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HF 994

A bill for an act concerning quarterly reports on and payments of beer barrel and wine gallonage taxes, and including effective date provisions.

2025-2026 Regular Session

Allows small beer and wine permit holders with tax liability ≤ $2,500 to file and pay quarterly instead of monthly for beer barrel and wine gallonage taxes.

Signed by Governor.
#beerbarreltaxes #gallonagetaxes
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Bill Summary · HF 994

Summary — HF 994 (2025)

Title: An act concerning quarterly reports on and payments of beer barrel and wine gallonage taxes; includes effective date provisions.
Status: Signed by Governor Kim Reynolds (approved May 6, 2025). Effective January 1, 2026.

Purpose

HF 994 allows certain small beer manufacturers and wine producers to file and pay their beer barrel and wine gallonage taxes quarterly instead of monthly, reducing administrative burden for low‑liability permit holders.

Key provisions

  • Amends Iowa Code sections 123.137 (beer) and 123.184 (wine).
  • Default requirement remains monthly reporting and payment: each class “A” (and special class “A” for beer) permit holder must file a sworn report and remit tax on or before the 10th day of each calendar month for the preceding month, electronically or in a manner prescribed by the director.
  • Exception allowing quarterly reporting and payment for qualifying permit holders (see Eligibility).
  • Quarterly filing schedule:
    • Oct 10 — July, Aug, Sep
    • Jan 10 — Oct, Nov, Dec
    • Apr 10 — Jan, Feb, Mar
    • Jul 10 — Apr, May, Jun
  • A 10% penalty applies if the required report is not filed and the tax not paid within the required time (expressly stated for wine reporting; consistent enforcement applies to the tax rules).

Eligibility / qualification

A permit holder may use quarterly reporting only if both conditions are met:
- They reasonably expect to owe not more than $2,500 in barrel (beer) or gallonage (wine) tax for the 12‑month fiscal period beginning July 1 and ending June 30; and
- They were liable for not more than $2,500 in the same tax for the immediately preceding July 1–June 30 period.

Tax bases and applicable rates (current law, explained in enrolled bill)

  • Beer barrel tax: $5.89 per 31‑gallon barrel (proportionally for fractional barrels). Applies to beer manufactured for sale at wholesale and beer imported/sold at wholesale; special class “A” has specific on‑premises/retail exceptions. Beer sold out‑of‑state or to another class “A” permittee is not taxed.
  • Wine gallonage tax: $1.75 per gallon (proportionally for fractional gallons). Similar wholesale/import rules; sales to another class “A” permittee or an out‑of‑state distributor are not taxed.

Who is affected / likely impact

  • Beneficiaries: small class “A” and special class “A” beer permit holders and class “A” wine permit holders whose annual tax liability is ≤ $2,500 and met the same threshold in the prior year. Quarterly filing reduces administrative frequency and record‑keeping costs.
  • Other permit holders: no change — continue monthly reporting.
  • State revenue timing: small shift in cash‑flow timing for qualifying payers (payments aggregated quarterly rather than monthly).
  • Compliance risk: missed quarterly deadlines remain subject to penalties (10% cited).

Effective date and legislative history

  • Effective: January 1, 2026.
  • Passed House: April 17, 2025 (92–0). Passed Senate: April 23, 2025 (47–1). Signed by Governor: May 6, 2025. Introduced April 7, 2025.

This bill provides a targeted administrative relief option for small beer and wine permit holders while preserving monthly reporting for larger operators.

Compiled from official sources — confirm details with the bill’s official record.

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