In April the Arizona State Legislature passed a bill that established tobacco tax bond requirements. Governor Jan Brewer signed the bill into law on May 9.
Tax bonds ensure that businesses will pay taxes appropriately so the government will not suffer a financial loss. If a business does not pay its taxes as required, the government can make a claim on the surety bond.
The new law in Arizona forces all tobacco sellers to obtain a tax bond of $500 or an amount equal to four times the average monthly tax liability (whichever is greater). The average monthly tax liability is calculated by using the past six months’ taxes.
For more information on Arizona SB 1280, click here.
If you need a surety bond in Arizona or elsewhere, contact SuretyBonds.com online or by phone at 1 (800) 308-4358. A surety specialist will help you get bonded quickly and easily.