Yes. In order for a distributor to purchase stamps on credit, the following requirements must be met:
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The distributor must not have any outstanding tax stamp purchase liabilities (i.e., no additional credit purchases will be allowed if a distributor has any credit purchase liability that is past due); and
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The distributor must post a surety bond prior to purchasing stamps on credit in the amount of 110% of its estimated tax liability for 30 days, but not less than $2,000.
Note: In the event of default in the bonding or payment provisions, the SCDOR may revoke a distributor’s privilege to purchase stamps. Failure to timely pay will also subject a distributor to all applicable penalties, interest, and possible revocation of the distributor’s license. In addition, under SC Regulation 117-1600.2(d), no distributor may purchase stamps unless and until the distributor is current in filing all reports and other documentation required by the regulation.