Distributors of tobacco products (other than cigarettes), cigarette distributors, wholesalers, manufacturers, and delivery sellers of alternative nicotine or vapor products. Required when: Before a state tobacco permit or cigarette permit can be issued by the Department of Revenue. Exemptions: Tobacco subjobbers are n…
Overview
What it is.
Distributors of tobacco products (other than cigarettes), cigarette distributors, wholesalers, manufacturers, and delivery sellers of alternative nicotine or vapor products. Required when: Before a state tobacco permit or cigarette permit can be issued by the Department of Revenue. Exemptions: Tobacco subjobbers are n…
Who usually needs it
Distributors of tobacco products (other than cigarettes), cigarette distributors, wholesalers, manufacturers, and delivery sellers of alternative nicotine or vapor products.
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$1,000Term lengthContinuousObligeeIowa Department of RevenueRenewalThe bond remains in effect for successive permit years (ending June 30) until canceled by the surety. The permit itself must be renewed annually by June 30.Bond classTax BondCategoryRetail & SalesBondIowa Cigarette, Tobacco, or Delivery Seller BondStatutory referenceIowa Code § 453A.44JurisdictionState
