This bill amends the beer barrel tax in Iowa by introducing new definitions and adjusting tax rates for different types of beer. It defines "American brewery" as the land and buildings in the U.S. where beer is manufactured and stored, and "foreign import beer" as beer manufactured and imported from outside the U.S. The bill establishes a tax of $1.86 for every 31-gallon barrel of beer produced in an American brewery, while maintaining a tax of $5.89 for every 31-gallon barrel of foreign import beer. This change aims to differentiate the tax rates based on the origin of the beer.

Additionally, the bill specifies that the new tax structure will take effect only after the director of revenue publishes a notice in the Iowa administrative bulletin confirming that the federal alcohol and tobacco tax and trade bureau has approved the differing state tax rates for American and foreign beers. This contingent effective date ensures that the state tax aligns with federal regulations before implementation.

Statutes affected:
Introduced: 123.3, 123.136