Cigarette, cigar and tobacco tax bond cost
The required amount or North Carolina tobacco tax bonds depends on the principal’s anticipated tax liability for the upcoming year. Surety Bonds offers both cigarette tax bonds and other tobacco tax bonds for different costs depending on a review of each applicant’s credit report. Applicants with stellar credit could pay as low as 1% of the required bond amount!
Don’t let bad credit stop you from getting the bond you need. Surety Bonds offers an exclusive bad credit bonding program through which we can approve 99% of all applicants.
Why this bond
North Carolina tobacco products tax bonds ensure that all persons engaged in the selling of tobacco will pay their taxes and any other fees imposed by the state and perform all duties in accordance with the North Carolina Tobacco Products Tax Act.
If an applicant commits fraud or any other damaging acts, such as falsifying sales records or not paying requisite taxes on prior sales, consumers and the state will be compensated by the surety for any financial losses. The principal (tobacco retailer) is ultimately responsible for reimbursing the surety for all damages paid out.
Cigarette, cigar and tobacco tax bond details
North Carolina tobacco tax bonds are continuous until canceled. Bonds for cigarettes and other tobacco products can be canceled by the surety at any time if written notice of cancellation is given to the North Carolina Secretary of Revenue via registered mail 30 days prior to the desired termination date.
Different bond forms are required for North Carolina cigarette tax bonds and North Carolina tax bonds for tobacco products other than cigarettes. Be sure to request the proper form when applying for your bond.
Become a tobacco distributor
It is against the law to act as a tobacco distributor or a manufacturer without being properly licensed to do so. A license fee of $25 is required for each business location, and the license must be renewed every 2 years. A separate form must also be submitted for each business location. If you are one of the following cigarette distributors, you are required to obtain a license:
- A distributor who purchases cigarettes directly from a manufacturer
- A nonresident distributor selling and shipping cigarettes into North Carolina on his or her own truck
- A manufacturer who sells cigarettes to a distributor
- A manufacturer who sells cigarettes to a retail dealer
- A manufacturer who sells cigarettes to a retail dealer or a consumer
If you act as a retail dealer that purchases cigarettes from a licensed distributor or manufacturer, you are not required to obtain a license. If you are one of the following tobacco product (other than cigarettes) distributors, you are required to obtain a license:
- A wholesale dealer who acquires tobacco products other than cigarettes for sale to another wholesale dealer or to a retail dealer
- A retail dealer who acquires products for sale to the consumer from a non-North Carolina source
- A manufacturer who sells tobacco products other than cigarettes to a licensed wholesale dealer
- A manufacturer who sells tobacco products other than cigarettes to a licensed dealer
A retail dealer for products other than cigarettes must also obtain a continuing distributor’s license for each location where business is conducted.
Apply for your surety bond
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