2014 -- H 7971

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LC005228

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES - MOTOR FUEL TAX

     

     Introduced By: Representatives Ucci, Serpa, Fellela, Costantino, and Lima

     Date Introduced: March 20, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 31-36-3 of the General Laws in Chapter 31-36 entitled "Motor Fuel

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Tax" is hereby amended to read as follows:

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     31-36-3. Bond of a motor fuel distributor. -- (a) Before the division of taxation shall

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register a distributor as provided in section 31-36-2, the distributor shall deposit with the Division

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of Taxation a surety bond running to the general treasurer and in form and substance approved by

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the division, in amount based upon an estimate of the average annual tax to be paid by the

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distributor as set forth in subsection (b) of this section, with any surety if any that the division

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may require, conditioned to pay any final judgment obtained against the principal named in the

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bond for failure to pay any and all taxes assessed under the provisions of this chapter. Provided,

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however, that any distributor that has paid all taxes assessed under this chapter for three (3)

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consecutive years shall be exempt from depositing a surety bond thereafter as long as the

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distributor remains in good standing.

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      (b)

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     AVERAGE ESTIMATE OF AMOUNT OF BOND

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ANNUAL TAXES

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     $0 to $ 1,000,000 $250,000

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     $1,000,001 to $1,500,000 $350,000

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     $1,500,001 to $2,000,000 $500,000

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     $2,000,001 to $ 2,500,000 $600,000

 

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$2,500,001 to $3,000,000 $700,000

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$3,000,001 to $5,000,000 $1,000,000

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$5,000,001 to $10,000,000 $2,000,000

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$10,000,001 to $15,000,000 $3,000,000

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$15,000,001 to $25,000,000 $4,000,000

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$25,000,001 and Over $5,000,000

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     (c) In no event shall the amount of the bond in this section exceed five million dollars

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($5,000,000).

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES - MOTOR FUEL TAX

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     This act eliminates the requirement that fuel distributors post a surety bond provided the

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distributor has paid all taxes assessed for a period of three (3) consecutive years and remains in

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good standing with the Division of Taxation.

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     This act would take effect upon passage.

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