Section R15-5-2207. Taxpayer Bonds

A.      The amount of the bond required under A.R.S. § 42-112 shall be the greater of five hundred dollars, or:

1.        For licensees reporting monthly, four times the average monthly tax liability;

2.        For licensees reporting quarterly, six times the average monthly tax liability; or

3.        For licensees reporting annually, fourteen times the aver- age monthly tax liability.

B.       For purposes of determining the bond amount, the average monthly tax liability is equal to the average monthly tax due from the licensee for the preceding six consecutive months. If an applicant does not have a six-month payment history, the bond amount shall be a minimum of five hundred dollars.

C.      If a licensee provides a surety bond and the bond lapses, the licensee must deposit with the Department cash or other secu- rity in an amount equal to the lapsed surety bond within five business days of the licensee’s receipt of written notification by the Department.

D.      The bond amount may be increased or decreased as necessary based upon a change in the licensee’s previous filing period, filing compliance record, or payment history. If the bond amount has been increased above the amount computed under subsection (B) of this rule, the licensee may request a hearing pursuant to A.R.S. § 42-112 to show why the order increasing the bond amount is in error.

B.       All taxes collected shall be remitted to the Department and applicable taxing jurisdictions. If a vendor has collected tax in excess of the tax liability for the reporting period, the excess tax shall also be remitted.

Historical Note

Repealed effective April 13, 1987 (Supp. 87-2). New

Section adopted effective October 14, 1993 (Supp. 93-4).

Reference correction (Supp. 95-2).