Colorado Cigarette Tax Bond

Get Your Colorado Cigarette Tax Bond

Why is a Colorado Cigarette Tax Bond Required?

As a wholesaler you prepay your sales taxes based on the amount of cigarettes you expect to sell for that month. This is done through purchasing stamps which you can purchase on credit.

You're then required to pay for the stamps you purchased on credit by the 10th of the following month.

The Department of Revenue wants to ensure you pay for the stamps you purchased on credit. So they require a cigarette tax surety bond as the only way to hold you accountable to paying for the stamps.

The amount of the surety bond is based on the projected amount of stamps you will purchase for that month, according to your own calculations.

How Much Does a Colorado Cigarette Wholesale Tax Surety Bond Cost?

Surety bonds are a special type of insurance contract you're legally required to purchase for the protection of others. In this case the Colorado Department of Revenue.

A surety is an insurance company that chooses to underwrite tobacco tax surety bonds. And they will price these bonds similar to traditional insurance policies.

Every surety is different in how they assess the risk of a business and they will use their own analysis, primarily based on these factors.

• Personal credit of the owner or owners
• Business industry and experience
• Potentially business and owner financials in some cases
• Prior bond claims if an owner has been licensed in the past

Based on these factors the surety will quote a rate and this rate multiplied by your bond amount will be the premium you pay.

Because each surety uses their own criteria for determining a rate, this is how you can save hundreds of dollars when purchasing your bond.

How You Can Save Even More Money Purchasing Your Cigarette Whole Surety Bond

Surety Bonds Direct is a specialized surety agency. We help our customers purchase a surety bond for far less than they could otherwise.

We can do this because we have a network of A-rated sureties, so we can price shop for you and find the lowest possible price.

For Bond Amounts $10,000 Or Less

For cigarette wholesaler tax bonds $10,000 or less we have already secured low fixed pricing with no credit check required.

The pricing is as follows:

Example Colorado Cigarette Tax Surety Bond Pricing

Let's use a $50,000 bond amount for the example. The rates in the table below range from really good to about average.

Pay attention to how a full percentage point to two can make a big difference to the price you have to pay.

Get your exact pricing today so you have a real number you can plan with. It costs you nothing to get your pricing and there's no obligation to purchase after you receive pricing.

Click here to request your pricing. Make sure you tell us which license or tax bond you require.

You can also call and speak to a bond specialist by calling 1-800-608-9950.

How Long Does The Colorado Cigarette Wholesaler Surety Bond Last?

As long as you pay for your stamps on time, at the end of each year, you can lower your bond amount by 20%.

So by the end of 5 years, you no longer need to purchase a surety bond.

But for each year until then, you must renew your bond on it's effective date. This effective, or start date, is the date you choose when you purchase your bond.

During the year if you want to purchase more stamps than anticipated, you must either:

• Increase the bond amount by amending your active surety bond
• Pay for the increased difference with cash or certified funds

If you need to amend your bond amount we can help you easily do that by issuing a bond rider. This is simply a change to the bond and a new form you will file with the Department of Revenue.

Renewing Your Cigarette Wholesaler Surety Bond

The renewal process is easy and it's another great reason to work with a surety agency like Surety Bonds Direct.

We manage your bond for you and when it comes time to renew, we'll contact you 30 days in advance to remind you of your approaching expiration.

Your bond specialist will have pricing ready and if you need to increase or decrease you bond amount, they will help you adjust your bond quickly.

Once you pay the renewal premium, you don't have to do anything else. Your bond is active and you can continue business.

After 5 years of staying current on your taxes, you can just let your current surety bond expire by not renewing it.

If you're ready to get pricing for your bond fill out our online quote request form or you can call a bond specialist directly at 1-800-608-9950