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1387XD

Cigarette and Tobacco Taxes, Permits, and Reports (1387XD) - Revenue, Department of

2025-2026 Regular Session

Bill 1387XD mandates electronic filing for all tobacco tax-related submissions in Iowa, enhancing efficiency and compliance for distributors, retailers, and local governments.

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Bill Summary · 1387XD

Summary of Bill 1387XD: Cigarette and Tobacco Taxes, Permits, and Reports

Bill Number: 1387XD
Title: Cigarette and Tobacco Taxes, Permits, and Reports
Introduced: November 19, 2025
Status: Proposed Bill
Classification: Revenue, Department of

Purpose and Intent

Bill 1387XD aims to modernize the filing and reporting processes related to cigarette and tobacco taxes in Iowa. The primary intent is to transition from paper-based submissions to an electronic system, thereby enhancing efficiency, accuracy, and compliance in the management of tobacco-related documentation.

Key Provisions

The bill proposes several significant changes to existing regulations under Iowa Code chapters 453A and 453D, including:

  1. Mandatory Electronic Submission:

    • All applications, fees, reports, returns, and remittances related to tobacco taxes must be submitted electronically through the GovConnectIowa portal.
    • A penalty of $50 will be imposed for submissions with no tax due that are not filed electronically.

  2. Tobacco Retailer Permits:

    • Applications for tobacco retailer permits must be submitted electronically to the Department of Revenue rather than on paper.
    • Cities and counties retain the authority to approve these applications and will continue to receive associated permit fees.

  3. Alternative Filing Requests:

    • Entities unable to submit documentation electronically can request permission from the Department’s director to use an alternative filing method.

  4. Changes to Tax Stamp Orders:

    • Orders for cigarette tax stamps and payments must also be submitted electronically.

  5. Permit Expiration and Fees:

    • All permits will expire on June 30 of each year, with specific fees outlined for different types of permits (e.g., $100 for distributors, vendors, and wholesalers).

  6. Bond Requirements:

    • A bond must be filed electronically as a condition for permit issuance, ensuring compliance with tax obligations.

  7. Reporting Requirements:

    • All required reports under this subchapter must be filed electronically.

Impact

The proposed changes will affect:

  • Tobacco Distributors, Wholesalers, and Retailers: They will need to adapt to the new electronic filing requirements, which may involve training and system upgrades.
  • Cities and Counties: Local governments will continue to manage permit approvals but must also transition to electronic processing.
  • Department of Revenue: The department will oversee the implementation of the electronic filing system and manage compliance with the new regulations.

Procedural Aspects

  • The bill was introduced on November 19, 2025, and is currently in the proposed stage.
  • If enacted, the Department of Revenue will be responsible for establishing the necessary electronic systems and guidelines for compliance.

In summary, Bill 1387XD seeks to streamline the regulatory framework surrounding tobacco taxes in Iowa by mandating electronic submissions, thereby improving efficiency and compliance in the industry.

Compiled from official sources — confirm details with the bill’s official record.

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