A person who is not an Iowa cigarette permittee but stores cigarettes in interstate commerce in Iowa must post a surety bond under Iowa Code 453A.14. The amount is a fixed $5,000 — at our flat 3% that lands at the $275 minimum.
















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 the Department of Revenue as your storage situation requires. Wet-ink original mailed on request.
$5,000 bond × 3% = $150, 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 chapter 453A. The statute reaches not only permit holders but also a person who is not a permittee yet stores cigarettes in interstate commerce within Iowa — that person must post a surety bond under Iowa Code 453A.14, set at a fixed $5,000.
The bond runs to the State for the benefit of the Department. It guarantees that the stored cigarettes are handled in compliance with chapter 453A and that any cigarette tax, fees, or costs that come due are paid — the State can recover against the bond up to the $5,000 penal sum if they are not.
It is not insurance for you: if the surety pays, you repay the surety. This is a narrow category — most operators need a distributor, wholesaler, or distributing-agent permit bond instead. If you are unsure which applies, send us your setup and we will confirm. 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.