1. a. A tax is imposed upon all tobacco products in this state and upon any person engaged in business as a distributor of tobacco products, at the rate of twenty-two percent of the wholesale sales price of the tobacco products, except little cigars and snuff as defined in section 453A.42.

 b. In addition to the tax imposed under paragraph “a”, a tax is imposed upon all tobacco products in this state and upon any person engaged in business as a distributor of tobacco products, at the rate of twenty-eight percent of the wholesale sales price of the tobacco products, except little cigars and snuff as defined in section 453A.42.
 c. Notwithstanding the rate of tax imposed pursuant to paragraphs “a” and “b”, if the tobacco product is a cigar, the total amount of the tax imposed pursuant to paragraphs “a” and “b” combined shall not exceed fifty cents per cigar.
 d. Little cigars shall be subject to the same rate of tax imposed upon cigarettes in section 453A.6, payable at the time and in the manner provided in section 453A.6; and stamps shall be affixed as provided in subchapter I of this chapter. Snuff shall be subject to the tax as provided in subsections 3 and 4.
 e. The taxes on tobacco products, excluding little cigars and snuff, shall be imposed at the time the distributor does any of the following:

 (1) Brings, or causes to be brought, into this state from outside the state tobacco products for sale.
 (2) Makes, manufactures, or fabricates tobacco products in this state for sale in this state.
 (3) Ships or transports tobacco products to retailers in this state, to be sold by those retailers.
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Terms Used In Iowa Code 453A.43

  • Business: means any trade, occupation, activity, or enterprise engaged in for the purpose of selling or distributing tobacco products in this state. See Iowa Code 453A.42
  • Consumer: means any person who has title to or possession of tobacco products in storage, for use or other consumption in this state. See Iowa Code 453A.42
  • Distributor: means any and each of the following:
     a. See Iowa Code 453A.42
  • Distributor: shall mean and include every person in this state who manufactures or produces cigarettes or who ships, transports, or imports into this state or in any manner acquires or possesses cigarettes without stamps affixed for the purpose of making a "first sale" of the same within the state. See Iowa Code 453A.1
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • Manufacturer: means a person who manufactures and sells tobacco products. See Iowa Code 453A.42
  • Manufacturer: shall mean and include every person who ships cigarettes into this state from outside the state. See Iowa Code 453A.1
  • Person: means any individual, firm, association, partnership, joint stock company, joint adventure, corporation, trustee, agency, or receiver, or any legal representative of any of the foregoing. See Iowa Code 453A.42
  • Person: shall mean and include every individual, firm, association, joint stock company, syndicate, partnership, corporation, trustee, agency or receiver, or respective legal representative. See Iowa Code 453A.1
  • Sale: means any transfer, exchange, or barter, in any manner or by any means whatsoever, for a consideration, and includes and means all sales made by any person. See Iowa Code 453A.42
  • Snuff: means any finely cut, ground, or powdered tobacco that is not intended to be smoked. See Iowa Code 453A.42
  • Stamps: means the stamp or stamps printed, manufactured or made by authority of the director and issued, sold or circulated by the department and by the use of which the tax levied is paid. See Iowa Code 453A.1
  • state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
  • Storage: means any keeping or retention of tobacco products for use or consumption in this state. See Iowa Code 453A.42
  • Tobacco products: means cigars; little cigars as defined herein; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; cavendish; plug and twist tobacco; fine-cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but shall not include cigarettes as defined in section 453A. See Iowa Code 453A.42
  • Tobacco products: means cigars; little cigars as defined in section 453A. See Iowa Code 453A.1
  • United States: includes all the states. See Iowa Code 4.1
  • Use: means the exercise of any right or power incidental to the ownership of tobacco products. See Iowa Code 453A.42
  • Wholesale sales price: means the established price for which a manufacturer sells a tobacco product to a distributor, exclusive of any discount or other reduction. See Iowa Code 453A.42
 2. a. A tax is imposed upon the use or storage by consumers of tobacco products in this state, and upon the consumers, at the rate of twenty-two percent of the cost of the tobacco products.

 b. In addition to the tax imposed in paragraph “a”, a tax is imposed upon the use or storage by consumers of tobacco products in this state, and upon the consumers, at a rate of twenty-eight percent of the cost of the tobacco products.
 c. Notwithstanding the rate of tax imposed pursuant to paragraphs “a” and “b”, if the tobacco product is a cigar, the total amount of the tax imposed pursuant to paragraphs “a” and “b” combined shall not exceed fifty cents per cigar.
 d. The taxes imposed by this subsection shall not apply if the taxes imposed by subsection 1 on the tobacco products have been paid.
 e. The taxes imposed under this subsection shall not apply to the use or storage of tobacco products in quantities of:

 (1) Less than twenty-five cigars.
 (2) Less than one pound smoking or chewing tobacco or other tobacco products not specifically mentioned herein, in the possession of any one consumer.
 3. A tax is imposed upon all snuff in this state and upon any person engaged in business as a distributor of snuff at the rate of one dollar and nineteen cents per ounce, with a proportionate tax at the same rate on all fractional parts of an ounce of snuff. The tax shall be computed based on the net weight listed by the manufacturer. The tax on snuff shall be imposed at the time the distributor does any of the following:

 a. Brings or causes to be brought into this state from outside the state, snuff for sale.
 b. Makes, manufactures, or fabricates snuff in this state for sale in this state.
 c. Ships or transports snuff to retailers in this state, to be sold by those retailers.
 4. a. A tax is imposed upon the use or storage by consumers of snuff in this state, and upon the consumers, at the rate of one dollar and nineteen cents per ounce with a proportionate tax at the same rate on all fractional parts of an ounce of snuff. The tax shall be computed based on the net weight as listed by the manufacturer.

 b. The tax imposed by this subsection shall not apply if the tax imposed by subsection 3 on snuff has been paid.
 c. The tax shall not apply to the use or storage of snuff in quantities of less than ten ounces.
 5. Any tobacco product with respect to which a tax has once been imposed under this subchapter shall not again be subject to tax under this subchapter, except as provided in section 453A.40.
 6. The tax imposed by this section shall not apply with respect to any tobacco product which under the Constitution and laws of the United States may not be made the subject of taxation by this state.
 7. The tax imposed by this section shall be in addition to all other occupation or privilege taxes or license fees now or hereafter imposed by any city or county.
 8. All excise taxes collected under this chapter by a distributor or any individual are deemed to be held in trust for the state of Iowa.
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