1. (a) Every cigarette agent, and every applicant for a license as a cigarette agent, who desires to establish credit for the purpose of purchasing cigarette stamps on credit is required to:

   1. (1) file and maintain with the department a credit bond executed by a surety company which is:

      1. (i) authorized to transact business in this State;
      2. (ii) registered with and under the supervision of the Insurance Department of New York State; and
      3. (iii) approved by the Superintendent of Insurance as to solvency and responsibility; or

   2. (2) deposit and maintain with the department such other acceptable security enumerated in section 71.3 of this Part. Such bond or security must be in such amount as the department may require to secure the payment of any sum due from the agent pursuant to article 20 of the Tax Law.

      (b) Credit bonds.

   3. (1) The Department of Taxation and Finance may, in its discretion, permit a licensed cigarette agent to purchase stamps and to pay for such stamps within 30 days after the date of purchase, provided the agent has filed a credit bond (or has deposited other acceptable security) with the department in the required amount conditioned upon such payment. An applicant for a license as a cigarette agent or a licensed agent who wishes to purchase stamps on credit must apply to the department for permission to do so. The department will evaluate such request in the same manner as it evaluates applications for licenses as cigarette agents. Where the department ascertains that the authorization to purchase cigarette stamps on a 30-day credit basis will not jeopardize the payment of any sums due the State from the agent pursuant to article 20 of the Tax Law, it will fix the amount of the credit bond to be filed.
   4. (2) In determining the amount of a credit bond, the department will consider the amount of credit requested by the applicant or agent and, in all cases, the amount of such bond shall be at least equal to the amount of the New York State tax represented by the cigarette stamps to be purchased on credit without regard to any commissions due the agent with respect to such stamps. Additionally, the department may require the credit bond to be in an amount which is sufficient to secure the payment of any penalties, interest or other sums which may become due from the agent pursuant to article 20. No credit for the purchase of cigarette stamps shall be granted in excess of the amount secured for such purpose by a credit bond. A licensed cigarette agent may apply to the department for an increase in the amount of such credit subject to the same conditions as the original request for authority to purchase stamps on a 30-day credit basis.
   5. (3) The credit bond described herein is required to secure the payment of any sums due the State pursuant to article 20 of the Tax Law. Agents who desire to purchase joint State and New York City cigarette tax stamps on a 30-day credit basis must also file or deposit the appropriate bond or security with the City of New York to secure the payment of any sums due the city (see Chapter 13 of Title 11 of the New York City Administrative Code).

Tax Law, § 472(1)