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 of five and eighty=nine eleven 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