What is a Cigarette Tax Bond?
A cigarette tax bond is a type of license and permit bond, which local governments require of sellers of cigarettes and tobacco products. It guarantees that sellers will pay all requisite taxes to the government.
The bond’s purpose is to protect the public and the state from sellers who do not pay their taxes. Those who do not pay the required taxes can have a claim filed against their bond, and then need to indemnify the surety for its backing.
Depending on the state, different tobacco tax bonds may be required for the sale of cigarettes and of other tobacco products. North Carolina is one state that requires two separate tobacco bonds.
Cigarette tax bonds are financial guarantee bonds, and therefore may be considered a greater risk for sureties. Bryant Surety Bonds can underwrite cigarette tax bonds in all states that require them at exclusive rates. We can even underwrite such bonds for applicants with lower credit scores, despite the higher risk involved.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
| Arkansas | Coin Operated Cigarette Machine Operators Bond | Tobacco Control Board | Apply Now |
| California | Cigarette and Tobacco Products Tax Bond | State of California Dept of Equalization | Apply Now |
| California | Tobacco Manufacturer and Importer Bond | CA Office of the Attorney General | Apply Now |
| Federal Government | Tobacco | Alcohol and Tobacco Tax and Trade Bureau | Apply Now |
| Florida | Division of Alcoholic Beverage and Tobacco Surety | State of Florida | Apply Now |
| Georgia | Cigar, Cigarette, Loss & Smokeless Tobacco Manu | Department of Revenue, Alcohol and Tobacco Divisio | Apply Now |
| Illinois | Tobacco Products Tax Bond | Department of Revenue | Apply Now |
| Illinois | Financial Responsibility Bond | Dept of Revenue | Apply Now |
| Indiana | Other Tobacco Products Distributor's License | Indiana Department of Revenue | Apply Now |
| Kansas | Tobacco Products Distributor's Tax Bond | Kansas Department of Revenue | Apply Now |
| Louisiana | Tobacco Tax Bond | Department of Revenue | Apply Now |
| Maryland | Other Tobacco Products (OTP) | Comptroller of Maryland | Apply Now |
| New Jersey | Tobacco Performance Bond | Division of Taxation | Apply Now |
| North Carolina | Tax Bond for Tobacco Products Other Than Cigarette | North Carolina Dept. of Revenue | Apply Now |
| North Carolina | Tax Bond for Cigarettes | NORTH CAROLINA DEPT OF REV | Apply Now |
| Oklahoma | Cigarette Stamp & Unstamped Tobacco Products Tax | Oklahoma Tax Commission | Apply Now |
| Oklahoma | Non-Participating Tobacco Manufacturer | Office of Attorney General, Tobacco Enforcement | Apply Now |
| South Carolina | STATE TOBACCO TAX | South Carolina Dept of Revenue Misc Tax Section | Apply Now |
| Tennessee | TOBACCO TAX STAMP AFFIXING AGENT | Tennessee Department of Revenue | Apply Now |
| Utah | Tobacco Tax Bond | Utah State Tax Commission | Apply Now |
| Washington | Wholesale Cigarette Dealer Bond | Special Programs Department | Apply Now |
Cigarette Tax Bond Cost
A cigarette tax bond’s cost depends on the bonding amount that is mandated by state regulations, and a state’s Alcohol and Tobacco Division (or similar agency).
Most states don’t have fixed amounts for cigarette tax bonds. Amounts are typically determined on the basis of a seller’s anticipated yearly tax liability.
Once the division has determined the amount of your surety bond, its cost can also be determined. Surety bond cost is usually determined by surety bond companies on the basis of your bond’s amount and your own financial status as an applicant.
The most central factor in determining the cost of your cigarette tax bond is your personal credit score, which is especially valid in the case of financial guarantee bonds such as this one. Depending on your credit score, you are offered a rate on your premium. This rate is a percentage of the total bond amount.
