Bill Text: IA HSB661 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill relating to the rate of the excise tax on motor fuel and certain special fuel used in motor vehicles.
Spectrum: Unknown
Status: (N/A - Dead) 2014-02-19 - In Transportation [HSB661 Detail]
Download: Iowa-2013-HSB661-Introduced.html
House
Study
Bill
661
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
TRANSPORTATION
BILL
BY
CHAIRPERSON
BYRNES)
A
BILL
FOR
An
Act
relating
to
the
rate
of
the
excise
tax
on
motor
fuel
and
1
certain
special
fuel
used
in
motor
vehicles.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
6124HC
(4)
85
dea/sc
H.F.
_____
Section
1.
Section
452A.3,
subsection
1,
Code
2014,
is
1
amended
by
striking
the
subsection
and
inserting
in
lieu
2
thereof
the
following:
3
1.
a.
Except
as
otherwise
provided
in
this
section
and
in
4
this
division,
this
subsection
shall
apply
to
the
excise
taxes
5
imposed
on
each
gallon
of
motor
fuel
used
for
any
purpose
for
6
the
privilege
of
operating
motor
vehicles
in
this
state.
7
b.
An
excise
tax
is
imposed
on
each
gallon
of
motor
fuel
in
8
an
amount
equal
to
sixteen
cents
per
gallon
plus
five
percent
9
of
the
sales
price
charged
by
the
supplier
exclusive
of
the
10
sixteen
cents
per
gallon.
11
Sec.
2.
Section
452A.3,
subsection
1A,
Code
2014,
is
amended
12
by
striking
the
subsection.
13
Sec.
3.
Section
452A.3,
subsection
1C,
Code
2014,
is
amended
14
to
read
as
follows:
15
1C.
The
rate
of
the
excise
tax
on
E-85
gasoline
imposed
16
in
subsection
1B
shall
be
determined
based
on
the
number
of
17
gallons
of
E-85
gasoline
that
are
distributed
in
this
state
18
during
the
previous
calendar
year.
The
department
shall
19
determine
the
actual
tax
paid
for
E-85
gasoline
for
each
period
20
beginning
January
1
and
ending
December
31.
The
amount
of
21
the
tax
paid
on
E-85
gasoline
during
the
past
calendar
year
22
shall
be
compared
to
the
amount
of
tax
on
E-85
gasoline
that
23
would
have
been
paid
using
the
tax
rate
for
gasoline
imposed
24
in
subsection
1
or
1A
and
a
difference
shall
be
established.
25
If
this
difference
is
equal
to
or
greater
than
twenty-five
26
thousand
dollars,
the
tax
rate
for
E-85
gasoline
for
the
period
27
beginning
July
1
following
the
end
of
the
determination
period
28
shall
be
the
rate
in
effect
as
stated
in
subsection
1
or
1A
.
29
Sec.
4.
Section
452A.3,
subsection
3,
Code
2014,
is
amended
30
to
read
as
follows:
31
3.
a.
For
the
privilege
of
operating
motor
vehicles
or
32
aircraft
in
this
state,
there
is
imposed
an
excise
tax
on
the
33
use
of
special
fuel
in
a
motor
vehicle
or
aircraft.
34
(1)
The
tax
rate
on
special
fuel
for
diesel
engines
of
motor
35
-1-
LSB
6124HC
(4)
85
dea/sc
1/
3
H.F.
_____
vehicles
is
twenty-two
and
one-half
an
amount
equal
to
eighteen
1
cents
per
gallon
plus
five
percent
of
the
sales
price
charged
2
by
the
supplier
exclusive
of
the
eighteen
cents
per
gallon
.
3
(2)
The
rate
of
tax
on
special
fuel
for
aircraft
is
three
4
cents
per
gallon.
5
(3)
On
all
other
special
fuel,
unless
otherwise
specified
in
6
this
section
,
the
per
gallon
rate
is
the
same
as
the
motor
fuel
7
tax.
8
b.
Indelible
dye
meeting
United
States
environmental
9
protection
agency
and
internal
revenue
service
regulations
must
10
be
added
to
fuel
before
or
upon
withdrawal
at
a
terminal
or
11
refinery
rack
for
that
fuel
to
be
exempt
from
tax
and
the
dyed
12
fuel
may
be
used
only
for
an
exempt
purpose.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
imposes
an
excise
tax
on
motor
fuel
and
special
17
fuel
for
diesel
engines
of
motor
vehicles
that
is
a
combination
18
of
a
rate
per
gallon
and
a
percentage
of
the
sales
price.
19
The
current
distribution
percentage
formula
for
determining
20
the
rate
of
the
tax
on
ethanol
blended
gasoline
and
gasoline
21
other
than
ethanol
blended
gasoline
is
due
to
expire
on
June
22
30,
2014.
After
that
date,
the
tax
on
all
motor
fuel
will
be
20
23
cents
per
gallon.
The
current
rate
of
tax
on
diesel
fuel
for
24
motor
vehicles
is
22.5
cents
per
gallon.
25
Under
the
bill,
effective
July
1,
2014,
the
rate
of
the
26
excise
tax
on
motor
fuel
will
be
16
cents
per
gallon
plus
5
27
percent
of
the
sales
price
charged
by
the
supplier,
exclusive
28
of
the
16
cents
per
gallon.
The
rate
of
the
excise
tax
on
29
special
fuel
for
diesel
engines
of
motor
vehicles
will
be
18
30
cents
per
gallon
plus
5
percent
of
the
sales
price
charged
31
by
the
supplier,
exclusive
of
the
18
cents
per
gallon.
By
32
operation
of
law,
the
rate
determined
under
the
bill
for
motor
33
fuel
will
also
apply
to
special
fuel
that
is
not
for
diesel
34
engines
of
motor
vehicles
or
for
aircraft,
and
under
specified
35
-2-
LSB
6124HC
(4)
85
dea/sc
2/
3
H.F.
_____
circumstances,
the
rate
determined
under
the
bill
for
motor
1
fuel
might
also
be
the
rate
for
E-85
gasoline.
2
Pursuant
to
current
law
and
under
the
bill,
fuel
taxes
are
3
paid
by
the
supplier
on
the
invoiced
gross
gallonage
of
motor
4
fuel
or
special
fuel
withdrawn
from
the
terminal,
then
added
to
5
the
retail
price
so
that
the
ultimate
consumer
bears
the
burden
6
of
the
tax.
7
-3-
LSB
6124HC
(4)
85
dea/sc
3/
3