Oklahoma Administrative Code
Title 710 - Oklahoma Tax Commission
Chapter 55 - Motor Fuel
Subchapter 4 - Motor Fuel Tax
Part 1 - LICENSES
Section 710:55-4-102 - Bonds

Universal Citation: OK Admin Code 710:55-4-102

Current through Vol. 42, No. 1, September 16, 2024

(a) Applicants required to post a bond. Applicants for the following licenses shall be required to post a bond:

(1) Terminal operators

(2) Exporters

(3) Transporters

(4) Tank wagon operator-importers

(5) Suppliers and permissive suppliers

(6) Bonded importers

(b) Single bond required from applicant for multiple licenses. An applicant for more than one license shall be required to post only one (1) bond. The bond shall be posted in the greatest amount required for one of the licenses.

(c) Computation of amount of bond. Bonds required for licenses described in this Part shall be posted in amounts determined by (1) through (5) of this subsection:

(1) Terminal operators. Terminal operators must post a bond in an amount not less than three (3) months estimated tax liability, but not to exceed Five Hundred Thousand Dollars ($500,000.00). The initial bond shall be in the amount of Two Thousand Dollars ($2,000.00).

(2) Exporters. Exporters must post a bond in an amount not less than three (3) months estimated tax liability, but not to exceed One Million Dollars ($1,000,000.00). The initial bond shall be in the amount of Two Thousand Dollars ($2,000.00).

(3) Transporters. Transporters must post a bond in an amount not less than three (3) months estimated tax liability, but not to exceed One Hundred Thousand Dollars ($100,000.00). The initial bond shall be in the amount of Two Thousand Dollars ($2,000.00).

(4) Tank wagon operators-importers. Tank wagon operators-importers must post a bond in an amount not less than three (3) months estimated tax liability, but not to exceed Fifty Thousand Dollars ($50,000.00).

(5) Suppliers; permissive suppliers; bonded importers. Suppliers, permissive suppliers, and bonded importers must post a bond in an amount not less than three (3) months estimated tax liability, but not less than One Hundred Thousand Dollars ($100,000.00), nor more than Two Million Dollars ($2,000,000.00)

(d) Alternative to posting bond for supplier's or bonded importer's licenses. In lieu of posting a bond, an applicant for a supplier's or bonded importer's license, may show proof of financial responsibility. Proof of financial responsibility shall be evidenced by proof of Five Million Dollars ($5,000,000.00) net worth. "Net worth" means total assets, minus total liabilities, as evidenced in a statement from an independent auditor prepared within six (6) months of the date of application.

(e) Form of bond. All bonds shall be in the form of a surety bond, upon a form provided by the Tax Commission, or a cash deposit or certificate of deposit.

(f) Commission may review, rescind eligibility. Pursuant to the authority granted by 68 O.S. § 500.23(C), the Commission may review eligibility standards, including "net worth", of any licensee and may take further actions, including, but not limited to, requiring further assurance of financial responsibility, increasing the amount of required bond, rescission of a permit-holder's eligibility and election to defer payment of motor fuel taxes, or other action needed to ensure remittance of the motor fuel tax.

(g) Cancellation of license. Rescission of a permit-holder's eligibility and cancellation of any license or permit shall be preceded by a hearing pursuant to the terms of 68 O.S. § 212.

Added at 14 Ok Reg 1083, eff 1-24-97 (emergency); Added at 14 Ok Reg 2346, eff 6-12-97

Disclaimer: These regulations may not be the most recent version. Oklahoma may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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