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New Jersey bonds

New Jersey — Cigarette Distributor Bond

New Jersey requires cigarette distributors to furnish license security even when they do not buy stamps on credit. Obtain the current named distributor bond and required sum from the state before ordering; an older application packet's $6,000 instruction is not a universal current amount.

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

What this bond does

The distributor undertaking supports performance under the Cigarette Tax Act. Current N.J.A.C. 18:5-6.6 ties its amount to at least the average monthly value of stamps purchased and makes its period concurrent with the license.

Who needs it
Businesses applying for or maintaining a New Jersey cigarette distributor license. Wholesale-dealer, retailer and other-tobacco-products roles have separate requirements; do not select a distributor bond solely because the business sells tobacco.
Who it protects
The state condition secures proper performance of the Cigarette Tax Act and the principal's liabilities under it, rather than only one stamp invoice. The official packet's CD-3 model runs to New Jersey for the required Act performance. It protects the state, not distributor inventory or customer receivables.

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 New Jersey distributor licensing

The operative rule says all licensed distributors furnish a bond. Do not assume cash stamp purchases remove that requirement. Identify the legal licensed distributor and current license period before asking the provider to prepare security.

N.J.A.C. 18:5-6.6 sets an amount not less than the average monthly value of stamps purchased. The older CWD-P application packet contains a $6,000 instruction and a CD-3 model, but the current amended rule and state's assigned requirement control the amount and named form for your filing.

The adopted 2024 update requires the named Cigarette Distributor's Bond and filing with the Division of Revenue and Enterprise Services, concurrent with the license period. Use current directions rather than assuming the old packet's destination or a stamp-order transaction completes the licensing filing.

Complete authorized principal and New Jersey-authorized surety execution on the current requested instrument. Ask the state which supporting authority documents it requires; do not treat the older packet as confirmation of current filing acceptance.

Cigarette stamp orders and distributor tax reporting remain separate operating duties. Current electronic order instructions do not turn this bond purchase into a state stamp order or a wholesaler/retailer license.

Purchase Now opens Propeller's New Jersey cigarette-distributor application in a new tab. Match the actual distributor, state-requested instrument, sum and license period. Then submit the issued bond through the state's current route; provider payment does not issue a license, place a stamp order or establish state acceptance.

Sources

Have these ready

  1. Exact licensed distributor name and New Jersey account/application details.
  2. Current Cigarette Distributor's Bond request and assigned sum.
  3. Average monthly stamp purchases and the covered license period.
  4. Authorized principal and surety execution/authority information.
  5. Current Revenue and Enterprise Services submission instructions.

Questions about this bond

Is this required only if I buy stamps on credit?

The rule requires all licensed distributors to furnish the bond. Cash stamp purchasing does not by itself remove distributor-license security.

Can I use $6,000 from the old application packet?

Obtain the state's actual required amount. Current rule 18:5-6.6 uses at least the average monthly value of stamps purchased; the older packet's figure is not a universal substitute.

Does the online purchase complete the license filing?

No. Match the current named bond and license period, then follow the state's current filing directions. The provider application is separate from license approval and stamp ordering.

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