House Study Bill 690 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON NORDMAN) A BILL FOR An Act concerning the beer barrel tax, and including effective 1 date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6092YC (3) 91 jm/ns

H.F. _____ Section 1. Section 123.3, Code 2026, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 4A. “American brewery” means the land 3 and buildings located in the United States where beer is 4 manufactured and stored. 5 NEW SUBSECTION . 19B. “Foreign import beer” means beer 6 manufactured and imported from outside of the United States. 7 Sec. 2. Section 123.136, subsection 1, Code 2026, is amended 8 to read as follows: 9 1. In addition to the annual permit fee to be paid by all 10 class “A” beer permittees under this chapter , there shall 11 be levied and collected from the permittees on all beer 12 manufactured for sale or sold in this state at wholesale and 13 on all beer imported into this state for sale at wholesale and 14 sold in this state at wholesale, and from special class “A” 15 beer permittees on all beer manufactured for consumption on the 16 premises and on all beer sold at retail at the manufacturing 17 premises for consumption off the premises pursuant to section 18 123.130, subsection 4 , a tax of one and eighty-six hundredths 19 dollars for every barrel containing thirty-one gallons of beer 20 manufactured in an American brewery and a tax of five and 21 eighty-nine hundredths dollars for every barrel containing 22 thirty-one gallons of foreign import beer , and at a like rate 23 for any other quantity or for the fractional part of a barrel. 24 However, no tax shall be levied or collected on beer shipped 25 outside this state by a class “A” beer permittee or special 26 class “A” beer permittee or on beer sold to a class “A” beer 27 permittee by a special class “A” beer permittee or another 28 class “A” beer permittee. 29 Sec. 3. CONTINGENT EFFECTIVE DATE —— NOTICE TO CODE 30 EDITOR. This Act takes effect upon the publication date in 31 the Iowa administrative bulletin of a notice by the director 32 of revenue that the federal alcohol and tobacco tax and trade 33 bureau of the United States department of the treasury has 34 adopted regulations providing for or has otherwise approved 35 -1- LSB 6092YC (3) 91 jm/ns 1/ 2

H.F. _____ the difference in state beer barrel tax rates for American 1 breweries and foreign import beer enacted by this Act. The 2 department of revenue shall provide a copy of the notice to the 3 Iowa Code editor prior to publication. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 Under current law, class “A” beer permittees pay $5.89 to 8 the department of revenue on every 31-gallon barrel of beer 9 manufactured for sale or sold in this state at wholesale and 10 on all beer imported into this state for sale at wholesale 11 and sold in this state at wholesale. Special class “A” beer 12 permittees pay a like amount on all beer manufactured for 13 consumption on the premises and on all beer sold at retail at 14 the manufacturing premises for consumption off the premises. 15 Other quantities and fractional parts of a barrel are taxed at 16 a proportional rate. 17 This bill instead requires a class “A” or special class 18 “A” beer permittee to pay $5.89 for every 31-gallon barrel of 19 foreign import beer, defined in the bill, and $1.86 for every 20 31-gallon barrel of beer manufactured in an American brewery, 21 defined in the bill, and at a like rate for any other quantity 22 or for the fractional part of a barrel. 23 The bill takes effect upon the publication date in the Iowa 24 administrative bulletin of a notice by the director of revenue 25 that the federal government has adopted regulations providing 26 for or has otherwise approved the difference in tax rates for 27 American breweries and foreign import beer in the bill. 28 -2- LSB 6092YC (3) 91 jm/ns 2/ 2