IN tobacco distributor bonds.
$100 flat.

Indiana requires an other tobacco products distributor to file a $1,000 bond with the Department of Revenue as a condition of the license, under IC 6-7-2-8. Ours is $100 flat — set by our carrier’s rate book for this bond, no quote round-trip. License bonds like this issue instantly.

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Required for your Indiana OTP distributor’s license — new applicants and renewals, filed with the DOR

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Fixed amount, fixed price — $1,000 bond, $100, no quote process

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Multi-year terms available — set it up once, forget it for up to 3 years

A-ratedA.M. Best carriersInstantunderwriting process1–3 yrterms available

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How it works

Three steps. One sitting.

License bonds are the simplest thing in surety. Here is the entire process:

NOW · ONLINE

Apply online

Business details and an effective date. That is the application — no financials, no credit fields, no follow-up scavenger hunt.

MINUTES, USUALLY

Pay & e-sign

License bonds like this are among the thousands of bond types that issue right after purchase. At most, 1–2 business days.

SAME DAY

File with your license

Your executed bond and power of attorney arrive by email, ready to file with your Department of Revenue distributor license application or renewal. Wet-ink original mailed on request.

About this bond

What it is and who needs it.

What the bond actually guarantees

Indiana taxes other tobacco products (OTP) — cigars, smokeless tobacco, pipe tobacco, and the like — under IC 6-7-2, and a distributor needs a license from the Department of Revenue. The license is conditioned on a surety bond that guarantees you remit the tobacco products tax you owe, on time and in full.

The bond amount is a fixed $1,000 minimum under IC 6-7-2-8, conditioned on your compliance with the chapter. It is a three-party arrangement: you (the principal), the surety, and the State of Indiana (the obligee). If the department finds the bond inadequate to protect the state, it can require a larger one — most distributors stay at the $1,000 minimum.

It is not insurance for you — if the state recovers unpaid tax against the bond, you repay the surety. Distributors who file and pay on time treat it as a license formality. The bond must stay active for the life of the license, so we track it and notify you ahead of renewal.

IC 6-7-2-8Under IC 6-7-2-8, an applicant for (or holder of) an Indiana tobacco products distributor’s license must file a surety bond of at least $1,000, issued by a surety approved by the Department of Revenue and conditioned on compliance with the tobacco products tax chapter (IC 6-7-2). If the department determines a bond is inadequate, it may require a larger one. This page covers the standard $1,000 OTP distributor bond.

You need this bond if you are

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Applying for an Indiana OTP distributor’s license — the bond is filed with your application

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Renewing your distributor license and your bond is expiring or was non-renewed

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A wholesaler or importer of OTP — cigars, smokeless, pipe tobacco — distributing in Indiana

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An out-of-state distributor getting licensed to sell OTP into Indiana

One application, issued instantly.

These are the actual issuing fields — no credit fields, because this application doesn’t collect any.

Start the application →

FAQ

Common questions.

How much is the Indiana tobacco distributor bond?The premium is $100 flat, set by our carrier’s rate book for this specific bond. The bond amount is fixed at $1,000 by statute, but that is not the price — every distributor pays $100 per term. There is no quote process.

Do I pay the $1,000?No. You pay $100. The $1,000 is the surety’s maximum liability to the state if you fail to remit tobacco products tax — not a deposit, and nobody holds your money.

Could my bond amount be higher than $1,000?Usually not — $1,000 is the statutory minimum under IC 6-7-2-8 and the standard amount. If the Department of Revenue determines a bond is inadequate to protect the state, it can require a larger one. Send us your notice and we will issue the amount the department named.

Is there a credit check?The application collects no credit information for this bond. Small fixed-amount license bonds like this one rarely need any follow-up, but if a check is ever required, it would be a soft pull that never affects your score.

When does it renew?The bond must stay active for as long as you hold the license. You can buy a 1, 2, or 3-year term; we send renewal notices 60 and 30 days out, with autopay available, so your license never lapses over a missed email.

Related bonds

Other Indiana bonds.

Finish your license checklist today.

$100 flat, no credit review, bond often issued in the same sitting. Free until issued.

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Your price$100

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