Nev. Rev. Stat. § 366.235 — Form, conditions and amount of bond; deposit in lieu of bond

1.  An applicant for or holder of a license
as a special fuel supplier or special fuel dealer shall provide a bond executed
by him or her as principal, and by a corporation qualified pursuant to the laws
of this State as surety, payable to the State of Nevada, and conditioned upon
the faithful performance of all the requirements of this chapter and upon the
punctual payment of all excise taxes, penalties and interest due the State of Nevada.
The total amount of the bond or bonds of any holder of such a license must be
fixed by the Department at not less than three times the estimated maximum
monthly tax, determined in such a manner as the Department deems proper, but
the amount must not be less than $1,000 for a special fuel supplier and must
not be less than $100 for a special fuel dealer. If a special fuel supplier or
special fuel dealer is habitually delinquent in the payment of amounts due
pursuant to this chapter, the Department may increase the amount of his or her
security to not more than five times the estimated maximum monthly tax. When
cash or a savings certificate, certificate of deposit or investment certificate
is used, the amount required must be rounded off to the next larger integral
multiple of $100.
2.  If a special fuel user or special fuel
manufacturer is habitually delinquent in the payment of amounts due pursuant to
this chapter, the Department shall require the special fuel user or special
fuel manufacturer to provide a bond executed by him or her as principal, and by
a corporation qualified pursuant to the laws of this State as surety, payable
to the State of Nevada, and conditioned upon the faithful performance of all
the requirements of this chapter and upon the punctual payment of all excise
taxes, penalties and interest due the State of Nevada. The total amount of the
bond must not be less than $2,500.
3.  No recovery on any bond, execution of
any new bond or suspension or revocation of any license as a special fuel
supplier, special fuel dealer, special fuel user or special fuel manufacturer
affects the validity of any bond.
4.  In lieu of a bond or bonds, an
applicant for or holder of a license as a special fuel supplier or special fuel
dealer, or a person required to provide a bond pursuant to subsection 2, may
deposit with the State Treasurer, under such terms as the Department may
prescribe, an equivalent amount of lawful money of the United States or any
other form of security authorized by NRS
100.065 . If security is provided in the form of a savings certificate,
certificate of deposit or investment certificate, the certificate must state
that the amount is unavailable for withdrawal except upon order of the
Department.
5.  If the holder of a license as a special
fuel supplier or special fuel dealer is required to provide a bond of more than
$5,000, the Department may reduce the requirements for the bond to not less
than $5,000 upon the faithful performance of the special fuel supplier or
special fuel dealer of all the requirements of this chapter and the punctual
payment of all taxes due the State of Nevada for the 3 preceding calendar
years.
6.  The Department shall immediately
reinstate the original requirements for a bond for a holder of a license as a
special fuel supplier or special fuel dealer upon his or her:
(a) Lack of faithful performance of the
requirements of this chapter; or
(b) Failure to pay punctually all taxes, fees,
penalties and interest due the State of Nevada.
7.  For the purposes of this section, a
person is “habitually delinquent” if, within any 12-month period, the person
commits each of the following acts or commits either of the following acts more
than once:
(a) Fails timely to file a monthly or quarterly
special fuel tax return, unless the Department determines that:
(1) The failure to file was caused by
circumstances beyond the control of the person and occurred notwithstanding the
exercise of ordinary care; and
(2) The person has paid any penalty and
interest imposed by the Department because of the failure to file.
(b) Fails timely to submit to the Department any
tax collected by the person pursuant to this chapter.