California Cigarette and Tobacco Products Tax Bond
Secure your license through this surety bond!
What is a California Cigarette and Tobacco Products Tax Bond?
It is a license requirement that every distributor of cigarette and tobacco products must submit to the California State Board of Equalization.
This is to ensure that the distributor will pay the necessary taxes, penalties, and other obligations required by the provisions of the California Revenue and Taxation Code.
This bond will also be required if the California State Board of Equalization believes that the collection of any amount of tax required to be paid by the distributor will be jeopardized by delay.
If a jeopardy determination has been made against the distributor, the said distributor can file the petition for redetermination within 10 days from the receipt of the notice. The petition for redetermination must be accompanied by this bond.
This requirement is in pursuance of Sections 30141 and 30243 of the California Revenue and Taxation Code.
How much does a California Cigarette and Tobacco Products Tax Bond cost?
The bond premium will depend on the credit score of the cigarette and tobacco products license applicant and the bond amount.
The bond amount will be determined by the California Revenue and Taxation Code.
Those who have excellent credit scores will be eligible to pay as little as 1% of the bond amount.
Once you have determined your bond amount, you can find out what your bond premium will be by claiming your FREE SURETY BOND QUOTE HERE!
How can I get a California Cigarette and Tobacco Products Tax Bond?
We’ve made the application easier. Just follow these simple steps:
STEP 1: Apply for this bond
If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We’ll ask you a few important information about your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all these.
STEP 3: Bond execution
Once the underwriter is done with the prequalification process, you’ll be asked to sign the indemnity agreement. After that, the bond will immediately be issued and sent to you!
How does a California Cigarette and Tobacco Products Tax Bond work?
This bond has 3 parties:
- Principal – cigarette and tobacco products license applicant
- Obligee – People of the State of California
- Surety – surety bond company
The principal is the party required to pay the necessary taxes, penalties, and other obligations required by law. The role of the surety is to assure the California State Board of Equalization that the principal will fulfill the obligations covered by the license.
The surety will also ensure that the obligee will be compensated if the principal defaults on the obligation. When a claim is made against the bond, the surety will first check if the claim is valid. If it is, the obligee will be paid by the Surety. After the payment has been settled by the surety, the principal will be asked to reimburse the said payment.
You may submit your application HERE!
