2014 -- S 2869 AS AMENDED

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LC005317

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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: Senators Walaska, and Ruggerio

     Date Introduced: April 09, 2014

     Referred To: Senate 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 ANNUAL TAXES AMOUNT OF BOND

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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 would exempt motor fuel distributors that have paid all required taxes for three

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(3) consecutive years from depositing a surety bond with the division of taxation, as long as the

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distributor remains in good standing.

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     This act would take effect upon passage.

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