Iowa conditions a tobacco products distributor permit on a $1,000 surety bond filed with the Department of Revenue. Three percent of $1,000 is under our $275 floor, so the price is $275 flat — our minimum premium on any bond. The application is five minutes, with no credit check on this bond.
















Permit bonds like this are the simplest thing in surety. Here's the entire process:
Business details and an effective date. That's the application — no financials, no credit check section, no follow-up scavenger hunt.
Permit bonds like this are among the thousands of bond types that issue right after purchase. At most, 1–2 business days.
Your executed bond and power of attorney arrive by email, ready to file with your distributor permit application. Wet-ink original mailed on request.
$1,000 bond × 3% = $30, which is below our $275 floor — so the price is $275, one-time per term. Multi-year if you want it.
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. Confirm your permit class on the application and we issue the matching bond.
These are the actual issuing fields — no credit check section, because this 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.