OAR 735-170-0105: Performance Bond Requirements

(1) Licensed dealers are required to maintain a bond amount that is twice the estimated monthly licensed tax. Twice the dealer’s estimated monthly license tax as determined by the Department is computed as follows: (a) Prior to becoming licensed the required bond amount will be twice the estimated tax based on the estimated taxable gallons stated on the motor vehicle fuel dealer license application; (b) The Department will periodically review the bond for sufficiency based on an average of the gallons reported by the dealer on its monthly fuel tax reports; (c) The Department may notify the dealer at any time to increase or decrease the bond. The dealer may at any time request a bond determination from the Department. (2) When twice the dealer’s estimated monthly tax is less than $1,000 the minimum bond required is $1,000. (3) If the dealer’s motor vehicle fuel dealer license was issued on or before October 23, 1999 and twice the dealer’s estimated monthly tax is more than $100,000 the maximum bond is $100,000. (4) If the dealer’s motor vehicle fuel dealer license was issued after October 23, 1999 and twice the dealer’s estimated monthly license tax is more than $250,000, the maximum bond is $250,000. (5) A bond is subject to increase under certain conditions up to a maximum amount of $1 million. (a) After a bond has been increased for a period of 24 months, a dealer may submit a written request for reduction of the bond. (b) If the Department determines that conditions for bond reduction have been met, the bond may be reduced to twice the dealer’s estimated monthly tax or a maximum of $250,000 regardless of when the motor vehicle fuel dealer license was issued.