Limited Separation Exception for Gross Food Sales

This information was provided by our partners at the ATC

ATC Partners:

Effective July 1, 2026, retail permittees can request an exception to limited separation if they satisfy the gross food sales requirement provided in IC 7.1-3-20-14. New applicants for an eligible retail permit can request the exception using the updated application form, available in paper and electronic format. Existing permit holders wishing to remove limited separation must request the exception online using the Actions tab located next to the relevant permit on their My License dashboard.

To request removal of limited separation, existing permit holders must log in to My License One, link the subject retail permit to their account, click on the Actions tool for the permit, select “Limited Separation Removal Affidavit” from the drop-down menu, and provide all the requested information via the online form.

Once a request to remove limited separation is received, it will be reviewed to determine if the basic requirements are met. If the preliminary requirements are satisfied, the ATC processor will email the permit holder with the district local board officer included on the message. The permit holder must then contact the local board officer to schedule a final inspection. If the permit is determined to be eligible for removal of limited separation at final inspection, the ATC processor will print a new permit for the retailer including the designation “(a)(34) w/o Separation” to indicate that the permit has been approved for an exception to limited separation under IC 7.1-5-7-11(a)(34). Once the exception is officially approved by the local board officer, separation can be removed at the permit location.  

Retail permit holders that obtain an exception to limited separation requirements are expected to exhibit the highest degree of responsibility in preventing service to minors. If the Commission determines limited separation is necessary to prevent sales to minors or other permit violations, a permit holder’s exception request may be denied. Along these lines, please note that the following permit holders are NOT eligible for the food sales exception to limited separation: (a) permit holders operating on an extension with a pending violation; (b) permit holders on a CAP at time of request; (c) permit holders on PACE at time of request; (d) adult entertainment establishments under IC 7.1-3-23-20.5; (e) locations at which smoking is allowed; and (f) locations that allow gaming in the bar area (unless ALL gaming activities occur in separate area outside the view of minors).  

Thank you for partnership!

Indiana Alcohol and Tobacco Commission