Cigarette manufacturers, wholesalers, subwholesalers, vending machine operators, and other tobacco products (OTP) wholesalers. Required when: Filing an application for a license to engage in the business of selling cigarettes or other tobacco products in Maryland. Exemptions: The Comptroller may exempt a person from t…
Overview
What it is.
Cigarette manufacturers, wholesalers, subwholesalers, vending machine operators, and other tobacco products (OTP) wholesalers. Required when: Filing an application for a license to engage in the business of selling cigarettes or other tobacco products in Maryland. Exemptions: The Comptroller may exempt a person from t…
Who usually needs it
Cigarette manufacturers, wholesalers, subwholesalers, vending machine operators, and other tobacco products (OTP) wholesalers.
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.
StateMDBond amountThe bond amount is determined based on the license type and tax liability: (1) …Term lengthContinuousObligeeComptroller of Maryland, Revenue Administration DivisionRenewalThe bond remains in full force and effect until cancelled. The surety must provide 60 days' written notice to the Comptroller to cancel the bond. Licenses themselves must be renewed annually (e.g., OTP Wholesaler licens…Bond classTax BondCategoryRetail & SalesBondSecurity for the Tobacco TaxStatutory referenceMaryland Code, Tax-General § 13-825JurisdictionState
