S.D. Admin. R. 64:07:01:19

Current through Register Vol. 51, page 67, December 16, 2024

Section 64:07:01:19 - Bond

A cash bond endorsed in the name of the department or a bond issued by a corporate surety company authorized to do business in South Dakota in an amount sufficient to guarantee payment of contractors' excise tax for a six-month period is required from a contractor engaged in business within the state of South Dakota in the following circumstances:

(1) A contractor has been delinquent in either reporting or paying tax for two reporting periods in a twelve-month period within the last five years;

(2) A contractor is engaged in a type of business which, in the experience of the department, has had problems with tax delinquency; or

(3) A contractor does not have sufficient unencumbered assets in this state to ensure that a possible future delinquent tax liability is collected.

If a contractor has no prior history of excise tax payment, the amount of the bond shall be based upon the contractor's estimate of gross receipts in a six-month period. The contractor's estimate shall be approximately the same as the receipts of similar businesses, and it may be rejected if the department determines that the contractor's figure is not an accurate estimate.

S.D. Admin. R. 64:07:01:19

25 SDR 167, effective 7/1/1999.

General Authority: SDCL 10-46A-19(1), 10-46B-18(1).

Law Implemented: SDCL 10-46A-17, 10-46B-15.