Qualified wholesalers and jobbers of tobacco products who have entered into a stamp consignment contract with the Alabama Department of Revenue. Required when: Required when a wholesaler or jobber desires to purchase tobacco tax stamps on consignment (deferring payment until the 20th of the following month) rather tha…
Overview
What it is.
Qualified wholesalers and jobbers of tobacco products who have entered into a stamp consignment contract with the Alabama Department of Revenue. Required when: Required when a wholesaler or jobber desires to purchase tobacco tax stamps on consignment (deferring payment until the 20th of the following month) rather tha…
Who usually needs it
Qualified wholesalers and jobbers of tobacco products who have entered into a stamp consignment contract with the Alabama Department of Revenue.
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.
StateALBond amountThe bond limit is determined by the Commissioner of the Department of Revenue; …Term lengthContinuousObligeeAlabama Department of Revenue, Tobacco Tax SectionRenewalThe bond is continuous and remains in effect until cancelled; the surety may be released from liability after 60 days' written notice to the Department of Revenue.Bond classTax BondCategoryRetail & SalesBondTobacco Consignment BondStatutory referenceCode of Alabama 1975, Section 40-25-5JurisdictionState
