Wholesalers and distributors of cigarettes who first receive untaxed cigarettes for sale or distribution in South Carolina and wish to purchase tax stamps on credit; and Other Tobacco Products (OTP) licensees who fail to pay taxes for two filing periods within a 12-month period. Required when: Applying for a cigarette…
Overview
What it is.
Wholesalers and distributors of cigarettes who first receive untaxed cigarettes for sale or distribution in South Carolina and wish to purchase tax stamps on credit; and Other Tobacco Products (OTP) licensees who fail to pay taxes for two filing periods within a 12-month period. Required when: Applying for a cigarette…
Who usually needs it
Wholesalers and distributors of cigarettes who first receive untaxed cigarettes for sale or distribution in South Carolina and wish to purchase tax stamps on credit; and Other Tobacco Products (OTP) licensees who fail to pay taxes for two filing periods within a 12-month period.
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.
StateSCBond amountFor cigarette distributors purchasing stamps on credit: 110% of the distributor…Term lengthContinuousObligeeSouth Carolina Department of RevenueRenewalThe bond remains in full force and effect until terminated by the surety company. The surety may terminate liability by providing 60 days' written notice to the South Carolina Department of Revenue.Bond classTax BondCategoryRetail & SalesBondState Tobacco Tax BondStatutory referenceS.C. Code Ann. §§ 12-21-735, 12-54-200; S.C. Code Regs. 117-1600.2JurisdictionState
