Michigan tobacco products bonds.
From $100.
The bond a Michigan tobacco wholesaler or unclassified acquirer files with the Department of Treasury under the Tobacco Products Tax Act. Treasury sets the amount — generally no more than your 3-month tax liability — and the price is 1% of the bond amount, $100 minimum.
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How much does a Michigan tobacco products 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 tobacco bond — enter your amount, pay, and file with the Department of Treasury. Here is the whole thing:
Apply online
Your business details, the bond amount Treasury required, 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 Treasury
Submit the executed bond with your tobacco products license application. Wet-ink originals mailed whenever the state insists.
What it is and who needs it.
What the tobacco bond actually covers
Michigan licenses tobacco wholesalers and unclassified acquirers through the Department of Treasury under the Tobacco Products Tax Act (Act 327 of 1993). A wholesaler stamps and distributes tobacco products and owes tax to the state; an unclassified acquirer imports or acquires product from a source other than a licensed wholesaler. Both can be required to post a bond securing the tax.
The bond stands behind the tobacco tax the licensee collects or owes. Treasury sets the amount — generally not more than the applicant's anticipated 3-month tax liability — so a high-volume distributor posts more than a small acquirer. If your volume changes, Treasury can adjust the required amount.
If the licensee fails to remit tax and the surety pays Treasury, the licensee repays the surety — it is not insurance for the business. Whatever amount Treasury named, we issue the bond with premiums starting from $100 and no credit check up to $10,000 in the application.
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 Treasury. Submit the executed bond with your tobacco products license application. 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 Treasury.
Start the application →Common questions.
Other Michigan bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Tobacco bond, issued today.
Premiums from $100. Enter the amount Treasury required and file the same day.