Iowa Department of Alcoholic Beverages

State of Iowa Alcoholic Beverages Division

The price of spirits in Iowa is comprised of several cost factors, including supplier costs, federal and state excise taxes and a variety of other charges. For instance, the final cost that an Iowa consumer could expect to pay, on average, for a 750 ML bottle of Jack Daniels Tennessee Whiskey, is $19.99. That price includes the following elements:


$ .07	.35%	Bottle Deposit & Surcharge
$ .95	4.75%	State Sales Tax (5%)
$2.30	11.51%	Federal Excise Tax
$3.98	19.91%	Average Retail Mark-Up (26.5%)
$5.00	25.01%	State Excise Tax (50% Mark-Up)
$7.69	38.47%	Distiller Cost & Profit
__________
$19.99		Total Cost of bottle

$ .07

.35%

Bottle Deposit & Surcharge

$ .95

4.75%

State Sales Tax (5%)

$2.30

11.51%

Federal Excise Tax

$3.98

19.91%

Average Retail Mark-Up (26.5%)

$5.00

25.01%

State Excise Tax (50% Mark-Up)

$7.69

38.47%

Distiller Cost & Profit

$19.99

Total Cost of bottle