Cigarette tax bond cost
The Idaho State Tax Commission requires tobacco distributors and cigarette manufacturers, wholesalers and importers to post a cigarette tax bond in an amount equal to 2 times the estimated average tax for the previous fiscal period. Applicants should verify their required bond amount with the state prior to bonding.
These bonds are subject to underwriting, which means that the amount a client pays is based on a review of his or her personal credit report. With good credit clients can expect to pay as low as 2% of their bond amount. Poor credit? Don’t worry! Our experts have a history of getting 99% of applicants bonded regardless of their financial credentials.
Why this bond
Idaho cigarette tax bonds ensure that principals (cigarette retailers) are permitted to engage in such business and pay all taxes imposed under Chapter 25, Title 63 of the Idaho Code.
If the business does not pay these taxes, the surety agrees to pay all taxes and any related penalties/interest that is due or becomes due. The Idaho State Tax Commission can recover the tax and any related penalties and interest from the surety up to the full penal sum of the bond. The principal, in turn, must reimburse the surety for damages paid out.
Cigarette tax bond details
Idaho cigarette tax bonds are continuous until canceled. The surety can cancel this bond at any time by giving the Commission written notice of the impending termination. This termination goes into effect 30 days after the Commission receives this notice.
The cigarette seller’s taxpayer identification number is needed to fill out the bond form.
How to become a tobacco distributor or cigarette manufacturer, wholesaler or importer in Idaho
To obtain an Idaho cigarette and tobacco tax permit, an applicant must:
- Mark the type of business entity applying for a permit and/or registering for the Prevent All Cigarette Trafficking Act
- Mark the type of permit(s) and/or registration being applied for (cigarette wholesaler, tobacco distributor, cigarette manufacturer/importer, PACT Act registrant
- List his or her FEIN or social security number
- List the legal name of the business
- List the mailing address of the business
- List the physical address or addresses of the business
- List the name and telephone number of the contact person
- Specify a fiscal period
- List the date he or she began or will begin to sell tobacco/cigarettes in Idaho
- And more
Apply for your surety bond
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