Wholesaler's Bond — Collection of Delinquent Taxes — Penalties
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Every wholesaler shall furnish an indemnity or personal bond, satisfactory to the department and payable to the department, as agent of the counties and municipalities involved, in an amount equivalent to the amount of gross tax payable under this part, based on the wholesaler's highest month's sales in the preceding twelve (12) months or on an estimate of sales in the case of a wholesaler just commencing business. In no event shall a bond in excess of ten thousand dollars ($10,000) be required.
Should any wholesaler fail or refuse to remit the tax on or before the twentieth of the month when due, the department or any county or municipality concerned may institute legal action for collection of such delinquent taxes by any method now authorized by law for the collection of delinquent privileges taxes, or by suit.
In addition to the hereinabove authorized powers and penalties, the suspension and revocation powers conferred in § 57-5-108 upon county legislative bodies and other governmental bodies referred to therein are likewise conferred herein upon the commissioner, as they may relate to persons to whom certificates of registration are issued by the commissioner under § 57-5-102. Such suspension and revocation powers may be invoked for the failure of such person to file any report required by this part, or for the filing of a false or fraudulent report, or for the failure to pay tax due by any such licensee with the intent to defraud under this part and rules and regulations promulgated pursuant thereto and for no other reasons. The remedy provided by § 57-5-108 shall, likewise, be the only method of reviewing orders of the commissioner revoking or suspending such certificates of registration as authorized herein.
In lieu of a corporate surety on the bond required by subsection (a), the commissioner may allow the wholesaler to secure such bond by depositing collateral in the form of a certificate of deposit as accepted and authorized by the banking laws of this state, which has a face value equal to the amount of the bond. Such collateral may be deposited with any authorized state depository designated by the commissioner. Interest on any deposited certificate of deposit shall be payable to the wholesaler who has deposited it as collateral, or to such person as the wholesaler or the certificate may direct.
If a wholesaler has been in continuous operation for three (3) consecutive years and during the preceding six (6) months has paid all taxes payable under this part on or before the twentieth of the month when due, then the wholesaler shall not be required to furnish any indemnity or personal bond required by this section.
Any wholesaler exempted from the bonding requirement of this section who fails to pay any tax payable under this part on or before the twentieth of the month when due, shall, upon such failure, be required to furnish an indemnity or personal bond as provided in this section.