Ohio — Cigarette Stamps Bond
Ohio's cigarette-stamp bond supports approved purchases of tax stamps on credit. Check whether Taxation requires security for your account before applying; the statute provides a separate arrangement for dealers with five consecutive years of good credit standing.
Continue to our secure checkout partner, Propeller (opens in a new tab).
- Recorded state
- Ohio
- Bond type
- Cigarette / Tobacco Tax Bond
- Category
- Business operations & taxes
What this bond does
Section 5743.05 makes the bond payable to Ohio and conditions it on paying the Commissioner for stamps delivered on credit within the statutory deadline. It supports the stamp-credit account, rather than replacing the wholesale dealer's license.
- Who needs it
- Licensed wholesale cigarette dealers in or outside Ohio arranging approved stamp purchases on credit. A dealer's existing license, credit history and requested purchases determine the applicable arrangement.
- Who it protects
- The statutory undertaking protects Ohio against unpaid credit purchases of cigarette tax stamps. The dealer must pay the Commissioner within thirty days or the following June 23, whichever comes first. This is payment security for the state, not insurance on cigarette inventory or a guarantee to the dealer's customers.
Your bond option
This is the option on record for this bond.
- Bond optionPurchase Now (opens in a new tab)Continue to our secure checkout partner, Propeller (opens in a new tab).
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
- Ohio Revised Code5743.05 — complete current stamp-sale and credit provision (opens in a new tab)Checked October 27, 2026
- Ohio rule5703-15-04 — complete provision effectiveJanuary13,2026 (opens in a new tab)Checked October 27, 2026
Have these ready
- Legal wholesale dealer name, Ohio license and stamp-account information.
- Taxation's written security request and your credit-standing history.
- Expected aggregate net stamp-tax purchases during the credit period.
- Accepted bond amount, form and effective date.
- Current execution, filing and credit-account approval instructions.
Questions about this bond
Does every Ohio cigarette wholesaler need this bond?
No. It concerns stamp purchases on credit, and section 5743.05 provides an unbonded arrangement for dealers with five consecutive years of good credit standing. Confirm the arrangement applicable to your account with Taxation.
Is the amount 110 percent of monthly purchases?
That statutory limit applies to qualifying unbonded accounts. For a bonded account, rule 5703-15-04 uses the aggregate net tax value of purchases during the credit period. Obtain the Commissioner's required amount before ordering.
Do I always have thirty days to pay?
The rule uses thirty days from the invoice, but the statute requires payment by the following June 23 when that comes first. Check the actual invoice and year-end instructions.
Does the bond expire when June credit sales stop?
The rule keeps bonds in force until canceled through its notice procedure. The June 23 credit-delivery cutoff does not itself end the bond or release earlier liability.