Whether you're a retailer, entrepreneur, or operator, understanding these regulations is essential not only for compliance but also for safeguarding your investment. Below is a detailed guide that breaks down the current rules, requirements, and best practices for operating a vape vending machine in Iowa.

Any sales of tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes made through a cigarette vending machine are subject to rules and penalties relative to retail sales of tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes provided for in this chapter. Cigarettes shall not be sold through any cigarette vending machine unless the cigarettes have been properly stamped or metered as provided by this subchapter, and in case of violation of this provision, the permit of the dealer authorizing retail sales of cigarettes shall be revoked. Payment of the permit fee as provided in section 453A.13 authorizes a cigarette vendor to sell tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes through vending machines. However, tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes shall not be sold through a vending machine unless the vending machine is located in a place where the retailer ensures that no person younger than twenty-one years of age is present or permitted to enter at any time. Tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes shall not be sold through any cigarette vending machine if such products are placed together with any nontobacco product, other than matches, in the cigarette vending machine. This section does not require a retail permit holder to buy a cigarette vendor’s permit if the retail permit holder is in fact the owner of the cigarette vending machines and the machines are operated in the location described in the retail permit.

Placement Restrictions – Iowa Code § 453A.36(6)

“A person shall not place or maintain a vending machine in any place accessible to persons under twenty-one years of age for the purpose of selling vapor products or alternative nicotine products.”

Permitted Locations:

• Vending machines may only be placed in:
  • Bars (licensed premises where access by under-21 is restricted)
  • Adult-only retail spaces or areas clearly restricted to those 21+
  • Private clubs with controlled access (if under-21s are prohibited)

Prohibited Locations:

• Restaurants, gas stations, convenience stores, and similar venues unless:
  • Access to minors is entirely restricted, and
  • The machine is within line-of-sight and control of an employee (though this caveat is less emphasized in Iowa law compared to some other states)

Licensing & Permitting Requirements – Iowa Code § 453A.13

Retail Permit Required:

“A separate retail permit shall be required for each place of business or vending machine from which tobacco, tobacco products, or vapor products are sold in the state.”

• Retailers must apply through the local city or county authority.
• Application forms may be obtained from the City Clerk or County Auditor’s Office.
• The fee is set locally but must comply with state guidance.

Permit Duration:

• Valid for 1 year
• Must be renewed annually.
• Permit must be displayed on or near the vending machine.

Where to Apply:

• If inside city limits: Apply to City Clerk
• If outside city limits: Apply to the County Auditor

Taxes and Fees

1. Excise Tax on Vapor Products – Iowa Code § 453A.43A (effective July 1, 2023)

“An excise tax is imposed on the wholesale sales price of all vapor products at the rate of five cents per milliliter.”

• Applies to:
  • E-liquids sold in closed pods or bottles
  • Pre-filled devices
• Paid by wholesalers/distributors, but cost is passed on to consumers.
• Retailers must retain invoices to verify tax compliance.

2. Sales Tax – Iowa Code § 423.2

• 6% state sales tax
• Up to 1% local option sales tax depending on city/county
• Collected on all retail sales, including vending machine purchases

Regulatory Bodies

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