A. Subject to subsections B and C of this section, and except as provided in subsection D of this section, a licensed distributor who furnishes a bond of a surety company qualified to do business in this state, in an amount equal to two times the amount of the distributor’s current monthly stamp purchases and conditioned upon the payment within the time prescribed, may make payment for the official stamp on or before the twentieth day of the month next following the purchase of an official stamp. All other distributors shall pay for each stamp at the time of purchase.
Terms Used In Arizona Laws 42-3459
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Department: means the department of revenue. See Arizona Laws 42-1001
- Director: means the director of the department. See Arizona Laws 42-1001
- Distributor: means any person that manufactures, produces, ships, transports or imports into this state or in any manner acquires or possesses for the purpose of making the first sale of the following:
(a) Cigarettes without Arizona tax stamps affixed as required by this article. See Arizona Laws 42-3001
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
B. Upon a finding that the amount of stamp purchases, or meter machine usage, exceeds seventy-five percent of the amount of the bond, the department may cancel the credit privileges provided to qualified distributors pursuant to subsection A of this section.
C. If the indebtedness of a distributor whose credit privileges have been canceled pursuant to this section remains unpaid for thirty days after cancellation, the director shall request the attorney general to take suitable action on behalf of the department to collect either on the indebtedness or the surety bond.
D. The distributor may request that the department waive the bonding requirement in subsection A of this section if the distributor maintains a timely, accurate and complete filing and payment record for a period of two years and otherwise complies with all requirements of a licensed distributor pursuant to this chapter and title 44, chapter 27. The waiver of the bonding requirement applies only to the distributor’s purchases of tax stamps with which the distributor prepays the Indian reservation tobacco tax, pursuant to section 42-3303.