UT cannabinoid products tax bonds.
2% of the bond amount.
Utah will not license a cannabinoid product retailer until a cash or surety bond is on file with the Utah State Tax Commission — the security behind 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, and the bond issues the moment you pay. The application includes a credit consent, but it authorizes a soft credit pull only — a soft inquiry that never affects your score.
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Apply to filed in 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 licence 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 licence 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 licence.
You need this bond if you are
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.
Get the licence 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.