Senate File 384 - Introduced SENATE FILE BY MULDER and DVORSKY (COMPANION TO LSB 2326HH BY MASCHER) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for an increase in the barrel tax, and making an 2 allocation of barrel tax revenue. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2326SS 81 5 rn/gg/14 PAG LIN 1 1 Section 1. Section 123.136, Code 2005, is amended to read 1 2 as follows: 1 3 123.136 BARREL TAX. 1 4 1. In addition to the annual permit fee to be paid by all 1 5 class "A" permittees under this chapter there shall be levied 1 6 and collected from the permittees on all beer manufactured for 1 7 sale or sold in this state at wholesale and on all beer 1 8 imported into this state for sale at wholesale and sold in 1 9 this state at wholesale, and from special class "A" permittees 1 10 on all beer manufactured for consumption on the premises, a 1 11 tax offive and eighty=nineeleven and seventy=eight 1 12 hundredths dollars for every barrel containing thirty=one 1 13 gallons, and at a like rate for any other quantity or for the 1 14 fractional part of a barrel. However, no tax shall be levied 1 15 or collected on beer shipped outside this state by a class "A" 1 16 permittee or sold by one class "A" permittee to another class 1 17 "A" permittee. 1 18 2. All revenue derived from the barrel tax shall accrue to 1 19 the state general fund, except that fifty percent of the 1 20 revenue derived from the increase in the barrel tax over the 1 21 level of tax applicable on June 30, 2005, shall be deposited 1 22 into the special revenue account established in section 123.53 1 23 to be used by the substance abuse division of the Iowa 1 24 department of public health for substance abuse treatment and 1 25 prevention programs. 1 26 3. All of the provisions of this chapter relating to the 1 27 administration of the barrel tax on beer shall apply to this 1 28 section. 1 29 EXPLANATION 1 30 This bill provides for an increase in the tax levied on 1 31 beer pursuant to the barrel tax imposed in Code section 1 32 123.136 from the current rate of $5.89 for every barrel 1 33 containing 31 gallons (adjusted at a like rate for any other 1 34 quantity or for the fractional part of a barrel) to $11.78. 1 35 This amounts to a doubling of the current rate of tax. The 2 1 bill also provides that 50 percent of the revenue derived from 2 2 the increase shall be deposited into the special revenue 2 3 account established in Code section 123.53 for use by the 2 4 substance abuse division of the Iowa department of public 2 5 health for substance abuse treatment and prevention programs. 2 6 LSB 2326SS 81 2 7 rn:nh/gg/14