Section R15-5-2206. Cancellation of License

A.      The Department may cancel a license if:

1.        During any consecutive 12-month period, the licensee reports no taxable transaction; and

2.        The licensee is not a subcontractor or wholesaler.

B.       The Department shall notify a licensee in writing of its inten- tion to cancel the license. The notice shall explain the action the licensee may take to contest cancellation of the license and when cancellation is final.

C.      The Department shall cancel a license 30 days after the notice of intention to cancel is mailed unless, within 30 days, the licensee objects to the cancellation in writing and produces documentation that the licensee is actively engaged in a tax- able business. Suitable documentation includes, but is not lim- ited to, the following:

1.        Evidence that the licensee holds an inventory of raw or finished tangible personal property for sale or resale;

2.        Evidence  that  the  licensee  maintains   segregated  bank accounts for the purpose of transacting business;

3.        Bona fide contracts for future sale or resale of tangible personal property;

4.        Profit and loss statements for federal or state income tax purposes; or

5.        Evidence that the licensee otherwise actually engages in bona fide business activities.

D.      Within 30 days of receipt of the licensee’s objections and doc- umentation, the Department shall notify the licensee in writing of its decision to cancel or retain the license. If the decision is to cancel the license, the licensee may request an administra- tive hearing.

Historical Note	Price of tangible personal property	$100
Section R15-5-2206 renumbered to R15-5-2203, new	Multiply the price by the applicable tax rate
Section R15-5-2206 renumbered from R15-5-3018 effec-	$100 times 5% equals the tax as calculated	$5
tive October 14, 1993 (Supp. 93-4).	Total cost to the consumer	$105