New Bill Amends North Carolina Tax Bond Amounts
Senate Bill 729 was passed on May 11th and became active immediately. It amends two North Carolina tax bond amounts. This type of bonds is required to guarantee that the bonded parties will pay to the state all due taxes relating to their business activity.
The changes for the cigarette industry in North Carolina
One of the major amendments that the new bill introduces affects cigarette distributors, wholesale and retail dealers.
Before the passing of the bill, these types of businesses had to post a sales tax bond, whose amount was set on the basis of their expected tax liability. Now they need to post a bond that is twice their anticipated tax liability per month. The minimum bond amount is set at $2,000, while the maximum is $2,000,000. As with other surety bonds, this bond amount represents the largest penal sum that can be awarded in case the cigarette distributor or dealer does not pay their due taxes.
Cigarette distributors are manufacturers or buyers of cigarettes whose taxes have not been covered. They are required to be licensed with the North Carolina Department of Revenue. Whole dealers produce other tobacco products, while retail dealers are the party that sells cigarettes and tobacco products directly to consumers. They do not have to get a license.
What North Carolina oil and gas producers should know about the bill
Oil and gas producers in the state also need to comply with new bonding rules.
Before the passing of the new bill, not all producers had to obtain a tax bond. Only those who had failed to cover their taxes were obliged to do so. Now, all oil and gas producers, from soil or water, have to post a pond in order to get their permit for operation.
The bond amount is the same as that of cigarette distributors and dealers. The sales tax bond that they post needs to be two times their anticipated monthly tax liability. The minimum amount is $2,000, while the maximum – $2,000,000. This amount represents the maximum penal sum that can be claimed if a producer fails to cover their due tax payments.
In case you need to obtain a North Carolina sales tax bond, you can start your online application today! Lance Surety Bonds will deliver your bond quote in no time. Call us at 877-514-5146 and we’ll be happy to help!
Latest posts by Victor J. Lance, President/Owner (see all)
- How to Get an Alabama Dealer License [2021 Guide] - January 11, 2021
- How to Get a Maine Auto Dealer License [2021 Guide] - January 8, 2021
- A Simple Guide to Understanding Bail Bonds (2021) - January 8, 2021