Iowa's booze tax ranks among nation's highest
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Iowa's booze drinkers pay one of the nation's steepest distilled spirits taxes: $15.14 per gallon — the seventh-highest among states, according to the Tax Foundation.
Why it matters: That state-line price gap can add up for travelers, bar owners and retailers — and Iowa's rate dwarfs that of every surrounding state.
By the numbers: Iowa taxes distilled spirits about 73% more than Minnesota ($8.74) and Illinois ($8.55), the next-highest neighboring states.
- The gap is wider in South Dakota ($4.93), Nebraska ($3.75), Wisconsin ($3.25), and Missouri ($2).
The big picture: Alcohol taxes vary widely across the U.S., with Washington topping the spirits list at $36.68 per gallon.
Between the lines: Iowa is a "control state," meaning the state controls liquor importation and wholesale distribution — a structure that helps explain why Iowa's tax rate is higher than those of neighboring states.
The latest: Lawmakers considered "repealing the state monopoly" in a House bill this year, but it stalled after passing a committee.