Texas Statutes
Subchapter C. Diesel Fuel Tax
Section 162.212. Bond and Other Security for Taxes

Sec. 162.212. BOND AND OTHER SECURITY FOR TAXES. (a) The comptroller shall determine the amount of security required of a supplier, permissive supplier, distributor, exporter, importer, blender, or dyed diesel fuel bonded user, taking into consideration the amount of tax that has or is expected to become due from the person, any past history of the person as a license holder under this chapter and its predecessor, and the necessity to protect this state against the failure to pay the tax as the tax becomes due.
(b) If it is determined that the posting of security is necessary to protect this state, the comptroller may require a license holder to post a bond. A license holder shall post a bond equal to two times the maximum amount of tax that could accrue on tax-free diesel fuel purchased or acquired during a reporting period. The minimum bond is $30,000, except that for a dyed diesel fuel bonded user the minimum bond is $10,000. The maximum bond is $600,000 unless the comptroller believes there is undue risk of loss of tax revenues, in which event the comptroller may require one or more bonds or securities in a total amount exceeding $600,000.
(c) A license holder who has filed a bond or other security under this subchapter is entitled, on request, to have the comptroller return, refund, or release the bond or security if in the judgment of the comptroller the person has for four consecutive years continuously complied with the conditions of the bond or other security filed under this subchapter. However, if the comptroller determines that the revenues of this state would be jeopardized by the return, refund, or release of the bond or security, the comptroller may elect not to return, refund, or release the bond or security and may reimpose a requirement of a bond or other security as the comptroller determines necessary to protect the revenues of this state.
(d) A bond must be a continuing instrument, must constitute a new and separate obligation in the penal sum named in the bond for each calendar year or portion of a year while the bond is in force, and must remain in effect until the surety on the bond is released and discharged.
(e) Instead of filing a surety bond, an applicant for a license may substitute the following security:
(1) cash in the form of United States currency in an amount equal to the required bond to be deposited in the suspense account of the state treasury;
(2) an assignment to the comptroller of a certificate of deposit in any bank or savings and loan association in this state that is a member of the Federal Deposit Insurance Corporation in an amount at least equal to the bond amount required; or
(3) an irrevocable letter of credit to the comptroller from any bank or savings and loan association in this state that is a member of the Federal Deposit Insurance Corporation in an amount of credit at least equal to the bond amount required.
(f) If the amount of an existing bond becomes insufficient or a security becomes unsatisfactory or unacceptable, the comptroller may require the filing of a new or additional bond or security.
(g) A surety bond or other form of security may not be released until it is determined by examination or audit that a tax, penalty, or interest liability does not exist. The cash or securities shall be released within 60 days after the comptroller determines that liability does not exist.
(h) The comptroller may use the cash or certificate of deposit security to satisfy a final determination of delinquent liability or a judgment secured in any action by this state to recover diesel fuel taxes, costs, penalties, and interest found to be due to this state by a person in whose behalf the cash or certificate security was deposited.
(i) A surety on a bond furnished by a license holder shall be released and discharged from liability to this state accruing on the bond on the 31st day after the date the surety files with the comptroller a written request to be released and discharged. The request does not relieve, release, or discharge the surety from a liability already accrued, or that accrues before the expiration of the 30-day period. The comptroller, promptly on receipt of the request, shall notify the license holder who furnished the bond, and unless the license holder, before the expiration date of the existing security, files with the comptroller a new bond with a surety company duly authorized to do business under the laws of this state, or other authorized security, in the amount required in this section, the comptroller shall cancel the license in the manner provided by this chapter.
(j) The comptroller shall notify immediately the issuer of a letter of credit of a final determination of the license holder's delinquent liability or a judgment secured in any action by this state to recover diesel fuel taxes, costs, penalties, and interest found to be due this state by a license holder in whose behalf the letter of credit was issued. The letter of credit allowed as security for the remittance of taxes under this subchapter shall contain a statement that the issuer agrees to respond to the comptroller's notice of liability with amounts to satisfy the comptroller's delinquency claim against the license holder.
(k) A license holder may request an examination or audit to obtain release of the security when the license holder relinquishes the license or when the license holder wants to substitute one form of security for an existing one.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.

Structure Texas Statutes

Texas Statutes

Tax Code

Title 2 - State Taxation

Subtitle E - Sales, Excise, and Use Taxes

Chapter 162 - Motor Fuel Taxes

Subchapter C. Diesel Fuel Tax

Section 162.201. Point of Imposition of Diesel Fuel Tax

Section 162.202. Tax Rate

Section 162.2025. Separate Statement of Tax Collected From Purchaser

Section 162.203. Backup Tax; Liability

Section 162.204. Exemptions

Section 162.205. Persons Required to Be Licensed

Section 162.206. Statement for Purchase of Dyed Diesel Fuel

Section 162.207. Trip Permits

Section 162.208. Permissive Supplier Requirements on Out-of-State Removals

Section 162.209. License Application Procedure

Section 162.210. Issuance and Display of License

Section 162.211. Licenses and Trip Permits; Periods of Validity

Section 162.212. Bond and Other Security for Taxes

Section 162.213. License Holder Status List

Section 162.214. Remittance of Tax to Supplier or Permissive Supplier; Allowances

Section 162.215. Returns and Payments

Section 162.216. Records

Section 162.2165. Duty to Report Subsequent Sales of Tax-Free Diesel Fuel Purchased for Export

Section 162.217. Information Required on Supplier's and Permissive Supplier's Return; Credits and Allowances

Section 162.218. Duties of Seller of Diesel Fuel

Section 162.219. Information Required on Distributor's Return

Section 162.220. Information Required on Importer's Return; Allowances

Section 162.221. Information Required on Terminal Operator's Return

Section 162.222. Information Required on Motor Fuel Transporter's Return

Section 162.223. Information Required on Exporter's Return and Payment of Tax on Imports

Section 162.224. Information Required on Blender's Return

Section 162.225. Information Required on Interstate Trucker's Return

Section 162.226. Information Required on Dyed Diesel Fuel Bonded User's Return

Section 162.227. Refund or Credit for Certain Taxes Paid

Section 162.2275. Refund for Certain Metropolitan Rapid Transit Authorities

Section 162.228. Refund for Bad Debts; Credit for Nonpayment

Section 162.229. Claims for Refunds

Section 162.230. When Diesel Fuel Tax Refund or Credit May Be Filed

Section 162.231. Notice Regarding Dyed Diesel Fuel

Section 162.232. Dyed Diesel Fuel Notice Required on Shipping Documents, Bills of Lading, and Invoices

Section 162.233. Unauthorized Sale or Use of Dyed Diesel Fuel

Section 162.234. Alteration of Dye or Marker in Dyed Diesel Fuel Prohibited

Section 162.235. Use of Dyed Fuel Prohibited