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Iowa requires a cigarette distributor to post a surety bond before it holds a distributor permit, under Iowa Code 453A.14. The amount is a fixed $2,500 — priced at $100 flat, the same price for every distributor.
















Fixed-amount tobacco bonds are the simplest thing in surety. Here's the whole process:
Business details and an effective date — no financials, no credit section.
Fixed-amount tobacco bonds like this issue right after purchase for most applicants.
Your executed bond arrives by email, ready to file with your cigarette distributor permit application or renewal. Wet-ink original mailed on request.
Iowa taxes cigarettes through the Department of Revenue under Iowa Code chapter 453A, and a distributor — the permittee that affixes tax stamps and remits cigarette tax — must post a surety bond before the permit issues. The bond is set by Iowa Code 453A.14 at a fixed $2,500.
The bond runs to the State for the benefit of the Department. It guarantees that you comply with chapter 453A and pay all cigarette taxes, fees, and costs you owe — if you do not, the Department can recover against the bond up to the $2,500 penal sum.
It is not insurance for you: if the surety pays the Department, you repay the surety. If you hold more than one tobacco permit, the bond requirements are cumulative — you post a single bond equal to the aggregate, or separate bonds. Iowa tobacco bonds run to a June 30 expiration by rule.
These are the actual issuing fields — the application collects no credit information for this fixed-amount bond.
Start the application →$100 flat, no credit review, bond often issued in the same sitting. Free until issued.