House Bill 376 takes effect in Idaho on July 1, 2016, which may change some cigarette wholesalers’ surety bond amount. The bill will change the way the Idaho Tax Commission determines a cigarette wholesaler’s tax bond amount. The new bond amount will be the greater of either twice the average tax liability for the the previous fiscal year, or the value of stamps in the wholesaler’s inventory (including those ordered but not yet received).
In order to use the value of stamps in lieu of the bond, wholesalers must pay full value for the stamps in advance. If the wholesaler posts a bond, they may petition for release from the bond requirement after twelve months of paying cigarette taxes in full and filing their tax returns on time.
Cigarette wholesalers’ tax bond amount is currently an amount equal to at least twice the average tax liability for the previous fiscal year. HB 376 also removes the $1,000 minimum bond amount previously in place.
Selling cigarettes or other tobacco products in Idaho requires applying for a permit through the Idaho Tax Commission. Cigarette wholesalers, manufacturers and importers must pay a $50 permit fee. Laws governing tobacco and cigarette sales can be found in Title 63, Chapter 25 of the Idaho Statutes.