Louisiana Tobacco Tax Bond Guide
In Louisiana, all wholesale tobacco dealers must file a minimum $2,500 surety bond to register with the Department of Revenue.
Bond Overview
- Purpose: To guarantee tobacco wholesalers pay all taxes and incurred penalties
- Who Needs It: All wholesale tobacco dealers operating in Louisiana
- Regulating Body: The Louisiana Department of Revenue (LDR)
- Required Amount: $2,500–$100,000, based on volume of tax liability
- Premium Rates: Credit-based, starting at $100
Keep scrolling to learn more about the bonding process.
What Is a Louisiana Tobacco Tax Bond?
A Louisiana tobacco tax bond is a type of license and permit bond required to register as a wholesale tobacco dealer in Louisiana.
This bond is a financial guarantee that tobacco dealers will pay all required taxes. It also ensures payment for any penalty fees and interest due to noncompliance with state regulations.
How Much Bond Coverage Do I Need?
The Louisiana Department of Revenue requires at least $2,500 of surety bond coverage to register as a wholesale tobacco dealer.
However, this amount can increase up to $100,000 based on the business volume and tax liability. Contact the Department of Revenue to verify your bond amount.
How Much Do Tobacco Tax Bonds Cost?
Louisiana tobacco tax bond premiums are credit-based and start at $100 for the standard $2,500 coverage. Higher coverage typically costs 1-2% of the total bond amount.
Your exact rate will depend on your financial qualifications. Apply below to get a personalized quote in one business day or less.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Louisiana Tobacco Tax Bond Work?
A Louisiana tobacco tax bond is a legal contract between three parties:
- Principal: The wholesale tobacco dealer purchasing the bond
- Obligee: The Louisiana Department of Revenue requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to pay all taxes, fines and fees as outlined in Louisiana Code Title 47 Section 841. You also agree to comply with all state regulations.
If you break the bond terms, the LDR can file claims on the bond. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Tobacco Tax Bond?
Under Louisiana Code Title 47 Section 848, all wholesale cigar, cigarette and smoking tobacco dealers must file a surety bond with the LDR. Wholesale dealers buy tobacco products in bulk from registered manufacturers and distribute them to retail dealers. Retail dealers, who sell the products directly to consumers, do not need a bond.
However, the Secretary of Revenue offers a bond waiver if you meet all of the following qualifications:
- Holds fixed assets in Louisiana worth at least 1.25 times the required bond amount
- Has maintained an active bond policy with the department for at least three years
- Has consistently paid all taxes for the past three years
How Do I Get a Tobacco Tax Bond in Louisiana?
SuretyBonds.com provides the fastest and easiest way to get a tobacco tax bond. Just follow these simple steps:
- Apply Online: Select your coverage amount and enter your information to receive a personalized quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via mail
Upon receipt, sign and file the original bond documentation with the Department of Revenue.
How Fast Can I Get My Bond?
If you’re in a rush, SuretyBonds.com offers overnight FedEx delivery. Purchase now to receive your original bond form the next day.
Can I Get Bonded With Bad Credit?
You may still be able to get bonded with bad credit. However, poor credit may increase your premium rate.
Apply now to receive your free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My Tobacco Tax Bond?
Louisiana tobacco tax bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders before your bond expires. All you need to do is pay your renewal invoice to maintain coverage.
The Department of Revenue or the surety can cancel the bond term at any time by providing 30-days written notice.
How to Get a Louisiana Wholesale Tobacco Dealer Permit
The Louisiana Office of Alcohol and Tobacco Control oversees wholesale tobacco dealer registrations. To apply for a permit, submit the wholesaler application form and all supporting documentation. You’ll also need to pay the $75 permit fee.
You can submit your application in-person at one of the customer service windows in Baton Rouge, New Orleans or Opelousas. Or, mail it to the address below:
Louisiana Office of Alcohol and Tobacco Control
PO Box 66404
Baton Rouge, LA 70896-6404
Wholesale tobacco dealer permits expire annually on December 31. To reapply, submit a renewal application via the online portal and pay the $75 fee before the expiration date.
