Details for a Maryland cigarette-tax security request

Section 13-825(h) says the Comptroller may require tobacco-tax security. For a manufacturer or wholesaler, it specifies $10,000 plus any amount by which tax due for one month exceeds $10,000. The corresponding base for a subwholesaler or vending operator is $1,000, with the same monthly-excess approach.

Other-tobacco wholesalers and out-of-state sellers have separate $5,000 provisions, including a reporting-period calculation for the latter. Do not import those amounts or another form's product class into a cigarette account merely because all are tobacco businesses.

The five-year provision is not an automatic release. The Comptroller may grant a qualifying licensed person's exemption only after the required continuous tax/security compliance and a determination of solvency and ability to pay potential liability. The exemption is limited by the approved potential exposure and can be revoked for noncompliance.

A corporation granted an exemption has an additional statutory consequence: an officer directly controlling fiscal management becomes personally liable for its tobacco tax, interest and penalties. Review the actual exemption decision rather than treating bond removal as removal of tax responsibility.

Use the Comptroller's current accepted instrument, sum, period and execution instructions. Section 13-826 also permits other approved security, but this listing is a surety-bond application. Do not assume an alternative security or a license renewal substitutes for the requested bond or releases existing liability.

Purchase Now opens Propeller's Maryland cigarette-tax application in a new tab. Match the legal tax account, actual class, written requirement and accepted dates, then complete Comptroller filing and any separate licensing steps. Provider payment does not issue a license, grant an exemption or pay the underlying tax.