On July 1, 2010 Iowa will officially transition from a reciprocal direct-to-consumer state to a permit state. The new permit law requires wineries to obtain an Iowa Wine Direct Shipper’s License and pay the annual $25 license fee before shipping to consumers in Iowa. There are no volume limits under the permit law; a significant change from the current two-case per person per month restriction.
Wineries should apply for the Wine Direct Shipper’s license online at the Iowa Department of Commerce, Alcoholic Beverages Division website. All applications must be submitted electronically via the e-licensing portal. In addition, direct shipping applicants are required to send copies of their federal and state licenses to the Alcoholic Beverages Division and post a $5000 bond. Excise taxes must be paid and reported on a monthly basis. There are no sales tax requirements.
Members with questions may contact Wine Institute’s State Relations Department at 415-356-7530 or abones@wineinstitute.org.
