Arizona NPM Surety Bond – Tobacco Tax

The Arizona NPM Surety Bond (non-participating manufacturer) is required by the Attorney General of the State of Arizona. The bond states that the bond holder shall faithfully and truly fulfill all of its duties and obligations under A.R.S. §§ 44-7101 and 44-7111.

What is the purpose of the Arizona NPM Surety Bond?

Cigarettes are defined as any product that contains nicotine. According to the Arizona Revised Statutes 44-7111, a nonparticipating manufacturer will need to post a surety bond if their cigarettes were not sold in the State during any one of the four preceding calendar quarters, or if they fail to make an escrow deposit in time, or if they or any person affiliated with the manufacturer were removed from the state directory in the preceding five calendar years. The bond is in place in ensure the integrity of the tobacco master settlement agreement.

The amount of the bond varies. The bond must be posted at least ten days in advance of each calendar quarter as a condition to the nonparticipating manufacturer and its brand families being included in the state directory for that quarter. The amount of the Arizona NPM  Surety Bond is the greater of:

• The greatest required escrow amount due from the nonparticipating manufacturer or its predecessor for any of the twelve preceding calendar quarters or
• Fifty thousand dollars.

How can I get an Arizona NPM Surety Bond?

Getting an Arizona NPM  Surety Bond is easy.  All you need to is to complete our online application form.  Once we receive the application one of our licensed agents will contact you within one business day with a firm quote. Then you just need to sign some paperwork, make the payment and your bond will be delivered via USPS priority mail. Overnight shipping is also available.

Surety1 has been issuing surety bonds in Arizona since 2003, and we are also rated A+ by the Better Business Bureau.