Iowa cigarette distributor bonds.
$100 flat.
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 — priced at $100 flat, the same price for every distributor.
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How much does an Iowa cigarette distributor bond cost?
$100 at the $2,500 amount, the same for every applicant.
Three steps. One sitting.
Fixed-amount tobacco bonds are the simplest thing in surety. Here's the whole process:
Apply online
Business details and an effective date — no financials, no credit check.
Pay & e-sign
Fixed-amount tobacco bonds like this issue right after purchase for most applicants.
File with the Department of Revenue
Your executed bond arrives by email, ready to file with your cigarette distributor permit application or renewal. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
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.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $2,500 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The term is set on the carrier’s application; the premium covers the period shown there.
Renewal falls on the statutory date, June 30, in the year your term ends.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Department of Revenue. Your executed bond arrives by email, ready to file with your cigarette distributor permit application or renewal. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $100 at the $2,500 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
No credit check.
One application, issued instantly.
These are the actual issuing fields. No credit check.
Start the application →Common questions.
Other Iowa bonds.
The same bond in nearby states.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
Distributor bond, issued today.
$100 flat, no credit check, bond often issued in the same sitting. Free until issued.