Licensing Requirements

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Alcoholic beverage licensing in Iowa is a joint effort of the applicant, local authority (city or county), and the Iowa Alcoholic Beverages Division (ABD).

Renewing a License

Licensees are encouraged to renew early through their local authority. They receive a 70-day renewal notice from ABD. Some local authorities require renewal applications to be submitted 30 or 60 days before the license expires. All information entered on the previous year's license will be reflected on the renewal application. However, the renewal application contains some questions that need to be answered annually to determine whether or not the applicant and the premises meet licensing requirements.

ABD encourages applicants to complete their own applications. If another party completes the document, the applicant must verify the information before submitting it. An applicant may be denied a license if there is false or misrepresented information on the application.

Applicants with questions should contact their local authority or email ABD at licensing@iowaabd.com.

Applicant Requirements

To obtain a license, an applicant must demonstrate ‘good moral character.' In Iowa, an applicant is considered to be of ‘good moral character’ if he or she meets the following criteria:

  • Is a U.S. citizen and an Iowa resident, or incorporated to do business in the state. The corporation must be registered and in good standing with the Iowa Secretary of State’s office.
  • Has no felony convictions. If there is a felony conviction that is more than five years old and the applicant’s rights of citizenship have been restored, the applicant may be eligible for a license.
  • Has not had any financial interest in a license that was revoked during the past two years.
  • Has ‘financial standing’ and a ‘good reputation’ indicating that the applicant will comply with all laws and rules governing the license.

NOTE: When reviewing a person's financial standing, the local authority or ABD may consider the following factors, including but not limited to – 1) amount of financial support and operating funds; 2) prompt payment of state and local taxes; 3) fees and charges for municipal utilities and services; 4) prompt payment of licensing fees and any administrative penalties.
When evaluating a person’s 'good reputation,' the local authority or ABD may consider such factors as, but not limited to - 1) if the person has a history of showing disregard for the law; 2) has convictions for selling alcoholic beverages to underage or intoxicated people; 3) has a history of operating a vehicle while under the influence of alcohol or drugs.

In a partnership or corporation, all requirements apply to all officers, directors, and shareholders. If the business is operated under a sole proprietorship, the spouse is exempt from citizenship and resident requirements if he or she has no ownership interest.

Premises Requirements

All licensed premises must meet all requirements of state laws, local ordinances, health regulations and fire regulations as listed below:

  • Be owned or under the control of the applicant.
  • Be located in the jurisdiction of an approving local authority.
  • Be in good repair, clean, and free of litter.
  • Have at least one restroom (if selling for on-premises consumption).
  • Be equipped with running water from a source approved by the local health department (if selling for on-premises consumption).
  • Have tables and chairs to seat a minimum of 25 people at one time (if selling for on-premises consumption).

Ownership Information

A Personal Privilege

Having a license in Iowa is a personal privilege. The individual, partnership, or corporation receiving the income from the alcoholic beverages sold must have a license.

Local authorities (city councils or county boards of supervisors) and ABD must be notified of any changes in ownership. Ownership changes must be reported when the changes occur.

Change of Ownership

When ownership of an establishment changes, an ownership update application must be submitted to the local authority and ABD along with the following documents:

  • Corporations – Minutes of corporate meetings reflecting the resignation of officers and/or directors or the election of new personnel or copies of the transfer of shares of the corporation’s stock.
  • Partnerships – Proof of dissolution or a notarized affidavit from the partner leaving the partnership or an amended trade name document.
  • Individuals – The existing license must be canceled. The new owner must apply for a new license under his/her name.

When an ownership update application is submitted, any new individuals must complete the ownership and criminal history questions. This gives the local authority and ABD the information necessary to determine if the new applicants qualify for a license.

Additional License Privileges

Catering Privilege

A Catering Privilege may be added to a 12-month class "C" retail alcohol license but not to a special class "C" retail alcohol license. It allows the licensee to act as the agent of a private social host for the purpose of providing and serving alcoholic beverages at private social gatherings in a private place. The licensee must serve food with the alcoholic beverages. All food and beverages must be provided to the guests free of charge and donations cannot be solicited to help cover expenses. A private place is one that meets the following requirements:

  • The location is not a licensed establishment.
  • The general public is not allowed at the gathering.
  • Attendance is limited to the host and official guests.
  • Guests do not sell or purchase goods during the gathering.
  • Guests do not pay any fees to attend the gathering.
  • The caterer is not responsible for renting the space or for other charges related to the space. All expenses associated with the space are paid by the host.

Examples of private social gatherings might be:

  • Parties held in private homes.
  • Wedding receptions held in churches.
  • Private events held in business offices or buildings.

