SF 2291 (LSB 5404SV (1) 91)

SENATE FILE 2291

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 3062)

A BILL FOR

An Act concerning the beer barrel tax.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.3, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  4A.  “American brewery” means the land and buildings located in the United States where beer is manufactured and stored.
   NEW SUBSECTION.  19B.  “Foreign import beer” means beer manufactured and imported from outside of the United States.
    Sec. 2.  Section 123.136, subsection 1, Code 2026, is amended to read as follows:
   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 one and eighty-six hundredths dollars for every barrel containing thirty-one gallons of beer manufactured in an American brewery and a tax of five and eighty-nine hundredths dollars for every barrel containing thirty-one gallons of foreign import beer, 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.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, class “A” beer permittees pay $5.89 to the department of revenue on every 31-gallon barrel of 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. Special class “A” beer permittees pay a like amount 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. Other quantities and fractional parts of a barrel are taxed at a proportional rate.
   This bill instead requires a class “A” or special class “A” beer permittee to pay $5.89 for every 31-gallon barrel of foreign import beer, defined in the bill, and $1.86 for every 31-gallon barrel of beer manufactured in an American brewery, defined in the bill, and at a like rate for any other quantity or for the fractional part of a barrel.