IDAPA 35.01.05.310 — EXEMPTION FROM TAX BOND

Section 63-2428, Idaho Code
01.
Bond Exemption for Licensed Distributors. Bonds are mandatory for all licensed distributors
unless the distributor is found to be financially responsible. A licensed distributor seeking exemption from bonding
may apply for the exemption by filing a written petition with the Tax Commission. The petition will contain
information defined in Section 63-2428, Idaho Code, for establishing financial solvency and responsibility. Together
with the petition, the distributor will submit information detailed as follows:
(7-1-25)
a.
If all or any part of the unencumbered property offered to show financial solvency is real property,
the petition will include both:
(7-1-25)
i.
A title report from an independent title company reporting on the state of the title of the real
property as of a time not more than fifteen (15) days before the filing of the petition, and
(7-1-25)
ii.
A copy of the most recent valuation notice issued by the county assessor for ad valorem property
tax purposes.
(7-1-25)
b.
If all or any part of the unencumbered property is licensed motor vehicles, the petition will include
copies of the titles of the vehicles and evidence of the value of the vehicles from a source independent from the
distributor.
(7-1-25)
c.
If all or any part of the unencumbered property is personal property other than motor vehicles, the
petition will include a description of the property, evidence of ownership of the property, an independent appraisal of
the property, and evidence that the property is unencumbered. Copies of all documents relating to all the distributor's
current and long-term liabilities, including contingent liabilities, lawsuits or potential lawsuits to which the distributor
is or may become a party, are needed to establish that no security interests or other encumbrances exist.
(7-1-25)
d.
The petitioner will arrange, at the petitioner's expense, for an established, independent commercial
credit rating company to submit directly to the Tax Commission a current and complete credit report about the
licensed distributor; or the distributor will include with the petition its most recent financial statements, including a
current income statement, balance sheet, and statement of cash flows. If the petitioner is a publicly held company, the
financial statements are to be accompanied by an opinion issued by an independent certified public accountant. A
responsible company officer will also certify that the financial statements provided present fairly the financial
position of the company. If the petitioner is a privately held company, the financial statements will be reviewed by a
certified public accountant, and a responsible company officer will certify that the financial statements provided
present fairly the financial position of the company.
(7-1-25)
e.
The Tax Commission may request the distributor supplement its petition with further information
to determine financial responsibility. If the Tax Commission receives incomplete or substitute information, the
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.05
State Tax Commission
Motor Fuels Tax Administrative Rules
Section 311
Page 15
submissions are reviewed on a case-by-case basis to determine whether a bond exemption is granted.
(7-1-25)
02.
Conditions for Termination of Exemption. If granted, the exemption from bonding will
terminate:
(7-1-25)
a.
One (1) year after the date on which it was granted.
(3-31-22)
b.
Ninety (90) days after the occurrence of any delinquency in motor fuels tax unless the delinquency
has been paid within that time period.
(3-31-22)
c.
Upon the occurrence of any encumbrance to the property upon which the finding of financial
responsibility was based.
(7-1-25)
d.
Upon the occurrence of any change in the business activity of the distributor that would cause the
amount of bond to be increased to an amount greater than the value of the distributor's unencumbered assets.
(7-1-25)
e.
Upon the occurrence of any event prejudicing the distributor's solvency or financial responsibility.
(3-31-22)
03.
Upon Termination of a Bond Exemption. Immediately upon any termination of the exemption
from the requirement for a bond the distributor must supply the required bond according to Section 63-2428, Idaho
Code.
(7-1-25)
04.
Pending Bond Exemption Application. Having an application pending for a bond exemption does
not excuse the bond. If a bond exemption is due to expire, the distributor is obligated to submit a new petition
applying for a continuation of the exemption no later than ninety (90) days before the day the exemption is due to
expire to prevent a lapse in the exemption. The petition has to meet all the conditions of this rule.
(7-1-25)
05.
Conditions for Renewal of Bond Exemption. The following is necessary to renew a bond
exemption:
(7-1-25)
a.
A written request for renewal of waiver; and
(7-1-25)
b.
The information required in Subsections 310.01.a. through 310.01.e. of this rule.
(3-31-22)