What is the Iowa Cigarette, Tobacco, or Delivery Seller Bond?
The Iowa Cigarette, Tobacco, or Delivery Seller bond is a government-required surety bond for distributors, wholesalers, warehousers, and retailers of tobacco products within the state of Iowa. This bond ensures that businesses that operate in the tobacco industry pay all taxes in full as required by the Iowa Department of Revenue.
Who needs a Cigarette, Tobacco, or Delivery Seller Bond in Iowa?
Several different businesses must have this surety bond as a licensing requirement. For the most part, you will need this bond if you operate as a manufacturer, distributor, wholesaler, or retailer of cigarettes and tobacco products. Not sure what bond amount you need? The cigarette permit, tobacco tax license, or delivery seller permit application lists each license type and their required bond amounts.
How much does this bond cost?
Fortunately, this bond does not require a credit check or additional financial information. If you have a required bond amount of $5,000 or less, you can purchase this bond directly through our website for $100.
Bond details
As mentioned before, the bond amount you’ll need depends on the type of license you have. On the low end, tobacco distributors and delivery sellers each have a required bond amount of $1,000. Cigarette manufacturers have the highest required bond amount of $5,000. Find your required bond amount here.
As for the bond term dates, they run concurrently with the dates of the permit. So both the permit and the surety bond are effective from July 1st to June 30th of the following year. You will need to renew your bond for every year you have your permit.
Obligee information
The obligee is the entity that requires you to have a surety bond. For this bond, the obligee is the Iowa Department of Revenue. We’ve listed their contact info below.
Compliance Services
Tax Management Division
Iowa Department of Revenue
PO Box 10472
Des Moines IA 50306-0472
Phone: 515-281-6134
Email: IDRCigarette@iowa.gov
How to get your bond
At EZ Surety, we make surety bonding quick and easy. Once you know your required bond amount, simply fill out the form on our website. You’ll be able to get the Iowa Cigarette, Tobacco, or Delivery Seller Bond directly through our website, with no need for a credit check. If you ever have any questions, contact our surety experts at info@ezsuretybonds.com or call us at 1-866-546-4605. You can also find answers on our extensive FAQ page.
Frequently asked questions
What is a tobacco distributor?
Tobacco distributors are government-monitored and regulated businesses that partner with retailers to sell tobacco products. Most states have a licensing requirement for tobacco distributors, which may require a surety bond to ensure distributors adhere to licensing regulations and pay necessary taxes.
How do I get a tobacco license in Iowa?
To sell tobacco and nicotine in Iowa, you must complete the tobacco retailer permit application (form 70-014) and pay the permit fee. The permit fee ranges from $12 to $100 depending on the location of your business and the month your permit is issued. You may also need to complete form 70-015 and obtain a surety bond if you make delivery sales of alternative nicotine or vapor products. You can find forms 70-014 and 70-015 here. Search by keyword using the form number or search by the cigarette and tobacco tax type.
What do I do once I’ve purchased my surety bond?
Once you’ve bought your bond, we will mail the original out to you. When you get the original in the mail, you’ll be able to forward it to the obligee. Most obligees require the original hard copy document as opposed to an electronic version. Always check the requirements for your specific bond.
