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Washington cigarette deferred-purchase bonds.
From $100.

A Washington cigarette wholesaler normally pays for tax stamps at the time of purchase. With Department of Revenue approval, a wholesaler can defer that payment by furnishing a surety bond equal to the approved monthly credit limit under WAC 458-20-186. Pricing is 1% of the bond amount, with a $100 minimum.

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Lets a wholesaler defer payment for tax stamps with Department of Revenue approval, under WAC 458-20-186

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Amount set by the Department — equal to your approved monthly credit limit under WAC 458-20-186

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From $100 — enter your required bond amount and apply to see your exact price

1% of bond amount$100 minimumNo credit review at the standard amountnot even a soft pull at the standard amountFastinstant underwriting for most

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How it works

Three steps. One sitting.

No underwriting queue for most standard cigarette bond applications — 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 Department required, and the effective date — that is the entire application.

INSTANTLY, USUALLY

Issued on the spot

Most applications issue as soon as you pay. Larger amounts may get a quick review.

SAME DAY

File with the Department of Revenue

Submit the executed bond to satisfy your deferred-payment approval. Wet-ink originals mailed whenever the Department insists on them.

About this bond

What it is and who needs it.

What the deferred-purchase bond actually covers

Washington taxes cigarettes under RCW 82.24, collected through tax stamps that a wholesaler affixes to each pack. The default rule is that payment for stamps is due at the time of purchase.

A licensed wholesaler with prior Department of Revenue approval can defer that payment — buying stamps on account and settling later — but only if it furnishes a surety bond to guarantee the deferred tax. The bond runs to the Department for the benefit of the state.

The amount is set by the Department: WAC 458-20-186 puts the bond at the proposed monthly credit limit the Department approves. If you fail to pay the deferred tax, the state can recover against the bond — and if the surety pays, you repay the surety. Pricing starts from $100 and your exact number appears at application.

WAC 458-20-186 / RCW 82.24 (cigarette tax — deferred payment)Under RCW chapter 82.24 and WAC 458-20-186, a Washington wholesale cigarette dealer must pay for tax stamps at the time of purchase unless it has prior Department of Revenue approval to defer payment and furnishes a surety bond equal to the proposed monthly credit limit. That is a separate filing from the wholesaler license bond, which RCW 82.24.520 sets at not less than $1,000. Confirm your amount on your deferred-payment approval.

You need this bond if you are

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A licensed cigarette wholesaler approved by the Department of Revenue to defer stamp payments

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Applying for deferred-payment status to buy stamps on account rather than pay up front

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Renewing your wholesaler license and keeping your deferred-payment bond current

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Adjusting your deferred balance and filing a replacement bond for the new amount

One application, issued on the spot.

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

Start the application →

FAQ

Common questions.

What does this bond let me do?It lets a licensed Washington cigarette wholesaler defer payment for tax stamps — buying them on account with Department of Revenue approval rather than paying at the time of purchase. The bond guarantees the deferred tax.

How much is it?The premium is 1% of your bond amount, with a $100 minimum. The amount is set by the Department of Revenue — under WAC 458-20-186 it equals your approved monthly credit limit. Enter your figure and apply to see your exact price.

How is this different from the unstamped-cigarette bond?This deferred-purchase bond covers deferred payment for tax stamps. The separate unstamped-cigarette bond covers stock a wholesaler holds without stamps affixed, for sale to authorized receivers of unstamped cigarettes. Some wholesalers need one, some need both.

Is there a credit check?The application collects no credit information at the standard amount for this bond. Most applications approve instantly.

Who is the bond payable to?The Washington Department of Revenue, for the benefit of the state. It runs concurrently with your wholesaler license, so it must stay in force as long as you defer stamp payments.

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.

Related bonds

Other Washington bonds.

Cigarette deferred-purchase bond, issued today.

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

Start application

Your premiumfrom $100

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