Surety Bond News – Newly Enacted Laws

Written by JoAnn Smith on March 10th, 2016. Posted in Commercial Bonds, Idaho, Legislation, License and Permit Bonds, South Dakota, Surety Bond Blog, Tax and Fees Bonds, Virginia, Wisconsin

Idaho Tax Bond – HB 376 provides that the surety bond required for cigarette wholesalers must be equal to twice the estimated average tax liability for the reporting period for which a return must be filed, or the value of stamps in the wholesaler’s inventory including those ordered but not yet received, whichever is greater. Prior law required the surety bond only to be equal to at least twice the average tax liability. The new law repeals the $1,000 minimum bond amount. The new law became effective upon enactment. (03/02)
  Idaho Reclamation Surety Bond – Surface Mining – SB 1197 increases the maximum amount of the performance bond required to secure the reclamation of a surface mining site from $2,500 per acre to $15,000 per acre. The new law requires the State Board of Land Commissioners to issue a written notice of a rejection of an application for bond release that explains the reasons for the rejection. The new law becomes effective on July 1, 2016. (03/08)
  South Dakota Court Bond – Wage Garnishment – SB 1059 repeals court procedures for wage garnishment cases that include a requirement for the defendant to post a bond to secure payment of the judgment to the plaintiff. With the repeal of the procedures, the bond requirement has been eliminated as well. (03/02)
  South Dakota License Bond – Vehicle Dealers – HB 1083 requires off-road vehicle dealers to be licensed and post a $5,000 bond. (03/02)
  Virginia Court Bond – Trusts – HB 230 provides that a person could petition a circuit court to establish a trust. The court would determine the terms of the trust and the trustee, as well as whether the trustee must post a bond with or without surety. (03/01)
  Virginia Appeal Bonds – HB 437 revises the current law for appeal bonds and “suspending bonds” to clarify the procedures for modifying the amount of the bond to specify that a motion can be filed in court in addition the current practice of filing a brief. The new law permits the parties in the case to agree to waive the requirement of a suspending bond or to agree to a suspending bond in an amount less than the compensatory damages. The suspending bond amount also now must include an amount equivalent to one year’s interest calculated from the date of the notice of appeal. The new law specifies that if the party filing the appeal provides cash in an amount equal to the judgment, then surety will not be required for the bond. (03/01)
  Wisconsin Financial Assurance – Radiological Materials –  AB 426 establishes a permit requirement for transporting radiological materials in the State. The Department of Transportation could require the permittee to provide a bond, insurance, or a certified check to hold the State and any city, village, town, or county through which the vehicle, trailer, or semitrailer will be operated harmless from any claim, loss, or damage that results from the granting of the permit or from any action under the permit. (02/06)
  Wisconsin License Bond – Charitable Organizations and Miscellaneous Bonds – Professional Employer Organizatons – SB AB 778 revises the current bond requirements for professional employer organizations, which currently must maintain a working capital or post a bond or other security for at least $100,000, or if the PEO has a negative working capital, the bond or other security must be equal to $100,000 plus an amount to make up the deficiency. The new law eliminates the option to provide other forms of security in lieu of the bond when only a bond is posted in lieu of the working capital. The new law revises the surety bond requirement for professional fundraisers and fundraising counsel to delete a provision requiring the bond to be from “one or more responsible sureties whose liability in the aggregate as sureties at least equals [the bond amount].” The new law deletes an option for the bond to be a rider for a blanket liability bond and instead would require the bond to be prescribed by and acceptable to the Department of Financial Institutions. (03/01)  Buysurety law

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Fuel Tax Bond Requirements in Louisiana

Written by JoAnn Smith on August 11th, 2014. Posted in Commercial Bonds, License and Permit Bonds, Lousiana, Surety Bond Blog, Tax and Fees Bonds

     fuel tax bond requirements
Do you know your state fuel tax bond requirements?
In Louisiana any fuel supplier who also acts as a terminal operator, permissive supplier, distributor, importer, exporter, blender, transporter or anyone who is a fuel supplier for aviation fuel must be licensed and follow fuel tax bond requirements.
With the broad range of uses for various types of fuels, it is important for anyone engaged in the act of buying, selling, delivering or even simply blending fuel to have a license with the state of Louisiana. As part of that licensing, a fuel tax bond is required.

Denial of Fuel Supplier Licenses

Anyone who has a history of the following can be denied their fuel supplier license and the fuel tax bond requirements that accompany that license. These include:
  • If the license has been cancelled prior to the current license registration
  • If another state has revoked a similar license
  • If the federal registry license, which is also required, has been revoked
  • If the person obtaining the license has been convicted of fraud or any kind of misrepresentation
  • If the applicant is in arrears for their state taxes
  • If for any reason it has been determined that the party applying for the license is not the interested party that will be using the license
  • If the applicant, their agent, employees or officers have ever been convicted of motor fuel tax evasion.

