North Carolina Tobacco Products Tax Bond
See why this surety bond matters and how to apply for one!
What is a Tobacco Products Tax Bond?
This surety bond is required of every distributor, retail dealer, or wholesale dealer of tobacco products who is applying for a license in the State of North Carolina.
The purpose of the surety bond is to ensure the prompt payment of the necessary taxes, fees, and other charges.
As part of the surety bond’s conditions, the distributor, retail dealer, or wholesale dealer of tobacco products will conduct business in accordance with the Tobacco Products Tax Act and other relevant rules and regulations as well.
If the licensee fails to pay the necessary taxes on time and in full or commits acts that are against the relevant laws and rules, the Obligee will be eligible to file for a bond claim to recover any losses.
This requirement is in pursuance of Sections 105-113.13 and 105-113.38 of the North Carolina General Statutes.
What is the Tobacco Products Tax Bond amount?
The bond amount will vary per license applicant or licensee as determined by the Secretary of Revenue.
The bond amount will be equal to two times the distributor, retail dealer, or wholesale dealer’s average expected monthly tax liability.
$2,000 – the minimum bond amount
$2,000,000 – the maximum bond amount
Those who have excellent credit scores will be eligible for a very low bond premium!
GET YOUR FREE SURETY BOND QUOTE TODAY!
How can I get a Tobacco Products Tax Bond?
To secure this type of bond, the license applicant or licensee must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of North Carolina
- The bond should be made payable to the State of North Carolina
- The licensed distributor, retail dealer, or wholesale dealer of tobacco products must obey the provisions of the Tobacco Products Tax Actas well as the rules and regulations of the North Carolina Department of Revenue
- If the licensee commits a violation, the aggrieved party will be eligible to file a bond claim