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.