Bill Text: IA HF2441 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act concerning the excise tax on compressed natural gas and liquefied natural gas used as special fuel. (Formerly HF 2149)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2014-03-18 - Withdrawn. H.J. 530. [HF2441 Detail]
Download: Iowa-2013-HF2441-Introduced.html
House
File
2441
-
Introduced
HOUSE
FILE
2441
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2149)
A
BILL
FOR
An
Act
concerning
the
excise
tax
on
compressed
natural
gas
and
1
liquefied
natural
gas
used
as
special
fuel.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
452A.2,
Code
2014,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
20A.
a.
“Gallon”
,
with
respect
to
3
compressed
natural
gas,
means
a
gasoline
gallon
equivalent.
A
4
gasoline
gallon
equivalent
of
compressed
natural
gas
is
five
5
and
sixty-six
hundredths
pounds
or
one
hundred
twenty-six
6
and
sixty-seven
hundredths
cubic
feet
measured
at
a
base
7
temperature
of
60
degrees
Fahrenheit
and
a
pressure
of
fourteen
8
and
seventy-three
hundredths
pounds
per
square
inch
absolute.
9
b.
“Gallon”
,
with
respect
to
liquefied
natural
gas,
means
10
a
diesel
gallon
equivalent.
A
diesel
gallon
equivalent
of
11
liquefied
natural
gas
is
six
and
six
hundredths
pounds.
12
Sec.
2.
Section
452A.2,
subsections
24
and
25,
Code
2014,
13
are
amended
to
read
as
follows:
14
24.
“Licensed
compressed
natural
gas
,
liquefied
natural
15
gas,
and
liquefied
petroleum
gas
dealer”
means
a
person
in
the
16
business
of
handling
untaxed
compressed
natural
gas
,
liquefied
17
natural
gas,
or
liquefied
petroleum
gas
who
delivers
any
part
18
of
the
fuel
into
a
fuel
supply
tank
of
any
motor
vehicle.
19
25.
“Licensed
compressed
natural
gas
,
liquefied
natural
gas,
20
and
liquefied
petroleum
gas
user”
means
a
person
licensed
by
21
the
department
who
dispenses
compressed
natural
gas
,
liquefied
22
natural
gas,
or
liquefied
petroleum
gas,
upon
which
the
special
23
fuel
tax
has
not
been
previously
paid,
for
highway
use
from
24
fuel
sources
owned
and
controlled
by
the
person
into
the
fuel
25
supply
tank
of
a
motor
vehicle,
or
commercial
vehicle
owned
or
26
controlled
by
the
person.
27
Sec.
3.
Section
452A.3,
subsection
4,
Code
2014,
is
amended
28
to
read
as
follows:
29
4.
For
compressed
natural
gas
used
as
a
special
fuel,
the
30
rate
of
tax
that
is
equivalent
to
the
motor
fuel
tax
shall
31
be
sixteen
cents
per
hundred
cubic
feet
adjusted
to
a
base
32
temperature
of
sixty
degrees
Fahrenheit
and
a
pressure
of
33
fourteen
and
seventy-three
hundredths
pounds
per
square
inch
34
absolute
is
twenty-one
cents
per
gallon
.
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Sec.
4.
Section
452A.3,
Code
2014,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
4A.
For
liquefied
natural
gas
used
as
a
3
special
fuel,
the
rate
of
tax
is
twenty-two
and
one-half
cents
4
per
gallon.
5
Sec.
5.
Section
452A.4,
subsection
1,
paragraph
d,
Code
6
2014,
is
amended
to
read
as
follows:
7
d.
A
dealer’s
or
user’s
license
shall
be
required
for
8
each
separate
place
of
business
or
location
where
compressed
9
natural
gas
,
liquefied
natural
gas,
or
liquefied
petroleum
gas
10
is
delivered
or
placed
into
the
fuel
supply
tank
of
a
motor
11
vehicle.
