Vape Vending Machines Sales Laws and Regulations in Iowa

Thinking of Launching a Vape Vending Machine in Iowa?
Here’s What You Need to Know First

Considering becoming a vape vending machine host in Iowa? Familiarize yourself with the current state laws to ensure compliance and successful operations. Here's a quick breakdown of current state regulations for vapor products, vape machines, and sales.VapeTMWhether 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.

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

Agency Role
Iowa Department of Revenue Collects excise and sales taxes on vapor products
City Clerk or County Auditor Issues Retail Tobacco Permits for each vending machine location
Iowa Alcoholic Beverages Division Enforces underage access laws, placement compliance
Local Health Departments May enforce signage or placement ordinances

Municipal Ordinances – Example: Des Moines, IA

While Iowa Code establishes statewide minimums, cities may add further rules, such as:

  • Des Moines Municipal Code § 30-258: Requires a separate license for all automatic vending operations.
  • Cedar Rapids and Iowa City require general business registration for vending machines.
  • Local zoning ordinances may restrict vending near schools, parks, or youth centers.

Check your local municipal code and zoning office for:

  • Prohibited zones for vape vending
  • Building or safety inspection requirements
  • Local license fees or display requirements

Additional Legal Considerations

Age Verification and Signage – Iowa Code § 453A.36A

“A retailer shall not give away vapor products or alternative nicotine products free of charge or include them in any coupon or promotional giveaway.”

Required signage:

  • “Sale to persons under 21 is prohibited by law” – must be visible at point-of-sale and on vending machine
  • Warning labels must comply with FDA labeling requirements

Free Samples:

  • Completely banned, even in adult-only establishments.

Disclaimer: This page is intended for informational purposes only and should not be considered legal advice. Consult official Iowa government resources for the most current regulations.

 

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