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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Cash and bond are alternatives, not a package. F.S. 210.05(3)(a) says all stamps purchased from the division shall be paid for in cash on delivery, except as provided in paragraph (b), and paragraph (b) is the bond. An agent that furnishes an irrevocable letter of credit, an unconditional guaranty contract, or a surety bond of 110 percent of estimated 30 day tax liability, never less than $2,000, can buy stamps without paying at delivery and settle each month's liability by the 10th of the following month. There is no published flat amount, so the figure comes from your own estimated liability.
Florida cigarette stamping agents pay for stamps in cash on delivery unless they furnish security. Under F.S. 210.05(3)(b) an appointed agent may purchase stamps by furnishing an irrevocable letter of credit or unconditional guaranty contract, or by executing a bond with a solvent surety company qualified to do business in Florida, in an amount of 110 percent of the agent's estimated tax liability for 30 days, but not less than $2,000, conditioned on paying all taxes due the state. F.S. 210.08 applies the same 110 percent calculation and $2,000 floor to each dealer, agent and distributing agent.
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The default in 210.05(3)(a) is that all stamps are paid for in cash on delivery. Paragraph (b) is the exception that most stamping agents actually use. Furnish an irrevocable letter of credit, an unconditional guaranty contract, or a surety bond with a solvent surety company qualified in Florida, and you may buy stamps without paying at delivery. Payment for each month's liability is then due on or before the 10th day of the month following the month in which the stamps were sold.
The rule adds a practical wrinkle. Under 61A-10.0021, an agent that has met the surety amount for credit liability may still purchase additional stamps for cash on delivery in a given month, provided the division receives the cash equivalent payment before the sale. The statute says the same thing from the other direction: posting security in lieu of cash on delivery does not preclude supplemental purchases for cash.
110 percent of the agent's estimated tax liability for 30 days, but not less than $2,000. The rule states it as 110 percent of the estimated monthly tax liability with the same floor. It is a calculation tied to your volume, not a tier, so a growing stamping operation should expect the required amount to be revisited rather than frozen at the number set when the account opened.
F.S. 210.08 runs parallel, requiring each dealer, agent or distributing agent to file with the division a surety bond, certificate of deposit or irrevocable letter of credit acceptable to the division at the same 110 percent of estimated 30 day liability with the same $2,000 minimum.
Rule 61A-10.0021 directs applicants to form DBPR ABT-6032, the Division of Alcoholic Beverages and Tobacco Surety Bond Form, with instructions in DBPR ABT-6032i. It also specifies that payment for stamps must be made by certified check or the bank equivalent, or by electronic funds transfer, and not by cash currency. Despite the word cash in the label, nobody is handing over bills at the counter.
Under 210.05(3)(b), default in the bonding and payment provisions may result in revocation of the agent's privilege to purchase stamps except for cash on delivery, for a period of up to 12 months at the division's discretion. Under 210.05(4) the division may revoke the authority of any agent failing to comply with the part or its rules. Losing credit privileges does not end the business, but it converts every stamp purchase back to prepayment.
An agent or wholesaler retains a discount of 2 percent of the par value of stamps purchased during the fiscal year running July 1 through June 30, computed on the basis of 24 cents per pack. No discount is allowed to a dealer, vendor or distributor that sells or deals in any form of candy resembling drug paraphernalia. Stamping locations compute their own discount, and those computations must be retained for 5 years and made available to the division.
It refers to paying for stamps in cash on delivery, which F.S. 210.05(3)(a) makes the default. The bond in paragraph (b) is the alternative that lets an appointed agent take stamps without paying at delivery and settle the month's liability by the 10th of the following month.
Not for the credit privilege in 210.05(3)(b), which exists precisely to replace cash on delivery. Note that F.S. 210.08 separately requires each dealer, agent or distributing agent to file a bond, certificate of deposit or irrevocable letter of credit with the division at the same 110 percent of estimated 30 day liability and $2,000 minimum, so confirm your status with the division before assuming nothing is due.
110 percent of the agent's estimated tax liability for 30 days, but not less than $2,000. Rule 61A-10.0021 states the same test as 110 percent of estimated monthly tax liability with a $2,000 floor.
Yes. The statute allows an irrevocable letter of credit or an unconditional guaranty contract, and the rule also lists a certificate of deposit. All are measured by the same 110 percent calculation.
Yes. The statute says posting security in lieu of cash on delivery does not preclude supplemental purchases for cash, and the rule allows an agent that has met the surety amount for credit liability to buy additional stamps for cash on delivery if the division receives the cash equivalent payment before the sale.
On or before the 10th day of the month following the month in which the stamps were sold. Payment must be by certified check or the bank equivalent, or by electronic funds transfer, not by cash currency.
Default in the bonding and payment provisions may result in revocation of the privilege to purchase stamps except for cash on delivery, for up to 12 months at the division's discretion. The division may also revoke an agent's authority for failing to comply with the part or its rules.
An agent or wholesaler retains 2 percent of the par value of stamps purchased during the fiscal year running July 1 through June 30, computed on the basis of 24 cents per pack. It is not allowed to a dealer, vendor or distributor that sells or deals in any candy resembling drug paraphernalia, and computations must be kept for 5 years.
DBPR form ABT-6032, the Division of Alcoholic Beverages and Tobacco Surety Bond Form, with the instructions in DBPR form ABT-6032i.
Florida does not set premium. A surety prices the bond off underwriting: company financials, ownership credit, time in the business, and tax filing and payment history, which matters a great deal on a tax bond. Because the required penal sum floats with your stamp volume, settle the amount with the division first, then compare quotes on that number.
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