New York Wholesale Dealer of Cigarettes Bond
What is a New York Wholesale Dealer of Cigarettes Bond?
It is a license requirement that wholesale dealers of cigarettes must submit to the New York State Department of Taxation and Finance.
The purpose of this bond is to ensure that the wholesale dealer of cigarettes with conform to the provisions of Article 20 or Article 20-A of the New York Tax Law. Any person who has suffered damages from the violation of the bonded wholesale dealer of cigarettes will be eligible to file a claim against this bond. Some of the violations are as follows:
- Buy cigarettes at a price less than the cost of the agent with respect to sales to wholesale dealers
- Procures any rebate or concession of any kind in connection with the purchase of cigarettes
A wholesale dealer of cigarettes means any person who does the following:
- Sells cigarettes or tobacco products to retail dealers or other persons for the purpose of resale
- Owns and operates cigarette or tobacco product vending machines within an area that is occupied by another
- Sells cigarettes or tobacco products to an Indian nation or tribe or to a reservation cigarette seller on a qualified reservation
How much does a New York Wholesale Dealer of Cigarettes Bond cost?
Bond premium ranges from 1.5% to 5% of the bond amount. Your bond premium will depend on your credit score.
The bond amount is $10,000.
How can I get a New York Wholesale Dealer of Cigarettes Bond?
By following these simple steps:
- APPLY FOR THIS BOND HERE
- Prequalification ProcessYou will be asked to submit some documents needed for this step. Our underwriter will assess the documents in order to determine your credit rating, business history, and financial capacity.
And because we respect your right to privacy and confidentiality, the entire process will be done through a secured online transaction management system.
- Pay the bond premium and sign the indemnity agreement.
- Your bond will be issued and sent to you.
How does a New York Wholesale Dealer of Cigarettes Bond work?
A surety bond, such as this one, is a legal guarantee provided by the Surety regarding the compliance of the wholesale dealer of cigarettes to Article 20 or Article 20-A of the New York Tax Law.
There are three parties to this bond:
Principal – wholesale dealer of cigarettes
Obligee – people of the State of New York
Surety – Surety
Through this bond, the Surety is extending its credit to the Principal in the event of default. The Surety will settle any claim that will be made against this bond on behalf of the Principal. The claim will first be verified by the Surety before it is settled. Once the Surety has settled the claim, the Principal will reimburse the Surety for the payments made.
Secure your license! APPLY FOR THIS BOND HERE!