Indiana — Cigarette Tax Stamps Payment Bond
Indiana's CIG-2 payment bond supports approved cigarette-stamp purchases payable within thirty days. It is separate from the $1,000 registration-certificate bond, and qualifying distributors with five consecutive years of good credit standing do not have to post the stamp-credit security.
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- Recorded state
- Indiana
- Bond type
- Cigarette / Tobacco Tax Bond
- Category
- Business operations & taxes
What this bond does
The bond secures payment for stamps purchased by an approved registered distributor. Revenue's current bulletin requires satisfactory security at least equal to the stamps' sales price unless the good-credit exception applies, together with the other credit-account conditions.
- Who needs it
- Registered cigarette distributors arranging Indiana stamp-payment credit. Confirm the actual stamp account, expected purchases and qualification with Revenue before ordering CIG-2 rather than the registration undertaking.
- Who it protects
- CIG-2 runs to Indiana and requires payment to Revenue within thirty days of purchase of the full tax represented by the stamps, less any statutorily allowed discount. On nonpayment, the surety must pay upon written notice up to the penal sum. Its obligation is absolute and unconditional, without first requiring pursuit of the principal or its assets.
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
Have these ready
- Legal registered distributor name, certificate and stamp-account details.
- Revenue's security request or determination of the five-year good-credit exception.
- Expected stamp purchases and accepted security at least equal to their sales price.
- Accepted beginning and midnight-ending dates for CIG-2.
- Required execution/attestation/acknowledgment, tax-payment proof and electronic stamp-payment arrangements.
Questions about this bond
Is this the $1,000 cigarette registration bond?
No. CIG-2 secures stamp payments. The registration certificate uses separate security, while stamp-credit security is based on the stamps' sales price and Revenue's requirement.
Does five years of good credit remove all cigarette obligations?
The bulletin's exception concerns the stamp-credit bond or letter of credit. Registration, applicable registration security, tax payments and other distributor obligations remain separate.
Must Revenue collect from me before claiming on the bond?
The posted CIG-2 makes the surety obligation absolute and unconditional and does not require first pursuing the principal or its assets. Review the direct-payment and waiver wording with the surety before signing.
Can I use the registration bond's cancellation period?
CIG-2 has its own purchase-effective date and midnight-ending-date fields. Use Revenue's accepted term and actual instrument rather than importing CIG-1's different provisions.