Opening a Convenience Store in Indiana: Licenses & Permits

Indiana has a rule that changes the cooler wall: convenience stores can't sell cold beer. Beer has to be sold at room temperature, though wine can be refrigerated. To get a beer permit at all, a store must keep alcohol at 25% or less of its non-fuel sales. Below is who issues what, and how each rule shapes the store you design.

Licenses and permits at a glance

Fuel tanks: IDEM

The Indiana Department of Environmental Management's Office of Land Quality regulates tanks:

• Notification: notify IDEM within 30 days of owning a tank or bringing it into use, on State Form 45223.
• Fees: the annual fee is $90 per petroleum tank, charged per compartment (IC 13-23-12-1).
• Contractors: since July 1, 2023, IDEM, not the State Fire Marshal, certifies tank installers and testers.
• Operators: Class A, B and C operators must be designated and certified. Training and certification are free through IDEM's Regulatory Services Portal.
• Funds: the Excess Liability Trust Fund covers cleanup. A separate program reimburses 50% of the cost of decommissioning or replacing old tanks, and eligibility must be approved before breaking ground.

Beer and wine: ATC dealer permits

The Indiana Alcohol and Tobacco Commission (ATC) issues permits, and a four-member county local alcoholic beverage board holds a hearing on every application:

• Permits: a convenience store uses a beer dealer permit (IC 7.1-3-5-2) plus a wine dealer permit (IC 7.1-3-15-2). ATC's 2026 fees are $500 for a beer dealer (grocery) permit and $750 for beer and wine.
• The 25% test: beer dealer permits go only to drug stores, grocery stores and package liquor stores. A convenience store counts as a grocery store only if alcohol is 25% or less of annual gross sales, not counting fuel and motor oil. A gas station that primarily sells fuel doesn't qualify.
• Quotas: beer and liquor dealer permits are capped by population. ATC says most city quotas are full, so the options are an ATC auction or buying an existing permit.
• No cold beer: a beer dealer may not sell or display beer it has iced or cooled (IC 7.1-5-10-11). Wine isn't covered by the ban.
• Distance: the premises must be 200 feet, wall to wall, from a church or school. A grocery store can be exempted only with a written no-objection from that church or school.
• No window sales: alcohol can't be sold through a window to someone outside.
• In-store restaurants: if the same owner runs a grocery dealer permit and a restaurant permit, a full wall and separate entrances are required.

No spirits. Liquor dealer permits go only to drug stores with a pharmacy license and to package liquor stores.

Tobacco and e-liquid

The ATC retail tobacco sales certificate costs $200 per location and must be displayed. Stores selling e-liquid check a box on the certificate. The rules:

• No self-service e-liquid. Keep it behind the counter.
• Suppliers: buy only from Indiana-permitted manufacturers or wholesalers, and keep invoices for two years. Nicotine is capped at 75 mg/mL.
• 2026 law (P.L. 148-2026): owners must provide photo ID to apply, and stores must check ID for anyone who appears under 40, now including for tobacco. E-liquid manufacturers need permits by January 1, 2027 showing their FDA application or authorization status.

Food service: the local health department

Indiana's 95 local health departments handle convenience store food. The food code is now 410 IAC 7-26, based on the 2022 FDA Food Code. Plan review is required: plans go to the local health department, and you must notify the regulator of your intent to operate at least 30 days before registering. Fees are set locally.

Sales tax, fuel and lottery

• Sales tax: get a Registered Retail Merchant Certificate from the Department of Revenue on Form BT-1. It costs $25 and is valid for two years.
• Fuel outlet: the Indiana Department of Health registers each motor fuel outlet every year for $50, plus $50 if renewed late.
• Pumps: county and city inspectors must check devices at least once a year (IC 24-6-3-5).
• Lottery: submit the Hoosier Lottery retailer request form. Equipment and training are free, and retailers earn a 6% commission on sales.

What this means for your store design

• Plan warm beer displays. Beer can't be cooled, so it goes on shelving or floor displays, not in the cooler wall. Wine can go in coolers. A beer cave isn't an option for beer in an Indiana convenience store.
• Keep alcohol under 25% of non-fuel sales. A strong grocery and food program protects the permit.
• Keep e-liquid behind the counter. Plan back-bar space for it.
• Wall off any in-store restaurant. A restaurant under the same owner needs a full wall and its own entrance. See food service build-outs.
• Check the 200-foot church and school rule before you buy. Measure wall to wall.

Local approvals

Your city, town or county also controls zoning, building permits, fire inspections and signs, and the county board hears your alcohol application. Our construction checklist covers the local steps.

For Indiana store design, see convenience store design in Indiana and walk-in cooler services in Indiana.

Sources

• Indiana Department of Environmental Management, regulated storage tanks and Excess Liability Trust Fund; IC 13-23.
• Indiana Code Title 7.1 (2026 edition), including IC 7.1-1-3-18.5, 7.1-3-5-2, 7.1-3-10, 7.1-3-15-2, 7.1-3-18.5, 7.1-3-21-11, 7.1-3-22-4, 7.1-5-10-11 and 7.1-5-10-24; ATC fee schedule and 2025 legislative update.
• Indiana Alcohol and Tobacco Commission, alcohol permit information and e-liquid resources.
• Indiana Department of Health, food code (410 IAC 7-26), how to start a retail food business, and weights and measures; IC 16-44-3 and IC 24-6-3-5.
• Indiana Department of Revenue, Form BT-1.
• Hoosier Lottery, become a retailer.

This page summarizes official sources as of October 2026. It is not legal advice. Fees and rules change, so confirm each one with the agency before you apply.