Bill Text: IA HSB90 | 2025-2026 | 91st General Assembly | Introduced
Bill Title: A bill for an act relating to cigarette and tobacco product regulations including vapor products by requiring the electronic filing of returns and other related matters, and providing penalties.
Spectrum: Committee Bill
Status: (Introduced) 2025-01-28 - Subcommittee: Siegrist, Hermanson and Wilson. H.J. 135. [HSB90 Detail]
Download: Iowa-2025-HSB90-Introduced.html
House
Study
Bill
90
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
REVENUE
BILL)
A
BILL
FOR
An
Act
relating
to
cigarette
and
tobacco
product
regulations
1
including
vapor
products
by
requiring
the
electronic
2
filing
of
returns
and
other
related
matters,
and
providing
3
penalties.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
453A.1,
subsection
27,
Code
2025,
is
1
amended
to
read
as
follows:
2
27.
“State
permit”
shall
mean
and
include
all
permits
issued
3
by
the
department
to
distributors,
wholesalers,
and
retailers
4
under
this
chapter
except
the
permits
issued
to
retailers
5
approved
by
cities
and
counties
pursuant
to
sections
453A.13
6
and
453A.47A
.
7
Sec.
2.
Section
453A.6,
subsection
8,
paragraph
a,
Code
8
2025,
is
amended
to
read
as
follows:
9
a.
Pay
directly
to
the
department,
in
lieu
of
the
tax
10
under
subsection
1
,
a
tax
equal
to
three
and
six
hundredths
11
cents
on
each
cigarette
dispensed
from
such
machine.
Payments
12
made
under
this
paragraph
shall
be
remitted
to
the
department
13
electronically.
14
Sec.
3.
Section
453A.8,
subsection
2,
Code
2025,
is
amended
15
to
read
as
follows:
16
2.
Orders
for
cigarette
tax
stamps,
including
the
payment
17
for
such
stamps,
shall
be
sent
direct
made
to
the
department
18
electronically
on
a
form
to
be
prescribed
by
the
director,
19
except
as
provided
in
subsection
6
.
20
Sec.
4.
Section
453A.13,
subsection
2,
paragraph
a,
Code
21
2025,
is
amended
to
read
as
follows:
22
a.
The
department
shall
issue
state
permits
to
distributors,
23
wholesalers,
and
cigarette
vendors,
and
retailers
that
24
make
delivery
sales
of
alternative
nicotine
products
and
25
vapor
products,
subject
to
the
conditions
provided
in
this
26
subchapter
.
If
an
out-of-state
retailer
makes
delivery
27
sales
of
alternative
nicotine
products
or
vapor
products,
an
28
application
shall
be
filed
with
the
department
electronically
29
and
a
permit
shall
be
issued
for
the
out-of-state
retailer’s
30
principal
place
of
business.
Cities
may
issue
approve
retail
31
permits
to
retailers
permit
applications
for
applicants
with
32
a
place
of
business
located
within
their
respective
limits.
33
County
boards
of
supervisors
may
issue
approve
retail
permits
34
to
retailers
permit
applications
for
applicants
with
a
place
of
35
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business
in
their
respective
counties,
outside
of
the
corporate
1
limits
of
cities.
Upon
approval
of
a
retail
permit
application
2
by
a
city
or
county,
the
department
shall
issue
the
permit
to
3
the
applicant
on
behalf
of
the
city
or
county,
in
the
manner
4
determined
by
the
department.
A
city
or
county
shall
use
the
5
electronic
portal
of
the
department
to
process
retail
permit
6
applications.
A
city
or
county
that
is
unable
to
use
the
7
electronic
portal
of
the
department
may
request
permission
from
8
the
director
to
process
retail
applications
by
another
method.
9
Sec.
5.
Section
453A.13,
subsection
2,
paragraph
c,
Code
10
2025,
is
amended
to
read
as
follows:
11
c.
A
city
or
county
shall
submit
a
duplicate
of
any
12
application
for
a
retail
permit
to
the
department
within
thirty
13
days
of
the
issuance.
The
department
shall
submit
the
current
14
list
of
all
retail
permits
issued
to
the
department
of
health
15
and
human
services
by
the
last
day
of
each
quarter
of
a
state
16
fiscal
year.
17
Sec.
6.
Section
453A.13,
subsection
3,
paragraph
a,
Code
18
2025,
is
amended
to
read
as
follows:
19
a.
All
permits
provided
for
in
this
subchapter
shall
expire
20
on
June
30
of
each
year.
A
permit
shall
not
be
granted
or
21
issued
until
the
applicant
has
paid
the
fees
to
the
department
22
required
in
this
subchapter
for
the
next
period
ending
on
June
23
30
next,
to
the
department
or
the
city
or
county
granting
the
24
permit,
the
fees
provided
for
in
this
subchapter
.