Class "C" retail alcohol license applicants must indicate the Catering Privilege on the application. The Catering Privilege is not a stand-alone license. Records for each catered event must be maintained and open for inspection, including: 1) Date of the event; 2) Host’s name; and 3) Host’s address.

Sub-licenses/Permits

Special Class "A" Beer Permit (Brewpub)

Iowa law allows class “C” or special class “C” retail alcohol license holders to obtain a special class “A” beer permit (brewpub). A special class “A” beer permit allows for the manufacture of beer (no more than 6.25% alcohol by volume (ABV)), high alcoholic content beer (more than 6.25% but not more than 19% ABV), and canned cocktails (alcoholic liquor-based beverages packaged in a metal can no more than 15% ABV. The manufactured beer and canned cocktails may be sold at retail for on- or off-premises consumption from the brewpub's licensed premises. Beer and canned cocktails must be sold to licensed wholesalers for resale to other retail licensees. The special class “A” beer permit expires when the corresponding class “C” or special class “C” retail alcohol license expires and must be renewed each year. The annual fee for a special class “A” beer permit is $300.

Outdoor Service Areas

Designated outdoor service areas are extensions of the licensed premises. Outdoor service areas are not licensed separately. Licensees can sell or serve alcoholic beverages in an outdoor service area only if meeting licensing requirements.

Applications for outdoor service areas must be submitted online through the eLAPS licensing system. The licensee's insurance carrier must certify that dramshop liability insurance covers the outdoor service area. A sketch of the outdoor service area showing boundaries and its relationship to the licensed premises (the area must be adjacent to the premises) must be submitted to, and approved by, the local authority.

NOTE: Local authorities can approve or deny an application for an outdoor service area. Denials can be appealed to ABD.

Living Quarters Permit

When living quarters are accessible from the inside of a licensed premises, a licensee must file for a 'living quarters permit' with ABD. This permit separates the licensed establishment from the residence and protects the resident from legal searches without a warrant. Law enforcement officials must have a search warrant before they can search any private living quarters.

All alcohol inventory must be stored On the licensed premises and cannot be stored in the residence. The words “living quarters” will be printed on the license.

Updates

License/Permit (Premises) Transfers

Retail alcohol licenses may be transferred from one location to another qualified location. The new location must be within the jurisdiction of the local authority that initially approved the license/permit. A license in an unincorporated area of a county may not transfer into an incorporated city in the same county. A license/permit issued by an incorporated city can only transfer to a location in the same city. Licenses/permits may not be transferred from one person to another. For changes of ownership, please refer to "Change of Ownership (above)."

Selling and serving of alcoholic beverages at the new location is limited to the transfer period approved by the local authority (city or county). The licensee/permittee can sell or serve products allowed by their license/permit, only. Sales and service at the original location must stop during the time of the license/permit transfer.
Transfers may be temporary (24 hours to 7 days) or permanent.

Applications for license/permit transfers must be submitted online. The licensee/permittee's insurance carrier must certify that the dramshop liability insurance covers the premises to which the license/permit is being transferred. A sketch of the premises must be submitted to the city council or county board of supervisors. Transfer applications must be approved by the city council or county board of supervisors. When requirements are met and approved by the Division, a letter of authorization will be sent to the local authority and the license/permit holder for a temporary transfer. When a transfer is permanent, the Division issues an amended license/permit with the new address.

Other

Temporary (Special Event) Licenses

Temporary licenses are for people who want to sell alcoholic beverages on-premises at town celebrations or other special events. The licensing requirements are the same as for a 12-month license of the same class. Temporary licenses are valid for five or 14 consecutive days.

Seasonal licenses are issued for an 8-month period. The licensing requirements are the same as for a 12-month license/permit of the same class. Seasonal licenses are not renewable.

Other Requirements

Licensees may be required to get the following documents in addition to their alcoholic beverage license:

  • Sales Tax Permit - Iowa Department of Revenue and Finance, 800.367.3388 or 515.281.5777
  • Food Establishment or Food Service License (may include alcoholic beverages) - Iowa Department of Inspections and Appeals, 515.281.6538
  • Federal Special Occupational Tax Permit - Alcohol and Tobacco Tax and Trade Bureau, 513.684.2979
  • Federal Wholesalers Basic Permit - Alcohol and Tobacco Tax and Trade Bureau, 513.684.3337

NOTE: The Federal Wholesaler's Basic Permit is required only for class "E" retail alcohol licensees selling to on-premises licensees.

Depending on the type of business, local authorities might require other permits (tasting, dance, cigarette, etc.). Contact your local authority to find out about any special requirements.