Tobacco tax stamp affixing agent bond cost
The Tennessee Commissioner of Revenue requires all tobacco tax stamp affixing agents to post a surety bond in an amount equal to 1% of their estimated tax liability over an average month-long period. The minimum bond requirement is $2,000.
These bonds are subject to underwriting, but the experts will work hard to get you the bond you need for the lowest rate possible.
Why this bond
By posting a tobacco tax stamp affixing agent’s bond, the principal (affixing agent) promises to perform all duties in full compliance with the Tennessee Code Annotated Section 67-4-1006. Specifically, this bond ensures that the principal promptly and properly accounts to the state for the distribution of all stamped and unstamped tobacco products and pays all monies, interest and penalties which may be assessed against him or her for the improper or illegal affixing of tax revenue stamps and/or the distribution, sale or disposal of untaxed products according to law.
Tobacco tax stamp affixing agent bond details
Tennessee tobacco affixing agent bonds remain in full force until the principal or the surety requests that liability be terminated. The surety can cancel this bond at any time by giving the Commissioner 60 days’ notice by registered mail of its intention to terminate.
Become a tobacco affixing agent
To become legally registered to affix tax stamps in Tennessee, applicants must provide the following information:
- reason for applying
- opening date (or approximate opening date) of the business at the location, or the date of the first sale made in Tennessee if registering as an out-of-state business
- number of months sales and/or use tax will be reported
- exact location of the business
- business phone number
- record storage address for audit purposes
- federal employer’s identification number, if applicable
- and more
Apply for your surety bond
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