Utah cannabinoid products tax bonds.
From $100.
Utah will not license a cannabinoid product retailer until a cash or surety bond is on file with the Utah State Tax Commission, as security for the 10% cannabinoid products tax under the Cannabinoid Licensing and Tax Act, Utah Code Title 59, Chapter 31. Pricing is 2% of the bond amount, $100 minimum.
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How much does a Utah cannabinoid products tax bond cost?
2% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
There is no underwriting queue on a tax security bond this size — enter your amount, pay, and send the original to the Miscellaneous Tax Division. The whole thing:
Apply online
Entity type, business details, the county your business sits in, the bond amount the Commission set, and an effective date. The credit consent on the form authorizes a soft inquiry only.
Pay & e-sign
The premium is 2% of the bond amount with a $100 minimum, priced at checkout, so the bond issues the moment you pay. Your executed bond and power of attorney generate on the spot.
File with the Tax Commission
Deliver the original surety bond to the Tax Commission, Miscellaneous Tax Division. Cannabinoid retailers who post cash instead pay through Taxpayer Access Point under the CBD cash bond payment type — the bond spares you that lock-up.
What it is and who needs it.
What the cannabinoid tax bond actually guarantees
Utah brought hemp-derived cannabinoid products inside its tax net through the Cannabinoid Licensing and Tax Act, Utah Code Title 59, Chapter 31, effective January 1, 2025. From that date a person may not sell, offer to sell, or distribute a cannabinoid product to a Utah consumer without a license from the Utah State Tax Commission, and the tax is 10% of the retail price, reported quarterly with returns due the last day of the month following the quarter.
The bond is the Commission's collection security, not a product-safety or licensing test. It is a three-party instrument: you the retailer are the principal, the carrier is the surety, and the Commission is the obligee. If a retailer collects the 10% tax from customers and does not remit it, the Commission can make a claim against the bond for the unpaid tax, plus the interest and penalties that attach to it.
It is not insurance for you. A surety that pays a claim is entitled to be reimbursed by you — the bond buys the state a guarantee, and it buys you a license without tying up cash. That is the practical trade: the alternative the Commission accepts is a cash bond paid through Taxpayer Access Point, which sits idle in the state's hands for as long as you hold the license.
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 Tax Commission. Deliver the original surety bond to the Tax Commission, Miscellaneous Tax Division. Cannabinoid retailers who post cash instead pay through Taxpayer Access Point under the CBD cash bond payment type — the bond spares you that lock-up.
What sets the price
The premium is 2% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued at checkout.
These are the actual issuing fields. The credit consent on the form authorizes a soft inquiry only, and it never affects your score.
Start the application →Common questions.
Other Utah bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Get the license off the Commission's desk.
Enter your amount, see the exact price, and file the executed bond with the Miscellaneous Tax Division. Free until issued.