Cigarettes Tax Paid Distributor Bond - Statewide in Florida

Brief Summary

A Florida cigarette wholesaler that only handles tax-paid product still files a tax bond before the CWD permit is issued. The minimum is $2,000, and the bond goes on Form DBPR ABT-6032 with the Tax-paid Distributor box checked. That box is separate from the two stamping boxes and is easy to mark wrong, so check it before the bond is signed.

Fla. Stat. 210.08 requires each cigarette dealer to file a surety bond, certificate of deposit or irrevocable letter of credit with the Division of Alcoholic Beverages and Tobacco equal to 110 percent of the estimated tax liability for 30 days, but not less than $2,000. For a cigarette wholesale dealer (CWD) permit holder dealing in tax-paid cigarettes only, the bond is filed on Form DBPR ABT-6032 as a Tax-paid Distributor bond.

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How to Apply for a Cigarettes Tax Paid Distributor Bond:

• Complete Form DBPR ABT-6024, the wholesale cigarette permit application, for the CWD permit type.
• File fingerprints for the applicant and interested persons.
• Pay the $100 permit fee.
• Estimate 30 days of cigarette tax liability. The bond is 110 percent of that figure, minimum $2,000.
• Sign Form DBPR ABT-6032 with the Tax-paid Distributor box checked and attach the surety agent's certified power of attorney.
• File the bond with your local ABT auditing district office.

Detailed Information About the Florida Cigarettes Tax Paid Distributor Bond:

Tax-paid only is still bonded

The division's bond schedule groups three kinds of cigarette wholesale dealer (CWD) bond: tax-paid only, stamping agent on cash, and stamping agent on charge. A tax-paid distributor is the CWD that deals only in cigarettes on which the tax is already paid, instead of buying stamps from the division and affixing them. Dropping the stamping work does not drop the bond. Section 210.08 applies to each dealer, and the division's application package requires the bond on all new applications for wholesale distributors of cigarettes.

Amount

The bond is 110 percent of the estimated tax liability for 30 days, with a $2,000 minimum. The division's schedule shows $2,000 to unlimited for the CWD class. Confirm the figure the division expects for your volume with your ABT auditing district office before the bond is issued.

The wholesale permit

Fla. Stat. 210.15 requires a cigarette permit for each place of business in Florida. The original fee is $100, permits remain in force until the July 1 following issuance, and renewal costs $100 on or before July 1. Permits go only to applicants of good moral character who are at least 21, and wholesale dealer applicants file fingerprints before approval. The application is Form DBPR ABT-6024, and the package states that the permit may not change location. Moving means applying for a new permit.

Bond form and cancellation

The obligee is the State of Florida, Division of Alcoholic Beverages and Tobacco. The division's bond instructions state that no license or permit can be issued without a properly executed surety bond and ask for a certified copy of the surety agent's power of attorney. The surety may cancel by giving the division sixty days written notice and remains liable for the principal's acts through the cancellation date.

Eligibility and Requirements for a Florida Cigarettes Tax Paid Distributor Bond:

• Surety bond, certificate of deposit or irrevocable letter of credit acceptable to the division under Fla. Stat. 210.08.
• Minimum of $2,000, or 110 percent of estimated 30 day tax liability if higher.
• Obligee: State of Florida, Division of Alcoholic Beverages and Tobacco.
• Applicant of good moral character and at least 21 years of age.
• Annual permit renewal of $100 on or before July 1.

Florida Cigarettes Tax Paid Distributor Bond FAQs:

Official and Additional Resources for the Florida Cigarettes Tax Paid Distributor Bond: