New Jersey Cigarette Tax Bond Guide
If you are applying for a cigarette wholesaler or distributor license in New Jersey, you may need a performance surety bond.
Bond Overview
- Purpose: To guarantee payment of state cigarette taxes
- Who Needs It: All cigarette distributors and non-resident wholesalers in New Jersey
- Regulating Body: The NJ Department of the Treasury, Division of Taxation
- Required Coverage: $2,000 for wholesalers, $6,000 for distributors
- Premium Rate: $100 flat rate for a 1-year term
Learn about the requirements and bonding process in this guide.
What Is a New Jersey Cigarette Tax Bond?
A New Jersey cigarette tax bond is a type of performance bond required for state licensing. If you distribute cigarettes or are a non-resident wholesaler, you’ll need this surety bond for licensing approval.
Non-resident cigarette wholesalers need $2,000 coverage, while distributors need a $6,000 bond.
How Much Do Cigarette Tax Bonds Cost in New Jersey?
New Jersey cigarette distributor/wholesaler bonds cost a flat rate of $100 for the 1-year term.
The same premium price applies to both the $2,000 and $6,000 bond. However, be sure to select the correct bond for your license type.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New Jersey Cigarette Tax Bond Work?
A cigarette tax bond binds three parties in a legal contract:
- Principal: The distributor or wholesaler filing the bond
- Obligee: The New Jersey Department of the Treasury, Division of Taxation requiring the bond
- Surety: The provider issuing the bond
If you, as the principal, don’t fulfill your sales tax obligations, the obligee can file a claim to recover damages.
How Do I Get a Cigarette Tax Bond in New Jersey?
With SuretyBonds.com, you can buy your cigarette tax bond online in minutes. Just follow these three steps:
- Select the bond you need
- Enter your information
- Checkout online
- Select a shipping method
We’ll mail you the official bond documents. Sign and file the bond with the state. It must be attached with your license application.
How Fast Can I Get My Bond?
You can buy your bond online in minutes! The obligee requires the physical bond document to be mailed to you. Select from three-day, two-day and next-day FedEx shipping options.
Can I Get Bonded With Bad Credit?
Yes, these bonds are available with no credit check! Poor credit will not impact your rate or eligibility.
How Do I Renew My Cigarette Tax Bond?
New Jersey cigarette tax bonds expire annually. You can extend your bond term by paying the renewal invoice and filing the continuation certificate with the state. We’ll contact you in advance with reminders.
If bond claims arise or you do not pay your renewal premium, the surety can cancel the bond by providing notice to the state.
How to Become a Licensed Cigarette Distributor in New Jersey
The New Jersey Department of the Treasury Division of Taxation oversees cigarette distributor and wholesaler licensing. Follow the steps below to apply for a cigarette distributor license:
- Application form (CRD-3), original and a copy
- Letter from cigarette manufacturer (CWD-1)
- $6,000 performance surety bond (CD-3)
- Appointment of Secretary of State for Service of Process (non-residents only)
If you sell cigarettes at more than five locations, you’ll also need to submit fingerprints for an FBI background check.
Send all forms and checks to: Division of Taxation, Cigarette Tax Group, PO Box 187, Trenton, NJ 08695-0187.
The Department may schedule a facility inspection before approving your license.
How to Get a Cigarette Wholesaler License in New Jersey
If you’re applying as a wholesaler, follow these three steps:
- Application form (CWD-1), original and a copy
- $2,000 performance surety bond (CD-3), non-residents only
- Appointment of Secretary of State for Service of Process (non-residents only)
If you sell cigarettes at more than five locations, you’ll also need to submit fingerprints for an FBI background check.
Send all forms and checks to: Division of Taxation, Cigarette Tax Group, PO Box 187, Trenton, NJ 08695-0187.
