The tax on beer will increase beginning November 1, 2019. The tax rate on a 31-gallon barrel will increase $.30 from $12.80 to $13.10 as a result of the 2019 SB 132 Beer Amendments.
The legislation means consumers of beer products will see the tax increase but it will not have any direct, measurable costs for local governments. The legislation also modifies the permissible percentage of alcohol in beer and heavy beer and creates the Beer Availability Workgroup, which will study issues related to beer availability, alcohol content and retail practices.
The increase in the beer tax is expected to generate $350,000 annually. Beginning July 1, 2020, the revenue from the increased taxes will go to the Alcoholic Beverage Enforcement and Treatment Restricted Account.
The Utah State Tax Commission collects revenue for the state and local governments and equitably administers tax and assigned motor vehicle laws.