SSB 1213 (LSB 2303XC (1) 91)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON DAWSON)

A BILL FOR

An Act concerning quarterly reports on and payments of beer barrel and wine gallonage taxes, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.137, subsection 1, Code 2025, is amended to read as follows:
   1.  a.  A Except as provided in paragraph “b”, a person holding a class “A” or special class “A” beer permit shall, on or before the tenth day of each calendar month commencing on the tenth day of the calendar month following the month in which the person is issued a beer permit, make a report under oath to the department electronically, or in a manner prescribed by the director, showing the exact number of barrels of beer, or fractional parts of barrels, sold by the beer permit holder during the preceding calendar month. The report shall also state information the director requires, and beer permit holders shall at the time of filing a report pay to the department the amount of tax due at the rate fixed in section 123.136.
   b.  A class “A” or special class “A” beer permit holder who reasonably expects to be liable for not more than two thousand five hundred dollars in barrel tax for the twelve-month period beginning July 1 and ending June 30, and who was liable for not more than two thousand five hundred dollars in barrel tax in the immediately preceding twelve-month period beginning July 1 and ending June 30, may file reports and pay taxes due as described in paragraph “a” on a quarterly basis according to the following schedule:
   (1)  On or before October 10 for the months of July, August, and September.
   (2)  On or before January 10 for the months of October, November, and December.
   (3)  On or before April 10 for the months of January, February, and March.
   (4)  On or before July 10 for the months of April, May, and June.
    Sec. 2.  Section 123.184, subsection 1, Code 2025, is amended to read as follows:
   1.  a.  Each Except as provided in paragraph “b”, a class “A” wine permit holder on or before the tenth day of each calendar month commencing on the tenth day of the calendar month following the month in which the person is issued a permit, shall make a report under oath to the department electronically, or in a manner prescribed by the director, showing the exact number of gallons of wine and fractional parts of gallons sold by that permit holder during the preceding calendar month. The report also shall state whatever reasonable additional information the director requires. The permit holder at the time of filing this report shall pay to the department the amount of tax due at the rate fixed in section 123.183.
   b.  A class “A” wine permit holder who reasonably expects to be liable for not more than two thousand five hundred dollars in wine gallonage tax for the twelve-month period beginning July 1 and ending June 30, and who was liable for not more than two thousand five hundred dollars in wine gallonage tax in the immediately preceding twelve-month period beginning July 1 and ending June 30, may file reports and pay taxes as described in paragraph “a” on a quarterly basis according to the following schedule:
   (1)  On or before October 10 for the months of July, August, and September.
   (2)  On or before January 10 for the months of October, November, and December.
   (3)  On or before April 10 for the months of January, February, and March.
   (4)  On or before July 10 for the months of April, May, and June.
   c.  A penalty of ten percent of the amount of the tax shall be assessed and collected if the report required to be filed pursuant to this subsection is not filed and the tax paid within the time required by this subsection.
    Sec. 3.  EFFECTIVE DATE.  This Act takes effect January 1, 2026.
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” and special class “A” beer permit holders are required to submit barrel tax reports and payments to the department of revenue (department) on or before the 10th day of each month. The beer barrel tax rate is $5.89 for every 31-gallon barrel, and the fractional equivalent for a portion of a barrel, on all beer manufactured for sale and sold in this state at wholesale, all beer imported into this state for sale at wholesale and sold in this state at wholesale, and (for special class “A” beer permittees) all beer manufactured for consumption on the premises and all beer sold at retail at the manufacturing premises for consumption off the premises. Beer sold out-of-state by class “A” and special class “A” beer permit holders or sold to another class “A” beer permit holder is not subject to the barrel tax.
   Under current law, a class “A” wine permit holder is similarly required to report on and pay the wine gallonage tax to the department on or before the 10th day each month on all wine manufactured for sale and sold in this state at wholesale and wine imported into this state for sale at wholesale and sold in this state at wholesale. The wine gallonage tax rate is $1.75 per gallon and the fractional equivalent for a portion of a gallon. Wine sold to another class “A” wine permittee or to a distributor outside of the state is not subject to the wine gallonage tax.
   This bill allows class “A” and special class “A” beer permit holders and class “A” wine permit holders who reasonably expect to be liable for not more than $2,500 in beer barrel tax or wine gallonage tax, respectively, for the 12-month period beginning July 1 and ending June 30, and who were liable for not more than $2,500 in beer barrel tax or wine gallonage tax, respectively, in the immediately preceding 12-month period, to file reports and pay taxes to the department on or before the 10th day following the end of each quarter, as specified in the bill.
   The bill takes effect January 1, 2026.