Topics:

Sales, Use & Excise Tax
Cigarette and Tobacco Tax

During the 2024 legislative session, Iowa enacted Senate File 345. Effective January 1, 2025, Senate File 345 regulates and taxes the sale of devices in Iowa. 

What is a device?

A “device” is any equipment or product, made in whole or in part of glass or metal, that is designed for use in inhaling through combustion tobacco, hemp, other plant materials, or a controlled substance. “Device” does not include a vapor product or a tobacco smoking product made of briar, meerschaum, clay, or corn cob and not having a surface, aperture, or other feature consisting of metal or glass.

What does this mean for:

Important Dates

  • November 12, 2024: The Department made permit applications available electronically for device retailers and delivery sellers on GovConnectIowa. Anyone interested in a device delivery seller permit can prepare by obtaining a sales tax permit, a tobacco retailer permit, and a device retailer permit for their retail location.
  • January 1, 2025: Anyone making retail sales or delivery sales of devices to ultimate consumers in Iowa must hold the appropriate permits, collect device excise taxes and all required information, and ensure no person under 21 years of age can view or access devices. 
  • February 28, 2025: The first device excise tax returns, remittances, and reports are due. 

If you have any questions, please contact the Department.