12
Sec.
6.
Section
452A.8,
subsection
2,
paragraph
e,
Code
13
2014,
is
amended
to
read
as
follows:
14
e.
(1)
For
purposes
of
this
paragraph
“e”
,
“dealer”
or
15
“user”
means
a
licensed
compressed
natural
gas,
liquefied
16
natural
gas,
and
liquefied
petroleum
gas
dealer
or
user
and
17
“fuel”
means
compressed
natural
gas,
liquefied
natural
gas,
or
18
liquefied
petroleum
gas.
19
(2)
The
tax
for
compressed
natural
gas
,
liquefied
natural
20
gas,
and
liquefied
petroleum
gas
delivered
by
a
licensed
21
compressed
natural
gas
or
liquefied
petroleum
gas
dealer
for
22
use
in
this
state
shall
attach
at
the
time
of
the
delivery
and
23
shall
be
collected
by
the
dealer
from
the
consumer
and
paid
24
to
the
department
as
provided
in
this
chapter
.
The
tax,
with
25
respect
to
compressed
natural
gas
,
liquefied
natural
gas,
and
26
liquefied
petroleum
gas
acquired
by
a
consumer
in
any
manner
27
other
than
by
delivery
by
a
licensed
compressed
natural
gas
28
or
liquefied
petroleum
gas
dealer
into
a
fuel
supply
tank
of
29
a
motor
vehicle,
attaches
at
the
time
of
the
use
of
the
fuel
30
and
shall
be
paid
over
to
the
department
by
the
consumer
as
31
provided
in
this
chapter
.
32
(2)
(3)
The
department
shall
adopt
rules
governing
the
33
dispensing
of
compressed
natural
gas
,
liquefied
natural
gas,
34
and
liquefied
petroleum
gas
by
licensed
dealers
and
licensed
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users.
The
director
may
require
by
rule
that
reports
and
1
returns
be
filed
by
electronic
transmission.
For
purposes
2
of
this
paragraph
“e”
,
“dealer”
and
“user”
mean
a
licensed
3
compressed
natural
gas
or
liquefied
petroleum
gas
dealer
or
4
user
and
“fuel”
means
compressed
natural
gas
or
liquefied
5
petroleum
gas.
The
department
shall
require
that
all
pumps
6
located
at
dealer
locations
and
user
locations
through
which
7
liquefied
petroleum
gas
can
be
dispensed
shall
be
metered,
8
inspected,
tested
for
accuracy,
and
sealed
and
licensed
by
9
the
state
department
of
agriculture
and
land
stewardship,
and
10
that
fuel
delivered
into
the
fuel
supply
tank
of
any
motor
11
vehicle
shall
be
dispensed
only
through
tested
metered
pumps
12
and
may
be
sold
without
temperature
correction
or
corrected
to
13
a
temperature
of
sixty
60
degrees.
If
the
metered
gallonage
14
is
to
be
temperature-corrected,
only
a
temperature-compensated
15
meter
shall
be
used.
Natural
gas
used
as
fuel
shall
be
16
delivered
into
compressing
equipment
through
sealed
meters
17
certified
for
accuracy
by
the
department
of
agriculture
and
18
land
stewardship.
19
(3)
(4)
(a)
All
gallonage
which
is
not
for
highway
use,
20
dispensed
through
metered
pumps
as
licensed
under
this
section
21
on
which
fuel
tax
is
not
collected,
must
be
substantiated
by
22
exemption
certificates
as
provided
by
the
department
or
by
23
valid
exemption
certificates
provided
by
the
dealers,
signed
by
24
the
purchaser,
and
retained
by
the
dealer.
A
“valid
exemption
25
certificate
provided
by
a
dealer”
is
an
exemption
certificate
26
which
is
in
the
form
prescribed
by
the
director
to
assist
a
27
dealer
to
properly
account
for
fuel
dispensed
for
which
tax
is
28
not
collected
and
which
is
complete
and
correct
according
to
29
the
requirements
of
the
director.
