A New Jersey cigarette tax bond is required of all parties that engage in the business of cigarette distribution, wholesale or retail. The cigarette sales business is regulated by the New Jersey “Cigarette Tax Act”. The original Act, passed by the New Jersey Legislature in 1948, has undergone numerous amendments. The law provides for the licensure of various levels of the cigarette industry from retailers to manufacturers. The law requiring a New Jersey cigarette tax bond also regulates the storage, use and transportation of cigarettes, both stamped and unstamped, within the State. Under the statute, “Distributor” means and includes any person, wherever resident or located, who brings or causes to be brought into this State unstamped cigarettes purchased directly from the manufacturers thereof and stores, sells or otherwise disposes of the same after they shall reach this State. The New Jersey cigarette tax bond required of distributors is in the amount of $6,000. “Wholesale dealer” shall include any person, wherever resident or located, other than a distributor, as defined herein, who: (1) Purchases cigarettes from any other person who purchases from the manufacturer and who acquires such cigarettes solely for the purpose of bona fide resale to retail dealers or to other persons for the purposes of resale only; or, (2) Services retail outlets by the maintenance of an established place of business for the purchase of cigarettes, including, but not limited to, the maintenance of warehousing facilities for the storage and distribution of cigarettes. The New Jersey cigarette tax bond required of wholesale dealers in in the amount of $6,000 if in-state and $2,000 if a non-resident. The obligation guarantees that the licensee will properly perform all of his duties and discharge all of his liabilities under the provisions of chapter 65, P.I. 1948, will comply with all of the provisions of the Act, and with such rules and regulations as may be promulgated by the Director of the Division of Taxation. New Jersey surety leader, Surety One, Inc. underwrites cigarette and tobacco product tax bonds for ALL applicants regardless of credit. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a New Jersey cigarette tax bond application or information about any surety need.
