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Iowa retail sales tax bonds.
From $100.

The bond the Iowa Department of Revenue can require from a sales-tax permit holder as a financial guarantee for the tax it collects. The Department fixes the amount under Iowa Code 423.35. The premium is 2% of the bond amount, $100 minimum, and your exact price appears at the application.

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Required under Iowa Code 423.35 when the Department of Revenue asks for a guarantee
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Amount fixed by the Department of Revenue to secure the sales tax you collect
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2% of the bond amount, $100 minimum — the application collects no credit information, and your exact price appears at checkout
2% of bond amount$100 minimumInstantapproval for mostNo credit reviewnot even a soft pull
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
How it works

Three steps. One sitting.

No underwriting queue for the standard sales tax bond — enter your amount, pay, and file with the Department of Revenue. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount the Department set, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

Most applications approve instantly — the executed bond is generated as soon as you pay.

SAME DAY

File with the Department of Revenue

Submit the executed bond to satisfy the Department of Revenue. Wet-ink originals mailed whenever the state insists on them.

About this bond

What it is and who needs it.

What the sales tax bond actually covers

Iowa administers sales and use tax through the Department of Revenue under Iowa Code chapter 423. Most permit holders never post a bond — but Iowa Code 423.35 lets the director require one to secure the payment of any tax, interest, or penalties due or that may become due.

A bond is typically required when a permit holder has a history of late filing, unremitted tax, or otherwise looks like a collection risk. The Department fixes the amount — there is no single statutory figure — and in lieu of a surety bond, the statute also accepts cash, securities, or a certificate of deposit.

The bond stands behind the sales tax you collect and owe — if you fail to remit, the State can recover against it. We issue the amount the Department set; pricing is 2% of the bond amount, $100 minimum, and the application collects no credit information. (The Department does not accept bonds under $100.)

Iowa Code 423.35 (Posting of bond to secure payment)Iowa Code 423.35 authorizes the director of the Department of Revenue to require a person subject to sales or use tax to file a surety bond, in an amount the director may fix, to secure payment of any tax, interest, or penalties due or that may become due. In lieu of a bond, cash, approved securities, or a certificate of deposit may be deposited. The Department does not accept bonds for less than $100. Confirm the amount on your Department notice.

You need this bond if you are

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A sales-tax permit holder the Department of Revenue has asked to post a financial guarantee
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Reinstating a permit after a late filing or unremitted tax triggered a bond requirement
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A new or out-of-state seller the Department wants bonded before issuing a permit
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A higher-risk account the director has fixed a bond amount for under 423.35

One application, issued on the spot.

Submit the application with the bond amount the Department of Revenue set — the executed bond is generated instantly, ready to file.

Start the application →
FAQ

Common questions.

How much is the Iowa sales tax bond?The premium is 2% of the bond amount the Department of Revenue set (there is no single statutory figure), $100 minimum. Enter the figure on your notice and apply to see your exact price.
Do I always need this bond?No. Most sales-tax permit holders never post a bond. The Department of Revenue requires one mainly after a late filing, unremitted tax, or an account review that indicates a financial guarantee is warranted.
Is there a credit check?The application collects no credit information, and most applications approve instantly.
Can I post cash instead?Yes. Iowa Code 423.35 lets you deposit cash, approved securities, or a certificate of deposit in lieu of a surety bond. A surety bond is usually cheapest — you pay the premium rather than tying up the full amount with the State.
Where do I file it?With the Iowa Department of Revenue, against your sales-tax permit. We issue the executed bond ready to submit in the amount the Department set.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
Related bonds

Other Iowa bonds.

Sales tax bond, from $100.

Pricing from $100, your exact price appears at checkout. Enter the amount the Department set and file the same day.

Your premiumfrom $100
Apply now →