What is a Pennsylvania Cigarette Stamping Agency Bond?
Cigarette stamping agencies or cigarette stamping agents in Pennsylvania must post a surety bond before obtaining their license to legally conduct business in the state.
The Cigarette Stamping Agency Bond guarantees that cigarette stamping agencies must faithfully and punctually comply with the provisions of Article XII of the Tax Reform Code of 1971, as amended.
The bond ensures timely and full payment of taxes, interests, penalties, fines, and costs connected to bearing the PA cigarette excise tax stamp.
A licensed cigarette stamping agent refers to any person who is licensed pursuant to Article XII of the Tax Reform Code, known as the Cigarette Tax Act, and Cigarette Tax Regulation, Title 61, Article III of the PA Code.
What are the bond conditions?
- The bond must be written by a Surety authorized to issue surety bonds in the Commonwealth of Pennsylvania.
- The Principal (cigarette stamping agency) must have requested the Pennsylvania Department of Revenue to deliver cigarette tax stamps to said Principal upon consignment.
- The Principal must well and truly pay over to the Commonwealth of Pennsylvania, through the Department of Revenue, on or before the fifteenth day of each month of their excise taxes.
- If the Principal follows through with all rules and provisions relating to the issuance of his or her cigarette stamping agency license, then the obligation will be null and void. Otherwise, it will remain in full force and effect.
- The Surety may cancel this bond and be relieved of further liability hereon upon giving, at least, 90 days advance written notice of the date of cancellation by registered or certified mail.
- The aggregate liability of the Surety will not exceed the determined amount of the bond.
What is the bond amount?
The bond amount varies, will be set on the basis of information received from the Pennsylvania Department of Revenue records.
The cost of the bond, which is a percentage of the bond amount, is going to be based on the applicant’s financial standing and credentials. The bond amount can be anything between 1% and 5%.
How can I obtain a Cigarette Stamping Agency Bond?
Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:
You must first apply for this type of surety bond. If you are ready to do this now, you may know your bond costs by getting your FREE quote HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
Next, you will be asked to submit a few vital information that our underwriter will need to assess, including your credit score.
To avoid any delays, make sure that you have gathered the right information needed before submitting.
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!
Ready to start?
APPLY NOW! Let’s secure your business’ success!