The California Cigarette Tax Surety Bond is required the by State of California Board of Equalization.
On April 1, 2017, the California Cigarette Tax increased from 87 cents to $2.87 per pack sold in the State of California. This tax increase was mandated with the passing of Proposition 56, also known as The California Healthcare, Research and Prevention Tobacco Tax Act.
Any person engaging in the sale of cigarettes or tobacco products as a distributor must obtain a license for every place of business at which he or she distributes cigarettes or tobacco products. As part of this licensing procedure, distributors are required to provide a minimum financial security of $1,000. This financial security can be in the form of cash, or a California Cigarette Tax Surety Bond. More information about this financial requirement can be found in the California Cigarette and Tobacco Products Tax Law.
Applicants can learn more about the licensing requirements, as well as access the registration portal on the California Department of Tax and Fee Administration Website.
The California Cigarette Tax Surety Bond guarantees that the distributor will properly pay all taxes, fees, and charges to the government. The bond protects the government and the public from distributors that that do not pay these fees and taxes. Cigarette and tobacco product tax evasion is a problem in California and this bond helps prevent it.
To obtain a California Cigarette Tax Surety Bond, all you need to do is take a few minutes to fill out our free online application! Within one business day one of our licensed agents will contact you with a no-obligation quote for the price to obtain your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bonding experts at Surety Solutions Insurance Services, Inc. (Surety1) are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau