Sec 42-3356. Bonds required of farm wineries; exemption

A. Every farm winery that makes deliveries pursuant to section 4-205.04, subsection C, paragraph 7 or 9 shall file with the department, in a form prescribed by the department, a bond or bonds, duly executed by the farm winery as principal, and with a corporation duly authorized to execute and write bonds within this state as surety, payable to this state and conditioned on the payment of all taxes, penalties and other obligations of the farm winery arising under this chapter and chapter 5 of this title.

B. The department shall fix the total amount of the bond or bonds required of the farm winery and may increase or reduce the total amount at any time. In fixing the total amount, the department shall require a bond or bonds equivalent in total amount to twice the farm winery's estimated monthly tax, ascertained in a manner deemed proper by the department. The total amount of the bond or bonds required of any farm winery shall not be less than five hundred dollars.

C. A farm winery is exempt from the requirements of this section if the farm winery has made timely payment of any taxes imposed by this chapter for the twelve consecutive months immediately preceding the current month.