Form 72a301 - Motor Fuels License Bond (Page 2 of 2) in pdf

INSTRUCTIONS

Section A—General Information

1. Every individual or legal company holding a valid Kentucky motor fuels license must post bond according to the

specific type tax activity described in each section below.

2. Only one bond for each type tax activity may be executed on Form 72A301, Motor Fuels License Bond.

3. The bond can only be executed by a corporation authorized to do surety business in Kentucky.

4. Two different type tax activity bonds must be assigned different surety bond numbers by the surety.

5. The principal's name for the following business organizations must read as follows:

(a)

Sole proprietorship. The name of the principal is the individual owner of the business.

(b) Partnerships. The name of the principal is the partnership's name. In accordance with the Uniform Partnership

Act, when one partner signs the bond document, it binds the partnership.

(c)

Corporations. The name of the principal is the corporate name as chartered and registered with the Kentucky

Secretary of State.

6. All bonds filed on behalf of new license applicants must be submitted with Form 72A300, Tax Registration Application

for Motor Fuels License.

7. Mail all documents to Kentucky Department of Revenue, Motor Fuels Tax Compliance Section, P.O. Box 1303, Station

63, Frankfort, Kentucky 40602-1303.

8. For additional information, call the Motor Fuels Tax Compliance Section, (502) 564-3853.

Section B—Gasoline Dealer's License Bond

1. New licenses.

(a)

Minimum $5,000, or

(b) An estimated three months' gasoline excise tax liability. (This amount is subject to review by the Department of

Revenue.)

2. Replacement bonds. Items 1 and 2 are determined by the Department of Revenue.

(a)

Minimum $5,000,

(b) A computed three months' gasoline excise tax liability, or

(c)

A computed two months' gasoline excise tax liability for dealers electing for exemption.

Section C—Special Fuels Dealer's License Bond

1. New licenses.

(a)

Minimum $5,000, or

(b) An estimated three months' special fuels tax liability. (This amount is subject to review by the Department of

Revenue.)

2. Replacement bonds. Items 1 and 2 are determined by the Department of Revenue.

(a)

Minimum $5,000,

(b) A computed three months' special fuels excise tax liability, or

(c)

A computed two months' special fuels excise tax liability for dealers electing for exemption.

Section D—Liquefied Petroleum Gas Dealer's License Bond

1. New licenses.

(a)

Minimum $500, or

(b) An estimated four months' liquefied petroleum gas tax liability, not to exceed $50,000.

2. Replacement bonds. Items 1 and 2 are determined by the Department of Revenue.

(a)

Minimum $500, or

(b) A computed four months' liquefied petroleum gas tax liability, not to exceed $50,000.

Section E—Motor Fuels Transporter's License Bond

All new licenses and replacement bonds are executed in an amount of $5,000.

Form 72a301 - Motor Fuels License Bond Page 2

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