30
(b)
For
the
privilege
of
purchasing
liquefied
petroleum
31
gas,
dispensed
through
licensed
metered
pumps,
on
a
basis
32
exempt
from
the
tax,
the
purchaser
shall
sign
exemption
33
certificates
for
the
gallonage
claimed
which
is
not
for
highway
34
use.
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(c)
The
department
shall
disallow
all
sales
of
gallonage
1
which
is
not
for
highway
use
unless
proof
is
established
by
the
2
certificate.
Exemption
certificates
shall
be
retained
by
the
3
dealer
for
a
period
of
three
years.
4
(4)
(5)
(a)
For
the
purpose
of
determining
the
amount
5
of
liability
for
fuel
tax,
each
dealer
and
each
user
shall
6
file
with
the
department
not
later
than
the
last
day
of
the
7
month
following
the
month
in
which
this
division
becomes
8
effective
and
not
later
than
the
last
day
of
each
calendar
9
month
thereafter
a
monthly
tax
return
certified
under
penalties
10
for
false
certification.
The
return
shall
show,
with
reference
11
to
each
location
at
which
fuel
is
delivered
or
placed
by
the
12
dealer
or
user
into
a
fuel
supply
tank
of
any
motor
vehicle
13
during
the
next
preceding
calendar
month,
information
as
14
required
by
the
department.
15
(b)
The
amount
of
tax
due
shall
be
computed
by
multiplying
16
the
appropriate
tax
rate
per
gallon
by
the
number
of
gallons
17
of
fuel
delivered
or
placed
by
the
dealer
or
user
into
supply
18
tanks
of
motor
vehicles.
19
(c)
The
return
shall
be
accompanied
by
remittance
in
the
20
amount
of
the
tax
due
for
the
month
in
which
the
fuel
was
placed
21
into
the
supply
tanks
of
motor
vehicles.
22
Sec.
7.
Section
452A.60,
unnumbered
paragraph
1,
Code
2014,
23
is
amended
to
read
as
follows:
24
The
department
of
revenue
or
the
state
department
of
25
transportation
shall
prescribe
and
furnish
all
forms,
as
26
applicable,
upon
which
reports,
returns,
and
applications
shall
27
be
made
and
claims
for
refund
presented
under
this
chapter
28
and
may
prescribe
forms
of
record
to
be
kept
by
suppliers,
29
restrictive
suppliers,
importers,
exporters,
blenders,
common
30
carriers,
contract
carriers,
licensed
compressed
natural
gas
,
31
liquefied
natural
gas,
and
liquefied
petroleum
gas
dealers
32
and
users,
terminal
operators,
nonterminal
storage
facility
33
operations,
and
interstate
commercial
motor
vehicle
operators.
34
Sec.
8.
Section
452A.62,
subsection
1,
paragraph
a,
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subparagraph
(2),
Code
2014,
is
amended
to
read
as
follows:
1
(2)
A
licensed
compressed
natural
gas
,
liquefied
natural
2
gas,
or
liquefied
petroleum
gas
dealer,
user,
or
person
3
supplying
compressed
natural
gas
or
liquefied
petroleum
gas
to
4
a
licensed
compressed
natural
gas
,
liquefied
natural
gas,
or
5
liquefied
petroleum
gas
dealer
or
user.
6
Sec.
9.
Section
452A.62,
subsection
1,
paragraph
b,
Code
7
2014,
is
amended
to
read
as
follows:
8
b.
To
examine
the
records,
books,
papers,
receipts,
and
9
invoices
of
any
distributor,
supplier,
restrictive
supplier,
10
importer,
blender,
exporter,
terminal
operator,
nonterminal
11
storage
facility,
licensed
compressed
natural
gas
,
liquefied
12
natural
gas,
or
liquefied
petroleum
gas
dealer
or
user,
or
any
13
other
person
who
possesses
fuel
upon
which
the
tax
has
not
been
14
paid
to
determine
financial
responsibility
for
the
payment
of
15
the
taxes
imposed
by
this
chapter
.
