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Tax Bond

Cigarette Tax Bond

Licensed cigarette wholesalers who choose to defer payment on a stamp order for up to 10 days. Required when: When a licensed wholesaler elects to defer payment for cigarette tax stamps rather than paying at the time of purchase. Exemptions: Wholesalers who pay for cigarette tax stamps in full at the time of purchase …

Overview

What it is.

Licensed cigarette wholesalers who choose to defer payment on a stamp order for up to 10 days. Required when: When a licensed wholesaler elects to defer payment for cigarette tax stamps rather than paying at the time of purchase. Exemptions: Wholesalers who pay for cigarette tax stamps in full at the time of purchase …

Who usually needs it

Licensed cigarette wholesalers who choose to defer payment on a stamp order for up to 10 days.

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.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. 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.

Details

Bond details.

StateKY
Bond amountThe bond amount must be not less than the amount of the payment of units of cig…
Term lengthContinuous
ObligeeKentucky Department of Revenue
RenewalThe bond is continuous and remains in effect until cancelled by the surety or the principal, or until the license is terminated.
Bond classTax Bond
CategoryRetail & Sales
BondCigarette Tax Bond
Statutory referenceKRS 138.146
JurisdictionState
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Next step

Ready to move forward?

Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.