Cigarette Tax Bond

A cigarette tax bond is a financial responsibility bond required in some states by a principal who has applied for a tax responsibility type that deems bonding necessary. The obligee (person or entity requiring the bond) should be able to tell you exactly what type of bond you need and what bond penalty (amount) is being required as well.

Cigarette tax bonds bind the principal as responsible for paying all amounts due to the obligee under the laws, statutes, ordinances, etc. for the state in which the bond is obtained.

Although these bonds are typically continuous, certain obligees may require continuation certificates at renewals. If this is the case, a certificate will be mailed to the principal upon receipt of renewal payment. It then becomes the responsibility of the principal to make sure that this certificate is successfully delivered to the correct obligee.