34 Tex. Admin. Code § 3.327 - Taxpayer's Bond or Other Security
(a) Each
person who applies for a tax permit or who becomes delinquent in the payment of
any taxes, penalties, or interest must furnish security in the amount that the
comptroller determines to be sufficient to protect the state against a failure
to pay any amounts or costs which may become due under the state, city, special
purpose district, county, and metropolitan transit authority sales and use tax
laws.
(b) A person who applies for
a tax permit may be required to post a bond or security in an amount that is
equal to the greater of $100,000 or four times the amount of the average
monthly tax liability. An itinerant vendor may be required to post a bond, but
the minimum amount may not be less than $500. For the purposes of this section,
an itinerant vendor is a person who does not operate any place of business as
defined in §
3.286 of this title (relating to
Seller's Responsibilities).
(c) A
permitted retailer who is or has been delinquent in the payment of state or
local sales or use taxes may be required to post a bond or security in an
amount that is equal to the greater of either $100,000 or four times the amount
of the average monthly tax liability.
(d) If the comptroller determines at any time
that the amount of the bond on file is inadequate or if a permitted retailer is
delinquent in the payment of any state or local sales or use taxes, the
comptroller may require a new or additional bond to be posted.
(e) Types of security.
(1) Acceptable types of security:
(A) irrevocable assignments of accounts in
banks, savings and loan institutions, and credit unions, whose deposits are
insured by an agency of the United States government;
(B) cash (personal checks are
acceptable);
(C) bank letters of
credit that are deemed by the comptroller to be sufficient in amount and
secure;
(D) United States Treasury
bonds, readily convertible to cash;
(E) surety bonds.
(2) Unacceptable types of security:
(A) corporate stocks and bonds;
(B) personal guarantees.
(f) An assignment of either a
savings account or a certificate of deposit in an institution insured by an
agency of the United States government must be irrevocable and must be executed
on an assignment form approved by the comptroller.
(g) A surety bond must be executed on a form
approved by the comptroller and can be issued only by a surety company
chartered or authorized to do business in the State of Texas. The bond shall
constitute a new and separate obligation in the penal sum named therein for
each calendar year or a portion thereof while the bond is in force. The bond
must be executed by an attorney-in-fact appointed by the surety. The appointing
instrument must be properly notarized and physically attached to the
bond.
(h) In the event of
forfeiture, the comptroller will notify the holder of the security and demand
payment. The comptroller will also notify the permitted retailer and demand
that a new or additional bond or security for a specified amount be furnished
within 10 days of the date of such notice. This notice shall become final at
the expiration of 10 days. Failure to comply with the requirements of the
notice within the 10-day period will result in the suspension of the retailer's
tax permit.
(i) Retailer's bond or
security when ownership is changed.
(1) When
the legal structure of a business changes, the retailer who holds a tax permit
must apply for a new permit, as provided by Tax Code, §
151.201. Examples include,
but are not limited to, a change from a sole ownership to a partnership, or a
change from a partnership to a corporation.
(2) When a retailer applies for a new permit
because of a change in legal structure, the retailer may be required to post a
bond or security as provided by the provisions of this section. The comptroller
will review all available records of the retailer's history of payment of
taxes.
(3) If, after the review, it
appears that the interests of the state will not be endangered by the new
ownership, the comptroller may determine that no new or additional bond is
required.
(4) If, however, it
appears that there has been a substantial change in ownership or that security
is required to guarantee payment of taxes by the new entity, the comptroller
may require security in accordance with the provisions of this
section.
Notes
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