Iowa — Cigarette Railway Car Retailer Permit Bond
Iowa requires a $500 undertaking before issuing the railway-car cigarette retailer permit. One permit covers all cars operated in Iowa by the applicant, with a duplicate posted in each car where cigarettes are sold. The bond is not $500 for every car.
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- Recorded state
- Iowa
- Bond type
- Cigarette / Tobacco Tax Bond
- Category
- Business operations & taxes
What this bond does
This security belongs to the statewide railway-car retailer permit under section 453A.23. An approved permit covers the eligible company's retail cigarette sales aboard its operated dining, sleeping or passenger cars in, through or across Iowa, subject to the permit and cigarette-tax requirements.
- Who needs it
- The dining-car, sleeping-car, railroad or railway company applying for the permit. Use the actual operating applicant; this is not the ordinary city/county shop permit or the cigarette distributor permit.
- Who it protects
- Section 453A.23 requires the undertaking in favor of Iowa for the benefit of all interested parties, conditioned on payment of all taxes, fines, penalties and costs under the cigarette subchapter. It does not insure the operator's own property or replace the required tax stamps.
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.23 — complete railway-car permit and undertaking (opens in a new tab)Checked October 27, 2026
- Iowa rule701—231.1–3 — complete selected permit/bond rules (opens in a new tab)Checked October 27, 2026
- Iowa Code2026 §453A.13 — complete current general permit provisions (opens in a new tab)Checked October 27, 2026
Have these ready
- Legal eligible operating company and Iowa tax/permit account.
- Dining, sleeping or passenger-car operation and cars requiring displayed duplicates.
- The $500 railway-car undertaking and current prescribed form/execution.
- June 30 permit cycle and required operative bond period.
- Department's current electronic application and bond-submission instructions.
Questions about this bond
Is a separate $500 bond needed for every car?
Section 453A.23 provides one statewide permit for all cars operated by the applicant and a $500 undertaking. Each car in which cigarettes are sold needs a posted duplicate; that does not by itself multiply the statutory bond.
Is this the $2,500 distributor undertaking?
No. The railway-car retailer class has its own $500 requirement and eligible company scope. Actual distributor or other separately required activities must be matched to their own permit requirements.
Can the bond and application be mailed on an old form?
Follow current electronic instructions. The 2026 Code specifically requires electronic applications and security under section 453A.23; an archived paper packet is not current authority to bypass them.
Does the bond allow unstamped cigarette sales aboard trains?
No. Section 453A.23 requires tax stamps on cigarettes sold in the cars. Complete permit approval, display the duplicates and meet stamping duties separately from the bond purchase.