Bond to Secure Purchases of Cigarette Stamps on Credit
Wholesale cigarette dealers who wish to purchase cigarette tax stamps from the state on credit rather than paying at the time of purchase. Required when: The dealer desires to obtain authorization from the Tax Commissioner to purchase cigarette tax stamps on credit. Exemptions: Dealers who pay for cigarette tax stamps…
Overview
What it is.
Wholesale cigarette dealers who wish to purchase cigarette tax stamps from the state on credit rather than paying at the time of purchase. Required when: The dealer desires to obtain authorization from the Tax Commissioner to purchase cigarette tax stamps on credit. Exemptions: Dealers who pay for cigarette tax stamps…
Who usually needs it
Wholesale cigarette dealers who wish to purchase cigarette tax stamps from the state on credit rather than paying at the time of purchase.
Pricing & timing
What to expect.
Generic pricing
Tax bonds guarantee payment of taxes or compliance with tax regulations. Typical Pricing:. • Standard tax bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Credit check: Required for most tax bonds. Common types include sales tax bonds, fuel tax bonds, and cigarette/tobacco tax bonds. Quick approval is typical for applicants with good credit. Some tax bonds…
Typical timeframe
Credit-based approval — typically 1–2 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateOHBond amountThe bond amount is determined by the Tax Commissioner. For wholesale dealers se…Term lengthContinuousObligeeOhio Department of TaxationRenewalThe bond remains in continuous effect until cancelled. The surety may cancel the bond by filing a 60-day written notice with the Tax Commissioner.Bond classTax BondCategoryRetail & SalesBondBond to Secure Purchases of Cigarette Stamps on CreditStatutory referenceOhio Revised Code Section 5743.05JurisdictionState
