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Tobacco Tax Bond

Those engaged in the manufacturing of tobacco products, cigarette papers and tubes, or operating a warehouse that exports tobacco products must execute a Tobacco Tax Bond to ensure compliance with 26 U.S.C. Chapter 52.

The purpose of the Tobacco Tax Bond is to ensure that the United States Department of Treasury collects all taxes generated from the business of tobacco products.

There are several classifications of businesses that must file a Tobacco Tax Bond with the United States Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau (TTB):

One Factory of Manufacturer of Tobacco Products:

         - Tobacco Tax Bond Minimum of $1,000; Tobacco Tax Bond Maximum of $250,000

              * Cigarettes; or any combination of tobacco products
        
          - Tobacco Tax Bond Maximum of $150,0000
 
               * Manufacturing and/or receiving only one type of tobacco product except cigarettes

More than One Factory of Manufacturer of Tobacco Products:


         - Determine the amount for each factory as described above AND if the total amount of the factories is:

               * $250,000 or less; then the total amount of the bond will be the total of all the factories

               * $250,000 - $500,000; then $250,000 plus 50% of the total amount exceeding $250,000

               * $500,000 or more; then $375,000 plus 25% of the total amount exceeding $500,000

Proprietor of an Export Warehouse:

       
  - Tobacco Tax Bond Minimum of $1,000; Tobacco Tax Bond Maximum of $250,000

              * Estimated amount of  tax at any time that may constitute a charge against a bond; includes the the amount of tax on tobacco products and cigaretter papers and tubes at your export warehouse.

              * You must also incluse the amount of tax on tobacco products and cigarette papers and tubes for which satisfactory evidence of exportation has no been received the the TTB
Manufacturer of Cigarette Papers and Tubes:

         - Tobacco Tax Bond Minimum of $1,000; Tobacco Tax Bond Maximum of $250,000

              * Bond must equal or exceed the maximum tax liability for the total amount of cigarette papers and tubes manufactuted and received during any calendar month


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Complete our fast and easy online application by clicking the link below. Most will receive a free quote for a Tobacco Tax Bond within 24 hours.

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