Security Bonds
I like to look into more information on things, mainly because I consider my brain to be one big information sponge. While in search of information on financial security, I came across a bonding company that specializes in everything from getting a mortgage broker bond to even a Cigarette Tax Bond. As a smoker I kind of found myself reading more into this subject, and I then find out that there’s more than I really knew about them. Sure, brand and flavor are important to me (spoken as a true addict, right?) but the finances behind it kind of interest me as well.
The Cigarette Tax Bond is broken down pretty easily. This was taken directly from jwsuretybonds.com:
Description: Cigarette Tax Bonds are required to guarantee taxes are paid from a seller of tobacco to the government requiring the bond.
Current Market: Any type of financial guarantee surety bond is looked at with a close eye. Many larger bonding companies are still willing to write Cigarette Tax Bonds, but may be more conservative than they would be with a more traditional surety risk. Our agency is appointed with several bonding companies that write this particular class of business more freely than the rest of the industry.
Special Programs: Cigarette Tax Bonds are not required by many. The relatively small amount of requests does not allow for any bulk specialty programs.
I knew that having to pay taxes on cigarettes were a requirement state to state but I was unaware of everything that goes on behind it. I just recently found out that states are using the cigarette tax to put towards health care – something I completely agree with considering my tax dollars (on anything) up to this point have really only been lining the pockets of those who implement these taxes.
There are a few different options on the site that you can look through if you’re interested in a Security Bond for your company. The site is filled with step-by-step break downs of what each bond means and there’s also an application process as well if you decide to go through this specific branch.