Idaho State Statutes - Idaho Attorney Directory

(1) At the time an application for a wholesaler's
license or permit, under section 63-2503, Idaho Code, is submitted to the
state tax commission, the applicant shall file a bond, in such form as the
commission may determine, conditioned upon faithful performance of all of the
requirements of this chapter. The total amount of the bond shall be fixed by
the commission and shall be equivalent to, at least, twice the estimated
average tax liability for the reporting period for which the applicant will be
required to file a return, under section 63-2510, Idaho Code. The bond
required shall, in no case, be less than one thousand dollars ($1,000). The
total amount required to be secured by the bond may be increased or reduced by
the commission at any time. Any bond given in conjunction with the provisions
of this section shall be a continuing instrument, and shall cover the period
during which the license or permit in connection with which the bond is given
is in effect, unless the surety on the bond is released or discharged by the
commission. Any surety on any bond furnished by a wholesaler shall be
discharged only by the commission. Any surety on any bond furnished by a
wholesaler shall be discharged and released by the commission from, any and
all, liability to the state, accruing on the bond after the expiration of
thirty (30) days from the date upon which the surety shall have lodged with
the commission a written request to be released and discharged. The request
shall not operate to relieve, release, or discharge the surety from any
liability accrued, or which will accrue, before the expiration of the thirty
(30) day period. The commission shall promptly, upon receipt of the notice of
the request, notify the wholesaler and require him to furnish a new bond.
Unless the wholesaler files a new bond with the commission in the amount
provided in this section before the expiration of the thirty (30) day period,
the commission shall immediately cancel the wholesaler's license or permit.
(2) In the event that any taxes due under the provisions of this chapter
are not paid by a wholesaler, and the unpaid taxes are assessed by the
commission, and after all avenues for appeal of the assessment have been
exhausted, the commission may apply the unpaid tax liability against the bond
required in this section.
(3) A wholesaler may petition for release from the bond requirement after
having filed timely and fully paid cigarette tax returns, as provided in
section 63-2510, Idaho Code, for a period of not less than twelve (12) months.
Upon such petition from the wholesaler, the commission will review the
cigarette tax return filing and payment record of the wholesaler and, if
determined necessary, within sixty (60) days examine the books and records of
the wholesaler. The commission will, no later than ninety (90) days from the
date of receipt of the petition, advise the wholesaler in writing of its
determination and the reasons therefor. If the wholesaler wishes to seek a
redetermination of the commission's decision, a petition for redetermination
may be filed as provided in section 63-3045, Idaho Code.
(4) If at any time after release of a bond requirement the wholesaler
becomes delinquent for any period in the filing of tax returns or the payment
of the tax as required in section 63-2510, Idaho Code, the commission may make
immediate demand that the return be filed or the payment be tendered and that
a bond be filed as set forth in subsection (1) of this section. Any wholesaler
against whom such demand is made may petition for a redetermination as
provided in section 63-3045, Idaho Code, except that the petition must be
filed no later than ten (10) days after service upon the person of notice
thereof. If a petition for redetermination is not filed within the ten (10)
day period, the determination shall become final and the commission shall
issue a jeopardy assessment as provided in section 63-3630, Idaho Code, and
thereafter may:
(a) Seize all Idaho cigarette stamps in the possession of the wholesaler
which are not applied to cigarettes;
(b) File a lien of record upon the cigarettes held in inventory by the
wholesaler or seize such cigarettes;
(c) Revoke the wholesaler's cigarette permit as provided in section
63-2518, Idaho Code, except that no notice or hearing shall be required;
and
(d) Notify the manufacturers of the cigarettes held in inventory by the
wholesaler of any or all actions so taken.
(5) A wholesaler who acquires all cigarettes with tax stamps affixed at
the time of acquisition may petition the state tax commission for waiver of
the bond required in subsection (1) of this section. Upon receipt of evidence
establishing that the wholesaler is not required to pay cigarette taxes under
this chapter because the wholesaler exclusively purchases cigarettes with
stamps affixed by another wholesaler, the state tax commission may waive the
requirement for a bond. Any such waiver is conditioned upon the wholesaler's
continuing qualification for the waiver under this subsection.

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