Indiana Cigarette & Tobacco Tax Bond Guide
If you are a cigarette or tobacco product distributor or seller in Indiana, you need a surety bond. Read on to learn more about what bond you need and why.
Bond Overview
- Purpose: To guarantee payment of local taxes owed on tobacco and vapor products
- Who Needs It: Tobacco and cigarette distributors in Indiana
- Regulating Body: The Indiana Department of Revenue
- Required Amount: $1,000 for most businesses
- Premium Rates: $100 for a 1-year term
What Is an Indiana Cigarette & Tobacco Tax Bond?
Indiana tobacco tax bonds guarantee payment for excise taxes owed on tobacco and vapor products according to Indiana Code Title 6 Article 7. The Department of Revenue (DOR) requires all distributors and sellers in Indiana to purchase a surety bond.
How Much Do Cigarette & Tobacco Tax Bonds Cost in Indiana?
Most tobacco and vapor product distributors and retailers in Indiana need $1,000 bond coverage. $1,000 tobacco tax bonds cost a flat rate of $100 for a 1-year term. Or, you can save 25% by selecting a multi-year term.
Select your bond below to buy online in minutes.
Note: For e-cigarette tax registration certificate or tobacco products distributor bonds, include your county when applying.
How Does an Indiana Cigarette or Tobacco Tax Bond Work?
By purchasing an Indiana tobacco distributor or cigarette tax registration certificate bond, you enter a legally-binding contract between three parties:
- Principal: The Indiana Department of Revenue
- Obligee: You, the tobacco product seller or distributer
- Surety: The provider issuing the bond
If an e-cigarette or tobacco dealer fails to collect and pay taxes as required by Indiana Code, the surety will pay valid claims to harmed parties up to the full bond amount. Then, the bonded dealer must reimburse the surety in full.
How Do I Get a Cigarette & Tobacco Tax Bond in Indiana?
SuretyBonds.com provides the fastest and easiest way to get an e-cigarette tax registration certificate bond or tobacco distributor bond. Just follow these quick steps:
- Purchase your bond online or over the phone
- Receive your bond via email
- Sign and submit the bond form to the Department of Revenue
How Do I Renew My Cigarette & Tobacco Tax Bond?
Indiana cigarette tax and tobacco distributor bonds expire annually. A SuretyBonds.com representative will contact you during the renewal period to prepare a new bond. Follow the instructions provided to maintain your coverage for an additional term.
How to Get an E-Cigarette Tax Permit in Indiana
Complete the following steps to apply for an Indiana electronic cigarette tax permit:
- Register for the new e-cigarette tax license through INTIME*
- Purchase your surety bond
- Mail the original bond documents and the $25 registration fee to the following address:
Indiana Department of Revenue – Special Tax
P.O. Box 901
Indianapolis, IN, 46206-0901
For more detailed registration instructions, refer to the DOR user guide.