The
annual
25
state
permit
fee
for
a
distributor,
cigarette
vendor,
and
26
wholesaler
is
one
hundred
dollars
when
the
permit
is
granted
27
during
the
months
of
July,
August,
or
September.
However,
28
whenever
a
state
permit
holder
operates
more
than
one
place
of
29
business,
a
duplicate
state
permit
shall
be
issued
for
each
30
additional
place
of
business
on
payment
of
five
dollars
for
31
each
duplicate
state
permit,
but
refunds
as
provided
in
this
32
subchapter
do
not
apply
to
any
duplicate
permit
issued.
33
Sec.
7.
Section
453A.13,
subsection
5,
unnumbered
paragraph
34
1,
Code
2025,
is
amended
to
read
as
follows:
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Permits
shall
be
issued
only
upon
applications
accompanied
1
by
the
fee
indicated
above,
and
by
an
adequate
bond
as
provided
2
in
section
453A.14
,
and
upon
forms
furnished
by
the
department
3
upon
written
request
.
The
failure
to
furnish
such
forms
shall
4
be
no
excuse
for
the
failure
to
file
the
forms
unless
absolute
5
refusal
is
shown.
Applications,
any
supporting
documentation,
6
and
the
associated
fees
required
by
this
section
shall
be
7
submitted
to
the
department
electronically.
The
forms
shall
8
set
forth
all
of
the
following:
9
Sec.
8.
Section
453A.13,
subsection
9,
unnumbered
paragraph
10
1,
Code
2025,
is
amended
to
read
as
follows:
11
Each
permit
issued
shall
describe
clearly
the
place
of
12
business
for
which
it
is
issued,
shall
be
nonassignable,
13
consecutively
numbered,
designating
the
kind
of
permit,
and
14
shall
authorize
the
sale
of
cigarettes,
alternative
nicotine
15
products,
or
vapor
products
in
this
state
subject
to
the
16
limitations
and
restrictions
herein
contained.
The
retail
17
permits
shall
be
upon
forms
furnished
by
the
department
or
on
18
forms
made
available
or
approved
by
the
department
.
19
Sec.
9.
Section
453A.14,
subsection
1,
unnumbered
paragraph
20
1,
Code
2025,
is
amended
to
read
as
follows:
21
No
A
state
or
manufacturer’s
permit
shall
not
be
issued
until
22
the
applicant
files
a
bond,
with
good
and
sufficient
surety,
23
to
be
approved
by
the
director,
which
bond
shall
be
in
favor
of
24
the
state
and
conditioned
upon
the
payment
of
taxes,
damages,
25
fines,
penalties,
and
costs
adjudged
against
the
permit
holder
26
for
violation
of
any
of
the
provisions
of
this
subchapter
.
The
27
bonds
shall
be
on
forms
prescribed
by
the
director
and
shall
be
28
filed
electronically.
A
bond
filed
under
this
section
shall
be
29
in
one
of
the
following
amounts:
30
Sec.
10.
Section
453A.14,
subsection
2,
Code
2025,
is
31
amended
to
read
as
follows:
32
2.
A
person
shall
not
engage
in
interstate
business
unless
33
the
person
files
a
bond,
with
good
and
sufficient
surety
in
an
34
amount
of
not
less
than
one
thousand
dollars.
A
bond
required
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by
this
subsection
shall
be
on
forms
prescribed
by
the
director
1
and
shall
be
filed
electronically.
The
amount
of
the
bond
2
required
of
the
person
shall
be
fixed
by
the
director,
subject
3
to
the
minimum
limitation
provided
in
this
section
.
The
bond
4
is
subject
to
approval
by
the
director
and
shall
be
payable
to
5
the
state
in
Des
Moines,
Polk
county,
and
conditioned
upon
the
6
payment
of
taxes,
damages,
fines,
penalties,
and
costs
adjudged
7
against
the
person
for
violation
of
any
of
the
requirements
of
8
this
subchapter
affecting
the
person,
on
a
form
prescribed
by
9
the
director.
10
Sec.
11.
Section
453A.15,
subsection
7,
Code
2025,
is
11
amended
to
read
as
follows:
12
7.
The
director
may
require
by
rule
that
Any
reports
13
required
to
be
made
under
this
subchapter
shall
be
filed
by
14
electronic
transmission
electronically
.
15
Sec.
12.
Section
453A.16,
Code
2025,
is
amended
to
read
as
16
follows:
17
453A.16
Manufacturer’s
permit.
18
The
department
may,
upon
application
of
any
manufacturer,
19
issue
without
charge
to
the
manufacturer
a
manufacturer’s
20
permit.
