ARSD § 64:07:01:19 — Bond

A cash bond endorsed in the name of the department or a bond issued by a
corporate surety company authorized to do business in South Dakota in an amount
sufficient to guarantee payment of contractors' excise tax for a six-month
period is required from a contractor engaged in business within the state of
South Dakota in the following circumstances:
(1) A contractor has been delinquent in either
reporting or paying tax for two reporting periods in a twelve-month period
within the last five years;
(2) A contractor is engaged in a type of
business which, in the experience of the department, has had problems with tax
delinquency; or
(3) A contractor does not have sufficient
unencumbered assets in this state to ensure that a possible future delinquent
tax liability is collected.
If a contractor has no prior history of excise tax payment,
the amount of the bond shall be based upon the contractor's estimate of gross
receipts in a six-month period. The contractor's estimate shall be approximately
the same as the receipts of similar businesses, and it may be rejected if the
department determines that the contractor's figure is not an accurate estimate.