Cigarette Tax Bond

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  • Lance Surety Bonds underwrites all types of cigarette tax bonds in the U.S.
  • Get your cigarette tax bond at top rates
  • Easy and quick bonding process
  • Bad credit applicants welcome

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How Do I Get Bonded?

What Is a Cigarette Tax Bond?

Cigarette tax bonds are a type of sales tax bond, and fall in the category of financial guarantee bonds. Local governments require them of sellers of tobacco products and cigarettes, in order to license them as such.

Like all other surety bonds, cigarette tax bonds work like a three-party contract. The principal is your business. The obligee is the entity that requires you to get bonded. Finally, the surety is the bond underwriter that guarantees the legal compliance of your business.

The purpose of tobacco tax bonds is to protect governmental bodies, and the general public, from non-payment of sales tax on tobacco and cigarette sales. In case a merchant does not fulfill their sales tax obligations, they can face a claim on their bond. For proven claims, the surety repays relevant authorities up to the penal sum of the bond. The seller then needs to fully cover these costs.

Some states require tobacco and cigarette sellers to obtain only one bond, while in others, you need to obtain separate bonds for selling tobacco products and for selling cigarettes.

Ready to start your bonding process? You can apply online today for your free cigarette tax bond. Need to locate your exact bond? You can use the table at the end of this page.

Questions about Cigarette Tax Bonds

Who needs to obtain a cigarette tax bond?

Distributors of tobacco products and cigarettes, as well as cigarette manufacturers, wholesalers and importers across the country, are often required to post a cigarette tax bond and/or a tobacco tax bond. The bond guarantees their legal compliance and ensures they will pay due taxes on tobacco and cigarette sales.

Not all states require such bonds, so check the exact requirements of your local authority before moving forward with getting bonded.

Are there different types of cigarette tax bonds?

There is no uniform rule for cigarette and tobacco tax bonds in the U.S. That’s why local authorities require different bonds in different amounts, which are often named in different ways.

The usual differentiation among these bonds is between cigarette tax bonds and tobacco tax bonds. In some states, you need a cigarette tax bond to sell cigarettes, but if you want to sell other tobacco products, you have to obtain a tobacco tax bond as well.

For example, in California you need to obtain a Cigarette and Tobacco Products Tax Bond if you want to sell such products. If you want to manufacture or import, you have to get a Tobacco Manufacturer and Importer Bond. If you’re based in North Carolina, you’ll need a Tax Bond for Cigarettes and Tax Bond for Tobacco Products Other Than Cigarettes to sell both tobacco products and cigarettes.

How much does a cigarette tax bond cost?

Your cigarette tax bond amount depends on your specific local requirements. There is no universal bond amount for all states, and most states don’t have a fixed amount either. The tobacco or cigarette tax bond amount is calculated is by making an estimation of your yearly sales tax liability.

On the basis of this amount, you will be able to determine your actual surety bond cost. Luckily, it is only a fraction of the required bond amount, which is called the bond premium.

The premium that you need to pay to get bonded is set when the surety examines your personal and business financials. It considers factors such as your personal credit score, business stats and experience in the industry. With overall solid finances, you are likely to pay a lower percentage.

If you have strong personal credit of 650 or better, you may qualify for a standard market rate, which means you can expect to pay 1%-3% of the bond amount. Whatever your credit score is, Lance Surety Bonds is here to help you get bonded.

Can I get a cigarette tax bond with bad credit?

Usually with financial guarantee bonds such as cigarette tax bonds, a collateral needs to be posted to mitigate the higher risk of the bond. In this case, however, this is not necessary. Because of this, you are able to obtain your tobacco tax bond even with bad credit.

We operate our Bad Credit Bonds Program in order to help out in such cases. You can expect bond premiums in the range of 5%-15%. The higher prices are needed to compensate for the increased risk. Yet, this bonding option is a great opportunity to get the cigarette tax bond you need and stay in business.

Lance Surety Bonds cooperates with multiple renowned A-rated, T-listed** surety bond companies. Because of our excellent connections with them, we can shop around for the best bonding option for your specific circumstances. You’re guaranteed to get the best bond price, whatever your credit situation. |

How do I get my cigarette tax bond?

You can get your cigarette tax bond in no time by applying online for a free, no-obligations quote. For your exact bond price, you’ll have to submit your complete application, and we’ll get back to you as soon as possible.

We are here to answer all your questions about your tobacco bond or the bonding process. Just reach us today at (877) 514-5146. Our experts are here to help.

If you need more information about the bonding process, our How to Get Bonded page has everything you need to know.

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Find Your Surety Bond

We offer all types of surety bonds in all 50 states. If you can't find your bond in the table below, select "General business license or permit bond (not listed otherwise)" and start your application.
Arkansas Coin Operated Cigaretter 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 Attonrey General Apply Now
Federal Government Tobacco Alchohol 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 Division 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

About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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What Our Clients Have To Say?

  • Kimberlee Ables
    Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
  • Andrew Poincot
    Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
  • Margie Martinez
    We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!

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