The
application
shall
contain
information
as
21
the
director
shall
prescribe
and
the
application
shall
be
22
submitted
to
the
department
electronically
.
The
holder
of
a
23
manufacturer’s
permit
is
authorized
to
purchase
stamps
from
24
the
department,
and
must
affix
stamps
to
individual
packages
25
of
cigarettes
outside
of
this
state,
prior
to
their
shipment
26
into
the
state
unless
the
cigarettes
are
shipped
to
an
Iowa
27
permitted
distributor
or
an
Iowa
permitted
distributor’s
agent.
28
Sec.
13.
Section
453A.17,
subsection
1,
Code
2025,
is
29
amended
to
read
as
follows:
30
1.
Every
distributing
agent
in
the
state,
now
engaged,
31
or
who
desires
to
become
engaged,
in
the
business
of
storing
32
unstamped
cigarettes
which
are
received
in
interstate
commerce
33
for
distribution
or
delivery
only
upon
order
received
from
34
without
the
state
or
to
be
sold
outside
the
state,
shall
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file
with
the
department
electronically
,
an
application
for
1
a
distributing
agent’s
permit,
on
a
form
prescribed
by
the
2
director
,
to
be
furnished
upon
written
request
.
The
failure
3
to
furnish
shall
be
no
excuse
for
the
failure
to
file
the
same
4
unless
an
absolute
refusal
is
shown.
Said
form
shall
set
5
forth
the
name
under
which
such
distributing
agent
transacts
6
or
intends
to
transact
such
business
as
a
distributing
agent,
7
the
principal
office
and
place
of
business
in
Iowa
to
which
8
the
permit
is
to
apply,
and
if
other
than
an
individual,
the
9
principal
officers
or
members
thereof
and
their
addresses.
The
10
director
may
require
any
other
information
in
said
application.
11
No
distributing
agent
shall
engage
in
such
business
until
12
such
application
has
been
filed
and
fee
in
the
sum
of
one
13
hundred
dollars
paid
for
the
permit
and
until
the
permit
has
14
been
obtained.
Such
permit
shall
expire
on
June
30
following
15
the
date
of
issuance.
All
of
the
provisions
of
the
last
16
two
paragraphs
of
section
453A.14
,
relative
to
bonds,
are
17
incorporated
herein
and
by
this
reference
made
applicable
to
18
distributing
agents.
Upon
failure
to
furnish
adequate
bond
19
as
required,
the
permit
shall
be
revoked
without
hearing.
An
20
application
shall
be
filed
and
a
permit
obtained
for
each
place
21
of
business
owned
or
operated
by
a
distributing
agent.
22
Sec.
14.
Section
453A.18,
Code
2025,
is
amended
to
read
as
23
follows:
24
453A.18
Forms
for
records
and
reports.
25
The
department
shall
furnish
or
make
available
in
electronic
26
form,
without
charge,
to
holders
of
the
various
permits,
forms
27
in
sufficient
quantities
to
enable
permit
holders
to
make
the
28
reports
required
to
be
made
under
this
subchapter
.
The
permit
29
holders
shall
furnish
at
their
own
expense
the
books,
records,
30
and
invoices,
required
to
be
used
and
kept,
but
the
books,
31
records,
and
invoices
shall
be
in
exact
conformity
to
the
forms
32
prescribed
for
that
purpose
by
the
director,
and
shall
be
kept
33
and
used
in
the
manner
prescribed
by
the
director.
However,
34
the
director
may,
by
express
order
in
certain
cases,
authorize
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permit
holders
to
keep
their
records
in
a
manner
and
upon
forms
1
other
than
those
prescribed.
The
authorization
may
be
revoked
2
at
any
time.
A
report,
book,
record,
invoice,
and
any
other
3
document
required
to
be
submitted
to
the
department
under
this
4
subchapter
shall
be
submitted
electronically.
5
Sec.
15.
Section
453A.23,
subsections
1
and
2,
Code
2025,
6
are
amended
to
read
as
follows:
7
1.
Subject
to
this
subchapter
,
a
retailer’s
permit
may
be
8
issued
by
the
department
to
any
dining
car
company,
sleeping
9
car
company,
railroad
or
railway
company.
The
permit
shall
10
authorize
the
holder
to
keep
for
sale,
and
sell,
cigarettes
11
at
retail
on
any
dining
car,
sleeping
car,
or
passenger
car
12
operated
by
the
applicant
in,
through,
or
across
the
state
of
13
Iowa,
subject
to
all
of
the
restrictions
imposed
upon
retailers
14
under
this
subchapter
.
The
application
for
the
permit
shall
15
be
in
the
form
and
contain
the
information
required
by
the
16
director
and
each
application
submitted
under
this
section
17
shall
be
submitted
to
the
department
electronically
.
