A Cigar and/or Tobacco Products Distributor Bond must be furnished in Texas for those to engage in business as a distributor of tobacco products, pursuant to Demand for Security as Required by TEX. TAX Code Ann. sec. 155.061. The purpose of the surety bond is to serve as security to guarantee timely payment of taxes, penalty, interest and costs as required by the provisions of the state statutes. The tobacco tax bond also ensures compliance with the provisions of the law, payment of all taxes including interest, penalties and costs accruing against the principal under the law and faithful performance of all conditions and requirements of the law.
