Bill Text: IA HF168 | 2019-2020 | 88th General Assembly | Introduced

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Bill Title: A bill for an act reducing the excise tax on motor fuel and certain special fuel, and including applicability provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-01-30 - Introduced, referred to Transportation. H.J. 183. [HF168 Detail]

Download: Iowa-2019-HF168-Introduced.html

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House File 168 - Introduced
HOUSE FILE 168
BY SHIPLEY
A BILL FOR
An Act reducing the excise tax on motor fuel and certain
special fuel, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 452A.3, subsection 1, paragraph b, Code
2019, is amended to read as follows:
b. The rate for the excise tax shall be as follows:
(1) If the distribution percentage is not greater than
fifty percent, the rate shall be twenty-nine twenty-six cents
for ethanol blended gasoline and thirty twenty-seven cents for
motor fuel other than ethanol blended gasoline.
(2) If the distribution percentage is greater than fifty
percent but not greater than fifty-five percent, the rate shall
be twenty-nine twenty-six cents for ethanol blended gasoline
and thirty twenty-seven and one-tenth cents for motor fuel
other than ethanol blended gasoline.
(3) If the distribution percentage is greater than
fifty-five percent but not greater than sixty percent, the
rate shall be twenty-nine twenty-six cents for ethanol blended
gasoline and thirty twenty-seven and three-tenths cents for
motor fuel other than ethanol blended gasoline.
(4) If the distribution percentage is greater than sixty
percent but not greater than sixty-five percent, the rate shall
be twenty-nine twenty-six cents for ethanol blended gasoline
and thirty twenty-seven and five-tenths cents for motor fuel
other than ethanol blended gasoline.
(5) If the distribution percentage is greater than
sixty-five percent but not greater than seventy percent, the
rate shall be twenty-nine twenty-six cents for ethanol blended
gasoline and thirty twenty-seven and seven-tenths cents for
motor fuel other than ethanol blended gasoline.
(6) If the distribution percentage is greater than seventy
percent but not greater than seventy-five percent, the rate
shall be twenty-nine twenty-six cents for ethanol blended
gasoline and thirty-one twenty-eight cents for motor fuel other
than ethanol blended gasoline.
(7) If the distribution percentage is greater than
seventy-five percent but not greater than eighty percent,
the rate shall be twenty-nine twenty-six and three-tenths
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H.F. 168
cents for ethanol blended gasoline and thirty twenty-seven and
eight-tenths cents for motor fuel other than ethanol blended
gasoline.
(8) If the distribution percentage is greater than
eighty percent but not greater than eighty-five percent, the
rate shall be twenty-nine twenty-six and five-tenths cents
for ethanol blended gasoline and thirty twenty-seven and
seven-tenths cents for motor fuel other than ethanol blended
gasoline.
(9) If the distribution percentage is greater than
eighty-five percent but not greater than ninety percent, the
rate shall be twenty-nine twenty-six and seven-tenths cents
for ethanol blended gasoline and thirty twenty-seven and
four-tenths cents for motor fuel other than ethanol blended
gasoline.
(10) If the distribution percentage is greater than ninety
percent but not greater than ninety-five percent, the rate
shall be twenty-nine twenty-six and nine-tenths cents for
ethanol blended gasoline and thirty twenty-seven and one-tenth
cents for motor fuel other than ethanol blended gasoline.
(11) If the distribution percentage is greater than
ninety-five percent, the rate shall be thirty twenty-seven
cents for ethanol blended gasoline and thirty twenty-seven
cents for motor fuel other than ethanol blended gasoline.
Sec. 2. Section 452A.3, subsections 2 and 3, Code 2019, are
amended to read as follows:
2. Except as otherwise provided in this section and in this
subchapter , after June 30, 2020, an excise tax of thirty cents
is imposed on each gallon of motor fuel used for any purpose
for the privilege of operating motor vehicles in this state .
as follows:
a. For the period beginning July 1, 2020, and ending June
30, 2021, the excise tax is twenty-four cents per gallon.
b. For the period beginning July 1, 2021, and ending June
30, 2022, the excise tax is twenty-one cents per gallon.
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H.F. 168
c. For the period beginning July 1, 2022, and ending June
30, 2023, the excise tax is eighteen cents per gallon.
d. For the period beginning July 1, 2023, and thereafter,
the excise tax is fifteen cents per gallon.
3. An excise tax of seventeen cents is imposed on each
gallon of E-85 gasoline, subject to the determination provided
in subsection 4 . , as follows:
a. For the period beginning July 1, 2019, and ending June
30, 2020, the excise tax is fifteen cents per gallon.
b. For the period beginning July 1, 2020, and ending June
30, 2021, the excise tax is thirteen cents per gallon.
c. For the period beginning July 1, 2021, and ending June
30, 2022, the excise tax is eleven cents per gallon.
d. For the period beginning July 1, 2022, and ending June
30, 2023, the excise tax is ten cents per gallon.
e. For the period beginning July 1, 2023, and thereafter,
the excise tax is nine cents per gallon.
Sec. 3. Section 452A.3, subsection 6, paragraph a,
subparagraphs (1) and (2), Code 2019, are amended to read as
follows:
(1) Except as otherwise provided in this section and in this
subchapter , for the period ending June 30, 2015, and for the
period beginning July 1, 2020, and thereafter, the tax rate
on special fuel for diesel engines of motor vehicles used for
any purpose for the privilege of operating motor vehicles in
this state is thirty-two and five-tenths cents per gallon. as
follows:
(a) For the period beginning July 1, 2020, and ending June
30, 2021, the excise tax is twenty-six and five-tenths cents