Each
18
permit
is
good
throughout
the
state.
Only
one
permit
is
19
required
for
all
cars
operated
in
this
state
by
the
applicant,
20
but
a
duplicate
of
the
permit
shall
be
posted
in
each
car
21
in
which
cigarettes
are
sold
and
no
further
permit
shall
be
22
required
or
tax
levied
for
the
privilege
of
selling
cigarettes
23
in
the
cars.
No
cigarettes
Cigarettes
shall
not
be
sold
in
24
the
cars
without
having
affixed
thereto
stamps
evidencing
the
25
payment
of
the
tax
as
provided
in
this
subchapter
.
26
2.
As
a
condition
precedent
to
the
issuing
of
a
retailer’s
27
permit
for
railway
car,
the
applicant
shall
file
with
the
28
department
a
bond
in
favor
of
the
state
for
the
benefit
of
29
all
parties
interested
in
the
amount
of
five
hundred
dollars
30
conditioned
upon
the
payment
of
all
taxes,
fines
and
penalties
31
and
costs
in
this
subchapter
.
A
bond
filed
under
this
32
subsection
shall
be
on
a
form
prescribed
by
the
director
and
33
shall
be
filed
electronically.
34
Sec.
16.
Section
453A.24,
subsection
2,
Code
2025,
is
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amended
to
read
as
follows:
1
2.
The
director
may
require
by
rule
that
common
carriers
2
or
the
appropriate
persons
provide
monthly
reports
to
the
3
department
detailing
all
information
the
department
deems
4
necessary
on
shipments
into
and
out
of
Iowa
of
cigarettes
5
and
tobacco
products
as
set
forth
in
this
subchapter
I
and
6
subchapter
II
of
this
chapter
.
The
director
may
require
by
7
rule
that
the
reports
A
report
required
to
be
submitted
by
the
8
director
pursuant
to
this
section
shall
be
filed
by
electronic
9
transmission
electronically
.
10
Sec.
17.
Section
453A.28,
subsection
1,
paragraph
a,
Code
11
2025,
is
amended
to
read
as
follows:
12
a.
(1)
If
after
any
audit,
examination
of
records,
or
13
other
investigation
the
department
finds
that
any
person
has
14
sold
cigarettes
without
stamps
affixed
or
that
any
person
15
responsible
for
paying
the
tax
has
not
done
so
as
required
by
16
this
subchapter
,
the
department
shall
fix
and
determine
the
17
amount
of
tax
due,
and
shall
assess
the
tax
against
the
person,
18
together
with
a
penalty
as
provided
in
section
421.27
.
19
(2)
The
taxpayer
shall
pay
interest
on
the
tax
or
additional
20
tax
at
the
rate
determined
under
section
421.7
counting
each
21
fraction
of
a
month
as
an
entire
month,
computed
from
the
date
22
the
tax
was
due.
If
any
person
fails
to
furnish
evidence
23
satisfactory
to
the
director
showing
purchases
of
sufficient
24
stamps
to
stamp
unstamped
cigarettes
purchased
by
the
person,
25
the
presumption
shall
be
that
the
cigarettes
were
sold
without
26
the
proper
stamps
affixed.
Within
three
years
after
the
report
27
is
filed
or
within
three
years
after
the
report
became
due,
28
whichever
is
later,
the
department
shall
examine
the
report
29
and
determine
the
correct
amount
of
tax.
The
period
for
30
examination
and
determination
of
the
correct
amount
of
tax
is
31
unlimited
in
the
case
of
a
false
or
fraudulent
report
made
32
with
the
intent
to
evade
tax,
or
in
the
case
of
a
failure
to
33
file
a
report,
or
if
a
person
purchases
or
is
in
possession
of
34
unstamped
cigarettes.
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(3)
For
purposes
of
imposing
penalties
under
this
section
1
and
section
421.27,
a
person
who
fails
to
timely
file
or
submit
2
a
required
return,
report,
or
other
documentation
upon
which
no
3
tax
is
shown
due
is
subject
to
a
penalty
in
the
amount
of
fifty
4
dollars
for
each
occurrence.
5
Sec.
18.
Section
453A.28,
subsection
1,
Code
2025,
is
6
amended
by
adding
the
following
new
paragraph:
7
NEW
PARAGRAPH
.
c.
For
purposes
of
this
section
and
section
8
421.27,
any
application,
bond,
fee,
report,
return,
remittance,
9
or
other
documentation
required
to
be
submitted
electronically
10
under
this
subchapter
that
is
filed
in
a
manner
other
than
in
11
an
electronic
format
specified
by
the
department
shall
not
be
12
considered
a
valid
submission
unless
the
director
has
permitted
13
submission
of
such
application,
bond,
fee,
report,
return,
14
remittance,
or
other
documentation
through
an
alternative
15
method
pursuant
to
section
453A.57.
