Iowa tobacco distributor bonds.
$100 flat.
Iowa conditions a tobacco products distributor permit on a $1,000 surety bond filed with the Department of Revenue. We issue it at $100 flat — set by our carrier's rate book for this bond, no quote round-trip. The bond issues the moment you pay — no credit check.
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How much does an Iowa tobacco distributor bond cost?
$100 at the $1,000 amount, the same for every applicant.
Three steps. One sitting.
Permit bonds like this are the simplest thing in surety. Here's the entire process:
Apply online
Business details and an effective date. That is the application. No credit check.
Pay & e-sign
Permit bonds like this are among the thousands of bond types that issue right after purchase.
File with the Department of Revenue
Your executed bond and power of attorney arrive by email, ready to file with your distributor permit application. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
Iowa taxes and permits tobacco products through the Department of Revenue under Iowa Code chapter 453A. A distributor that brings tobacco products into the state owes tobacco tax, and the Department conditions the distributor permit on a $1,000 surety bond before the permit issues.
The bond is a tax guarantee: it stands behind the tobacco tax the distributor collects and owes. It is a three-party arrangement — you (the principal), the surety carrier, and the State of Iowa (the obligee). If a distributor fails to remit tax due under chapter 453A, the State can recover against the bond.
It is not insurance for you — if the surety pays a claim, you repay the surety. Cigarette distributors and other permit classes carry different (often larger) bond amounts; this $1,000 figure applies to the tobacco-products distributor permit, priced at $100. Confirm your permit class on the application and we issue the matching bond.
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 $1,000 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 and power of attorney arrive by email, ready to file with your distributor permit application. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $100 at the $1,000 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 .
Finish your permit checklist today.
$100, no credit check, bond often issued in the same sitting. Free until issued.