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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
In Pennsylvania this bond is what lets a licensed stamping agent take cigarette tax stamps now and pay for them on a deferred basis. The Department of Revenue sets the amount at whatever it considers enough to protect the revenue, and a surety bond meets that figure without setting aside matching cash.
Under 72 P.S. § 8215(e), the Pennsylvania Department of Revenue permits a cigarette stamping agency to pay for stamp purchases on a deferred basis once it files a surety bond, of a type the Department approves, in an amount the Department deems sufficient to protect the revenue. The stamping agency signs as principal, and the surety must be a corporate surety company authorized to do business in Pennsylvania.
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Pennsylvania law does not print a bond amount for stamping agencies. Under 72 P.S. § 8215(e), the Department of Revenue permits deferred payment for stamp purchases once the agency files a surety bond in an amount the Department deems sufficient to protect the revenue. Get the required figure for your operation from the Department before the bond is written.
Licensed stamping agents remit the cigarette tax to the Commonwealth and apply tax stamps to cigarette packs and stampable little cigars. Deferred payment means the agency receives stamps before paying for them, and the bond stands behind that payment. The statute names the stamping agency as principal and requires a corporate surety company authorized to do business in Pennsylvania as surety. In lieu of the bond, the Department will accept other security, such as a line of credit, if it considers that security sufficient.
The Department must deny deferred purchase plans to a stamping agency in any state that denies Pennsylvania stamping agencies the right to use deferred purchase plans. It may also refuse to sell stamps at all to a stamping agent that is delinquent in remitting cigarette taxes or fines owed the Commonwealth.
Under 61 Pa. Code § 72.1, the Department licenses stamping agents for one year at a time. An applicant must already be a licensed wholesale dealer, keep warehousing adequate to protect the revenue, be of good moral character with reasonable financial stability and wholesale cigarette experience, and be current on state tax reports and payments. Revenue lists stamping agent and wholesaler licenses at $1,500 each, handled through myPATH. Under 61 Pa. Code § 72.4, a dealer that files for renewal after January 15 of the expiration year cannot operate under the old license after the last day of February, and the filing is treated as a new application.
The statute sets no fixed number. The Department of Revenue decides what amount is sufficient to protect the revenue for your deferred stamp purchases, so get that figure from the Department first.
Yes. 72 P.S. § 8215(e) tells the Department to accept other forms of security, such as a line of credit, in lieu of the bond if it deems the security sufficient.
Only if your home state lets Pennsylvania stamping agencies use deferred purchase plans. The Department must deny the plan to agencies in states that refuse that right.
The Department may deny a delinquent stamping agent the right to purchase cigarette tax stamps until taxes or fines owed the Commonwealth are paid.
Under 61 Pa. Code § 72.4 you cannot operate under the existing license after the last day of February, and the renewal is handled as a new license application. You may not stamp or sell cigarettes until it is approved.
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