16
Sec.
19.
Section
453A.35,
subsection
1,
paragraph
a,
Code
17
2025,
is
amended
to
read
as
follows:
18
a.
With
the
exception
of
revenues
credited
to
the
health
19
care
trust
fund
pursuant
to
paragraph
“b”
,
the
proceeds
derived
20
from
the
sale
of
stamps
and
the
payment
of
fees
and
penalties
21
provided
for
under
this
chapter
,
and
the
permit
fees
received
22
from
all
state
permits
issued
by
the
department,
shall
be
23
credited
to
the
general
fund
of
the
state.
24
Sec.
20.
Section
453A.35,
subsection
2,
Code
2025,
is
25
amended
to
read
as
follows:
26
2.
All
permit
fees
provided
for
in
this
chapter
and
27
collected
by
the
department
on
behalf
of
cities
in
the
issuance
28
of
permits
granted
by
the
cities
shall
be
paid
remitted
by
29
the
department
to
the
treasurer
of
the
city
where
the
permit
30
is
effective,
or
to
another
city
officer
as
designated
by
the
31
council,
and
shall
be
credited
to
the
general
fund
of
the
32
city.
Permit
fees
so
collected
by
the
department
on
behalf
of
33
counties
shall
be
paid
remitted
to
the
county
treasurer
of
the
34
county
where
the
permit
is
effective
.
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Sec.
21.
Section
453A.39,
subsection
2,
paragraph
a,
Code
1
2025,
is
amended
to
read
as
follows:
2
a.
All
cigarette
samples
shall
be
shipped
only
to
a
3
distributor
that
has
a
permit
to
stamp
cigarettes
or
little
4
cigars
with
Iowa
tax.
All
cigarette
samples
must
have
a
5
cigarette
stamp.
The
manufacturer
shipping
samples
under
this
6
section
shall
send
an
affidavit
to
the
director
stating
the
7
shipment
information,
including
the
date
shipped,
quantity,
and
8
to
whom
the
samples
were
shipped.
The
distributor
receiving
9
the
shipment
shall
send
an
affidavit
to
the
director
stating
10
the
shipment
information,
including
the
date
shipped,
quantity,
11
and
from
whom
the
samples
were
shipped.
These
affidavits
shall
12
be
duly
notarized
and
submitted
to
the
director
at
the
time
of
13
shipment
and
receipt
of
the
samples.
The
distributor
shall
14
pay
the
tax
on
samples
by
separate
remittance
along
with
the
15
affidavit.
The
affidavit
and
remittance
required
under
this
16
paragraph
shall
be
submitted
to
the
department
electronically.
17
Sec.
22.
Section
453A.40,
subsection
2,
Code
2025,
is
18
amended
to
read
as
follows:
19
2.
Persons
subject
to
the
inventory
tax
imposed
under
this
20
section
shall
take
an
inventory
as
of
the
close
of
the
business
21
day
next
preceding
the
effective
date
of
the
increased
tax
rate
22
of
those
items
subject
to
the
inventory
tax
for
the
purpose
of
23
determining
the
tax
due.
These
persons
shall
report
the
tax
24
on
forms
provided
by
the
department
of
revenue
and
remit
the
25
tax
due
within
thirty
days
of
the
prescribed
inventory
date.
26
The
report
and
remittance
required
under
this
subsection
shall
27
be
submitted
to
the
department
electronically.
The
department
28
of
revenue
shall
adopt
rules
as
are
necessary
to
carry
out
this
29
section
.
30
Sec.
23.
Section
453A.45,
subsection
5,
paragraphs
b,
c,
and
31
d,
Code
2025,
are
amended
to
read
as
follows:
32
b.
The
report
shall
be
made
on
forms
provided
by
the
33
director.
The
director
may
require
by
rule
that
the
A
report
34
required
under
this
subsection
shall
be
filed
by
electronic
35
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transmission
electronically
.
A
report
required
to
be
submitted
1
electronically
under
this
subsection
that
is
filed
in
a
manner
2
other
than
in
an
electronic
format
specified
by
the
department
3
shall
not
be
considered
a
valid
submission
unless
the
director
4
has
permitted
the
submission
of
such
a
report
through
an
5
alternative
method
pursuant
to
section
453A.57.
6
c.
Common
carriers
transporting
tobacco
products
into
7
this
state
shall
file
with
the
director
reports
of
all
such
8
shipments
other
than
those
which
are
delivered
to
public
9
warehouses
of
first
destination
in
this
state
which
are
10
licensed
under
the
provisions
of
chapter
554
.
