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New Iowa Law is Problematic for Wine Businesses

Iowa’s new direct shipment law, which was designed to help the State gross revenue with respect to wine imports, has served as a hindrance to many local Iowa wine businesses. The law, which was approved and instated in July of 2010, changed the State from a reciprocal shipment state to a permit state and requires out-of-state wine manufacturers and producers shipping to the State to obtain an Iowa state license and pay state taxes on their wine products. The current dilemma entails the actual law, the text of which the Alcoholic Beverages Division indicates neglects Iowa cellar and wine retailers, who can no longer legally deliver wine to customer homes. Presently, only wine manufacturers can legally deliver wine to residences.

Although the text of Iowa’s new direct shipment law seems to be an unintentional consequence of poor drafting, changing it will require legislative action. Many Iowa businesses that deal with shipment of wine products, such as those who deliver holiday gift baskets, are concerned about the impact this law will have on their holiday deliveries.

DISCLAIMER: This blog post is not intended as legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.

(Sources: New Iowa Law Creates Delivery Dilemma for Local Businesses;New Iowa Law Creates a Dilemma for Local Businesses; and State Shipping Laws.)

(Image Credit: Viticulture Iowa State University.)

Lindsey A. Zahn


Lindsey is the founder and author of On Reserve: A Wine Law Blog. She is an alcohol beverage and food attorney and is admitted to the New York State Bar.

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