The California Cigarette Tax Bond is required by the California Board of Equalization in the amount of $1,000. The bond states that the bondholder will properly pay all taxes, fees, and charges. The bond protects the government and public from cigarette distributors that do not pay these fees and taxes.
Who needs to have a California Cigarette Tax bond?
Any person engaging in the sale of cigarettes as a distributor must be licensed. One of the licensing requirements is to show a minimum amount of financial security. This can be in the form of cash, or a California Cigarette Tax Bond.
Who is a Cigarette Distributor?
A cigarette distributor is a person who purchases untaxed (unstamped) cigarettes before any California cigarette tax is due. Taxes are paid by purchasing cigarette tax stamps from the CDTFA. A cigarette distributor is required to affix the California cigarette tax stamp to each package of cigarettes prior to distribution. This indicates that taxes have been paid. Once the cigarette packs are stamped, distributors can sell the stamped cigarettes to wholesalers, retailers, and other distributors. Anyone who distributes cigarettes in California must register with the CDTFA as a cigarette distributor.
Where can I get a California Cigarette Tax Bond?
At Surety1 you can be assured of the lowest rates as we have partnered with over a dozen A-rated surety markets. We have friendly agents who are willing to answer all your queries and give you only the best service.
First, start the process by completing our easy to navigate, free online application form. Then, after your application has been submitted, one of our surety agents will contact you with a no-obligation quote on the bond premium. After that, once you are ready to move forward, you just need to pay the premium and sign the agreement. Lastly, your California Cigarette Tax bond will be mailed to you by USPS Priority Mail. Overnight delivery is also available for an additional fee.
Surety1 has been in the business since 2003. We are licensed in all 50 states. As a result, our services have earned an A+ rating from the Better Business Bureau.