IA tobacco distributor bonds.
$275. Five minutes.

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.

Required for an IA tobacco products distributor permit under Iowa Code chapter 453A
Fixed $1,000 bond — priced at our $275 minimum, the same for every distributor
Multi-year terms available — set it up once, forget it for up to 3 years
A-ratedA.M. Best carriersFastoften same purchase1–3 yrterms available
Trusted by industry leaders
NYCEDC
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NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Three steps. One sitting.

Permit bonds like this are the simplest thing in surety. Here's the entire process:

NOW · 5 MINUTES

Apply online

Business details and an effective date. That's the application — no financials, no credit check section, no follow-up scavenger hunt.

MINUTES, USUALLY

Pay & e-sign

Permit bonds like this are among the thousands of bond types that issue right after purchase. At most, 1–2 business days.

SAME DAY

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.

The whole pricing page.

$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.

1-year term
$275
2-year term
$550
3-year term
$825
About this bond

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. Confirm your permit class on the application and we issue the matching bond.

Iowa Code chapter 453A (Tobacco tax)Under Iowa Code chapter 453A and the Department of Revenue's rules, a tobacco products distributor must post a $1,000 surety bond for the benefit of the State before a distributor permit is issued, guaranteeing payment of the tobacco tax owed. Cigarette and other permit classes can carry different bond amounts — confirm your permit class on your application.

You need this bond if you're

Applying for an IA tobacco products distributor permit through the Department of Revenue
Renewing a distributor permit that requires the $1,000 surety bond
Bringing tobacco products into Iowa on which the distributor owes tobacco tax
Re-permitting after a lapse that reset your bond requirement

Five minutes. The whole thing.

These are the actual issuing fields — no credit check section, because this bond doesn't have one.

Start the application →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

How much is the Iowa tobacco distributor bond? +
The premium is $275 — our minimum. Three percent of the fixed $1,000 bond amount is only $30, which is below our $275 floor, so every distributor pays the same $275. The bond amount is set by statute, so there is no quote process.
Do I pay the $1,000? +
No. You pay $275. The $1,000 is the surety's maximum liability if a valid claim is made against the bond — not a deposit, and nobody holds your money.
How fast will I have the bond? +
Permit bonds like this are among the thousands of bond types that issue right after purchase — many distributors finish the application and have the bond in the same sitting. At most, 1–2 business days.
Is there a credit check? +
Not on this bond — the application has no credit section at all. Small fixed-amount permit bonds like this one don't need one.
Is this the cigarette bond too? +
No. This $1,000 bond is for the tobacco products distributor permit. Cigarette distributors and other permit classes under chapter 453A can carry different, often larger, bond amounts. Send us your permit class and we issue the matching bond.
Related bonds

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Finish your permit checklist today.

$275 flat, five-minute application, bond often issued in the same sitting. Free until issued.

Your premium @ 3%$275
Apply now →