The Iowa Alcoholic Beverages Division is responsible for the regulation and control of alcohol in the State of Iowa. Iowa is one of eighteen control states that, since the repeal of prohibition, directly control the sale and distribution of alcoholic beverages. In addition, the Division is responsible for the enforcement of state and federal laws and regulations regarding the sale and use of alcohol and tobacco products.
In Fiscal Year 2012, the Division generated nearly $115.1 million in state funds, representing around 2% of the state’s total revenue. The Division generated $78.5 million in net profit from the direct sale of alcohol in Iowa. In addition to revenue from alcohol sales, the Division collects liquor license fees, excise tax on beer and wine, and civil penalties levied through administrative sanctions.
The Iowa Alcoholic Beverages Division transfers all profits and revenue generated back into the state’s coffers to support city, county and state programs. In fiscal year 2012, the Division generated nearly $115.1 million to support state and local programs. The majority is transferred to the State’s General Fund. The remaining funds were used for substance abuse treatment programs and local programs at the city and county level. The Division transferred additional funds to support Iowa beer and wine promotion.