Cigarette or tobacco product distributors who wish to purchase tax stamps on credit (charge sales) or who are required by the Department to provide security for the payment of excise taxes. Required when: Applying for a 'Charge sale' of cigarette stamps or as a condition of licensing/registration to ensure tax complia…
Overview
What it is.
Cigarette or tobacco product distributors who wish to purchase tax stamps on credit (charge sales) or who are required by the Department to provide security for the payment of excise taxes. Required when: Applying for a 'Charge sale' of cigarette stamps or as a condition of licensing/registration to ensure tax complia…
Who usually needs it
Cigarette or tobacco product distributors who wish to purchase tax stamps on credit (charge sales) or who are required by the Department to provide security for the payment of excise taxes.
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.
StateNMBond amountThe bond amount is determined by the Secretary of the Taxation and Revenue Depa…Term lengthContinuousObligeeNew Mexico Taxation and Revenue DepartmentRenewalThe bond remains in effect as long as the distributor maintains a license and continues to purchase stamps on credit. The underlying distributor license must be renewed annually.Bond classTax BondCategoryRetail & SalesBondCigarette Tax BondStatutory referenceNMSA 1978, § 7-12-7 and § 7-1-54JurisdictionState
