Everything you need to know about Indiana's alcohol laws

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It's illegal to purchase alcohol in liquor stores and grocery stores on Sunday in Indiana. But if you're in a pinch, there are a few ways to find booze. Camille Hayes/IndyStar

Alcohol laws are confusing. There was Prohibition. Then Prohibition ended, and it was left up to the individual states to make their own laws. Over time, legislators tweaked bits of the law for this group and that. That's continued with the current session of the Indiana General Assembly, which is at the precipice of making some big changes regarding Sunday sales.

You could read all about Indiana's alcohol laws in Title 7.1 of the state's legal code. But who wants to do that? Instead, we've done the work of answering some of your commonly asked questions. 

What time can you buy alcohol?

State law permits the sale of alcohol from 7 a.m. to 3 a.m. Sunday through Saturday. The big asterisk to this is, at least for now, on Sundays, when carry-out alcohol sales from liquor stores, groceries, pharmacies and convenience stores are not permitted.

► This could change soon!: House vote makes Sunday alcohol sales likely, but it's not quite a done deal yet

Can restaurants serve alcohol on Sunday?

Yes. Restaurants can sell beer, wine and cocktails by the glass on Sundays from 7 a.m. to 3 a.m. The Sunday alcohol restrictions are limited to carry-out sales from liquor stores, groceries, pharmacies and convenience stores.

Can you buy beer on Sunday?

Yes. You can buy beer by the glass in bars and restaurants. You can also buy packaged beer or get growlers filled for carryout from a brewery that brews beer on its premises. Wineries and artisan distilleries can also sell wine and spirits for carryout on Sundays. But, again, you cannot buy beer on Sunday from liquor stores, groceries, pharmacies and convenience stores.

Can you buy alcohol on Sunday in Oklahoma?

Beginning Oct. 1, 2018, Oklahoma plans to begin allowing its counties to decide whether to allow Sunday alcohol sales. Until then, Sunday sales are not permitted.

Why is it illegal to buy beer on Sunday?

Like many states, banning alcohol sales on Sunday dates back to Prohibition-era blue laws in which religious groups sought to reserve the day for worship. However, Indiana's ban has lingered on for economic reasons. Because Sunday is the second busiest grocery shopping day of the week, liquor stores have sought to protect their market share from groceries, pharmacies and big box stores. They also haven't wanted to add the costs of staffing on Sundays. Anti-alcohol organizations just don't want to give consumers another day to buy alcohol.

► Indiana Sunday alcohol sales: What you need to know

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What is the open container law?

Indiana actually has no restrictions on the open carrying of alcohol in public spaces. Patrons are allowed to carry an alcoholic beverage in its original container out of a premise and consume it on the sidewalks. However, the premise may not allow drinks to be carried out as part of its policy.

Is it illegal to have a happy hour?

Yes. While all-day drink specials are allowed, state law prohibits retailers to sell alcoholic beverages during a portion of the day for a reduced cost. The ban dates back to 1985 and legislative efforts to change it have failed. Supporters say it could help their business' during lighter times, but the opposition says it encourages binge drinking.

Can you sell alcohol on Election Day?

Yes. The law banning alcohol sales while the polls were open was changed in 2010, and was put into practice for the first time during the 2012 election. Before then, Hoosiers had to face the voting booth — and the grim choices it sometimes offered — without the comfort of knowing they could get a stiff drink once they'd voted. The law likely had roots in the historic use of taverns — being public gathering places — as polling places.

Can you buy alcohol on Christmas Day?

Yes. The law banning alcohol sales on Christmas Day was changed in 2015 and was first allowed Dec. 25, 2015. Although many businesses are closed on Christmas Day, restaurants, bars, liquor stores and groceries that open can sell alcohol. The exception for now, of course, is Sunday.

What states allow liquor to be sold in a grocery store?

There are 26 states that allow liquor to be sold in grocery stores, according to the Distilled Spirits Council, which represents distillers and marketers of spirits. Those states are: Arizona, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Massachusetts, Michigan, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Dakota, Ohio, Oregon, South Dakota, Vermont, Washington, West Virginia, Wisconsin and Wyoming.

How much does it cost to get a liquor license?

Indiana has more than 50 types of permits for the sale of alcohol, whether it be for a liquor store or restaurant. Common permits include a two-way permit that allows for beer and wine and a three-way permit that allows for beer, wine and liquor. The state fee for a two-way permit is $750 and $1000 for a three-way permit.

However, those are the costs of a license once you acquire it. Indiana limits the number of permits based on an area's population. In heavily populated areas such as Marion County permits or in fast-growing areas such as Hamilton County, there may not be enough permits to meet the demand. But sometimes, permits become available to the Indiana Alcohol and Tobacco Commission through revocations, failures to renew or a population increases in high growth areas. When that happens, the ATC holds auctions to sell the new permits. And that's when the bidding can get interesting. Permits in booming suburban areas have sold at auction in recent years for upwards of $200,000. Then there are the permits license holders sell privately, often through brokers, when they are going out of business or simply wanting to cash in. Anecdotally, people in the industry say some of those permits have sold for as much as $400,000.

A couple of reminders

• The legal drinking age in the United States is 21 years old or older.
• Minors should know that it is illegal to knowingly possess or consume alcohol or transport alcohol on a public highway when not accompanied by at least one of his or her parents or guardians.
• Indiana law requires permittees and their employees to check identification of any person under the age of 40 when conducting carryout sales.
• Alcohol is a controlled substance. Please drink responsibly and never drink and drive.

Have another question about Indiana's alcohol laws that you want to be answered. Let us know. Call Robert King at (317) 444-6089. Follow him on Twitter and Facebook. Call IndyStar mobile producer Amy Haneline at (317) 444-6281. Follow her on Twitter and Instagram: @amybhaneline and on Facebook.