IA 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 the application collects no credit information.

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Required before the Department of Revenue issues your permits — Iowa Code 453A.13(5) and 453A.44(4)

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Sized for a business holding both the cigarette permit and the tobacco licence — the Department’s $2,500 and $1,000 figures, combined

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Fixed amount, fixed price — $100 flat, and the application collects no credit information

$100flat premiumInstantissued the moment you payTo Jun 30fixed expiry date

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How it works

Three steps. One sitting.

Fixed-amount tobacco bonds are the simplest thing in surety — no financials, no underwriting queue. Here is the whole process:

NOW · ONLINE

Apply online

Business details, entity type, and an effective date. That is the application — there is no credit section and no financial statement to dig up.

MINUTES, USUALLY

Pay & e-sign

Fixed-amount tobacco bonds like this issue right after purchase for most applicants. At most, 1–2 business days.

SAME DAY

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.

About this bond

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 licence 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 favour 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 licence 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.

Iowa Code 453A.14 & 453A.44(4)"a" · Dept. of Revenue form 70-031Iowa Code 453A.13(5) allows a state cigarette permit to issue only on an application accompanied by an adequate bond under 453A.14, which requires a bond in favour of the state — approved by the director, filed electronically, and not less than $500 for a state permit — conditioned on payment of taxes, damages, fines, penalties, and costs. Iowa Code 453A.44(4)"a" separately requires a tobacco products distributor to file a corporate surety bond in the sum of $1,000, and lets the director increase it if the amount is inadequate to protect the state. The Department of Revenue publishes the per-permit figures it actually requires in the instructions to form 70-015: $2,500 for a cigarette distributor and $1,000 for a tobacco distributor, which is where this combined $3,500 filing comes from. The bond itself goes on Department form 70-031, and all state-issued permits expire June 30 (453A.13(3)"a", 453A.44(8)). Confirm the figure on your own permit set before you file — we issue whichever amount the Department asks for.

You need this bond if you're

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Applying for both Iowa permits at once — a cigarette distributor permit (601/621) and a tobacco distributor licence (606/626) on the same application cycle

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A stamping wholesaler adding other tobacco products — cigars, snuff, chewing or pipe tobacco — to a cigarette operation you already run

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Renewing before June 30 when the Department wants continuous bond coverage across the permit year

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An out-of-state distributor shipping into Iowa and registering with the Department of Revenue for the first time

One application, issued instantly.

These are the actual issuing fields — the application collects no credit information for this fixed-amount bond.

Start the application →

FAQ

Common questions.

How much is the Iowa cigarette and tobacco distributor bond?The premium is $100 flat through June 30 to June 30, set by our carrier's rate book — the same for every distributor, large or small. The $3,500 penal sum is the Department of Revenue's figure, not ours, so there is no quote process and nothing to negotiate.

Do I pay the $3,500?No. You pay the premium. The $3,500 is the surety's maximum liability to the State of Iowa if you fail to remit cigarette or tobacco tax or otherwise violate chapter 453A — it is not a deposit, and nobody holds your money.

Why $3,500 when my permit type lists a smaller number?Because this is the combined figure. The Department of Revenue asks $2,500 behind a cigarette distributor permit and $1,000 behind a tobacco products distributor licence, and this bond is written at the total for a business that holds both. If you only stamp cigarettes, or only distribute other tobacco products, you want the single-permit bond instead — we write both. Check the amount stated on your own permit paperwork before you file.

How fast will I have the bond?Fixed-amount tobacco bonds like this are among the thousands of bond types that issue right after purchase — most applicants finish the application and have the executed bond in the same sitting. At most, 1–2 business days.

Is there a credit check?The application collects no credit information — there is no credit section on this fixed-amount bond, and most applications approve instantly. If a check ever runs, it is a soft pull that will not affect your score.

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IA cigarette & tobacco distributor bonds.$100 flat.