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South Carolina bonds

South Carolina — State Tobacco Tax Bond

Start with SCDOR's written tobacco-tax security request. An Other Tobacco Products license does not by itself mean a bond is required: the Department's current guidance identifies a delinquency-based request for OTP licensees who are not liable for cigarette tax.

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

What this bond does

L-2167 is the State Tobacco Tax Bond linked by SCDOR. Match the actual taxpayer, tax account, required sum and legal basis of the request rather than applying one account's rules to every tobacco business.

Who needs it
Tobacco taxpayers responding to a South Carolina Department of Revenue security notice. OTP-only licensees and cigarette taxpayers can have different grounds for security; establish which account prompted the notice.
Who it protects
L-2167 binds the principal and authorized surety jointly and severally to SCDOR for and on behalf of South Carolina. Its condition secures taxes, penalties and interest due under Chapters 21 and 54 of Title 12. It protects state revenue, not the taxpayer's stock or sales contracts.

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 an SCDOR tobacco-tax security notice

SCDOR's OTP guidance says an OTP-only licensee can be required to post security after failing to pay tax for as many as two filing periods in twelve months. Section 12-54-200 also authorizes a notified delinquency requirement after failures to file timely returns or pay tax for two filing periods in twelve months.

For security required under section 12-54-200, the Department determines the amount, capped at three times estimated average liability per filing period. Use the actual notice; that calculation should not be applied automatically to a different cigarette-tax requirement.

Section 12-54-200 provides that, after twenty-four consecutive months meeting all legal and regulatory requirements, the Department returns the bond and cancels that section's bonding/separate-account requirements. Arrange the Department's release rather than treating a business-license date as automatic termination of the actual instrument.

The posted L-2167 has a specific noncompliance-notice provision: delivery to the surety's home office or its designated agents in the named South Carolina city. Complete those recipient details accurately.

Its termination text joins two conditions with AND: sixty days after SCDOR receives the surety's written notice, and the surety's receipt of SCDOR's written termination notice. Follow both as written and obtain SCDOR's accepted release directions; do not reduce the model to a unilateral sixty-day mailing rule.

The form requires principal/surety execution, two witnesses for each, and the reverse-side sworn witness affidavits. Witness one and witness three give the respective affidavits before a notary. Use current Department delivery instructions for the completed instrument.

Purchase Now opens Propeller's South Carolina application in a new tab. Match the taxpayer, actual account/request, assigned sum and accepted period, then complete SCDOR filing. Provider payment does not issue a tobacco license, settle tax arrears or release existing security.

Sources

Have these ready

  1. Legal taxpayer and actual cigarette or OTP account.
  2. SCDOR's notice, legal basis and Department-assigned amount.
  3. Liability/filing history relevant to a section 12-54-200 request.
  4. Surety notice-recipient details, signatures, four witness fields and sworn witness affidavits.
  5. Accepted period and current SCDOR filing/release instructions.

Questions about this bond

Does every OTP licensee need this bond?

The Department says a bond is not specifically required for OTP tax generally. Its guidance identifies a possible delinquency requirement for OTP-only licensees after two unpaid filing periods in twelve months.

Does sixty days' mailing alone end L-2167?

The posted model joins the Department's receipt-based sixty-day condition and the surety's receipt of a Department termination notice with AND. Follow the accepted instrument and Department release directions.

Whose affidavits are on the back?

They are witness affidavits: witness one for the principal's execution and witness three for the surety's execution. They are not merely generic acknowledgments by the two signers.

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