16
Sec.
10.
Section
452A.74,
subsection
1,
paragraphs
e
and
g,
17
Code
2014,
are
amended
to
read
as
follows:
18
e.
For
any
person
to
act
as
a
supplier,
restrictive
19
supplier,
importer,
exporter,
blender,
or
compressed
natural
20
gas
,
liquefied
natural
gas,
or
liquefied
petroleum
gas
dealer
21
or
user
without
the
required
license.
22
g.
For
any
licensed
compressed
natural
gas
,
liquefied
23
natural
gas,
or
liquefied
petroleum
gas
dealer
or
user
to
24
dispense
compressed
natural
gas
,
liquefied
natural
gas,
or
25
liquefied
petroleum
gas
into
the
fuel
supply
tank
of
any
motor
26
vehicle
without
collecting
the
fuel
tax.
27
Sec.
11.
Section
452A.74,
subsection
2,
Code
2014,
is
28
amended
to
read
as
follows:
29
2.
Any
delivery
of
compressed
natural
gas
,
liquefied
30
natural
gas,
or
liquefied
petroleum
gas
to
a
compressed
natural
31
gas
,
liquefied
natural
gas,
or
liquefied
petroleum
gas
dealer
32
or
user
for
the
purpose
of
evading
the
state
tax
on
compressed
33
natural
gas
,
liquefied
natural
gas,
or
liquefied
petroleum
34
gas,
into
facilities
other
than
those
licensed
above
knowing
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that
the
fuel
will
be
used
for
highway
use
shall
constitute
1
a
violation
of
this
section
.
Any
compressed
natural
gas
,
2
liquefied
natural
gas,
or
liquefied
petroleum
gas
dealer
or
3
user
for
purposes
of
evading
the
state
tax
on
compressed
4
natural
gas
,
liquefied
natural
gas,
or
liquefied
petroleum
5
gas,
who
allows
a
distributor
to
place
compressed
natural
gas
,
6
liquefied
natural
gas,
or
liquefied
petroleum
gas
for
highway
7
use
in
facilities
other
than
those
licensed
above,
shall
also
8
be
deemed
in
violation
of
this
section
.
9
Sec.
12.
Section
452A.85,
subsection
1,
Code
2014,
is
10
amended
to
read
as
follows:
11
1.
Persons
having
title
to
motor
fuel,
ethanol
blended
12
gasoline,
undyed
special
fuel,
compressed
natural
gas,
13
liquefied
natural
gas,
or
liquefied
petroleum
gas
in
storage
14
and
held
for
sale
on
the
effective
date
of
an
increase
in
15
the
excise
tax
rate
imposed
on
motor
fuel,
ethanol
blended
16
gasoline,
undyed
special
fuel,
compressed
natural
gas,
17
liquefied
natural
gas,
or
liquefied
petroleum
gas
under
this
18
chapter
shall
be
subject
to
an
inventory
tax
based
upon
the
19
gallonage
in
storage
as
of
the
close
of
the
business
day
20
preceding
the
effective
date
of
the
increased
excise
tax
rate
21
of
motor
fuel,
ethanol
blended
gasoline,
undyed
special
fuel,
22
compressed
natural
gas,
liquefied
natural
gas,
or
liquefied
23
petroleum
gas
which
will
be
subject
to
the
increased
excise
tax
24
rate.
25
Sec.
13.
Section
452A.86,
Code
2014,
is
amended
to
read
as
26
follows:
27
452A.86
Method
of
determining
gallonage.
