Utah Tobacco Tax Bond Guide
If you buy and sell tobacco or nicotine products in Utah, you’ll likely need a surety bond. Learn all about the bonding process in this complete guide.
Bond Overview
- Purpose: To guarantee payment of taxes and compliance with tobacco laws
- Who Needs It: Tobacco and e-cigarette sellers in Utah
- Regulating Body: The Utah State Tax Commission
- Required Coverage: Varies by business type and tax liability
- Premium Rate: Credit-based, starting at $50–$100
What Is a Utah Tobacco Tax Bond?
Utah tobacco tax and e-cigarette tax bonds provide financial security for the state if tobacco retailers or distributors violate license regulations.
They guarantee adherence to state tobacco laws and payment of all sales and excise taxes.
Who Needs a Tobacco/Cigarette Tax Bond?
Wholesalers, distributors, and retailers of cigarette and tobacco products in Utah are required to collect and remit state sales taxes on tobacco-related purchases.
A surety bond is required for these businesses to guarantee proper tax reporting and payments:
- Minimum $500 bond for stamping cigarettes or distributing e-cigarette/nicotine products
- Minimum $1,500 bond for selling or distributing other tobacco products.
How Much Do Tobacco Tax Bonds Cost in Utah?
Utah tobacco tax bonds cost a small percentage of the total bond amount based on credit score.
The tobacco tax bond starts at $100 and the e-cigarette tax bond starts at $50. Get your free quote below.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Utah Tobacco or Cigarette Tax Bond Work?
Utah tobacco and e-cigarette bonds create a legal contract between three parties:
- Principal: The tobacco distributor or retailer filing the bond
- Obligee: The Utah State Tax Commission requiring the bond
- Surety: The provider issuing the bond
If you break the bond terms, any harmed party can file a claim for repayment. The surety will validate and pay claims, then you must reimburse the surety.
How Do I Get a Tobacco Tax Bond in Utah?
You can buy a Utah tobacco tax bond online in minutes. Simply fill out the request form on this page. We’ll email your official bond form after purchase.
The Utah electronic cigarette tax bond requires underwriting. Apply to receive a free quote within one business day. You can complete the purchase online and receive the bond via email.
