A. Each purchaser that desires to make an election under section 28-5637 shall present evidence to the department that either:

Terms Used In Arizona Laws 28-5638

  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Aviation fuel: means all flammable liquids composed of a mixture of selected hydrocarbons expressly manufactured and blended for the purpose of effectively and efficiently operating an internal combustion engine for use in an aircraft but does not include fuel for jet or turbine powered aircraft. See Arizona Laws 28-101
  • Department: means the department of transportation acting directly or through its duly authorized officers and agents. See Arizona Laws 28-101
  • Distributor: means a person who acquires motor fuel from a supplier or another distributor for subsequent sale or use and who may blend or import into or export from this state motor fuel in the original package or container or otherwise but excluding a person who imports motor fuel in the fuel tank of a motor vehicle or aircraft. See Arizona Laws 28-5601
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Motor vehicle: means a self-propelled vehicle required to be licensed or subject to licensing for operation on a highway. See Arizona Laws 28-5601
  • State: means a state of the United States and the District of Columbia. See Arizona Laws 28-101

1. The applicant was a licensed distributor in good standing before January 1, 1998.

2. The applicant meets the financial responsibility and bonding requirements imposed by this article. The bond shall conform to the specific requirements of this section.

B. The department may require a purchaser that pays the tax to a supplier to file with the department a surety bond that is payable to this state and on which the purchaser is the obligor, or other financial security, in an amount satisfactory to the department. The department may require that the bond indemnify the department against uncollectible tax credits claimed by the supplier under section 28-5639.

C. The department may rescind a purchaser’s eligibility and election to defer motor vehicle or aviation fuel tax remittances after a hearing and on a showing of good cause, including failure to make a timely tax deferred payment of tax to a supplier under section 28-5637, by sending written notice to all suppliers or publishing notice of the revocation pursuant to rules. The department may require further assurance of the financial responsibility of the purchaser, may increase the bond requirement for that purchaser or may take any other action that the department may require to ensure remittance of the motor vehicle or aviation fuel tax.