North Carolina Tobacco Products Other Than Cigarettes Surety Bond

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Bond Penalty: Per Tax Volume, Minimum $2,000, Maximum $2mn.

Store operators that sell and/or distribute vapor products, hookah tobacco (shisha) and non-cigarette tobaccos must file with the Department of Revenue (DOR) a "North Carolina tobacco products other than cigarettes surety bond" unless the operator purchases those products from a licensed wholesale dealer that pays the appropriate state excise tax on those sales. The DOR provides the following guidance highlighting scenarios where licensing and a tobacco surety bond are required.

  • A wholesale dealer who acquires non-tax-paid tobacco products other than cigarettes for sale to another wholesale dealer or to a retail dealer.
  • A retail dealer who acquires non-tax-paid products for sale to the consumer from a non-North Carolina source.
  • A manufacturer who sells non-tax-paid tobacco products other than cigarettes to a licensed wholesale dealer.
  • A manufacturer who sells non-tax-paid tobacco products other than cigarettes to a licensed retail dealer.

The North Carolina tobacco products other than cigarettes bond is a strict financial guarantee, and a compliance obligation with a provision requiring regular tax report filing. Per the bond form, "the principal shall file reports, pay all taxes and otherwise comply with all applicable laws, rules and regulations relating to licensed activities for the sale, use and distribution of tobacco products other than cigarettes". Pursuant to the "Wholesale Dealer and Retail Dealer" statute and rules (G.S. 105-113.38). The amount of the tobacco products bond must be twice the wholesale or retail dealer’s average expected monthly tax liability with a minimum bond of two thousand dollars ($2,000) but never more than two million dollars ($2,000,000). The Secretary of Revenue periodically reviews the sufficiency of the bond and must increase the same when its amount no longer covers the anticipated tax liability of the dealer. Application materials, surety bonds and inquiries are directed to:

NC Department of Revenue
Excise Tax - Tobacco Products
1429 Rock Quarry Road, Suite 105
Raleigh, NC 27610

North Carolina 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 North Carolina tobacco products 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.