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Iowa details retailer permits, delivery rules and restrictions for cigarettes, tobacco, vapor and devices
Summary
The Iowa Department of Revenue explained permit types, age restrictions, vending-machine rules, device excise taxes and fees, and the local role in approving retail tobacco and device permits.
Matt Bishop, Policy Director for Sales and Excise Taxes at the Iowa Department of Revenue, told webinar attendees that retailers must obtain specific permits to sell cigarettes, tobacco, vapor and alternative nicotine products and that local authorities approve many retail tobacco and device permits.
Bishop said retail tobacco permits are required to sell cigarettes, tobacco, vapor or alternative nicotine products at retail. He explained that the state department forwards retail tobacco and device permit applications to the appropriate city or county for approval. “Those permits run from July 1 to June 30 annually,” he said.
Device retailer permits carry a $1,500 annual fee that the department does not prorate or refund; Bishop warned applicants to consider the cost before applying. He noted: “You will also need to collect a 40% excise tax on the sale of devices.” Device returns and remittances are due on the last day of the month following the sale.
The department requires that cigarettes, tobacco and devices not be sold to anyone under 21. Bishop spelled out strict vending‑machine rules: “Cigarette vending machines must be located any place where no person under the age of 21 is allowed to enter at any time.” For devices, retailers must prevent persons under 21 from viewing devices at any time; that can require a 21-and-up store policy or opaque cases so devices are not visible from outside.
Bishop also recommended purchasing cigarettes and tobacco only from approved distributors and to consult the department's online lists of approved brands and distributors. He described delivery seller permits for remote sales of vapor products, alternative nicotine products and devices and a separate device-delivery-seller permit for delivery of devices.
Ending: Bishop advised retailers to review the department’s online resources and notes that local authorities set timelines for reviewing tobacco and device permit applications.
