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
















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 wholesaler permit application or renewal. Wet-ink original mailed on request.
Iowa taxes cigarettes through the Department of Revenue under chapter 453A. A wholesaler — a permittee that sells cigarettes and tobacco at wholesale to retailers — must post a surety bond before the permit issues, 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, you repay the surety. A wholesaler that is also a tobacco subjobber files a combined bond at the same $2,500; where you hold more than one permit type, the requirements are cumulative. 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.