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Iowa bonds

Iowa — Cigarette Distributing Agent Permit Bond

Iowa's distributing-agent permit concerns storage of unstamped cigarettes received in interstate commerce for fulfillment of interstate orders. It is not a general cigarette-wholesaler permit. The current bond rule sets distributing-agent security at $2,500.

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Recorded state
Iowa
Bond type
Cigarette / Tobacco Tax Bond
Category
Business operations & taxes

What this bond does

Section 453A.17 supports the in-state agent's specified interstate storage and delivery role. Each place of business needs its own application and permit, and interstate stock must remain separate from intrastate stock.

Who needs it
In-state agents storing an out-of-state manufacturer's cigarettes and fulfilling the manufacturer's transmitted orders. A business making ordinary first sales or retail sales should not assume this permit authorizes those activities.
Who it protects
Section 453A.17 incorporates the applicable bond provisions of section 453A.14. Security is payable to Iowa for taxes, damages, fines, penalties and costs adjudged against the person for violation of the cigarette-subchapter requirements affecting that person. It protects the state, not the manufacturer's inventory or the agent's delivery contracts.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details for Iowa interstate distributing agents

The statutory role is narrower than the ordinary meaning of distributor. Section 453A.1 describes an agent in Iowa storing an out-of-state manufacturer's cigarettes and fulfilling orders transmitted by that manufacturer. Section 453A.17 limits the permit's unstamped distribution to the specified interstate activity.

Rule 701—231.3 sets the distributing-agent bond at $2,500. The incorporated interstate provision's $1,000 minimum is not the current role-specific rule amount. Obtain Revenue's accepted sum and instrument, including any genuine additional permit requirements.

File the application electronically for each Iowa place of business. Identify the agent's legal business, principal office, location and officers or members when applicable. The permit is nonassignable and expires on June 30 following issue.

Keep cigarettes reserved for interstate business separate from intrastate stock. Stock not separated is treated as intrastate stock subject to first-sale requirements. The statute also prohibits retail cigarette sales from automobiles, trucks and similar conveyances; the storage permit does not authorize that retail activity.

The incorporated bond provisions allow Revenue to demand new or additional security when it becomes inadequate. The ten-day response period is not a voluntary cancellation notice, and failure to furnish adequate security can revoke the distributing-agent permit without a hearing. Follow Revenue's current security/execution directions rather than assuming another cigarette bond's release terms.

Purchase Now opens Propeller's Iowa distributing-agent application in a new tab. Match the actual agent, Iowa storage location, interstate activity and Revenue's security request, then complete the state permit and electronic filing. Provider payment does not grant the permit or make intrastate stock exempt.

Sources

Have these ready

  1. Legal agent name, Iowa principal office and each storage location.
  2. Out-of-state manufacturer and actual interstate-order fulfillment arrangement.
  3. Officers/members and electronic permit-application information.
  4. Revenue's required bond, accepted period and execution directions.
  5. Separate-stock procedures and documents for the actual permitted transport activity.

Questions about this bond

Is this the same as a cigarette distributor or wholesaler?

The distributing-agent role concerns specified interstate storage and fulfillment for an out-of-state manufacturer. Ordinary intrastate first sales, wholesaling and retail activity must be matched to their actual permit requirements.

Is the current amount $1,000 or $2,500?

The current rule lists $2,500 for a distributing-agent permit. The incorporated interstate statute's minimum does not replace that role-specific requirement.

Can I mix interstate stock with ordinary inventory?

Section 453A.17 requires separation. Cigarettes not kept separate are treated as intrastate stock and become subject to the corresponding first-sale requirements.

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