§ 44-19-23 - Collection powers – Surety bond to pay.
SECTION 44-19-23
§ 44-19-23 Collection powers – Suretybond to pay. – (a) The tax administrator has for the collection of the taxes imposed bychapter 18 of this title the same powers prescribed for the collection of taxesin §§ 44-1-4 – 44-1-15 and chapters 7 – 9 of this title.The tax administrator may require any person subject to the taxes imposed bychapter 18 of this title to file with the administrator a bond, issued by asurety company authorized to transact business in this state, in an amount thetax administrator may fix, to secure the payment of the taxes, penalties, andinterest due or which may become due from that person.
(b) The tax administrator may require the vendor to depositwith the general treasurer a bond by way of cash or other security satisfactoryto the tax administrator in an amount to be determined by the taxadministrator, but not greater than an amount equal to double the amount of theestimated tax that would normally be collected by the vendor each month underthis chapter, but in no case shall the deposit be less than one hundred dollars($100).
(2) Where a vendor who has deposited a bond with the generaltreasurer under subdivision (1) of this subsection has failed to collect orremit tax in accordance with this chapter, the tax administrator may, upongiving written notice to the vendor by registered mail or personal service,apply the bond in whole or in part to the amount that should have beencollected, remitted, or paid by the vendor.