A “cigarette vending machine” is any self-service device offered for public use that, upon payment, dispenses cigarettes, including roll-your-own machines that assemble and dispense cigarettes. Despite the name, a “cigarette vending machine” does not have to dispense cigarettes. A “cigarette vending machine” may also dispense tobacco products, alternative nicotine products, and vapor products.
List items for Cigarette Vending Machines
If the same person owns both the cigarette vending machine and the retail location where the machine is placed: That person only needs to have a retail tobacco permit for that retail location.
If the owner of the cigarette vending machine is different from the owner of the retail location: The owner of the retail location must have a retail tobacco permit. The owner of the cigarette vending machine must have a cigarette vendor permit.
A retail tobacco permit allows the sale of cigarettes, tobacco products, alternative nicotine products, and vapor products to consumers at that location. Retail tobacco permit holders may sell products through cigarette vending machines in addition to making over-the-counter sales. When applying for or renewing the permit, the applicant must indicate sales will be made through a cigarette vending machine. The city or county containing the retail location will approve or deny the application. Retail tobacco permits expire on June 30 and must be renewed annually. The retail tobacco permit fee depends on the location of the business and the quarter of the fiscal year (July 1 to June 30) in which the permit is granted:
Location | Jul-Sep | Oct-Dec | Jan-Mar | Apr-Jun |
|---|---|---|---|---|
Outside of city limits | $50.00 | $37.50 | $25.00 | $12.50 |
City of less than 15,000 | $75.00 | $56.25 | $37.50 | $18.75 |
City of 15,000 or more | $100.00 | $75.00 | $50.00 | $25.00 |
A cigarette vendor permit allows the holder to operate cigarette vending machines at one or more retail locations. Every retail location with a cigarette vending machine must be covered by a retail tobacco permit. The vendor’s business name and address must be on all of its machines. If a cigarette vendor permit holder conducts business from multiple locations, excluding the retail locations where the machines are located, the holder must obtain a duplicate permit for each location. The Department will approve or deny the application for a cigarette vendor permit and any duplicates. Cigarette vendor permits and duplicates expire on June 30 and must be renewed annually. The fee for a cigarette vendor permit depends on the quarter of the fiscal year (July 1 to June 30) in which the permit is granted:
Permit Type | Jul-Sep | Oct-Dec | Jan-Mar | Apr-Jun |
|---|---|---|---|---|
Cigarette vendor permit | $100.00 | $75.00 | $50.00 | $25.00 |
Each duplicate | $5.00 | $5.00 | $5.00 | $5.00 |
The cigarette vendor permit also requires a $1,000 bond, which must be signed, dated, and notarized with the notary seal. Upon renewal of the vendor permit, the applicant must resubmit the required bond. The $1,000 bond covers all machines owned by the permit holder.
With rare exceptions, the vending machine operator also needs a sales and use tax permit to collect and remit sales tax. All permits—including retail tobacco permits, cigarette vendor permits, duplicate permits, and sales and use tax permits—must be applied for and renewed electronically through GovConnectIowa. A permit is not valid for use until the application has been approved and the permit has been issued.
With the proper permits, a cigarette vending machine may sell and dispense cigarettes, tobacco products, alternative nicotine products, and vapor products. Cigarettes must be properly stamped or metered, and tax must be paid on all tobacco products. A cigarette vending machine may also dispense matches. Nothing else—including glass and metal devices, as defined in Iowa Code chapter 453E—may be sold or dispensed from a cigarette vending machine.
The cigarette vending machine must be located in a place where the retailer ensures that no person younger than 21 years of age—including employees and contractors working at the location—is present or permitted to enter at any time.
Examples:
- Retailer A actively checks the age of every person entering the location to ensure only persons who are at least 21 years of age enter. Retailer A is properly ensuring that no person younger than 21 is present or permitted to enter at any time.
- Retailer B places signs by the entrance that say “NO MINORS ALLOWED.” Retailer B relies on these signs to exclude persons under 21 and does not otherwise restrict entry to the location Retailer B does not ensure that no person younger than 21 is present or permitted to enter at any time, and Retailer B may be subject to penalties.
- Even if Retailer B checked the age of every person who enters the location, the “NO MINORS ALLOWED” sign may cause problems because it does not specify people must be at least 21 to enter. A sign such as “21 & OLDER ONLY” is preferred in addition to actively checking the age of everyone entering the location.
- Retailer C allows all ages to enter the location during daylight hours but turns off the cigarette vending machine when persons under 21 years of age are present. Retailer C does not ensure that no person younger than 21 is present or permitted to enter at any time, and Retailer C may be subject to penalties.
- Retailer D uses a cigarette vending machine with an ID scanner or other age verification technology to verify the purchaser’s age. Retailer D relies on this age verification technology to ensure purchasers are the proper age and does not otherwise restrict entry to the location. Retailer D does not ensure that no person younger than 21 is present or permitted to enter at any time, and Retailer D may be subject to penalties.
The owner of the cigarette vending machine must keep the following records for the products sold or dispensed from the vending machine:
- Records, including invoices, that show all products purchased.
- Records that show all sales of products.
- Inventory records.
- Records that include the location of all cigarette vending machines owned, furnished, installed, serviced, operated or maintained by the vendor.
If the owner of the cigarette vending machine holds a retail tobacco permit or other permit, the owner must also keep all records required for those permits in addition to records for the vending machine.
The following penalties apply to any violation related to a cigarette vending machine:
- First violation: $300 fine or 14-day permit suspension
- Second violation within two years of the first: $1,500 fine or 30-day permit suspension
- Third violation within three years of the first: $1,500 fine and 30-day permit suspension
- Fourth violation within three years of the first: $1,500 fine and 60-day permit suspension
- Fifth violation within four years of the first: Permit revocation
If anyone suspects a business is violating the law regarding cigarettes, tobacco, alternative nicotine products, or vapor products, they are encouraged to submit a complaint for the Department to review using the path below. The Department will review the complaint and may conduct its own investigation. Members of law enforcement should submit any incident reports and photos with their complaint to assist the Department’s investigation.
To Submit a Complaint:
- Go to GovConnectIowa
- Navigate to the Additional Services panel and select Submit a Complaint about a Business
- Select Report Tobacco Complaint
- Follow the steps to complete the submission process.
Links and Other Information
Cigarettes, tobacco products, alternative nicotine products, and vapor products are highly regulated under local, state, and federal law. Violating these laws may result in civil and criminal penalties. You may want to consult your own experts before selling or distributing any of these items.