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Iowa Cigarette and Tobacco Tax Bond

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…

Bond amount$1,000
State or jurisdictionIowa
ObligeeIowa Department of Revenue

Essential point: Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.

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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 may price higher depending on the bond type and jurisdiction.

Your quote determines the actual premium.

Typical timeframe

Credit-based approval — typically 1–2 business days

Timing can change when underwriting needs more information.
Application details

How it works.

  1. Start the application

    Confirm the bond and provide applicant and business details.

  2. Review the quote

    See the terms and premium before deciding to continue.

  3. Pay and sign

    Complete the required payment and signatures.

  4. Receive the bond

    Get the issued bond and filing or delivery instructions.

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Frequently asked

Common questions.

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.

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.

Next step

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