The Alabama Tobacco Consignment Surety Bond (Section 40-25-5) allows the wholesaler/jobber to defer the payment of stamps purchased in one month to the twentieth (20th) of the next month. Purchases cannot exceed the amount of the bond. Without this bond, payment of stamps must be made at the time of purchase.
The effective date of the bond is the date the bond is approved by the Department’s Legal Division. This is the date that permitted wholesalers may purchase stamps on consignment. The bond is required by the State of Alabama Department of Revenue. The Department of Revenue determines the bond amount.
CLICK HERE for more on the requirements for a Tobacco Consignment Bond from the AL Department of Revenue
Who Will Need an Alabama Tobacco Consignment Surety Bond?
Wholesaler dealers and jobbers are persons, firms or corporations who buy tobacco products directly from the manufacturer or its affiliate and sell said purchases for wholesale only. If the wholesaler or jobber fails to comply with the rules set in Section 40-25-5, as specified above, the discount given to them will be forfeited and they shall also be charged interest. The surety bond must be submitted so that the state is assured that you will properly remittance and complete accounting every twentieth of the month for all stamps that were bought in the preceding months.
How Can You Get an Alabama Tobacco Consignment Surety Bond?
It’s very important that you obtain your surety bond from a company that is licensed to conduct business in the state. Surety Solutions Insurance Services, Inc has been issuing surety bonds not only for Alabama but all other states since 2003. We have also been rated A+ by the Better Business Bureau.
The process of getting the bond is easy. Simply complete our easy online application form, and within one business day, one of our surety experts will contact you and give you a firm quote. You will just have to pay then sign some paperwork and your Alabama Tobacco Consignment Bond will be mailed to you.