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We, and other scholars, lay it at the foot of tax evasion and avoidance

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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