Maryland Other Tobacco Products Surety Bond (OTP Comptroller Bond)

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Bond Penalty: $10,000 nominal however Comptroller may require $1,000 to $25,000

To obtain a license to sell other tobacco products (OTP) in Maryland, the State requires that you furnish a Maryland OTP Surety Bond as part of your licensing process. We specialize in issuing these bonds quickly and efficiently—often within minutes of application. Under the provisions of Tax-General Article §13-825 and Business Regulation Article, Title 16.5 of the Annotated Code of Maryland, all OTP wholesalers must post a surety bond to ensure compliance with Maryland’s tobacco tax laws. This bond guarantees that the licensee will pay all applicable state tobacco taxes, interest, and penalties, and that they will comply with all applicable laws and reporting requirements. Any individual or business that intends to act as a wholesaler of other tobacco products (OTP), including cigars, chewing tobacco, and other non-cigarette tobacco items within Maryland must obtain the MD OTP bond prior to licensure.

The required bond amount is determined by the Comptroller of Maryland and varies based on the volume of sales and the potential tax liability of the licensee. The bond amount must be stated in U.S. dollars and must be sufficient to cover all taxes owed to the state. Typical bond amounts range from $1,000 to $25,000, though higher amounts may be required for larger distributors. This bond ensures the principal (the licensee) complies with:

  • Tax-General Article, Title 12 and Title 13, Annotated Code of Maryland
  • Any future amendments to the tax code
  • Timely submission of tax returns and full payment of tobacco taxes, penalties, and interest

The bond remains in force until canceled. Cancellation requires 60 days’ written notice to the Comptroller of Maryland, and liability may continue for obligations incurred before termination.

Comptroller of Maryland
Field Enforcement Bureau
Licensing and Registration Unit
P.O. Box 2394
Annapolis, MD 21404-2999
Phone: 410-260-7314 or 800-MD-TAXES

Maryland surety bond leader, Surety One, Inc. offers tobacco product tax surety bonds in all states where they are required. Direct distributors and retail operations offering shisha, rolling tobacco and vaping products are welcomed! We offer the Maryland other tobacco products (OTP - other than cigarettes) surety bond to all legitimate applicants regardless of credit condition. Contact us at (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat to discuss any surety bond need.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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