Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-07 - Petroleum Tax Division
Chapter 1320-07-03 - Administration of Taxes on Petroleum Products
Section 1320-07-03-.01 - BOND REQUIREMENTS

The penal amount of a bond shall be for not less than the greater of one thousand dollars ($1,000) or three (3) times the amount of the average monthly tax liability nor more than one hundred thousand dollars ($100,000) except in the case of a taxpayer required to maintain a combination bond which shall have a minimum penal amount of three thousand dollars ($3,000) and a maximum penal amount of two hundred thousand dollars ($200,000). All taxpayers required to post bond for more than one type of activity will provide a combination bond subject to three thousand dollars ($3,000) minimum penal amount. Periodic review shall be made of the bonds in force and, where indicated, demand may be made on the taxpayer to increase the penal amount of the bond in force to an amount which will satisfy the requirement that the penal amount of a bond be equal to at least three (3) times the average monthly taxability. A taxpayer shall be allowed a maximum of thirty (30) days to comply with this provision from the time demand is made upon him to do so. Failure to do so within this time limit will subject the taxpayer to a possible cancellation or revocation of his license or permit. An immediate determination of established liability and demand for payment may also result.

Authority: T.C.A. §§67-3828 and 67-101.