California — Cigarette And Tobacco Products Tax Bond
California requires distributor tax security in the amount and form prescribed by CDTFA. Regulation 4018 sets a $1,000 minimum, but a distributor's actual requirement can be higher. Prepare the tax account, distribution role, licensed locations and agency security notice before applying.
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- Recorded state
- California
- Bond type
- Cigarette / Tobacco Tax Bond
- Category
- Business operations & taxes
What this bond does
This is security for the cigarette and tobacco products distributor's obligations under Part 13 of the Revenue and Taxation Code. It is not a substitute for a distributor license or a blanket requirement for every retailer or wholesaler selling tobacco.
- Who needs it
- The legal applicant for the actual cigarette or tobacco products distributor tax license. Section 30140 calls for a distributor license at each place of distribution; identify the licensed business and location rather than using a store's trade name alone.
- Who it protects
- Section 30141 makes the surety undertaking payable to California and conditions it on faithful performance of all Part 13 requirements, including payment of taxes, penalties and other obligations arising under that Part. It secures the State's covered interests rather than the distributor's own inventory or business losses.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- CDTFA current Law Guide — complete selected §§30140–30141,30143–30144,30147,30156 (opens in a new tab)Checked October 27, 2026
- CDTFA regulation4018 — complete current security amount rule (opens in a new tab)Checked October 27, 2026
- CDTFA regulation4058 — complete current credit-purchase rule (opens in a new tab)Checked October 27, 2026
Have these ready
- Legal distributor, CDTFA tax account and licensed distribution location.
- Agency's actual security notice, assigned sum and prescribed condition.
- Any separate deferred-stamp-purchase authorization and calculation.
- Effective period and replacement timing using the statutory receipt cutoff.
- Current execution and CDTFA filing instructions.
Questions about this bond
Is $1,000 always enough?
No. It is regulation 4018's minimum. CDTFA fixes the actual security and can change it; approved credit purchases of tax stamps have additional calculation rules. Use the account's actual requirement.
Does every wholesaler need this distributor tax bond?
Not merely because it has a wholesaler's license. Section 30156 does not require this Part 13 bond for issuance of that license alone. Determine whether the business is actually a distributor; other licensing requirements remain separate.
Is withdrawal effective thirty days after notice?
Section 30143 uses receipt by the agency and the fifteenth-day cutoff. Receipt by the fifteenth means the first of the next month; later receipt means the first of the second following month. Keep replacement security coordinated with that date.
Does this purchase authorize tax-stamp credit?
No. Deferred purchases require separate agency approval and assigned limits/security. Match the actual account request and complete CDTFA's filing and licensing steps after reviewing the document.