Nev. Rev. Stat. § 370.589 — Wholesale dealers: Bond or other security

1.  Except as otherwise provided in this
section, each licensed wholesale dealer of cigarettes and licensed wholesale
dealer of other tobacco products shall furnish a bond executed by the wholesale
dealer as principal, and by a corporation qualified under the laws of this
State as surety, payable to the State of Nevada and conditioned upon the
payment of all excise taxes required to be precollected by the wholesale dealer
under the provisions of this chapter. Each bond must be in a principal sum
equal to:
(a) For a wholesale dealer of cigarettes, the
largest amount of tax precollected by the wholesale dealer in any quarter of
the preceding year; or
(b) For a wholesale dealer of other tobacco
products, the largest amount of tax paid by the wholesale dealer in any quarter
of the preceding year.
Ê If the
information to establish that amount is not available, then in a sum required
from a licensee operating under conditions deemed comparable by the Department.
No bond may be for less than $1,000. When cash is used, the amount must be
rounded up to the next larger integral multiple of $100.
2.  Except as otherwise provided in this
section, each licensed wholesale dealer of cigarettes who wishes to defer payment
on the purchase of revenue stamps shall furnish a bond executed by the
wholesale dealer of cigarettes as principal, and by a corporation qualified
under the laws of this State as surety, payable to the State of Nevada and
conditioned upon the payment of all deferred payments for revenue stamps. Each
bond must be in a principal sum equal to the maximum amount of revenue stamps
which the wholesale dealer of cigarettes may have unpaid at any time. No bond
may be for less than $1,000. When cash is used, the amount must be rounded up
to the next larger integral multiple of $100.
3.  Upon application and a satisfactory
showing, the Department may increase or decrease the amount of a bond required
by subsection 1 or 2, based on the record of taxes remitted by the wholesale
dealer of cigarettes or wholesale dealer of other tobacco products.
4.  The Department may waive the
requirement of the bond required by subsection 1 or 2, whenever a licensed
wholesale dealer of cigarettes or wholesale dealer of other tobacco products
has maintained a satisfactory record of payment of excise taxes or deferred
payments, respectively, for a period of 5 consecutive years.
5.  A wholesale dealer of cigarettes and a
wholesale dealer of other tobacco products are not entitled to a refund of any
portion of money paid as a bond pursuant to this section if the wholesale
dealer of cigarettes or wholesale dealer of other tobacco products has failed
to file a report required by this chapter or owes the Department any fee,
payment or penalty.