A. The director may require an interstate user or applicant to post a surety or cash bond if one or more of the following apply:

Terms Used In Arizona Laws 28-5736

  • Director: means the director of the department of transportation. See Arizona Laws 28-101
  • In this state: means any way or place within the exterior limits of the state of Arizona that is maintained by public monies, including any such way or place that is owned by or ceded to the United States of America. See Arizona Laws 28-5601
  • Interstate user: means a person registering a use class motor vehicle under chapter 7, article 7 or 8 of this title or section 28-2321 or 28-2324. See Arizona Laws 28-5601
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • State: means a state of the United States and the District of Columbia. See Arizona Laws 28-101
  • Use: includes the placing of fuel into any receptacle on a motor vehicle from which fuel is supplied for the propulsion of the vehicle unless the operator of the vehicle establishes to the satisfaction of the director that the fuel was consumed for a purpose other than to propel a motor vehicle on a highway in this state and, with respect to fuel brought into this state in any such receptacle on a use class motor vehicle, the consumption of the fuel in this state. See Arizona Laws 28-5601
  • User: includes a person who, within the meaning of the term use as defined in this section, uses fuel in a use class motor vehicle. See Arizona Laws 28-5601

1. The interstate user fails to file tax reports timely or to remit taxes timely.

2. The director determines that the interests of this state or member jurisdictions are in jeopardy.

3. The applicant is not based in a jurisdiction that is a member of the international fuel tax agreement.

4. The applicant does not have a good standing status from another member jurisdiction as a result of a previous license.

5. The applicant does not have history as a motor carrier in this state or any other member jurisdiction.

B. If required, the surety or cash bond:

1. Shall indicate that the interstate user is the principal obligor and the state is the obligee.

2. Shall be conditioned on the interstate user faithfully complying with this article and the prompt filing of true reports and payment by the interstate user of all use fuel taxes and fees due or accrued under this article, together with all penalties and interest on the taxes and fees.

3. Shall be in an amount that is prescribed by the director and that does not exceed one hundred thousand dollars.