15 AAC 10.030. Annual required security

(a) The total estimated taxes and license fees required to be shown on the affidavit for the current year is an estimate of the total taxes and license fees required to be shown on all returns and license applications required to be filed for tax periods ending with or within the same calendar year in which the affidavit is due.

(b) In the case where the tax security requirement is met either by the taxpayer's interest in real property in the state, or by a tax liability bond or cash deposit, or by some other form of security approved by the department, the annual required security is twice the amount computed in (a) of this section unless the annual security requirement has been waived in accordance with 15 AAC 10.035.

(c) Instead of filing the annual required security defined in (b) of this section, the taxpayer may pay the total estimated taxes and license fees determined under (a) of this section in advance.

(d) In this chapter

(1) "interest in real property" means an equity interest in real property located within the State of Alaska on which the taxes may become a first lien;

(2) "other security" means any alternate form of security approved by the department including the following:

(A) If the value of the taxpayer's interest in real property shown on the affidavit for the current year is not adequate to avoid the requirement of filing a bond or other security under AS 43.10.160 (b), the taxpayer's interest in real property may be considered for purposes of satisfying part of the annual required security; or

(B) The department will accept a guaranty given by a person or business, resident or nonresident, to secure payment of the taxes of another nonresident person if

(i) the guaranty conforms to a form approved by the department;

(ii) the guarantor owns an interest in real property within the state having a value of twice the amount of taxes to be guaranteed, and

(iii) the interest in real property owned by the guarantor is not otherwise committed to meet the annual required security of the guarantor or a prior year of the taxpayer.

History: Eff. 6/12/78, Register 66; am 5/16/81, Register 78

Authority: AS 43.05.080

AS 43.10.160

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