Iowa requires a cigarette distributor to post a surety bond before it holds a distributor permit, under Iowa Code 453A.14. The amount is a fixed $2,500 — at our flat 3% that lands at the $275 minimum, the same price for every distributor.
















Fixed-amount tobacco bonds are the simplest thing in surety. Here's the whole process:
Business details and an effective date — no financials and no credit check section.
Fixed-amount tobacco bonds like this issue right after purchase for most applicants. At most, 1–2 business days.
Your executed bond arrives by email, ready to file with your cigarette distributor permit application or renewal. Wet-ink original mailed on request.
$2,500 bond × 3% = $75, below our $275 minimum — so the price is $275, one-time per term. Multi-year if you want it.
Iowa taxes cigarettes through the Department of Revenue under Iowa Code chapter 453A, and a distributor — the permittee that affixes tax stamps and remits cigarette tax — must post a surety bond before the permit issues. The bond is set by Iowa Code 453A.14 at a fixed $2,500.
The bond runs to the State for the benefit of the Department. It guarantees that you comply with chapter 453A and pay all cigarette taxes, fees, and costs you owe — if you do not, the Department can recover against the bond up to the $2,500 penal sum.
It is not insurance for you: if the surety pays the Department, you repay the surety. If you hold more than one tobacco permit, the bond requirements are cumulative — you post a single bond equal to the aggregate, or separate bonds. Iowa tobacco bonds run to a June 30 expiration by rule.
These are the actual issuing fields — no credit check section, because this fixed-amount bond doesn't have one.
Start the application →If yours isn't here, the bond team can usually answer within the hour.
$275 flat, five-minute application, bond often issued in the same sitting. Free until issued.