Licensed cigarette and tobacco product distributors who purchase stamps on credit or nonresident distributors. Required when: Applying for a distributor license or requesting to purchase cigarette stamps on credit (30-day terms).
Overview
What it is.
Licensed cigarette and tobacco product distributors who purchase stamps on credit or nonresident distributors. Required when: Applying for a distributor license or requesting to purchase cigarette stamps on credit (30-day terms).
Who usually needs it
Licensed cigarette and tobacco product distributors who purchase stamps on credit or nonresident distributors.
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.
StateSDBond amountFor cigarette stamps: In an amount not less than the sale price of such stamps …Term lengthContinuousObligeeSouth Dakota Department of RevenueRenewalThe bond is continuous from the date of execution and is extended from calendar year to calendar year.Bond classTax BondCategoryRetail & SalesBondCigarette Distributor BondStatutory referenceSDCL 10-50-19; SDCL 10-50-26JurisdictionState
