(a) Every dealer licensed to do business in this state who becomes delinquent for more than ninety (90) days in the payment of any sales or use taxes due the state shall, upon notice from the commissioner, post with the commissioner cash or an indemnity bond with good and solvent surety, approved by the commissioner, in an amount equal to three (3) times the average monthly sales tax liability or use tax liability of the dealer, conditioned upon the proper payment of retail sales taxes or use taxes for which such dealer may become liable.

Terms Used In Tennessee Code 67-6-522

  • Business: includes occasional and isolated sales or transactions of aircraft, vessels, or motor vehicles between corporations and their members or stockholders and also includes such transactions caused by the merger, consolidation, or reorganization of corporations. See Tennessee Code 67-6-102
  • Commissioner: means and includes the commissioner of revenue or the commissioner's duly authorized assistants. See Tennessee Code 67-6-102
  • Dealer: means every person, as used in this chapter, including Model 1, Model 2, and Model 3 sellers, where the context requires, who:
    (A) Manufactures or produces tangible personal property for sale at retail, for use, consumption, distribution, or for storage to be used or consumed in this state. See Tennessee Code 67-6-102
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Use: means and includes the exercise of any right or power over tangible personal property incident to the ownership thereof, except that it does not include the sale at retail of that property in the regular course of business. See Tennessee Code 67-6-102
  • Use tax: includes the "use" "consumption" "distribution" and "storage" as defined in this section. See Tennessee Code 67-6-102
(b) In the event that any dealer who may become subject to this section fails to post the cash or surety bond, the dealer shall be subject to revocation of any one (1) or more of the certificates of registration held by the dealer as provided by part 6 of this chapter.
(c) The bond provided for in this section shall run for such time as may be determined by the commissioner.
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