What is the Georgia Cigar and Cigarette Distributor License Performance Bond?
The Georgia Cigar, Cigarette, and Vapor Products Distributor License Performance and Tax Liability Bond is one of several tax bonds required by the Georgia Department of Revenue. This bond ensures that you will pay the state all taxes owed from the sale and distribution of tobacco products and adhere to all licensing regulations.
Who needs a Cigar, Cigarette, and Vapor Distributor Tax Bond in Georgia?
If you want to do business as a tobacco wholesaler or distributor in the state of Georgia, you will need this bond. According to the Georgia Department of Revenue, a tobacco wholesaler or distributor is any person that sells or distributes tobacco within or into the state boundaries and maintains a warehouse or acts in the business of importing and distributing tobacco for resale.
The Cigar and Cigarette Distributors License Tax Bond is a requirement of Georgia’s tobacco wholesaler and distributor license. So, anyone applying for (or renewing) a Georgia tobacco wholesaler/distributor license must have this bond. You will also need the Tobacco Distributor Tax Stamp Bond, which you can find here.
The bond amount for the Cigar and Cigarette Distributor License Performance Bond varies. For the first year, new bonds must have a bond amount of no less than $5,000. For renewals, the bond amount must be a minimum of $1,000 or 1% of your gross tobacco sales, whichever is greater.
The term dates for this bond match those of the licensing dates, so they expire at the end of June. Renewal bonds have an effective date that starts July 1st and expires June 30th of the following year.
How much does this bond cost?
The cost of this bond depends on your bond amount. Smaller bond amounts usually don’t require a credit check. The $1,000 and $5,000 bond amounts typically cost around $100 for a one-year bond term.
After a certain point, the bond amount is determined by your gross tobacco sales. So, the more business you do, the higher your bond amount. As your bond amount increases, it becomes more likely that credit will be a factor in determining your premium. Almost every bond with a $25,000 bond amount will require a credit check. Fortunately, at EZ Surety, we work with several surety companies to find you the best quote.
The obligee for Georgia tobacco bonds is the Georgia Department of Revenue. For alcohol and tobacco-related questions, you can contact them here:
Georgia Department of Revenue
1800 Century Boulevard, NE
Atlanta, GA 30345
Apply for your bond today
EZ Surety makes surety bonding quick and easy, with free quotes provided within 24 hours of applying. If you ever have questions, please reach out to our surety experts at firstname.lastname@example.org or 1-866-546-4605. For general questions, you can also browse our extensive FAQ page.
Frequently asked questions
If you want a retailer/dealer license, the license fee is only $10. There is an additional $10 fee if you sell vapor products. For wholesalers, distributors, and manufacturers, the license fee is $250.
Tobacco wholesalers and distributors must have a State of Georgia Wholesaler/Distributor License in order to operate. To obtain a license you must pay the $250 licensing fee, submit to a background check, and upload the following to the Georgia Tax Center:
– A copy of the current annual registration from the GA Secretary of State
– A copy of your List of Products to be sold
– A copy of your Local License
– A copy of your Warehouse Lease/Deed
– A notarized ATT-17 Georgia Alcohol & Tobacco Personnel Statement
– A notarized financial affidavit
– Tobacco Distributors Tax Stamp Bond
– Cigar & Cigarette Distributor License Performance & Liability Bond
– Power of Attorney (if applicable)
– Citizenship Affidavit along with secure and verifiable documents
Once you’ve purchased your bond, we will mail the original out to you. When you get the original in the mail, file it with the Georgia Tax Center and you’ll be one step closer to earning your license. You may also submit an electronic version of your bond instead. In that case, keep the original for your records.