Connecticut — Cigarette Distributor Bond
Connecticut cigarette distributors should identify why Revenue Services requested security before applying. Approved stamp credit and authorization for a nonresident distributor have different amount and continuation provisions.
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- Recorded state
- Connecticut
- Bond type
- Cigarette / Tobacco Tax Bond
- Category
- Business operations & taxes
What this bond does
A bond can support permission to buy cigarette tax stamps on credit under section 12-298, or a nonresident distributor's authorization under section 12-301. The distributor license, approved tax arrangement and accepted security must match the actual business.
- Who needs it
- Cigarette distributors arranging Department of Revenue Services stamp credit or nonresident stamping authorization. Other-tobacco distributors and nonparticipating manufacturers have separate obligations.
- Who it protects
- The tax security protects Connecticut's revenue. Under section 12-298, it is conditioned on payment for the stamps or decals purchased on credit. Under section 12-301, it is conditioned on payment of the cigarette tax and compliance with additional requirements the Commissioner specifies for the nonresident authorization. It does not reimburse the distributor's own 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
- Connecticut Chapter214 — complete selected distributor, stamp-credit and nonresident provisions (opens in a new tab)Checked October 27, 2026
- DRS current excise distributor lists — cigarette and motor-fuel sections distinguished (opens in a new tab)Checked October 27, 2026
- DRS current bond forms index (opens in a new tab)Checked October 27, 2026
Have these ready
- Legal applicant name, premises and Connecticut cigarette distributor account.
- DRS notice identifying stamp credit, nonresident authorization or another specifically stated basis.
- Approved stamp-purchase exposure or nonresident security amount and full accepted condition.
- License expiration, required security dates and any DRS release or continuation instructions.
- Current DRS execution and submission instructions for this cigarette account.
Questions about this bond
Is $10,000 the amount for every distributor?
No. Section 12-301 caps security for its nonresident authorization at $10,000. Section 12-298 instead requires stamp-credit security at least equal to the sale price of the stamps or decals. Use the basis and amount DRS assigns.
Does the bond end at the September license renewal?
Do not assume that. The statutes require extended security, with different reference dates for stamp credit and nonresident authorization. Obtain DRS's dates and any all-taxes-paid certificate rather than treating license renewal as a release.
Can I use the posted nonparticipating-manufacturer form?
That is a different obligation. Ask DRS for the condition and execution instructions applicable to your cigarette-distributor authorization or stamp-credit account before using this listing.
Does purchasing authorize me to buy stamps on credit?
No. The Commissioner must approve the credit arrangement and accept the security. Keep the completed bond, distributor licensing and stamp-purchase approval as separate steps.