Cigarette and Tobacco Products Distributor Tax Bond
Out-of-state wholesaler-distributors of cigarettes or tobacco products, and any licensee (manufacturer, distributor, direct-buy retailer, etc.) applying to purchase cigarette tax stamps on a deferred payment basis. Required when: Applying for a wholesaler-distributor license or applying for the privilege to purchase c…
Overview
What it is.
Out-of-state wholesaler-distributors of cigarettes or tobacco products, and any licensee (manufacturer, distributor, direct-buy retailer, etc.) applying to purchase cigarette tax stamps on a deferred payment basis. Required when: Applying for a wholesaler-distributor license or applying for the privilege to purchase c…
Who usually needs it
Out-of-state wholesaler-distributors of cigarettes or tobacco products, and any licensee (manufacturer, distributor, direct-buy retailer, etc.) applying to purchase cigarette tax stamps on a deferred payment basis.
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.
StateAKBond amountFor wholesaler-distributors (out-of-state), the bond must be equal to twice the…Term lengthContinuousObligeeAlaska Department of Revenue, Tax DivisionRenewalThe bond is continuous and remains in effect until cancelled by the surety or the licensee is released from liability by the Department of Revenue. The deferred-payment privilege expires at the same time as the bond.Bond classTax BondCategoryRetail & SalesBondCigarette and Tobacco Products Distributor Tax BondStatutory referenceAS 43.50.035, AS 43.50.580JurisdictionState
