N.C. Gen. Stat. § 105-113.86
Bond or irrevocable letter of credit
Redline — April 1, 2022 → current.View current text →
Current — June 1, 2022
As of April 1, 2022
(1) Wholesalers and Importers. — The Secretary may require a wholesaler or importer to furnish a bond in an amount that adequately protects the State from a wholesaler’s or importer’s failure to pay taxes due under this Article. The amount of the bond shall not be less than five thousand dollars ($5,000).
(1) Wholesalers and Importers. — The Secretary may require a wholesaler or importer to furnish a bond in an amount that adequately protects the State from a wholesaler’s or importer’s failure to pay taxes due under this Article. The amount of the bond shall not be less than five thousand dollars ($5,000). (a1) Distilleries. — The Secretary may require a distillery to furnish a bond in an amount that adequately protects the State from a distillery’s failure to pay taxes under this Article. The amount of the bond shall not be less than two thousand dollars ($2,000). (a2) Periodic Review. — The Secretary should periodically review the sufficiency of the bonds required under this section. The Secretary may increase the amount required, not to exceed fifty thousand dollars ($50,000), if the bond no longer covers the taxpayer’s anticipated tax liability. The Secretary may decrease the amount required when the Secretary determines that a smaller bond amount will adequately protect the State from loss. The bond must be conditioned on compliance with this Article, payable to the State, in a form acceptable to the Secretary, and secured by a corporate surety.
(2) Distilleries. — The Secretary may require a distillery to furnish a bond in an amount that adequately protects the State from a distillery’s failure to pay taxes under this Article. The amount of the bond shall not be less than two thousand dollars ($2,000).
(2) Nonresident Vendors. — The Secretary may require the holder of a nonresident vendor ABC permit to furnish a bond in an amount not to exceed two thousand dollars ($2,000). The bond must be conditioned on compliance with this Article, payable to the State in a form acceptable to the Secretary, and secured by a corporate surety.
(3) Periodic Review. — The Secretary should periodically review the sufficiency of the bonds required under this section. The Secretary may increase the amount required, not to exceed fifty thousand dollars ($50,000), if the bond no longer covers the taxpayer’s anticipated tax liability. The Secretary may decrease the amount required when the Secretary determines that a smaller bond amount will adequately protect the State from loss. The bond must be conditioned on compliance with this Article, payable to the State, in a form acceptable to the Secretary, and secured by a corporate surety.
(3) Letter of Credit. — For purposes of this section, a wholesaler or importer, a nonresident vendor, or a distillery may substitute an irrevocable letter of credit for the secured bond required by this section. The letter of credit must be issued by a commercial bank acceptable to the Secretary and available to the State as a beneficiary. The letter of credit must be in a form acceptable to the Secretary, conditioned upon compliance with this Article, and in the amounts stipulated in this section.
(5) Letter of Credit. — For purposes of this section, a wholesaler or importer, a nonresident vendor, or a distillery may substitute an irrevocable letter of credit for the secured bond required by this section. The letter of credit must be issued by a commercial bank acceptable to the Secretary and available to the State as a beneficiary. The letter of credit must be in a form acceptable to the Secretary, conditioned upon compliance with this Article, and in the amounts stipulated in this section.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.