Surety Bond Encyclopedia

Tobacco Products Distributor Bond - Statewide in Florida

Brief Summary

If you have seen $1,000 quoted for this bond, that figure is out of date. F.S. 210.40, as amended in 2024, states that the initial corporate surety bond shall be in the sum of $25,000 and in a form prescribed by the division. It does not stop there. The division reviews the amount semiannually and may increase it up to the sum of the distributor's highest month of final audited tax liabilities, penalties and accrued interest, and a bond at that reviewed amount is required to renew the license. Your second year bond can be larger than your first.

Each application for a Florida tobacco products distributor license must be accompanied by a $25 fee and a corporate surety bond issued by a surety company authorized to do business in the state, conditioned for the payment when due of all taxes, penalties and accrued interest that may be due the state. The initial bond is $25,000 in a form prescribed by the Division of Alcoholic Beverages and Tobacco, and the division reviews the amount every six months.

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How to Apply for a Tobacco Products Distributor Bond:

File a corporate surety bond starting at $25,000, in a form prescribed by the Division of Alcoholic Beverages and Tobacco
Use a surety company authorized to do business in Florida
Have the bond conditioned for payment when due of all taxes, penalties and accrued interest due the state
Submit the $25 fee with each distributor license application
File a separate license application for each place of business, and ask about covering all of them with a single bond
Expect a semiannual review of the bond amount and a possible increase before renewal
File a bond at the reviewed amount when renewing the license
Watch for written notice of any change in bond requirements, due by the date your audited tax assessments become final
If seeking a reduction, be ready to show at least 4 years of timely and complete reporting and payment with liabilities below the bond amount every month

Detailed Information About the Florida Tobacco Products Distributor Bond:

Start at $25,000, then expect review

Subsection (1) sets the initial corporate surety bond at $25,000 in a form prescribed by the division. Paragraph (1)(a) requires the division to review the bond amount semiannually to make sure it is adequate to protect the state. Paragraph (1)(b) lets the division increase the amount before renewing a license or after a semiannual review, and paragraph (1)(c) caps the increase at the sum of the distributor's highest month of final audited tax liabilities, penalties and accrued interest due to the state. Subsection (2) then makes a bond at that reviewed amount a condition of renewal, and subsection (3) lets the division prescribe increases by rule.

So the amount is a starting figure plus an audit driven ceiling, not a fixed number. A high volume distributor should assume the bond grows with the peak month the audits establish.

Getting the amount reduced

Subsection (4) is the part worth reading closely. The division may reduce a bond on a showing of good cause, defined as a consistent pattern of responsible financial behavior over at least the preceding 4 years, with the sum of final audited tax liabilities, penalties and interest below the bond amount for every month across that same 4 year period. Responsible financial behavior means timely and complete reporting and payment of all tax liabilities, penalties and accrued interest for at least 4 years.

Four situations block a reduction outright. The licensee is in default of any tax liabilities, penalties or interest due the state. The licensee is the subject of a pending criminal prosecution in any jurisdiction until it is fully resolved. The licensee has pending administrative charges that have not been fully resolved. Or the licensee is under investigation by an administrative body for potential criminal violations until the investigation is complete and its findings fully resolved. Fully resolved means the charges or investigation have been definitively closed or dismissed, ended in acquittal, or otherwise concluded with no further legal or administrative action pending.

Notice and process

The division must notify a distributor in writing of any change in bond requirements by the date the distributor's audited tax assessments become final. Subsection (6) states that these bond provisions are not subject to s. 120.60, so the usual licensing procedure timelines in that section do not govern the bond determination.

One bond can cover several locations

Subsection (7) requires a separate license application for each place of business at which a distributor proposes to operate, but expressly allows an applicant to provide one corporate surety bond, in an amount determined by the division, covering all of that distributor's applications. That saves multi location distributors from stacking bonds.

Fee

Each application for a distributor's license must be accompanied by a fee of $25. The bond is separate from that fee, and no training, registration or federal permit substitutes for it.

Eligibility and Requirements for a Florida Tobacco Products Distributor Bond:

Initial corporate surety bond of $25,000, subject to increase up to the highest month of final audited tax liabilities, penalties and accrued interest
Surety company authorized to do business in Florida
Bond in the form prescribed by the division and filed with the Division of Alcoholic Beverages and Tobacco
Business name on the bond matching the license application exactly
One bond may cover all of a distributor's applications, in an amount the division determines
Financial and tax compliance review, since the amount tracks audited liability

Florida Tobacco Products Distributor Bond FAQs:

Is the Florida tobacco products distributor bond $1,000?

No. That figure predates the 2024 amendment to F.S. 210.40. The statute now provides that the initial corporate surety bond shall be in the sum of $25,000, in a form prescribed by the division. Some published fee lists still show the older amount.

Can the amount go up?

Yes. The division reviews the bond amount semiannually and may increase it before renewing a license or after a review, up to the sum of the distributor's highest month of final audited tax liabilities, penalties and accrued interest due to the state. It may also prescribe increases by rule.

Can the amount go down?

On a showing of good cause. That means a consistent pattern of responsible financial behavior over at least the preceding 4 years, with final audited tax liabilities, penalties and interest below the bond amount for every month across that period, and timely complete reporting and payment throughout.

What blocks a reduction?

Being in default of any tax liabilities, penalties or interest due the state, a pending criminal prosecution in any jurisdiction, pending administrative charges, or being under investigation by an administrative body for potential criminal violations. Each of those blocks a reduction until fully resolved.

Do I need a bond for every location?

A separate license application is required for each place of business, but the statute allows an applicant to provide one corporate surety bond, in an amount determined by the division, covering all of that distributor's applications.

What does the license application cost?

Each application for a distributor's license must be accompanied by a fee of $25, separate from the bond.

How will I know if my bond amount changes?

The division must notify the distributor in writing of any change in corporate surety bond requirements by the date on which the distributor's audited tax assessments become final.

Do the usual licensing timelines apply to the bond decision?

No. Subsection (6) states that the provisions of this section governing corporate surety bonds are not subject to s. 120.60, which is the general licensing procedure statute.

How is premium determined?

Florida does not set premium. A surety prices the bond off underwriting: company financials, ownership credit, time in the business, and tax reporting and payment history, which carries real weight here because the bond secures tax, penalties and interest. Confirm the current amount the division requires, since a renewal bond can be far larger than the $25,000 starting figure.