006.05.91 Ark. Code R. 001
Arkansas Code Ann. § 26-18-301 and §2 6-18-3 -04- grants the Commissioner of Revenues the authority to promulate this regulation. This regulation shall supercede Section (4) (c) (viii) of the Revenue Division Surety Bond Regulation, which was signed by the Director of the Department of Finance and Administration and the Commissioner of Revenue on June 25, 1987.
A letter of credit given, in lieu of a bond, to secure the payment of any state tax may state that it may be terminated on a certain day, provided that a written notice of termination is received by the Commissioner from the taxpayer, or the issuer sixty (60) days prior to the date of termination.
The notice of termination shall be acknowledged in writing by the manager of the Tax Section for the notice of termination to be effective and for the sixty (60) day period to begin.
This Regulation shall become effective on April 1,1991.
FINDINGS OF IMMINENT PERIL AND STATEMENT OF REASONS THEREFOR
Arkansas Code Ann. § 26-15-301 (1987) provides that the Commissioner of Revenues shall administer and enforce the provisions of every State tax law, including the Arkansas Gross Receipts Tax and the Arkansas Compensating Use Tax, and shall promulgate rules and regulations necessary for the enforcement thereof.
The current Surety Bond Regulations require written notice to be given sixty (60) days before a bond securing the payment of taxes cam be terminated, but requires six (6) months advance notice of termination to cancel a letter of credit, given in lieu of a bond to secure the payment of tax. To avoid disparate treatment and to ensure impartiality, this emergency regulation reduces the length of time for advance notice of termination of letters of credit to sixty (60) days, the same length of time required for bonds.
As authorized by Arkansas Code Ann. § 25-15-204 (Supp. 1989), this emergency regulation will become effective April 1, 1991.
For the above reasons, it is found that there exists an imminent peril to the welfare of the State of Arkansas and the attached emergency regulation regarding the notice of termination of surety bond, is necessary.
006.05.91 Ark. Code R. 001