Alabama tobacco tax bonds.
From $100.
The bond a non-participating tobacco manufacturer files with the Alabama Department of Revenue to be listed on the state cigarette directory. It backs your escrow deposits and tax obligations. The premium is 1% of the bond amount, $100 minimum — exact price in the on-page calculator.
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How much does an Alabama tobacco tax bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
Enter your amount, pay, and file with the Department of Revenue each quarter. Above $10,000, a soft pull may add a short review. Here is the whole thing:
Apply online
Your business details, the bond amount the department requires, and the effective date — that is the application.
Issued on the spot
No credit check up to $10,000. Above $10,000, a soft pull may add a short review.
File with the Department of Revenue
Submit the executed bond to support your listing on the Directory of Cigarettes Approved for Stamping and Sale. Wet-ink originals mailed whenever the state insists on them.
What it is and who needs it.
What the tobacco tax bond actually covers
Alabama taxes cigarettes and tobacco products under Ala. Code §40-25-1 et seq., with stamping and the cigarette directory administered by the Department of Revenue. A non-participating manufacturer (NPM) — one that did not join the 1998 tobacco Master Settlement Agreement — must meet escrow obligations under the state's tobacco escrow statutes (Title 6, Chapters 12 and 12A) to keep its cigarettes eligible for sale.
To be listed on Alabama's Directory of Cigarettes Approved for Stamping and Sale, an NPM (or, where applicable, its importer) must file a surety bond with the Department of Revenue. The bond is conditioned to pay the escrow requirement plus any penalties or charges under Title 6, Chapters 12 and 12A.
Because the amount tracks your anticipated escrow and tax, it varies by manufacturer — a $25,000 figure is a common floor. The bond is generally provided to the department each quarter. We issue whatever amount the department requires; your exact price appears at the application, starting at $100.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The carrier issues this bond for a single one-year term; the term cannot be changed at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Department of Revenue. Submit the executed bond to support your listing on the Directory of Cigarettes Approved for Stamping and Sale. Wet-ink originals mailed whenever the state insists on them.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $10,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount the department requires — the executed bond is generated instantly, ready to file. Above $10,000, a soft pull may add a short review.
Start the application →Common questions.
Other Alabama bonds.
The same bond in nearby states.
Price and requirements checked on the carrier’s application, . Page updated .
Tobacco tax bond, issued today.
Premiums from $100, exact price shown before you pay. Enter your required amount and file with the Department of Revenue the same day.