful compliance with all provisions of this article.
    2. Every bond shall be continuous. Each year shall constitute a separate obligation in the amount of taxes, penalty, and interest imposed or levied by this state while the bond is in force.
    3. Any surety may be released and discharged from all liability to the state occurring on a bond filed as provided in this subsection after the expiration of 60 days from the date upon which the surety lodges with the commissioner a written request to be released and discharged. The request shall not relieve, release, or discharge a surety from any tax, penalty, or interest accrued before the expiration of the 60 day period.
    4. The commissioner shall promptly notify the distributor in writing of the surety request for release from the bond and unless the distributor files a new bond with an approved surety within the 60 day period the commissioner shall cancel the license of the distributor.
    5. In the event that the surety for the distributor has become unacceptable in the opinion of the commissioner, the commissioner may require the distributor to file a new bond with an acceptable surety in the same amount and for the same period of time. Upon failure by the distributor to comply within 30 days, the commissioner shall cancel the license of the distributor. If acceptable surety is furnished, the commissioner shall cancel the bond that was unacceptable and substitute the new bond.
    6. In the discretion of the commissioner, in lieu of a bond executed by a surety, a distributor may furnish his bond not so executed if the distributor concurrently deposits and pledges with the commissioner direct obligations of the United States, bonds guaranteed by the United States, bonds of this state, bonds of any public authority created by the General Assembly, or bonds issued pursuant to Article 3 of Chapter 82 of Title 36, in an amount equal to three times the full amount of the bond or bonds otherwise required by this Code section.
    7. In lieu of a surety bond or a bond under paragraph (6) of this subsection, a distributor may, at the discretion of the commissioner, furnish an irrevocable letter of credit.Such letter of credit shall be:
      1. In an amount equal to three times the full amount of the surety bond or surety bonds otherwise required by this Code section;
      2. Issued by a financial institution approved by the commissioner; and
      3. Conditioned upon the timely filing of true reports and payments by the distributor to the commissioner of all motor fuel taxes together with all penalties and interest imposed by this article and upon faithful compliance with all provisions of this article.

(Code 1933, § 92-1405, enacted by Ga. L. 1978, p. 186, § 1; Code 1933, §§ 91A-5005, 91A-5006, enacted by Ga. L. 1978, p. 309, § 2; Code 1933, § 91A-5004, enacted by Ga. L. 1979, p. 5, § 102; Ga. L. 1980, p. 10, § 31; Ga. L. 1990, p. 799, § 2.)

OPINIONS OF THE ATTORNEY GENERAL

Licensing of state agencies as distributors.

- State agency may be required to become licensed as a motor fuel distributor when the agency makes taxable use of a portion of fuel purchased. 1960-61 Op. Att'y Gen. p. 534.

RESEARCH REFERENCES

C.J.S.

- 53 C.J.S., Licenses, §§ 8 et seq., 56 et seq.

ALR.

- Right to enjoin business competitor from unlicensed or otherwise illegal acts or practices, 90 A.L.R.2d 7.


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