Alcohol

Beer Excise Tax

The beer tax in Iowa was enacted with the repeal of prohibition in 1933 and is based on the sale of beer to retail outlets. The tax was originally set at $.04 per gallon sold, and was increased July 1, 1986 from $.15 to $.19 per gallon where it remains today. Revenue from Iowa's beer tax is collected by the Division and transferred to the state's general fund.