A dispute over Iowa’s alcohol licensing process has formed between Des Moines bars and restaurants and state officials, as businesses complain that a new website is causing permit delays and temporary closures.
After the Iowa Department of Revenue combined multiple state service portals into one site in November, several businesses have run into problems trying to renew their alcohol licenses, including Des Moines’ Cheese Bar.
The establishment closed for a week May 12-19 after it failed to receive reapproval of its alcohol license, arguing that confusion over the state’s new portal delayed the process, according to a Facebook post and a GoFundMe. Cheese Bar’s owner declined a Register request to comment on the matter.
A sign on the door during the closure said: “Business is closed until 5/19 due to state liquor licensing compliance. This is unfortunately out of our control. We apologize for the inconvenience and we appreciate the support. Peace, Love and Cheese.”
Cheese Bar sticks to its namesake, offering a variety of cheese-based dishes, but it also relies on alcohol sales from its slate of wines, beers and cocktails.
“Cheese Bar has found itself smack dab in the middle of the most unpleasant venn diagram of miscommunication between State Bureaucracy, Insurance, & Accounting,” a May 12 Facebook post states. “The whole story is pretty boring; but suffice to say despite our best efforts we’re going to have to close for a week. We know that’s not happy news for you cheese lovers.”
While the Cheese Bar made its sharp grievances public, other bars and restaurants have privately faced similar problems, resulting in halted alcohol sales or temporary closures in recent months, according to comments on the Facebook post.
The Iowa Department of Revenue contends it is unaware of any widespread difficulties with the new website, noting that the agency provided businesses ample time and resources for the transition.
“We try to do the best we can to work with businesses to meet their needs, but we work on deadlines as well,” IDR Public Information Officer John Fuller said.
After the Des Moines City Council approved its new alcohol license approved May 18, Cheese Bar reopened May 20.
“The Cheese Bar did have an alcohol license that expired on May 9 due to necessary renewal steps not being taken prior to expiration,” Fuller said in a statement.
Businesses face alcohol licensing delays
The IDR launched the new website, GoConnectIowa, in November 2025, where taxpayers and businesses can electronically file and pay taxes, obtain business licenses and permits and communicate with the department.
But other establishments have faced similar problems because of confusion over the new website and less leniency for delays in the insurance certification process, according to an agent working with Des Moines businesses to help expedite the alcohol permit process.
Businesses are facing trouble when they fail to have proof of dramshop insurance covering liabilities associated with alcohol sales accepted before their license expiration deadline.
Proof of insurance is needed for a license renewal to get on the City Council agenda 30 days before a meeting — the next step of the process.
Des Moines City Councilor Josh Mandelbaum said the state has been more likely to immediately cancel a license renewal and require a new application if dramshop insurance is not completed before the license’s expiration.
“It sounds like the state is much quicker about cutting things off than they have in the past,” Mandelbaum said, adding the extent of the issue is difficult to know, given the city is unable to see applications until the insurance is certified.
The Des Moines City Council provides a notice to business owners 45 days ahead of license expiration, while the IDR notifies license holders 70, 10 and one day before their renewal date.
Fuller contends the site offers a “streamlined and more secure” process after a year of “planning and extensive testing.”
He also noted that the department conducted several webinar training sessions for businesses ahead of the implementation and sent license holders multiple notices explaining the process ahead of the change.
Rapid Response Politics Reporter Maya Marchel Hoff can be reached at mmarchelHoff@usatodayco.com. You can find her on X (formerly Twitter) at @mmarchelhoff.
This article originally appeared on Des Moines Register: Des Moines bars temporarily go dry over Iowa alcohol licensing hiccups
Reporting by Maya Marchel Hoff, Des Moines Register / Des Moines Register
USA TODAY Network via Reuters Connect
