HF 885 (LSB 2310YH (2) 89)

HOUSE FILE 885

BY  SALMON

A BILL FOR

An Act providing for an increase in the barrel tax on beer and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.136, Code 2021, is amended to read as follows:
   123.136  Barrel tax.
   1.  In addition to the annual permit fee to be paid by all class “A” beer permittees under this chapter there shall be levied and collected from the permittees on all beer manufactured for sale or sold in this state at wholesale and on all beer imported into this state for sale at wholesale and sold in this state at wholesale, and from special class “A” beer permittees on all beer manufactured for consumption on the premises and on all beer sold at retail at the manufacturing premises for consumption off the premises pursuant to section 123.130, subsection 4, a tax of five eight and eighty-nine ninety-nine hundredths dollars for every barrel containing thirty-one gallons, and at a like rate for any other quantity or for the fractional part of a barrel. However, no tax shall be levied or collected on beer shipped outside this state by a class “A” beer permittee or special class “A” beer permittee or on beer sold to a class “A” beer permittee by a special class “A” beer permittee or another class “A” beer permittee.
   2.  All revenue Revenue derived from the barrel tax shall be distributed as follows:
   a.  An amount equal to three and ten-hundredths dollars for every barrel, and at a like rate for any other quantity or for the fractional part of a barrel, shall be appropriated to the governor’s office of drug control policy, as referred to in section 80E.1, for substance abuse prevention and treatment, and for alcohol and controlled substance related enforcement.
   b.  All remaining revenues derived from the barrel tax shall accrue to the state general fund.
   3.  All of the provisions of this chapter relating to the administration of the barrel tax on beer shall apply to this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill provides for an increase in the barrel tax on beer and appropriates the amount of the revenue derived from the barrel tax increase for substance abuse prevention and treatment, and for alcohol and controlled substance enforcement.
   The bill increases the tax on a gallon of beer by 10 cents, which constitutes an increase of the barrel tax on beer from $5.89 per barrel to $8.99 per barrel. There are 31 gallons of beer in a barrel.
   The bill provides that the amount of revenue derived from the barrel tax increase is appropriated to the governor’s office of drug control policy for substance abuse prevention and treatment, and for alcohol and controlled substance enforcement. The bill provides that all remaining revenues derived from the barrel tax shall accrue to the general fund of the state, which is the same as current law.