Iowa requires a cigarette wholesaler to post a surety bond with its permit under Iowa Code 453A.14. The amount is a fixed $2,500 — priced at $100 flat, the same price for every wholesaler.
















Fixed-amount tobacco bonds are the simplest thing in surety. Here's the whole process:
Business details and an effective date — no financials, no credit 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 wholesaler permit application or renewal. Wet-ink original mailed on request.
Iowa taxes cigarettes through the Department of Revenue under chapter 453A. A wholesaler — a permittee that sells cigarettes and tobacco at wholesale to retailers — must post a surety bond before the permit issues, 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, you repay the surety. A wholesaler that is also a tobacco subjobber files a combined bond at the same $2,500; where you hold more than one permit type, the requirements are cumulative. Iowa tobacco bonds run to a June 30 expiration by rule.
These are the actual issuing fields — the application collects no credit information for this fixed-amount bond.
Start the application →$100 flat, no credit review, bond often issued in the same sitting. Free until issued.