What Is an Oregon Cigarette Tax Bond?

An Oregon cigarette tax bond is a type of surety bond required for all cigarette distributors in the state. The bond protects the state if a distributor fails to pay their excise taxes or breaks other license regulations outlined in Oregon Revised Statutes Chapter 323. 

There are three parties involved in a cigarette tax bond contract: 

• Principal: The cigarette distributor purchasing the bond
• Obligee: The Oregon Department of Revenue requiring the bond for licensure
• Surety: The company issuing the bond and financially backing the principal 

How Much Do Oregon Cigarette Tax Bonds Cost?

In Oregon, cigarette distributors need to file a tax bond with the state for twice the monthly tax liability as determined by the Department of Revenue. 

Once you know your bond amount, you can buy your bond instantly online — no application or credit check needed! Oregon cigarette tax bonds cost $12 per $1,000 in bond coverage, starting at $100. For example, a $25,000 cigarette tax bond would cost $300. 

How Does an Oregon Cigarette Tax Bond Work? 

If a licensed cigarette and tobacco distributor fails to pay their Oregon excise taxes, the bond ensures that funds are available to refund any claims made by the state. 

If you, as a distributor, break the bond terms, the state can file a claim for reimbursement from the surety. You would then be responsible for repaying the surety. 

Who Needs a Cigarette Tax Bond? 

All distributors of cigarettes or little cigars in Oregon must file a surety bond. Only licensed, bonded distributors can purchase the required tax stamp that must be affixed to every pack of cigarettes or little cigars sold in the state. This proves all excise tobacco taxes have been paid in advance. 

If you sell cigarettes plus other tobacco products in Oregon, you need two separate bond policies to meet license requirements. 

How Do I Get a Cigarette Tax Bond in Oregon? 

You can buy your Oregon cigarette or other tobacco products tax bond for up to $25,000 in coverage instantly online with SuretyBonds.com. 

We’ll mail your physical bond form via FedEx. Orders placed before 4 PM CST Mon–Fri typically ship the same day. Next day is available if you’re in a rush.

How to Get a Tobacco Distributor License in Oregon 

You need an Oregon Cigarette Distributor License to purchase Oregon tax stamps and distribute cigarettes in the state. Become a licensed tobacco distributor by completing these steps: 

1. Register your business with the Secretary of State and apply for a federal tax ID 
2. Apply for your license online through Revenue Online
3. Provide the name, addresses and contact information for all of your tobacco suppliers and manufacturers
4. Purchase a surety bond in the required amount provided by the DOR
5. Mail your original, signed bond documents to the address below
   

Oregon Department of Revenue

955 Center St NE

Salem, OR 97301-2555

(503)378-4988

[email protected]

The Oregon DOR typically takes 4–6 weeks to process tobacco distributor license applications. Once you receive your license, display it in a public location.