PERMANENT RULES
Date of Adoption: December 6, 2001.
Purpose: To implement the provisions of SHB 1407 relating to the waiver of fuel tax bonding requirements.
Statutory Authority for Adoption: RCW 82.36.435 and 82.38.260.
Adopted under notice filed as WSR 01-20-070 on October 1, 2001.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 2, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making:
New 2,
Amended 0,
Repealed 0;
Pilot Rule Making:
New 0,
Amended 0,
Repealed 0;
or Other Alternative Rule Making:
New 0,
Amended 0,
Repealed 0.
Effective Date of Rule:
Thirty-one days after filing.
December 12, 2001
G. A. McDougall
for Fred Stephens
Director
OTS-5220.1
NEW SECTION
WAC 308-72-50901
Waiving of bond requirement.
(1) Can the
department waive the requirement to maintain a fuel tax bond?
Yes. The department may waive the bonding requirement of a
licensed distributor if, upon determination by the department,
the licensed distributor has sufficient financial instruments to
extinguish any Washington state fuel tax liability, including
penalties and interest, incurred while acting as a licensed
distributor.
(2) What is considered a financial instrument? For purposes of this rule, a financial instrument is either:
(a) A line of credit with a financial institution or supplier covering the cost of product and fuel tax liability incurred by the distributor; or
(b) Lawful money of the United States, or bonds or other obligations of the United States, the state, or any county of the state, deposited with the state treasurer.
(3) How can I qualify to have my bonding requirement waived? You may qualify to have your bonding requirement waived upon:
(a) Filing a notarized statement with the department stating that your line(s) of credit with your financial institution(s) and your fuel supplier(s) is at a sufficient amount to include product cost and state fuel taxes. You must indicate the name of the financial institution(s), the account number(s) and dollar value of your line(s) of credit, and the name(s) of your fuel supplier(s). You must authorize the department to access this information with your financial institution(s) and supplier(s) for verification purposes; or
(b) Depositing in a financial institution an amount equal to the estimated monthly fuel tax payments and assigning this deposit to the department as security for performance under chapter 82.36 RCW; and
(c) Providing the department with documentation, satisfactory to the department, indicating that the supplier(s) will not allow the licensed distributor to incur a liability, including fuel tax, in excess of the line(s) of credit, if applicable.
(4) What if the department denies my request for a waiver of the bond requirement? You can appeal this decision as provided in chapters 82.36 RCW and 308-72 WAC.
(5) What if I no longer maintain a line of credit or financial instrument? You must provide a surety bond to the department in the amount required by chapter 82.36 RCW, with a coverage commencement date on or before the date the line of credit or financial instrument was extinguished.
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OTS-5221.1
NEW SECTION
WAC 308-77-04401
Waiving of bond requirements.
(1) Can the
department waive the requirement to maintain a fuel tax bond?
Yes. The department may waive the bonding requirement of a
licensed distributor if, upon determination by the department,
the licensed distributor has sufficient financial instruments to
extinguish any Washington state fuel tax liability, including
penalties and interest, incurred while acting as a licensed
distributor.
(2) What is considered a financial instrument? For purposes of this rule, a financial instrument is either:
(a) A line of credit with a financial institution or supplier covering the cost of product and fuel tax liability incurred by the distributor.
(b) Lawful money of the United States, or bonds or other obligations of the United States, the state, or any county of the state, deposited with the state treasurer.
(3) How can I qualify to have my bonding requirement waived? You may qualify to have your bonding requirement waived upon:
(a) Filing a notarized statement with the department stating that your line(s) of credit with your financial institution(s) and your fuel supplier(s) is at a sufficient amount to include product cost and state fuel taxes. You must indicate the name of the financial institution(s), the account number(s) and dollar value of your line(s) of credit, and the name(s) of your fuel supplier(s). You must authorize the department to access this information with your financial institution(s) and supplier(s) for verification purposes; or
(b) Depositing in a financial institution an amount equal to the estimated monthly fuel tax payments and assigning this deposit to the department, as security for performance under chapter 82.38 RCW; and
(c) Providing the department with documentation, satisfactory to the department, indicating that the supplier(s) will not allow the licensed distributor to incur a liability, including fuel tax, in excess of the line(s) of credit, if applicable.
(4) What if the department denies my request for a waiver of the bond requirement? You can appeal this decision as provided in chapters 82.38 RCW and 308-77 WAC.
(5) What if I no longer maintain a line of credit or financial instrument? You must provide a surety bond to the department in the amount required by chapter 82.38 RCW, with a coverage commencement date on or before the date the line of credit or financial instrument was extinguished.
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