Standard market rates on cigarette tax bonds begin at 1%-3% for applicants with stellar credit scores. Those with a slightly lower credit score (between 650 and 700) are usually offered a rate between 3.5%-5% of the total amount. Those with a score between 600 and 650 are offered rates upward of 5% and those with even lower scores may need to apply for a cigarette tax bond under our bad credit surety bond program.
Bryant Surety Bonds represents a large network of some of the best sureties in the U.S. All our partners are A-rated and T-listed surety bond companies which offer us access to exclusive rates and markets for all our applicants, regardless of their credit type. By obtaining your tobacco tax bond through us you are sure to receive the lowest possible rate, backed by one of the best companies in the industry.
If you want to know more about how a bond’s cost is determined, have a look at our surety bond cost page, which can offer you extensive information on the topic!
Bad Credit Cigarette Tax Bond Program
Those who need to obtain a cigarette tax bond but have a low credit score, may do so by applying through our Bad Credit Surety Bond Program.
This program makes it possible for such applicants to get bonded at the best possible rates, given their credit status and financial standing.
While rates on cigarette bonds under this program are higher than standard market ones, between 5%-15% or more, we always make sure to find the best and lowest rates for all of our clients. The exact rate of your bond depends on each individual case, so there’s no need to stress. To get a precise quote on your bond, simply apply through our website and we will contact you with a free ‘no-obligations’ quote on your tobacco bond.
How to Get Your Cigarette Tax Bond
Getting your cigarette or tobacco tax bond requires only a few clicks! To begin, apply online through our highly secure application tool. We will then review your application and get back to you with a free quote on your bond. Since license bonds are fairly easy and fast to underwrite, you can expect us to contact you very soon after you submit your application.
You can also call us at 866.450.3412 at any moment, if you have any additional questions, concerns or are in need of help or guidance. Our experts are there to provide you with all the information you need and help you make an informed decision, as well as guide you through your application if you should experience difficulties. Call us, we will be happy to speak to you!
Popular Cigarette Tax Bonds by State
Florida
Bond: Florida Cigarette Laws Bond, Tobacco Products Laws Bond
Obligee: DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Form: ABT 6032
Amount: Set by Obligee
Georgia
Bond: Georgia Cigar, Cigarette, loose and Smokeless Tobacco Manufacturer, Importer, Distributor License Performance and Tax Liability
Obligee: Georgia Department of Revenue: Alcohol and Tobacco Division 1800 Century Center Blvd
N.E. Room 4235, Atlanta, Georgia 30345-3205
Form: ATT-20
Amount: Set by Obligee
Indiana
Bond: Indiana Other Tobacco Products Distributors License Bond
Obligee: Department of Revenue: Controllers Division
Form: OTP 902 (State Form 50831)
Amount: Set by Obligee
Maryland
Bond: Maryland Other Tobacco Products (OTP) Bond
Obligee: Comptroller of Maryland: Revenue Administration Division Licensing and Registration, PO Box 2999, Annapolis, MD 21404-2999
Form: COM/RAD ATT 722
Amount: Set by Obligee
North Carolina
Bond: North Carolina Tax Bond for Cigarettes
Obligee: Department of Revenue: Tobacco Products Unit PO Box 871, Raleigh, NC 27602
Form: B A 30 Web
Amount: Set by Obligee
Oklahoma
Bond: Oklahoma Cigarette Stamp and/or Unstamped Tobacco Products Tax Bond (Surety Bond)
Obligee: Taxpayer Assistance Division: Oklahoma Tax Commission PO Box 269057, Oklahoma City, OK 73126-9057
Form: BT 157
Amount: $25,000
South Carolina
Bond: South Carolina State Tobacco Tax Bond
Obligee: Department of Revenue Miscellaneous Tax Section, Columbia, SC 29214-0139
Form: L 2167
Amount: Set by Obligee
Tennessee
Bond: Tobacco Tax Stamp Affixing Agent Bond
Obligee: Tennessee Department of Revenue
Form: RV F1305901
Amount: Set by Obligee