Keeping Your Fuel Tax License Current

One of the things you will need to do to keep your fuel tax license current is make sure that your fuel tax bond requirements have been met and are up to date as well. That may mean renewing them or increasing the amount of the fuel tax bond if the state changes the requirements. Keep up to date on all your surety bond needs, including the fuel tax bond requirements for your state, with BuySurety. We have been providing a wide variety of surety bonds for many different kinds of industries for over two decades across the nation. Get bonded today with BuySurety and make sure all your fuel tax bond requirements or needs for any other types of bonds are up to date.

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California Startup Businesses Get Sales Tax Bond Back

Written by JoAnn Smith on January 3rd, 2014. Posted in California, License and Permit Bonds, Surety Bond Blog, Tax and Fees Bonds

sales tax bond
removing the sales tax bond is good for new business

 The 2014 year has begun with a bang for startup businesses in California. The state’s sales tax office has decided that the current requirement for new businesses to post a sales tax bond is not feasible because it costs more to administer than it can possibly make in captured taxes. A recent study found that only 1% of all businesses that were required to post a bond actually had to have it applied to any unpaid taxes. The end result is the decision to not only end the program, but to release payments back to the new businesses that paid this sales tax security bond in previous years.

Unanimous Decision

The State Board of Equalization voted unanimously to end this requirement for new business startups in California. Many various chambers of commerce had been calling this new requirement a money grab on the part of the state and had been vociferous in their opposition of it. With this change many business experts see this as a move to boost the development of small business in California. The trend towards small business development has been growing across the nation, leading many states to reconsider onerous taxation regulations such as this one in California.

Exceptions to the Change

While the majority of new businesses will see this rebate, resellers and any business with a history of tax nonpayment will still need to post a sales tax bond with the California State Board of Equalization (BOE) as part of their licensing requirement. The BOE has stated that it will begin refunding the almost $296 million in deposits in February. The changes may not be actually reflected on the BOE site, including the registration forms for new businesses, until March of 2014.

Do You Need to Post Sales Tax Bonds?

If you are considering starting a new business in any state, you may need to post a sales tax bond as part of the business licensing process. As you can see, even in California where the rules regarding these bonds are changing, some businesses will still need to post a tax bond. If you aren’t sure if your state requires one, be sure to ask BuySurety’s helpful customer service representatives to guide you. They know all the latest requirements and can help you get the right kind of surety bond for your business, wherever you do business.


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Surety Bond Bill Options for North Dakota in 2013

Written by JoAnn Smith on May 10th, 2013. Posted in Legislation, License and Permit Bonds, North Dakota, Surety Bond Blog, Tax and Fees Bonds

     north dakota surety bonds
Map of North Dakota
May 10, 2013 – There are currently two bills that are in the North Dakota legislature that deal with the question of surety bonds. The first will allow livestock and wool dealers to produce letters of credit or cash in place of the current requirements for the posting of a surety bond as part of the licensing procedure. The second bill will require upper management in limited liability companies to post a surety bond against their personal liability for the payment of company taxes. Both bills are currently in The House and are not yet slated for final passing.  

HB 1026: License Bond: Livestock and Wool Dealers

The State of North Dakota legislature has pre-filed House Bill 1026 and if it passes it would then rewrite the current livestock dealer laws. As it currently stands all livestock dealers and wool dealers are required to post a minimum $10,000 license surety bond as part of their license. The new bill would also allow them to use letters of credit or cash instead of the surety bond. As of January 23, 2013 the bill has been introduced and placed on the calendar. For a look at the text as it currently stands, you can read North Dakota House Bill 1026 online by using the link provided.  

HB 1106: Tax Bond

If passed, North Dakota House Bill 1106 would require that the general partners, managers and governors in a limited liability business that have control of, supervise or have the responsibility for tax returns and payments post a tax surety bond or certificate of deposit as a security to guarantee the payment of these taxes. The bill further makes these persons personally liable for any failure to pay taxes due. For a reading of the summary of this bill, placed in the legislative calendar as of January 24, 2013 you can use the link provided here.

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Contract and Commercial Surety Bond Legislature in New Hampshire

Written by JoAnn Smith on April 15th, 2013. Posted in Commercial Bonds, New Hampshire, Surety Bond Blog, Tax and Fees Bonds

New Hampshire State Seal
The State of New Hampshire had only one bill that passed through legislature having to do with the posting of surety bonds. This bill changed the time requirements that an operator has to post a surety bond for meal and room taxes collected and owed to the state. There were no contract surety enactments in 2012 in the State of New Hampshire.

House Bill No. 1204: Tax Bond

New Hampshire House Bill 1204 makes changes to a current law regarding the filing and payment of collected meal and room taxes by an operator. If the Tax Commissioner determines that the operator will need to post a tax preparer surety bond against these collected amounts, that bond will need to be filed within ten (10) days of the hearing where this judgment was made. This changes the prior requirement that the bond be paid within ten (10) days of the requirement being issued and mailed. This change was enacted on May 25, 2012 and went into law upon enactment. For a reading of the full text of House Bill 1204 be sure to follow the link provided.

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