28
The
exclusive
method
of
determining
gallonage
of
any
29
purchases
or
sales
of
motor
fuel,
undyed
special
fuel,
30
compressed
natural
gas,
or
liquefied
petroleum
gas
as
defined
31
in
this
chapter
and
distillate
fuels
shall
be
on
a
gross
volume
32
basis
,
except
for
compressed
natural
gas
and
liquefied
natural
33
gas
.
The
exclusive
method
of
determining
gallonage
of
any
34
purchases
or
sales
of
compressed
natural
gas
is
the
gasoline
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gallon
equivalent,
as
defined
in
section
452A.2,
subsection
1
20A.
The
exclusive
method
of
determining
gallonage
of
any
2
purchase
or
sale
of
liquefied
natural
gas
is
the
diesel
gallon
3
equivalent,
as
defined
in
section
452A.2,
subsection
20A.
4
A
temperature-adjusted
or
other
method
shall
not
be
used,
5
except
as
it
applies
to
liquefied
petroleum
gas
and
the
sale
6
or
exchange
of
petroleum
products
between
petroleum
refiners.
7
All
invoices,
bills
of
lading,
or
other
records
of
sale
or
8
purchase
and
all
returns
or
records
required
to
be
made,
kept,
9
and
maintained
by
a
supplier,
restrictive
supplier,
importer,
10
exporter,
blender,
or
compressed
natural
gas
,
liquefied
natural
11
gas,
or
liquefied
petroleum
gas
dealer
or
user
shall
be
made,
12
kept,
and
maintained
on
the
gross
volume
basis.
For
purposes
13
of
this
section
,
“distillate
fuels”
means
any
fuel
oil,
gas
oil,
14
topped
crude
oil,
or
other
petroleum
oils
derived
by
refining
15
or
processing
crude
oil
or
unfinished
oils
which
have
a
boiling
16
range
at
atmospheric
pressure
which
falls
completely
or
in
part
17
between
five
hundred
fifty
550
and
twelve
hundred
1,200
degrees
18
Fahrenheit.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
revises
the
method
of
calculating
the
excise
tax
23
on
compressed
natural
gas
(CNG)
used
as
a
special
fuel
and
24
establishes
an
excise
tax
on
liquefied
natural
gas
(LNG)
used
25
as
a
special
fuel.
26
For
CNG,
the
rate
of
tax
is
21
cents
per
gallon.
The
bill
27
provides
that
the
term
“gallon”,
with
respect
to
CNG,
means
a
28
gasoline
gallon
equivalent,
which
is
5.66
hundredths
pounds
or
29
126.67
cubic
feet
measured
at
a
base
temperature
of
60
degrees
30
Fahrenheit
and
a
pressure
of
14.73
pounds
per
square
inch
31
absolute.
(Under
current
law,
the
rate
of
the
tax
is
based
on
32
cubic
feet
rather
than
pounds:
16
cents
per
100
cubic
feet
33
adjusted
to
a
base
temperature
of
60
degrees
Fahrenheit
and
a
34
pressure
of
14.73
pounds
per
square
inch
absolute.)
The
bill
35
-7-
LSB
5791HV
(2)
85
dea/sc
7/
8
H.F.
2441
provides
that
the
exclusive
method
of
determining
gallonage
of
1
any
purchase
or
sales
of
CNG
is
the
gasoline
gallon
equivalent.
2
For
LNG,
the
rate
of
tax
is
22.5
cents
per
gallon,
and
the
3
term
“gallon”,
with
respect
to
LNG,
means
a
diesel
gallon
4
equivalent,
which
is
6.06
pounds
of
LNG.
The
bill
provides
5
that
the
exclusive
method
of
determining
gallonage
of
any
6
purchase
or
sales
of
LNG
is
the
diesel
gallon
equivalent.
7
The
bill
makes
conforming
changes
to
various
Code
sections
8
to
include
LNG
in
current
provisions
relating
to
the
collection
9
of
the
excise
tax
on
special
fuel.
10
-8-
LSB
5791HV
(2)
85
dea/sc
8/
8
