SD Tobacco Manufacturer Bond

A new South Dakota bill that was recently enacted will require a surety bond of tobacco manufacturers.

Details on the New Requirement

The new bill, titled SD S 25, and effective 07/01/2020, requires tobacco product manufacturers to post a surety bond at least ten days before the beginning of each calendar quarter in order to sell their products in South Dakota.

The amount of the bond shall be the greater of: (i) the largest required deposit into a qualified escrow fund by the tobacco product manufacturer or the tobacco product manufacturer’s predecessor for any of the twelve preceding calendar quarters; or (ii) $25,000.

How to Apply for a Surety Bond

If you find that you must obtain this surety bond, you’ll need to contact a bond provider who is licensed to to business in South Dakota. JW Surety Bonds is licensed nationwide, so please apply for a free quote online, or feel free to reach out to us if you’d like assistance with obtaining this bond.


Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.

Leave a Reply

Your email address will not be published. Required fields are marked *