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Illinois tobacco distributor tax bonds.
From $100.

An Illinois tobacco products distributor files a tax bond with the Department of Revenue under the Tobacco Products Tax Act of 1995 (35 ILCS 143), backing the tax that becomes due. The amount runs up to three times your average monthly liability, capped at $50,000 — pricing starts from $100, and the application collects no credit information.

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Required for a tobacco products distributor license under 35 ILCS 143
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Sized by statute — up to 3× average monthly tax liability, $50,000 maximum
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From $100 — enter your required bond amount and the premium updates
1% of amount$100 minimumNo credit reviewnot even a soft pullFastapproval for most
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
How it works

Three steps. One sitting.

No underwriting queue for the standard tobacco tax bond — enter your amount, pay, and file with the Department of Revenue. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount the state set, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

The application collects no credit information; most bonds issue instantly upon payment.

SAME DAY

File with the Department of Revenue

Submit the executed bond so IDOR issues your tobacco products distributor license. Wet-ink originals mailed whenever the state insists on them.

About this bond

What it is and who needs it.

What the tobacco tax bond actually covers

Illinois taxes tobacco products — cigars, smokeless tobacco, pipe tobacco, and similar products other than cigarettes — under the Tobacco Products Tax Act of 1995 (35 ILCS 143). A licensed distributor remits the tax to the Department of Revenue, and the Department requires a bond to secure it.

By statute the bond amount is one that protects the State against the distributor’s failure to pay — not to exceed three times the average monthly tax liability, or $50,000, whichever is lower. So the bond scales with your volume but never exceeds $50,000.

The bond is not required if you’re already a licensed Illinois cigarette distributor (that program carries its own security). Otherwise, enter the amount IDOR named and we issue the bond starting from $100 — the application collects no credit information — it backs the State, not you.

35 ILCS 143 (Tobacco Products Tax Act of 1995)Under the Illinois Tobacco Products Tax Act of 1995 (35 ILCS 143), a tobacco products distributor must post a bond securing the tax. The amount may not exceed three times the applicant’s average monthly tax liability or $50,000, whichever is lower. The bond is not required of a person already licensed as an Illinois cigarette distributor. Confirm the exact amount on your IDOR notice.

You need this bond if you are

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Applying for a tobacco products distributor license through the Department of Revenue
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A cigar, smokeless, or pipe-tobacco distributor remitting Illinois tobacco products tax
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Renewing a distributor license whose IDOR bond is expiring or was non-renewed
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Growing your volume and needing to raise the bond toward the $50,000 cap

One application, issued on the spot.

Submit the application with the bond amount IDOR set — the executed tobacco tax bond is generated instantly, ready to file.

Start the application →
FAQ

Common questions.

How much is the Illinois tobacco distributor bond?Pricing is 1% of your bond amount, with a $100 minimum. The bond runs up to three times your average monthly tobacco tax liability, capped at $50,000. Enter the figure IDOR set and your exact price appears at the application.
Why is the bond capped at $50,000?The Tobacco Products Tax Act (35 ILCS 143) caps it at three times average monthly liability or $50,000, whichever is lower. No matter how much you owe monthly, the bond never exceeds $50,000.
Do I need it if I’m a cigarette distributor?No. The statute exempts a person already licensed as an Illinois cigarette distributor, since that program carries its own security. This tobacco products bond is for distributors of cigars, smokeless tobacco, and similar non-cigarette products.
Is there a credit check?The application collects no credit information, and most applications approve instantly. It never affects your credit score.
What does the bond guarantee?The tobacco products tax you owe the State of Illinois. If you fail to remit, IDOR can recover against the bond — and if the surety pays, you repay the surety. It is not insurance for you.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
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Other Illinois bonds.

Tobacco tax bond, issued today.

Pricing from $100. Enter the amount IDOR set and file the same day.

Your premiumfrom $100
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