Taxes will be imposed on the extraction of natural gas in Pennsylvania through this bill. Under this bill the Department of Revenue would be authorized to require a surety bond for nonresident natural persons, or from any foreign entities that are not authorized to do business or not having an established place of business in the commonwealth. This bond will secure the payment of the tax and any penalties that may arise through the duration of the bond. The Department of Revenue will determine the amount required. A bond is also required to be posted by any person petitioning for the reassessment of tax assessment over $500 or where the Department believes the ultimate collection of the tax is in jeopardy. The Department could also require a bond from any person who filed a return or made payment more than 30 days late on three or more occasions within a 12-month period. Another option would be posting cash or securities in lieu of the surety bonds in any of these bond requirements.
A $25,000 surety bond or irrevocable letter of credit is required to be posted by tax prepares and tax consultants. This is in connection with existing law’s licensing requirements. Under this bill it states that the surety’s liability would continue until two years after the licensee ceases to conduct business in the state or until the bond was canceled. The surety must include a 30 day cancellation clause in the bond language to cancel the bond. The surety’s aggregate liability cannot exceed the sum of the bond.
A bond would be required to be posted in connection with review processes for tax assessments made by local authorities on the sale of tickets for sporting events. Vendors selling the tickets would be responsible for the tax. If there are disputes against the tax or people seek a refund will be required to deposit an amount equal to the tax and any penalties due, along with a surety bond for the costs of the proceeding. The surety bond company must be licensed in that particular state as well.
SB 288: Tax Bond – Soda
An excise tax would be imposed on “sweetened beverages” that is defined in the bill and any syrup used to produce them. Distributors of these beverages would have to file tax returns by the 25th of each month after the month in which the beverages were sold. A bond must be posted by any persons subject to the tax. This would be conditioned on the filing of the reports and the payment of the tax and any applicable penalties and interest. The amount of the bond is determined by being equal to at least twice the amount of the taxpayer’s estimated monthly tax liability. The bond can be no less than $1,000, cash and other security would be accepted in lieu of the tax bond.
HB 1440: Tax Bond – Mineral Mining Operations
Through this bill a severance tax on coal, sand gravel, dimension stone, limestone, gypsum and crushed stone will be imposed in the amount of 4.5% of the gross value of the materials recovered from the earth. A surety bond must be posted by the persons required to file the tax reports and pay the amount owed. The amount will be determined by the Department of State Revenue. Cash will also be accepted in lieu of the bond.
HB 441: Tax Bond
HB 441 will require the principal to obtain a surety bond in connection with an expedited refund on a sale and use tax refund claim. Should the refund have to be paid in error this bond will secure the repayment of the refund and any additional tax, interest, penalties fees or other costs incurred. This new law became effective upon enactment and if such an assessment comes arise it must be made within three years from the date that the expedited refund was made.