California Cigarette and Tobacco Products Tax Bond
Bond Requirements & Set Rates
| Bond Amount Required | Annual Premium |
| Varies | Varies |
Businesses licensed as cigarette and tobacco products distributors in California may secure a surety bond as a condition of licensure. Required by the California Department of Tax and Fee Administration (CDTFA), the California cigarette and tobacco products tax bond guarantees payment of all applicable taxes, penalties, and interest owed to the state.
Cost of a California Cigarette and Tobacco Products Tax Bond
The cost of a California cigarette and tobacco product tax bond is a small percentage of the bond amount, which is determined by the CDTFA. The CDTFA determines the bond amount based on factors, such as reported or projected tax liability and sales volume.
How the California Cigarette and Tobacco Products Tax Bond Works
The California surety bond is a three-party agreement involving:
- Principal: Cigarette or tobacco products business
- Obligee: California Department of Tax and Fee Administration
- Surety: Bonding company issuing the bond
The bond guarantees that the principal will properly collect and remit all cigarette and tobacco taxes owed under California law. If the business fails to pay required taxes or violates tax regulations, the CDTFA may file a claim against the bond. If the claim is paid, the business must reimburse the surety for the amount paid up to the bond limit.
Get Your California Cigarette and Tobacco Products Tax Bond Today
NNA Surety makes the bonding process quick and easy. Complete this form, provide payment details, and receive your bond form for filing with the CDTFA. For more information or questions, call 855-711-0276.