The New York cigarette stamp bond is a financial guarantee that is required of cigarette manufacturers and retailers who have been appointed by the Commissioner of Taxation and Finance to affix adhesive or meter stamps to cigarette packs. The bond is in place to ensure that the state receives the full amount of cigarette tax revenue that is owed.
The amount of the bond is determined by the New York State Department of Taxation and Finance, and it is based on the volume of cigarettes that the manufacturer or retailer sells. The bond must be renewed annually.
If a cigarette manufacturer or retailer fails to pay the cigarette tax, the state can file a claim against the bond. The surety company will then pay the state up to the amount of the bond. The New York cigarette stamp surety bond is an important tool for protecting the state’s revenue and ensuring that the cigarette tax is collected fairly.
Who needs a cigarette stamp surety bond?
Any cigarette manufacturer or retailer who has been appointed by the Commissioner of Taxation and Finance to affix adhesive or meter stamps to cigarette packs needs to have a New York cigarette stamp surety bond.
How to get a New York cigarette stamp bond
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. 2
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Surety Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
How much does the bond cost?
The cost of a New York cigarette stamp surety bond varies depending on the volume of cigarettes that you sell and your financial strength and creditworthiness. Generally speaking, the bond premium will be between 1% and 3% of the bond amount.
Why is the surety bond required?
The New York cigarette stamp surety bond is required to protect the state’s revenue and ensure that the cigarette tax is collected fairly. If a cigarette manufacturer or retailer fails to pay the cigarette tax, the state can file a claim against the bond and the surety company will pay the state up to the amount of the bond.