Iowa — Cigarette Distributor Permit Bond
Iowa's cigarette distributor permit calls for $2,500 of security under rule 701—231.3. Use the actual distributor classification and Department-approved condition before applying. The general $500 statutory state-permit floor is not the distributor's prescribed amount.
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- Recorded state
- Iowa
- Bond type
- Cigarette / Tobacco Tax Bond
- Category
- Business operations & taxes
What this bond does
This undertaking supports the state cigarette distributor permit under Iowa Code chapter 453A. It is separate from an other-tobacco-products distributor undertaking, local retail approval and purchases of cigarette tax stamps.
- Who needs it
- The legal business actually performing cigarette distributor functions and applying to Iowa Revenue for the corresponding state permit. A warehouse storing stamped cigarettes solely for transfers to its own retail outlets is not automatically a wholesaler; match the operation to the permit rather than choosing by business name alone.
- Who it protects
- Section 453A.14 requires security in favor of Iowa for taxes, damages, fines, penalties and costs adjudged against the permit holder for violations of the cigarette subchapter. The Director approves the surety and prescribed condition. This protects the State's covered interests, not the distributor against its own operating losses.
Your bond option
This is the option on record for this bond.
- Bond optionPurchase Now (opens in a new tab)Continue to our secure checkout partner, Propeller (opens in a new tab).
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.
Sources
- Iowa Code2026 §453A.14 — complete current security provision (opens in a new tab)Checked October 27, 2026
- Iowa rule701—231.1–3 — complete selected definitions, permit classes and bond requirements (opens in a new tab)Checked October 27, 2026
- Iowa Code2026 §453A.13 — complete current permit provision (opens in a new tab)Checked October 27, 2026
- Iowa rule701—230.4 — complete selected approved-security provision (opens in a new tab)Checked October 27, 2026
Have these ready
- Legal principal, business address, tax account and actual cigarette distributor permit classification.
- Department-confirmed $2,500 distributor security and any genuinely additional permit requirements.
- June 30 permit cycle, required bond effective period and any replacement request.
- Current Director-approved condition and required execution.
- Department's current electronic application and bond-filing instructions.
Questions about this bond
Why not use the $500 statutory state-permit minimum?
Section 453A.14 provides a floor, while current rule 701—231.3 prescribes $2,500 for the cigarette distributor class. Use that class-specific requirement and any Department direction.
Must distributor and wholesaler amounts always be added?
No. The cumulative rule applies when more than one permit type is actually required. Section 453A.13(8) permits distributor and wholesaler functions at the same place under one state permit, while retail remains separate. Confirm the real permit combination.
Can I use an old paper application and mail the bond?
Use the current electronic instructions. The 2026 Code requires electronic submission of the application, supporting material and bond. Older archived paper forms are not authority to bypass that requirement.
Does the ten-day replacement rule cancel my bond?
It is the deadline to supply new or additional security after the Director's demand under section 453A.14, not a general surety-cancellation notice clause. Follow the accepted undertaking and Department instructions for any actual cancellation or replacement.