Such
reports
11
shall
be
filed
electronically
with
the
department
on
or
before
12
the
tenth
day
of
each
month
and
shall
show
with
respect
to
13
deliveries
made
in
the
preceding
month
all
of
the
following:
14
(1)
The
date.
15
(2)
The
point
of
origin.
16
(3)
The
point
of
delivery.
17
(4)
The
name
of
the
consignee.
18
(5)
A
description
and
the
quantity
of
tobacco
products
19
delivered.
20
(6)
Such
other
information
as
the
director
may
require.
21
d.
Any
person
who
fails
or
refuses
to
transmit
to
the
22
director
the
required
reports
or
whoever
refuses
to
permit
the
23
examination
of
the
records
by
the
director
shall
be
guilty
24
of
a
serious
misdemeanor.
In
addition,
any
person
who
fails
25
to
timely
submit
a
report
required
under
this
section
is
26
subject
to
a
penalty
in
the
amount
of
fifty
dollars
for
each
27
occurrence.
28
Sec.
24.
Section
453A.46,
subsection
1,
paragraph
a,
29
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
30
(1)
On
or
before
the
twentieth
day
of
each
calendar
month
31
every
distributor
with
a
place
of
business
in
this
state
shall
32
file
a
return
with
the
director
showing
for
the
preceding
33
calendar
month
the
quantity
and
wholesale
sales
price
of
each
34
tobacco
product
brought,
or
caused
to
be
brought,
into
this
35
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state
for
sale;
made,
manufactured,
or
fabricated
in
this
state
1
for
sale
in
this
state;
and
any
other
information
the
director
2
may
require.
Every
licensed
distributor
outside
this
state
3
shall
in
like
manner
file
a
return
with
the
director
showing
4
for
the
preceding
calendar
month
the
quantity
and
wholesale
5
sales
price
of
each
tobacco
product
shipped
or
transported
to
6
retailers
in
this
state
to
be
sold
by
those
retailers
and
any
7
other
information
the
director
may
require.
Returns
shall
8
be
made
upon
forms
furnished
or
made
available
in
electronic
9
form
and
prescribed
by
the
director
and
shall
contain
other
10
information
as
the
director
may
require.
Each
return
shall
be
11
accompanied
by
a
remittance
for
the
full
tax
liability
shown
12
on
the
return,
less
a
discount
as
fixed
by
the
director
not
to
13
exceed
five
percent
of
the
tax.
Within
three
years
after
the
14
return
is
filed
or
within
three
years
after
the
return
became
15
due,
whichever
is
later,
the
department
shall
examine
it,
16
determine
the
correct
amount
of
tax,
and
assess
the
tax
against
17
the
taxpayer
for
any
deficiency.
The
period
for
examination
18
and
determination
of
the
correct
amount
of
tax
is
unlimited
in
19
the
case
of
a
false
or
fraudulent
return
made
with
the
intent
20
to
evade
tax,
or
in
the
case
of
a
failure
to
file
a
return.
21
Sec.
25.
Section
453A.46,
subsection
3,
Code
2025,
is
22
amended
to
read
as
follows:
23
3.
In
addition
to
the
tax
or
additional
tax,
the
taxpayer
24
shall
also
pay
a
penalty
as
provided
in
section
421.27
and
be
25
subject
to
the
civil
penalties
set
forth
in
sections
421.27
;
26
453A.31,
subsection
1
,
paragraph
“b”
;
and
453A.50,
subsection
27
3
,
as
applicable.
For
purposes
of
imposing
penalties
under
28
this
section
and
section
421.27,
a
person
who
fails
to
29
timely
file
or
submit
a
required
return,
report,
or
other
30
documentation
upon
which
no
tax
is
shown
due
is
subject
to
a
31
penalty
in
the
amount
of
fifty
dollars
for
each
occurrence.
32
Sec.
26.
Section
453A.46,
subsection
7,
Code
2025,
is
33
amended
by
striking
the
subsection
and
inserting
in
lieu
34
thereof
the
following:
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7.
A
report,
return,
remittance,
or
other
documentation
1
required
to
be
submitted
under
this
subchapter
shall
be
filed
2
electronically.
Any
report,
return,
remittance,
or
other
3
documentation
required
to
be
submitted
electronically
that
4
is
submitted
in
a
manner
other
than
in
an
electronic
format
5
specified
by
the
department
shall
not
be
considered
a
valid
6
submission
unless
the
director
has
permitted
submission
of
such
7
application,
bond,
fee,
report,
return,
remittance,
or
other
8
documentation
through
an
alternative
method
pursuant
to
section
9
453A.57.
10
Sec.
27.
