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Illinois bonds

Illinois — Cigarette Distributor Bond

Illinois cigarette-distributor applicants still file $2,500 licensing security in October 2026. Current section 4 ends that application-bond requirement on July 1, 2027, with a conditional release process; do not cancel existing security early.

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Recorded state
Illinois
Bond type
Cigarette / Tobacco Tax Bond
Category
Business operations & taxes

What this bond does

Match the cigarette-distributor tax responsibility and physical licensed location on REG-4-A. This licensing bond is distinct from a historical stamp-credit arrangement or security for a particular unpaid tax debt.

Who needs it
Cigarette distributors obtaining Illinois licensing and stamp authority. Registration as a retailer of already-stamped packages does not itself grant distributor stamp-purchase authority.
Who it protects
Section 4 calls for a joint-and-several bond to IDOR conditioned on true and faithful compliance with the Cigarette Tax Act. Posted REG-4-A binds the principal and surety to Illinois' people for all amounts becoming due to IDOR under the selected law.

Your bond option

This is the option on record for this bond.

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.

Details for Illinois distributor licensing security

The current statute requires the $2,500 bond with the application through June 30, 2027 and keeps it effective during the licensed period. Each business place has a separate license application; REG-4-A instructions require separate security per location and the exact registered name/physical address.

From July 1, 2027, section 4 no longer requires an application bond. IDOR must discharge the surety/release and return security within ninety days after that date if the taxpayer is not delinquent or deficient in tax payment. That future statutory release is different from REG-4-A's registered/certified conditional-cancellation notice and ninety-day liability period.

Submit the original signatures, seals and original power of attorney required by REG-4-A. Use the actual entity's signature rule: corporate president/secretary, two partners, sole proprietor, or one LLC manager/member, with the stated same-person corporate-officer exception. Surety attorney-in-fact authority and any applicable independent-agent countersignature must match.

Current cigarette returns/supporting schedules and payments are electronic; stamp purchases use EFT. Distributor licensing also has separate manufacturer/escrow-compliance and registration requirements. Neither a bond nor an order payment completes those obligations.

Purchase Now opens Propeller's Illinois distributor application in a new tab. Match the legal distributor, location, tax type, $2,500 security and accepted dates, then complete original-bond/IDOR license filing. Provider payment is not license issuance, tax settlement or stamp-credit approval.

Sources

Have these ready

  1. Legal distributor and separate physical licensed location.
  2. Current application, cigarette-tax type and $2,500 security.
  3. Accepted effective period and instructions for any 2027 statutory release.
  4. Entity-specific originals/seals, original power of attorney and applicable countersignature.
  5. Separate electronic reporting/payment and manufacturer/escrow-compliance requirements.

Questions about this bond

Can I stop maintaining the bond now because the law changes in 2027?

No early cancellation follows from that future change. The application requirement continues through June 30, 2027; follow IDOR's accepted maintenance and conditional release directions.

Is the 2027 statutory release the same as ordinary cancellation?

Section 4 specifies release within ninety days after July 1, 2027 if tax payment is not delinquent/deficient. REG-4-A has a separate registered/certified notice and accrued-liability provision.

Will a retailer registration let me buy Illinois tax stamps?

The current programme reserves stamp purchases to licensed cigarette distributors. A retail registration or bond payment alone does not establish that authority.

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