Iowa cigarette & tobacco distributor bonds.
$100 flat.
A business that stamps cigarettes and distributes other tobacco products in Iowa files one combined $3,500 surety bond with the Department of Revenue before its permits issue — the cigarette side under Iowa Code 453A.14, the tobacco-products side under 453A.44. Our price is $100 flat through June 30 to June 30, and no credit check.
Trusted by industry leaders
How much does an Iowa cigarette & tobacco distributor bond cost?
$100 at the $3,500 amount, the same for every applicant.
Three steps. One sitting.
Fixed-amount tobacco bonds are the simplest thing in surety — no financials, no underwriting queue. Here is the whole process:
Apply online
Business details, entity type, and an effective date. That is the application. 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 submit on the Department bond form (70-031) alongside your annual state-issued permit application (70-015). Bonds are filed electronically; a wet-ink original is mailed on request.
What it is and who needs it.
What the bond actually guarantees
Iowa taxes cigarettes under subchapter I of Iowa Code chapter 453A and other tobacco products under subchapter II. They are two different permits from the same agency: a cigarette distributor holds a state permit issued under 453A.13, and a tobacco products distributor holds a license issued under 453A.44. A wholesaler that stamps cigarettes and also moves cigars, snuff, or pipe tobacco needs both — and the Department of Revenue looks for bond coverage for both before it issues either.
The bond runs in favor of the State of Iowa and is conditioned on the payment of the taxes, damages, fines, penalties, and costs assessed against the permit holder for violating chapter 453A. If you fail to remit cigarette or tobacco tax, the Department can recover against the bond up to the penal sum. The tobacco-products half of the requirement is written into the statute itself — 453A.44(4)"a" calls for a corporate surety bond, conditioned on true and faithful compliance and payment of all taxes, penalties, and accrued interest, kept in full force for the whole license period.
It is not insurance for you. If the surety pays the Department, you repay the surety. Two practical consequences: the director can demand an additional bond within ten days if the existing one becomes insufficient (453A.14(3)), and every state-issued permit expires June 30 and is re-applied for annually — so your bond has to be continuous across that date. We send renewal notices 60 and 30 days out.
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 $3,500 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The bond runs to June 30 whatever day you buy; the premium covers the period to that date.
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 submit on the Department bond form (70-031) alongside your annual state-issued permit application (70-015). Bonds are filed electronically; a wet-ink original is mailed on request.
What sets the price
The premium is fixed at $100 at the $3,500 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.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
Both permits, one bond, today.
$100 flat, no credit check, bond often issued in the same sitting. Free until issued.