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Alabama
Tobacco Tax Bond

400,000+ Bonds issued to 250,000+ satisfied customers.

Coverage Amount: $1,000 - $100,000
Term Length: 2 years
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Alabama Tobacco Tax Bond Guide

If you’re applying for a tobacco retailer license in Alabama, you’ll need this surety bond. 

Bond Overview

  • Purpose: To guarantee payment for excise tobacco and tobacco taxes 
  • Who Needs It: New tobacco product retailer licensees
  • Regulating Body: The Alabama Department of Revenue, Tobacco Tax Section
  • Required Coverage: $25,000
  • Premium Rate: Typically $525, credit-based

Learn all about the bond requirements and process in this guide. 

What Is an Alabama Tobacco Tax Bond?

An Alabama tobacco tax bond ensures retailers purchasing tobacco stamps will pay all taxes, fines and fees owed to the state. The bond also holds sellers liable for upholding license regulations. 

The Alabama Department of Revenue (ALDOR), Tobacco Tax Section requires a 2-year $25,000 bond for all new tobacco retailer licensees. If you are delinquent on tax payments, established retailers may also need a bond for financial security.

How Much Do Tobacco Tax Bonds Cost in Alabama?

Alabama tobacco tax bonds cost a small percentage of the bond amount, typically 1.2–10%. Exact rates vary based on personal credit score. Apply for your free quote now!

Bond Type
$1,000-$100,000Tobacco Tax Bond

SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees. 

How Do I Get My Bond?

SuretyBonds.com provides the fastest and easiest way to get an Alabama tobacco tax bond. Just follow these quick steps: 

  1. Apply: Submit an online quote request form
  2. Quote: Receive your quote within one day
  3. Sign: Complete the indemnity agreement 
  4. Buy: Purchase the bond online 24/7

We’ll email you the bond shortly after purchase. Be sure to file the bond with ALDOR’s Tobacco Tax Section as instructed. 

If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance. 

How Does an Alabama Tobacco Tax Bond Work? 

As with all surety bonds, a tobacco tax bond creates a legal contract between three parties: 

  1. Principal: You, the tobacco seller filing the bond
  2. Obligee: The ALDOR Tobacco Tax Section requiring the bond
  3. Surety: The provider issuing the bond

This holds you financially responsible for upholding the provisions of Section 40-25-7, Code of Alabama. 

If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety. 

How Do I Renew My Bond?

These bonds expire every two years. To renew your tobacco tax bond, simply pay your renewal invoice when prompted. 

We’ll begin contacting you by phone and email 90 days before the expiration date. 

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