§105-449.40. Secretary may require bond

(a)        Authority. - The Secretary may require a motor carrier to furnish a bond when any of the following occurs:

(1)        The motor carrier fails to file a return within the time required by this Article.

(2)        The motor carrier fails to pay a tax when due under this Article.

(3)        After auditing the motor carrier's records, the Secretary determines that a bond is needed to protect the State from loss in collecting the tax due under this Article.

(b)        Amount. - A bond required of a motor carrier under this section may not be more than the larger of the following amounts:

(1)        Five hundred dollars ($500.00).

(2)        Four times the motor carrier's average tax liability or refund for a reporting period.

A bond must be in the form required by the Secretary.

(1955, c. 823, s. 4; 1967, c. 1110, s. 15; 1973, c. 476, s. 193; 1991, c. 487, s. 4; 2010-95, s. 26(b).)