Bill
Bill > HF830
IA HF830
IA HF830A bill for an act concerning the wholesale price of alcoholic liquor offered for sale by the department of revenue.
summary
Introduced
03/07/2025
03/07/2025
In Committee
03/07/2025
03/07/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
Under current law, the price of alcoholic liquor sold by the department of revenue (department) to class “E” retail alcohol licensees (licensees) consists of, among other things, the manufacturer’s price and a markup of up to 50 percent of the wholesale price paid by the department for the alcoholic liquor. The department is the sole wholesaler of alcoholic liquor sold to licensees located in this state. Licensees are authorized to sell liquor, wine, and beer in original unopened containers at retail to patrons for consumption off the licensed premises. Licensees may also sell alcoholic liquor, high alcoholic content beer, and limited quantities of beer and wine at wholesale to other retail alcohol licensees. This bill provides that if the minimum unit price of the alcoholic liquor is higher than the manufacturer’s price or, for purposes of the 50 percent markup, higher than the wholesale price paid by the department, the minimum unit price is used to calculate the price of the alcoholic liquor sold by the department. The minimum unit price is an amount equal to 50 cents per 18 milliliters of alcohol in the package of alcoholic liquor, as determined by the department.
AI Summary
This bill modifies how the Department of Revenue calculates the wholesale price of alcoholic liquor for sale to class "E" retail alcohol licensees. Currently, the price is based on the manufacturer's price and a markup of up to 50 percent of the wholesale price. The bill introduces a new concept called "minimum unit price," which is defined as 50 cents per 18 milliliters of alcohol in a package. If this minimum unit price is higher than either the manufacturer's price or the wholesale price, the department must use the minimum unit price to calculate the selling price. This means that for some alcoholic liquor packages, the base price and markup will be determined by this new minimum unit price standard, potentially increasing the wholesale cost for retailers. The bill essentially ensures a minimum pricing floor for alcoholic liquor sold by the state, which could impact pricing and potentially generate more revenue for the state's liquor sales.
Committee Categories
Government Affairs
Sponsors (2)
Last Action
Introduced, referred to State Government. H.J. 558. (on 03/07/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF830 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF830.html |
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