Section
453A.47A,
subsection
6,
Code
2025,
is
11
amended
to
read
as
follows:
12
6.
Issuance.
Cities
may
issue
approve
retail
permits
to
13
retailers
permit
applications
of
applicants
located
within
14
their
respective
limits.
County
boards
of
supervisors
may
15
issue
approve
retail
permits
to
retailers
permit
applications
16
of
applicants
located
in
their
respective
counties,
outside
17
of
the
corporate
limits
of
cities.
The
city
or
county
shall
18
submit
a
duplicate
of
any
application
for
a
retail
permit
to
19
the
department
within
thirty
days
of
issuance
of
a
permit.
20
Upon
approval
of
a
retail
permit
application
by
a
city
or
21
county,
the
department
shall
issue
the
permit
to
the
applicant
22
on
behalf
of
the
city
or
county,
in
the
manner
determined
by
23
the
department.
A
city
or
county
shall
use
the
electronic
24
portal
of
the
department
to
process
retail
permit
applications.
25
A
city
or
county
that
is
unable
to
use
the
electronic
portal
26
of
the
department
may
request
permission
from
the
director
to
27
process
retail
applications
by
another
method.
The
department
28
shall
submit
the
current
list
of
all
retail
permits
issued
to
29
the
department
of
health
and
human
services
by
the
last
day
of
30
each
quarter
of
a
state
fiscal
year.
31
Sec.
28.
Section
453A.47A,
subsection
7,
paragraph
a,
32
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
33
follows:
34
All
permits
provided
for
in
this
subchapter
shall
expire
on
35
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June
30
of
each
year.
A
permit
shall
not
be
granted
or
issued
1
until
the
applicant
has
paid
the
fees
provided
for
to
the
2
department
required
in
this
section
for
the
next
period
ending
3
on
June
30
next,
to
the
city
or
county
granting
the
permit
.
The
4
fee
for
retail
permits
is
as
follows
when
the
permit
is
granted
5
during
the
month
of
July,
August,
or
September:
6
Sec.
29.
Section
453A.47A,
subsection
9,
unnumbered
7
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
8
Retail
permits
shall
be
issued
only
upon
applications,
9
accompanied
by
the
fee
indicated
above,
made
upon
forms
10
furnished
by
the
department
upon
written
request
.
The
failure
11
to
furnish
such
forms
shall
be
no
excuse
for
the
failure
to
12
file
the
form
unless
absolute
refusal
is
shown.
Applications,
13
any
supporting
documentation,
and
the
associated
fees
14
required
by
this
section
shall
be
submitted
to
the
department
15
electronically.
The
forms
shall
specify:
16
Sec.
30.
Section
453A.47A,
subsection
10,
paragraph
b,
Code
17
2025,
is
amended
to
read
as
follows:
18
b.
Every
retailer
shall,
when
requested
by
the
department,
19
make
additional
reports
as
the
department
deems
necessary
and
20
proper
and
shall
at
the
request
of
the
department
furnish
full
21
and
complete
information
pertaining
to
any
transaction
of
the
22
retailer
involving
the
purchase
or
sale
or
use
of
tobacco,
23
tobacco
products,
alternative
nicotine
products,
or
vapor
24
products.
A
report
required
to
be
submitted
to
the
department
25
pursuant
to
this
subsection
shall
be
submitted
electronically.
26
Sec.
31.
Section
453A.52,
Code
2025,
is
amended
by
adding
27
the
following
new
subsection:
28
NEW
SUBSECTION
.
9.
Any
certification
form,
notice,
and
29
supporting
documentation
and
any
payment
required
to
be
30
submitted
to
the
department
pursuant
to
this
section
shall
31
be
submitted
to
the
department
electronically,
unless
the
32
director
has
permitted
submission
of
such
information
through
33
an
alternative
method
pursuant
to
section
453A.57.
34
Sec.
32.
Section
453A.52B,
Code
2025,
is
amended
by
adding
35
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the
following
new
subsection:
1
NEW
SUBSECTION
.
6.
Payment
for
any
penalty
imposed
2
pursuant
to
this
section
shall
be
remitted
to
the
department
3
electronically,
unless
the
director
has
permitted
submission
4
of
such
information
through
an
alternative
method
pursuant
to
5
section
453A.57.
6
Sec.
33.
Section
453A.52D,
Code
2025,
is
amended
by
adding
7
the
following
new
subsection:
8
NEW
SUBSECTION
.
4.
Notice
to
the
department
and
any
9
supporting
documentation
required
to
be
submitted
to
the
10
department
pursuant
to
this
section
shall
be
submitted
to
the
11
department
electronically,
unless
the
director
has
permitted
12
submission
of
such
information
through
an
alternative
method
13
pursuant
to
section
453A.57.
