Missouri Revised Statutes













Chapter 144

Sales and Use Tax

←144.083

Section 144.087.1

144.090→

August 28, 2015

Retail sales licensee to give bond, when--cash bond deposit and refund--licensee in default has option to provide letter of credit or certificate of deposit.

144.087. 1. The director of revenue shall require all applicants for

retail sales licenses and all licensees in default in filing a return and

paying their taxes when due to file a bond in an amount to be determined by

the director, which may be a corporate surety bond or a cash bond, but such

bond shall not be more than three times the average monthly tax liability of

the taxpayer, estimated in the case of a new applicant, otherwise based on the

previous twelve months' experience. At such time as the director of revenue

shall deem the amount of a bond required by this section to be insufficient

to cover the average monthly tax liability of a given taxpayer, he may

require such taxpayer to adjust the amount of the bond to the level

satisfactory to the director which will cover the amount of such liability.

The director shall, after a reasonable period of satisfactory tax compliance

for two years from the initial date of bonding, release such taxpayer from

the bonding requirement as set forth in this section. All itinerant or

temporary businesses shall be required to procure the license and post the

bond required under the provisions of sections 144.083 and 144.087 prior to

the selling of goods at retail, and in the event that such business is to be

conducted for less than one month, the amount of the bond shall be determined

by the director.



2. All cash bonds shall be deposited by the director of revenue into the

state general revenue fund, and shall be released to the taxpayer pursuant to

subsection 1 of this section from funds appropriated by the general assembly

for such purpose. If appropriated funds are available, the commissioner of

administration and the state treasurer shall cause such refunds to be paid

within thirty days of the receipt of a warrant request for such payment from

the director of the department of revenue.



3. An applicant or licensee in default may, in lieu of filing any bond

required under this section, provide the director of revenue with an

irrevocable letter of credit, as defined in section 400.5-103, issued by any

state or federally chartered financial institution, in an amount to be

determined by the director or may obtain a certificate of deposit issued by

any state or federally chartered financial institution, in an amount to be

determined by the director, where such certificate of deposit is pledged to

the department of revenue until released by the director in the same manner

as bonds are released pursuant to subsection 1 of this section. As used in

this subsection, the term "certificate of deposit" means a certificate

representing any deposit of funds in a state or federally chartered financial

institution for a specified period of time which earns interest at a fixed or

variable rate, where such funds cannot be withdrawn prior to a specified time

without forfeiture of some or all of the earned interest.



(L. 1961 p. 629 § 2, A.L. 1974 H.B. 978, A.L. 1982 S.B. 471,

A.L. 1983 1st Ex. Sess. H.B. 10, A.L. 1985 H.B. 321, A.L.

1986 S.B. 669, et al., A.L. 1990 H.B. 960, A.L. 1994 S.B. 477, et

al.)







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