us-nm/stat
NMSA 1978, § 7-16A-15 — Bond required of supplier
A.
Except as provided in Subsection H of this section, every supplier shall file with
the department a bond on a form approved by the attorney general with a surety
company authorized by the public regulation commission to transact business in this
state as a surety and upon which bond the supplier is the principal obligor and the state
the obligee. The bond shall be conditioned upon the prompt filing of true reports and
the payment by the supplier to the department of all taxes levied by the Special Fuels
Supplier Tax Act, together with all applicable penalties and interest thereon.
B.
In lieu of the bond, the supplier may elect to file with the department cash or
bonds of the United States or New Mexico or of any political subdivision of the state.
C.
The total amount of the bond, cash or securities required of any supplier shall be
fixed by the department and may be increased or reduced by the department at any
time, subject to the limitations provided in this section.
D.
In fixing the total amount of the bond, cash or securities required of any supplier
required to post bond, the department shall require an equivalent in total amount to at
least two times the amount of the department's estimate of the supplier's monthly tax,
determined in such manner as the secretary may deem proper; provided, however, the
total amount of bond, cash or securities required of a supplier shall never be less than
one thousand dollars ($1,000).
E.
In the event the department decides that the amount of the existing bond, cash or
securities is insufficient to insure payment to this state of the amount of the tax and any
penalties and interest for which the supplier is or may at any time become liable, the
supplier shall, upon written demand of the department mailed to the last known address
of the supplier as shown on the records of the department, file an additional bond, cash
or securities in the manner, form and amount determined by the department to be
necessary to secure at all times the payment by the supplier of all taxes, penalties and
interest due pursuant to the Special Fuels Supplier Tax Act.
F.
Any surety on any bond furnished by any supplier as required by this section
shall be released and discharged from all liability accruing on the bond after the
expiration of ninety days from the date upon which the surety files with the department a
written request to be released and discharged; provided, however, the request shall not
operate to release or discharge the surety from any liability already accrued or that shall
accrue before the expiration of the ninety-day period, unless a new bond is filed during
the ninety-day period, in which case the previous bond may be canceled as of the
effective date of the new bond. On receipt of notice of such request, the department
shall notify promptly the supplier who furnished the bond that the supplier shall, on or
before the expiration of the ninety-day period, file with the department a new bond with
a surety satisfactory to the department in the amount and form required in this section.
G.
The supplier required to file bond with or provide cash or securities to the
department in accordance with this section and who is required by any other state law
to file another bond with or provide cash or securities to the department may elect to file
a combined bond or provide cash or securities applicable to the provisions of both this
section and the other law, with the approval of the secretary. The amount of the
combined bond, cash or securities shall be determined by the department and the form
of the combined bond shall be approved by the attorney general.
H.
A supplier required to file a bond pursuant to the provisions of this section who,
for a twenty-four consecutive month period, has not been a delinquent taxpayer
pursuant to the Special Fuels Supplier Tax Act may request to be exempt from the
requirement to file a bond beginning with the first day of the first month following the end
of the twenty-four month period. If a supplier exempted pursuant to this subsection
subsequently becomes a delinquent taxpayer pursuant to the Special Fuels Supplier
Tax Act, the department may terminate the exemption and require the filing of a bond in
accordance with this section. If the department terminates the exemption, the
termination shall not be effective any earlier than ten days after the date the department
notifies the supplier in writing of the termination.
Source: official text