14
Sec.
34.
NEW
SECTION
.
453A.57
Submitting
documents
——
15
alternative
method.
16
A
person
subject
to
this
chapter
who
is
required
to
submit
an
17
application,
bond,
fee,
report,
return,
remittance,
or
other
18
documentation
electronically
and
who
is
unable
to
do
so,
may
19
request
permission
from
the
director
to
make
a
submission
using
20
an
alternative
method.
21
Sec.
35.
Section
453D.5,
subsection
1,
Code
2025,
is
amended
22
to
read
as
follows:
23
1.
No
later
than
twenty
calendar
days
after
the
end
of
24
each
calendar
quarter,
and
more
frequently
if
so
directed
by
25
the
director,
each
stamping
agent
and
distributor
shall
submit
26
information
as
the
director
requires
to
facilitate
compliance
27
with
this
chapter
,
including
but
not
limited
to
a
list
by
brand
28
family
of
the
total
number
of
cigarettes,
or,
in
the
case
of
29
roll-your-own
tobacco,
the
equivalent
stick
count,
for
which
30
the
stamping
agent
or
distributor
affixed
stamps
during
the
31
previous
calendar
quarter
or
otherwise
paid
the
tax
due
for
32
the
cigarettes.
The
stamping
agent
and
distributor
shall
33
maintain,
and
make
available
to
the
director,
all
invoices
and
34
documentation
of
sales
of
all
nonparticipating
manufacturer
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cigarettes
and
any
other
information
relied
upon
in
reporting
1
to
the
director
for
a
period
of
five
years.
Any
information
2
submitted
pursuant
to
this
subsection
shall
be
submitted
to
3
the
director
electronically,
unless
the
director
has
permitted
4
submission
of
such
information
through
an
alternative
method
5
pursuant
to
section
453A.57.
Any
information
submitted
6
pursuant
to
this
subsection
that
is
submitted
in
a
manner
other
7
than
in
a
format
specified
by
the
department
shall
not
be
8
considered
a
valid
submission.
Violations
of
this
subsection
9
are
subject
to
civil
penalties
as
established
in
section
10
453A.31,
subsection
1
,
paragraph
“b”
.
11
Sec.
36.
CODE
EDITOR
DIRECTIVES.
12
1.
The
Code
editor
is
directed
to
place
new
section
453A.57,
13
as
enacted
by
this
Act,
in
subchapter
IV
titled
“Uniformed
14
Application
of
Chapter”.
15
2.
The
Code
editor
may
modify
subchapter
titles
if
necessary
16
and
is
directed
to
correct
internal
references
in
the
Code
as
17
necessary
due
to
enactment
of
this
section.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
cigarette
and
tobacco
product
22
regulations
including
vapor
products
by
requiring
the
23
electronic
filing
of
returns
and
other
related
matters.
24
The
bill
specifies
that
cities
and
counties
may
approve
25
tobacco-related
retail
permits
but
the
department
shall
issue
26
the
permit
to
the
applicant
on
behalf
of
the
city
or
county.
27
The
bill
requires
the
city
or
county
to
use
the
electronic
28
portal
of
the
department
to
process
retail
permit
applications.
29
If
a
city
or
county
is
unable
to
use
the
electronic
portal
30
of
the
department,
the
city
or
county
may
request
permission
31
from
the
director
of
revenue
to
process
retail
applications
by
32
another
method.
33
The
bill
provides
that
all
tobacco-related
permit
fees
shall
34
be
collected
by
the
department,
and
the
department
shall
credit
35
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the
fees
to
the
city
or
county
where
the
permit
is
in
effect.
1
The
bill
specifies
that
a
person
who
fails
to
timely
file
or
2
submit
a
required
return,
report,
or
other
documentation
upon
3
which
no
tax
is
shown
due
is
subject
to
a
penalty
in
the
amount
4
of
$50
for
each
occurrence.
5
The
bill
requires
cigarette
and
tobacco
tax
returns,
6
reports,
invoices,
bonds,
and
payments
to
be
filed
with
or
7
submitted
to
the
department
electronically
beginning
on
or
8
after
July
1,
2025.
9
The
bill
provides
any
report,
return,
remittance,
or
other
10
documentation
required
to
be
submitted
electronically
that
is
11
submitted
in
a
manner
other
than
in
an
electronic
format
shall
12
be
considered
not
a
valid
submission.
However,
the
bill
does
13
allow
a
person
required
to
make
a
submission
electronically
to
14
request
permission
from
the
director
of
revenue
to
make
the
15
submission
in
another
manner.
16
The
bill
directs
the
Code
editor
to
place
new
Code
section
17
453A.57
(submitting
documents
——
alternative
method)
in
18
subchapter
IV.
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