What are Cigarette tax bonds
The obligee is the entity that requires you to get bonded. Finally, the surety is the bond underwriter that guarantees the legal compliance of your business. The purpose of tobacco tax bonds is to protect governmental bodies, and the general public, from non-payment of sales tax on tobacco and cigarette sales.
Cigarette tax surety bonds are required in most states as a condition of selling cigarettes and other tobacco products. The bond guarantees that you will make the necessary tax payments to your local government agencies.
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OMB No. 1513-0103 (08/31/2015). DEPARTMENT OF THE TREASURY. ALCOHOL AND TOBACCO TAXAND TRADE BUREAU (TTB). TOBACCO BOND.