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Iowa Governor Signs Direct Shipping Legislation

On March 10, 2010, Governor Culver signed Senate Bill 2088 which includes provisions to transition Iowa from a reciprocal shipping state to a permit state and allow unlimited direct-to-consumer shipments. The legislation will become effective on July 1, 2010, and brings Iowa into compliance with the Supreme Court’s 2005 Granholm v. Heald ruling by allowing all in-state and out-of-state wineries to ship to consumers in Iowa. Beginning July 1, 2010, wineries will be required to have a permit in order to ship to Iowa consumers. The permit fee is $25 and must be renewed annually. In addition, direct shippers will be required to obtain a bond, file monthly reports and pay excise taxes. The direct shipping permit application will be posted on the Wine Institute website as soon as it becomes available, along with any updates on the application process.

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