Iowa requires cigarette and tobacco distributors, wholesalers, and manufacturers to post a surety bond to guarantee payment of state tobacco taxes and fees. The bond amount varies by license type, ranging from $500 to $5,000, and multiple license types aggregate into one total bond amount. This protects the state agai…
Overview
What it is.
Iowa requires cigarette and tobacco distributors, wholesalers, and manufacturers to post a surety bond to guarantee payment of state tobacco taxes and fees. The bond amount varies by license type, ranging from $500 to $5,000, and multiple license types aggregate into one total bond amount. This protects the state agai…
Who usually needs it
Cigarette and tobacco distributors, wholesalers, manufacturers, vendors, distributing agents, railway car retailers, alternative nicotine/vapor delivery sellers, and non-permittees storing interstate cigarettes in Iowa all need this bond before receiving their permit or license from the Iowa Department of Revenue.
Pricing & timing
What to expect.
Generic pricing
Tax bonds guarantee payment of taxes or compliance with tax regulations. Typical Pricing:. • Standard tax bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Credit check: Required for most tax bonds. Common types include sales tax bonds, fuel tax bonds, and cigarette/tobacco tax bonds. Quick approval is typical for applicants with good credit. Some tax bonds…
Typical timeframe
Credit-based approval — typically 1–2 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateIABond amount$1,000ObligeeIowa Department of RevenueBond classTax BondCategoryRetail & SalesBondIowa Cigarette and Tobacco Tax BondPlain descriptionIowa requires cigarette and tobacco distributors, wholesalers, and manufacturers to post a surety bond to guarantee payment of state tobacco taxes and fees. The bond amount varies by license type, ranging from $500 to $…Who needs this bondCigarette and tobacco distributors, wholesalers, manufacturers, vendors, distributing agents, railway car retailers, alternative nicotine/vapor delivery sellers, and non-permittees storing interstate cigarettes in Iowa …
FAQ
Common questions.
What is the bond amount for the Iowa Cigarette and Tobacco Tax Bond?
The bond amount varies by license type and aggregates if you hold multiple licenses. Common amounts include: Cigarette Distributor ($2,500), Tobacco Distributor ($1,000), Cigarette Manufacturer ($5,000), Cigarette Vendor ($1,000), Cigarette Wholesaler ($2,500), Railway Car Retailer ($500), and Alternative Nicotine/Vapor Delivery Seller ($1,000). For example, if you're both a cigarette distributor and tobacco distributor, your total bond would be $3,500.
Who needs to file an Iowa Cigarette and Tobacco Tax Bond?
This bond is required for anyone applying for Iowa cigarette or tobacco permits, including distributors, wholesalers, manufacturers, vendors, distributing agents, railway car retailers, and alternative nicotine/vapor delivery sellers. The bond must be filed with the Iowa Department of Revenue using form 70-031a before your permit or license can be issued.
When does the Iowa Cigarette and Tobacco Tax Bond expire?
The bond expires annually on June 30th each year. You must renew your bond before this date to maintain continuous coverage and keep your permit or license active with the Iowa Department of Revenue. The bond guarantees payment of all tobacco taxes, fees, and penalties under Iowa Code Chapter 453A.
