Request for reduction in amount of security.

1. A dealer or supplier who complies with the requirements set forth in subsection 2 may submit a written request to the Department for a reduction in the amount of security required pursuant to NRS 365.290 if the required amount would otherwise be more than $5,000. Upon receipt of such a request, the Department may reduce the required amount to an amount that is: (a) Not less than twice the amount of the maximum monthly tax the dealer or supplier reported to the Department during the 2 years immediately preceding the date of the request for a reduction; or (b) Equal to $5,000, Ê whichever is greater. 2. A dealer or supplier who has filed tax returns pursuant to chapter 365 of NRS for at least 3 calendar years may submit a request pursuant to subsection 1 if, during the 3 years immediately preceding the date of the request, he or she: (a) Filed in a timely manner the tax returns required pursuant to chapter 365 of NRS; (b) Paid in a timely manner all taxes and assessments owed to the State of Nevada pursuant to chapter 365 of NRS; and (c) Has been audited at least once by the Department during the 2 calendar years immediately preceding the date of the request.