Bill Text: IA HF83 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act providing for an excise tax on motor fuel and special fuel used in motor vehicles based on the wholesale price of the fuel and including effective date provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-01-22 - Introduced, referred to Transportation. H.J. 138. [HF83 Detail]

Download: Iowa-2015-HF83-Introduced.html

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House File 83 - Introduced




                                 HOUSE FILE       
                                 BY  SHEETS

                                      A BILL FOR

  1 An Act providing for an excise tax on motor fuel and special
  2    fuel used in motor vehicles based on the wholesale price of
  3    the fuel and including effective date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1204HH (2) 86
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PAG LIN



  1  1    Section 1.  Section 452A.3, subsection 1, Code 2015, is
  1  2 amended by striking the subsection and inserting in lieu
  1  3 thereof the following:
  1  4    1.  Except as otherwise provided in this section and in
  1  5 this division, this subsection shall apply to the excise tax
  1  6 imposed on each gallon of motor fuel used for any purpose for
  1  7 the privilege of operating motor vehicles in this state. The
  1  8 rate of the excise tax shall be a percentage of the sales price
  1  9 of motor fuel distributed in the state. The rate shall be
  1 10 established by the department on the effective date of this
  1 11 Act by calculating the percentage of the wholesale price of
  1 12 a gallon of motor fuel that represents an amount equivalent
  1 13 to the amount of revenue produced by a tax rate of twenty
  1 14 cents per gallon, rounded to the nearest one=half of one
  1 15 percent. For purposes of this subsection, the wholesale price
  1 16 of motor fuel shall be the price reported for the midwest
  1 17 in the most recent weekly price report issued by the United
  1 18 States department of energy, United States energy information
  1 19 administration, as of the effective date of this Act.
  1 20    Sec. 2.  Section 452A.3, subsection 2, Code 2015, is amended
  1 21 by striking the subsection.
  1 22    Sec. 3.  Section 452A.3, subsection 4, Code 2015, is amended
  1 23 to read as follows:
  1 24    4.  The rate of the excise tax on E=85 gasoline imposed in
  1 25 subsection 3 shall be determined based on the number of gallons
  1 26 of E=85 gasoline that are distributed in this state during the
  1 27 previous calendar year. The department shall determine the
  1 28 actual tax paid for E=85 gasoline for each period beginning
  1 29 January 1 and ending December 31. The amount of the tax paid on
  1 30 E=85 gasoline during the past calendar year shall be compared
  1 31 to the amount of tax on E=85 gasoline that would have been paid
  1 32 using the tax rate for gasoline imposed in subsection 1 or
  1 33 2 and a difference shall be established. If this difference
  1 34 is equal to or greater than twenty=five thousand dollars, the
  1 35 tax rate for E=85 gasoline for the period beginning July 1
  2  1 following the end of the determination period shall be the rate
  2  2 in effect as stated in subsection 1 or 2.
  2  3    Sec. 4.  Section 452A.3, subsection 6, Code 2015, is amended
  2  4 to read as follows:
  2  5    6.  a.  For the privilege of operating motor vehicles or
  2  6 aircraft in this state, there is imposed an excise tax on the
  2  7 use of special fuel in a motor vehicle or aircraft. The tax
  2  8 rate on special fuel for diesel engines of motor vehicles is
  2  9 twenty=two and one=half cents per gallon. as follows:
  2 10    (1)  The rate of the excise tax on special fuel for diesel
  2 11 engines of motor vehicles shall be a percentage of the sales
  2 12 price of diesel fuel distributed in the state. The rate shall
  2 13 be established by the department on the effective date of this
  2 14 Act by calculating the percentage of the wholesale price of
  2 15 a gallon of diesel fuel that represents an amount equivalent
  2 16 to the amount of revenue produced by a tax rate of twenty=two
  2 17 and one=half cents per gallon, rounded to the nearest one=half
  2 18 of one percent. For purposes of this subparagraph, the
  2 19 wholesale price of diesel fuel shall be the price reported for
  2 20 the midwest in the most recent weekly price report issued by
  2 21 the United States department of energy, United States energy
  2 22 information administration, as of the effective date of this
  2 23 Act.
  2 24    (2)  The rate of tax on special fuel for aircraft is three
  2 25 cents per gallon.
  2 26    (3)  On all other special fuel, unless otherwise specified in
  2 27 this section, the per gallon rate is the same as the motor fuel
  2 28 tax.
  2 29    b.  Indelible dye meeting United States environmental
  2 30 protection agency and internal revenue service regulations must
  2 31 be added to fuel before or upon withdrawal at a terminal or
  2 32 refinery rack for that fuel to be exempt from tax and the dyed
  2 33 fuel may be used only for an exempt purpose.
  2 34    Sec. 5.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  2 35 immediate importance, takes effect upon enactment.
  3  1                           EXPLANATION
  3  2 The inclusion of this explanation does not constitute agreement with
  3  3 the explanation's substance by the members of the general assembly.
  3  4    Currently, the rate of the excise tax on a gallon of motor
  3  5 fuel is linked to the distribution percentage of ethanol
  3  6 blended gasoline and fuel other than ethanol blended gasoline
  3  7 sold in this state, and beginning July 1, 2015, the tax rate
  3  8 for both ethanol blended gasoline and motor fuel other than
  3  9 ethanol blended gasoline will be 20 cents per gallon. The
  3 10 current rate of the excise tax on special fuel for diesel
  3 11 engines of motor vehicles is 22.5 cents per gallon.
  3 12    This bill replaces the current per=gallon tax rates on motor
  3 13 fuel and special fuel for diesel engines of motor vehicles with
  3 14 tax rates expressed as a percentage of the sales price.
  3 15    The new motor fuel tax rate established in the bill will
  3 16 be a percentage of the wholesale price of a gallon of motor
  3 17 fuel that represents an amount per gallon that is equivalent
  3 18 to the amount of revenue produced by the current tax rate of 20
  3 19 cents per gallon, rounded to the nearest one=half of 1 percent.
  3 20 The new rate will be established on the effective date of the
  3 21 Act, based on the wholesale price reported for the midwest
  3 22 in the most recent weekly price report issued by the United
  3 23 States energy information administration as of that date.  By
  3 24 operation of law, the rate determined under the bill for motor
  3 25 fuel is also the rate for special fuel that is not for diesel
  3 26 engines of motor vehicles or for aircraft, and under specified
  3 27 circumstances, the rate determined under the bill for motor
  3 28 fuel may also be the rate for E=85 gasoline.
  3 29    The new tax rate for special fuel for diesel engines of motor
  3 30 vehicles will be established on the effective date of the Act
  3 31 in the same manner as the tax rate for motor fuel.  The rate is
  3 32 a percentage of the wholesale price of a gallon of diesel fuel
  3 33 that represents an amount equivalent to the amount of revenue
  3 34 produced by the current tax rate of 22.5 cents per gallon,
  3 35 rounded to the nearest one=half of 1 percent.  The wholesale
  4  1 price is the price reported for the midwest in the most
  4  2 recent weekly price report issued by the United States energy
  4  3 information administration as of the effective date of the Act.
  4  4    The bill takes effect upon enactment.
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