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How much does a cigarette or tobacco tax bond cost in North Carolina?
Your North Carolina tax bond cost will vary depending on the products you sell and your required bond amount. The Department of Revenue will determine your bond amount based on your sales tax liability.
- Tax bonds for cigarette products with bond amounts up to $10,000 cost $100.
- Tax bonds for cigarette products with bond amounts more than $10,000 require a quick application review to determine pricing.
- Tax bonds for noncigarette tobacco products with bond amounts up to $10,000 cost $100.
- Tax bonds for noncigarette tobacco products with bond amounts from to $10,000-$25,000 cost $12/thousand starting at $100.
- Tax bonds for noncigarette tobacco products with bond amounts more than $25,000 require a quick application review to determine pricing.
How do you get a cigarette and tobacco products surety bond?
You can purchase your North Carolina tax bond online 24/7. Simply select which bond you need based on the tobacco products you sell and provide your name and bond amount for Department of Revenue filing approval. Once your payment has been processed, you'll receive a copy of your bond by email. Your official bond will be delivered to your preferred mailing address.
How fast can I get a tobacco products tax bond?
Our industry-leading technology and responsive customer service team allow us to deliver your official North Carolina tobacco products tax bond faster than any other surety provider. Complete your purchase now to receive a copy of your North Carolina surety bond in minutes by email. The Department of Revenue requires your original bond be physically issued and delivered to you, so choose overnight shipping during checkout if you're in a rush.
If you have questions about your North Carolina tobacco surety bond, call 1(800)308-4358 to speak with a friendly surety expert. We're here to guide you through the tobacco tax bond process so you can get back to running your business.
What is the purpose of the North Carolina tobacco products tax bond?
North Carolina Legislative Statute Section 105-113.39C authorizes the state to require a tobacco products wholesale dealer or retailer to file a surety bond to protect the state from their failure to pay taxes. The state maintains 2 separate forms, the “B-A-29 Tobacco Products Other Than Cigarettes Surety Bond” and “B-A-30 Tobacco Products Cigarettes Surety Bond.” Together these bonds are more commonly referred to as the “tobacco products tax bond” or just "tobacco tax bond.” These bonds require retailers and wholesalers file reports, pay all taxes, and otherwise comply with all applicable laws, rules, and regulations relating to the sale, use, and distribution of tobacco products in North Carolina.
How do tobacco tax bonds work?
The Department of Revenue might require you to file a tobacco tax bond to ensure you pay sales tax on your tobacco sales. By filing surety bond form B-A-29 or B-A-30, you agree to file reports, pay taxes, and comply with all North Carolina laws and rules that regulate the sale, use, and distribution of tobacco products. If you fail to do so, your issuing surety company will pay valid claims up to your full bond amount, which you must reimburse.
Who regulates taxation for businesses selling tobacco products?
The North Carolina Department of Revenue Excise Tax Division enforces tax requirements if you're a tobacco product retailer, wholesale dealer, or distributor in the state. You can contact the Tobacco Products Tax Unit by calling 1(919)733-3651. The state's official surety bond form instructs you to file your tobacco sales bond by mail.
North Carolina Department of Revenue
Attention: Licensing and Bonding Unit
3301 Terminal Drive
Raleigh, NC 27604
The North Carolina DOR requires this bond to guarantee sales tax payments are made to the state for tobacco sales. The DOR enforces a separate North Carolina alcohol wholesale distributor or importer tax bond requirement to ensure alcohol tax payments are made to the state.
Who needs a tobacco bond in North Carolina?
You might need a tobacco bond to guarantee tax payments to the North Carolina Department of Revenue if you work as a tobacco wholesaler or tobacco distributor or otherwise sell the following products.
- pipe tobacco
- smokeless tobacco
- vapor products
- other nicotine products
What is the tobacco products tax bond amount?
Your bond amount is based on your anticipated tax liability. North Carolina Legislative Statute Section 105-113.39C requires your bond amount be 2 times your average expected monthly tax liability and not be less than $2,000 or more than $2,000,000. If you need help determining your bond amount, contact the Department of Revenue before purchasing your surety bond.
How do I update or change my tobacco bond form?
If the North Carolina Department of Revenue requires your bond form to be updated for any reason, contact your surety company. If you purchased your bond from SuretyBonds.com, email [email protected] to explain the needed change. The most common changes requested are updating your name to match your license registration or updating your bond amount as a result of increased or decreased tax revenue earned from your tobacco sales.
How do I renew my tobacco products tax bond in North Carolina?
You must renew your North Carolina tobacco products tax bond before its current term expires. Once you pay your SuretyBonds.com renewal invoice, renewal instructions will be sent to keep your bond active for your next license term.