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Bond Overview Purpose: To guarantee payment for local taxes owed on tobacco and vapor products Who Needs It: Tobacco-related businesses including distributors, manufacturers, wholesalers, importers and retailers in various states Required Amount: Varies based on the bond type and/or tax liability Premium Rates: Typically 15% of the total bond amount Read on to learn more about how tobacco tax bonds work at the federal, state and local levels

Furthermore, given that our results are consistent with the findings of the existing literature, the finding of substantial levels of tax-induced smuggling is robust