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Dear Potential Cigarette/Tobacco Distributor:

This cover letter is for the application and surety bond form for an Iowa Cigarette and/or Tobacco

Distributor’s License. The fee for this license is $100.00 per fiscal year, and the surety bond requirement

for this license is $2,500.00. The Tobacco Distributor’s License is free if you hold a valid cigarette permit,

and the surety requirement for this license is $1,000.00.

Cigarette permits and tobacco products licenses are regulated by Chapters 453A and 421B of the Iowa

Code. You must also comply with Chapters 453C and 453D of the Iowa Code.

ONLY APPROVED BRANDS OF CIGARETTES MAY BE SOLD IN IOWA

Any brand not on the list is contraband. The list of approved brands is always current at

Any contraband or non-Iowa tax stamped package is

subject to seizure and penalties under the provisions of the Iowa Code 453A & 453D.

E-mail Notification

You must go online and join the Cigarette/Tobacco eList, and you will receive an e-mail when the directory

of approved brands list changes. Go to Scroll down to Cigarette

and Tobacco Tax, then click on Join/Leave List. All notifications of directory changes and price changes

are sent through the eList service only.

Cigarette Stamps

You must use cigarette tax stamps for the purpose of applying the required cigarette tax. Little cigars are

taxed at the same rate as cigarettes. The current tax rate is $1.36 per pack of 20s and $1.70 per pack of 25s.

Stamps may be ordered from the Department of Revenue or one of the banks acting as an agent for the

Department. Stamps ordered from the Department will be shipped by Fed Ex at the distributor’s risk.

There is no credit for stamp purchases, and there is no way to accept the payment electronically at this time.

For your first two stamp orders, you must use certified funds for your stamp order.

Filing Requirements

You will be required to file monthly cigarette reports to this division, which are due on or before the 10th

day of each month for the preceding month. Tobacco reports are required to be filed on a monthly basis

and are due on or before the 20th day of each month for the preceding month. For tobacco tax, the tax is

due when the report is filed. Tobacco products (except for snuff and cigars) are taxed at 50 percent. Snuff

(moist and dry) products are taxed at $1.19 per ounce. Cigars are taxed at 50 percent or $.50 per cigar,

whichever is lower. The Tobacco Returns on the Web site are in Excel, and the cigar form will figure the

tax for you. I encourage you to keep accurate records of your shipments into Iowa and to file your monthly

reports on time. There is a penalty starting at $200.00 for any late-filed reports.

Letter of Intent from Manufacturers

The Department will need a letter of intent from at least three of the major cigarette manufacturers stating

that they will indeed ship you cigarettes for stamping. If you are planning on buying product from different

manufacturer(s), then we will need a letter of intent from those manufacturer(s).

MAIL ADDRESS: PO BOX 10456

DES MOINES, IOWA 50306-0456

Form 70-015a - Annual Application For Iowa Cigarette Permit/tobacco Tax License - 2010