Illinois cigarette distributor bonds.
From $100.
The bond an Illinois cigarette distributor files with the Department of Revenue to back the cigarette tax. The statute sets a $2,500 minimum per location, and the Department can require more where your tax liability warrants it. The premium is 1% of the bond amount, $100 minimum — priced by the bond amount, not a credit tier.
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How much does an Illinois cigarette distributor bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard cigarette bond — enter your amount, pay, and file with the Department of Revenue. Here is the whole thing:
Apply online
Your business details, the bond amount your license 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 with your cigarette distributor registration (Form REG-1). Wet-ink originals mailed whenever the state insists.
What it is and who needs it.
What the cigarette bond actually covers
Illinois licenses cigarette distributors through the Department of Revenue under the Cigarette Tax Act (35 ILCS 130). A distributor buys tax stamps and remits the cigarette tax, and the State wants a bond standing behind that obligation.
The statute requires a bond executed to the Department of Revenue in the amount of $2,500 per location as a baseline; the Department can require a larger amount where your tax liability warrants it. A surety bond is one accepted form — a certificate of deposit or bank letter of credit are alternatives.
The bond stands behind the cigarette tax you collect or owe — if you fail to remit, the State can recover against it, and if the surety pays, you repay the surety. We issue the amount your license requires; premiums start from $100, and no credit check up to $10,000.
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 premium covers a one-year term from the effective date you choose.
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 with your cigarette distributor registration (Form REG-1). Wet-ink originals mailed whenever the state insists.
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 your required bond amount — the executed bond is generated instantly, ready to file with the Department of Revenue.
Start the application →Common questions.
Other Illinois bonds.
The same bond in nearby states.
Price and requirements checked on the carrier’s application, . Page updated .
Cigarette bond, issued today.
From $100, short application. Enter your required amount and file with the Department of Revenue the same day.