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Indiana bonds

Indiana — Other Tobacco Products Distributor's License Bond

Indiana posts OTP-902 for the Other Tobacco Products distributor's licensing security. Prepare the legal licensee, DOR account, required sum and continuing effective date before applying. OTP-902 has different surety-cancellation and principal-replacement triggers, so an existing filing should not simply be allowed to lapse.

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

What this bond does

The bond serves as a financial guarantee that the licensed distributor will pay all required license taxes, fees, penalties, and interest to the state of Indiana. It protects the Indiana Department of Revenue by ensuring the principal fulfills the obligations established by Indiana Code 6-7-2-8.

Who needs it
The actual Indiana Other Tobacco Products distributor named in the OTP-1A license application and DOR tax account. Use OTP-902 for this undertaking rather than the separate cigarette registration or open-system electronic-cigarette forms.
Who it protects
OTP-902 runs to Indiana for all license fees, license taxes, penalties and interest, plus performance of all duties, obligations and liabilities under the Tobacco Products Tax Law and incorporated amendments/regulations. It is continuing, and liability for earlier acts or omissions survives cancellation. State leniency or arrangements for delinquent amounts do not release or reduce surety liability.

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.

Understanding Your Licensing Obligation

OTP-902 is the posted undertaking for the Other Tobacco Products distributor's licensing security. It continues from its effective date until terminated or replaced through the procedures below. Do not apply the surety route's earlier-approval trigger to the separate principal-replacement route.

By obtaining this license, you commit to paying all applicable taxes, interest, and penalties as prescribed by the Tobacco Products Tax Law. The surety's liability is not reduced by any leniency or special arrangements made between the state and the distributor regarding delinquent payments.

Cancellation and Replacement Procedures

Surety-initiated cancellation requires sixty days' written notice to both the principal and DOR. The period runs from the Division's receipt, not the date notice is sent. If a new bond is filed and approved earlier, cancellation takes effect on that approval date. The principal must arrange satisfactory replacement security within the notice period.

For principal-initiated replacement, file the new bond with the Division and give written cancellation notice to the surety. The form makes that cancellation effective when the Division receives the replacement. Earlier acts or omissions remain covered under either route; stopping payments or closing the license is not this procedure.

Execution and Formal Requirements

OTP-902 asks for the principal's legal identity/address, surety, sum and continuing effective date. The owner or president signs for the principal with the applicable secretary attestation; the surety signs through its attorney-in-fact. The posted notarial acknowledgment identifies the principal's owner or president.

DOR currently lists OTP-902 for INTIME or fill-in PDF, alongside the OTP-1A license application. Follow its current submission instructions for approval and keep security current. Tax returns and payments must be filed electronically; the announced January 2027 XML reporting change is not already the rule for 2026 returns.

Sources

Have these ready

  1. Obtain Form OTP-902 as required by the Indiana Department of Revenue.
  2. Determine the specific bond amount required for your business entity as mandated by the Division.
  3. Arrange the owner/president signature and notarial acknowledgment, applicable secretary attestation and surety attorney-in-fact execution.
  4. Match the legal name, address and DOR tax account to OTP-1A and OTP-902.
  5. Use DOR's current INTIME or accepted form-submission instructions and keep electronic returns separate.

Questions about this bond

Who is protected by this bond?

This bond protects the State of Indiana and the Indiana Department of Revenue, ensuring that all tobacco-related taxes and fees are paid.

Is this a one-time bond?

OTP-902 is continuing from its effective date until terminated through its stated procedures or replaced as required. Do not assume a license cancellation alone completes surety cancellation. Keep the required security in place while the license remains active.

Can I cancel my bond at any time?

Use the form's procedure. Principal-initiated replacement requires filing a new bond with the Division and written notice to the surety; that cancellation takes effect when the Division receives the replacement. The separate surety-initiated route has a sixty-day Division-receipt period unless a new bond is approved earlier. Earlier liability remains.

What happens if I fail to pay tobacco taxes?

The surety is liable for the payment of taxes, penalties, and interest owed by the principal under the Tobacco Products Tax Law.

What follows Purchase Now?

Propeller's Indiana Other Tobacco Products Distributor's License application opens in a new tab. Match OTP-902, the legal licensee and DOR account, assigned sum, continuing effective date and execution, then submit through DOR's current accepted process. Payment does not complete the OTP-1A license application or electronic tax reporting.

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