per gallon.
(b) For the period beginning July 1, 2021, and ending June
30, 2022, the excise tax is twenty-three and five-tenths cents
per gallon.
(c) For the period beginning July 1, 2022, and ending June
30, 2023, the excise tax is twenty and five-tenths cents per
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gallon.
(d) For the period beginning July 1, 2023, and thereafter,
the excise tax is seventeen and five-tenths cents per gallon.
(2) Except as provided in this section and in this
subchapter , for the period beginning July 1, 2015, and ending
June 30, 2020, this subparagraph shall apply to the excise
tax imposed on each gallon of special fuel for diesel engines
of motor vehicles used for any purpose for the privilege
of operating motor vehicles in this state. The rate of
the excise tax shall be based on the number of gallons of
biodiesel blended fuel classified as B-11 or higher that is
distributed in this state as expressed as a percentage of the
number of gallons of special fuel for diesel engines of motor
vehicles distributed in this state, which is referred to as
the distribution percentage. The department shall determine
the percentage basis for each determination period beginning
January 1 and ending December 31. The rate for the excise tax
shall apply for the period beginning July 1 and ending June 30
following the end of the determination period. The rate for
the excise tax shall be as follows:
(a) If the distribution percentage is not greater than
fifty percent, the rate shall be twenty-nine twenty-six and
five-tenths cents for biodiesel blended fuel classified as B-11
or higher and thirty-two twenty-nine and five-tenths cents for
special fuel for diesel engines of motor vehicles other than
biodiesel blended fuel classified as B-11 or higher.
(b) If the distribution percentage is greater than fifty
percent but not greater than fifty-five percent, the rate shall
be twenty-nine twenty-six and eight-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two
twenty-nine and five-tenths cents for special fuel for diesel
engines of motor vehicles other than biodiesel blended fuel
classified as B-11 or higher.
(c) If the distribution percentage is greater than
fifty-five percent but not greater than sixty percent, the rate
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shall be thirty twenty-seven and one-tenth cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two
twenty-nine and five-tenths cents for special fuel for diesel
engines of motor vehicles other than biodiesel blended fuel
classified as B-11 or higher.
(d) If the distribution percentage is greater than sixty
percent but not greater than sixty-five percent, the rate shall
be thirty twenty-seven and four-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two
twenty-nine and five-tenths cents for special fuel for diesel
engines of motor vehicles other than biodiesel blended fuel
classified as B-11 or higher.
(e) If the distribution percentage is greater than
sixty-five percent but not greater than seventy percent, the
rate shall be thirty twenty-seven and seven-tenths cents
for biodiesel blended fuel classified as B-11 or higher and
thirty-two twenty-nine and five-tenths cents for special fuel
for diesel engines of motor vehicles other than biodiesel
blended fuel classified as B-11 or higher.
(f) If the distribution percentage is greater than seventy
percent but not greater than seventy-five percent, the rate
shall be thirty-one twenty-eight cents for biodiesel blended
fuel classified as B-11 or higher and thirty-two twenty-nine
and five-tenths cents for special fuel for diesel engines of
motor vehicles other than biodiesel blended fuel classified as
B-11 or higher.
(g) If the distribution percentage is greater than
seventy-five percent but not greater than eighty percent, the
rate shall be thirty-one twenty-eight and three-tenths cents
for biodiesel blended fuel classified as B-11 or higher and
thirty-two twenty-nine and five-tenths cents for special fuel
for diesel engines of motor vehicles other than biodiesel
blended fuel classified as B-11 or higher.
(h) If the distribution percentage is greater than eighty
percent but not greater than eighty-five percent, the rate
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shall be thirty-one twenty-eight and six-tenths cents for
biodiesel blended fuel classified as B-11 or higher and
thirty-two twenty-nine and five-tenths cents for special fuel
for diesel engines of motor vehicles other than biodiesel
blended fuel classified as B-11 or higher.
(i) If the distribution percentage is greater than
eighty-five percent but not greater than ninety percent, the
rate shall be thirty-one twenty-eight and nine-tenths cents
for biodiesel blended fuel classified as B-11 or higher and
thirty-two twenty-nine and five-tenths cents for special fuel
for diesel engines of motor vehicles other than biodiesel
blended fuel classified as B-11 or higher.
(j) If the distribution percentage is greater than ninety
percent but not greater than ninety-five percent, the rate
shall be thirty-two twenty-nine and two-tenths cents for
biodiesel blended fuel classified as B-11 or higher and
thirty-two twenty-nine and five-tenths cents for special fuel
for diesel engines of motor vehicles other than biodiesel
blended fuel classified as B-11 or higher.
(k) If the distribution percentage is greater than
ninety-five percent, the rate shall be thirty-two twenty-nine
and five-tenths cents for biodiesel blended fuel classified as
B-11 or higher and thirty-two twenty-nine and five-tenths cents
for special fuel for diesel engines of motor vehicles other
than biodiesel blended fuel classified as B-11 or higher.
Sec. 4. Section 452A.3, subsections 7, 8, and 9, Code 2019,
are amended to read as follows:
7. For liquefied petroleum gas used as a special fuel, the
rate of tax shall be thirty cents per gallon. is as follows:
a. For the period beginning July 1, 2019, and ending June
30, 2020, the excise tax is twenty-seven cents per gallon.
b. For the period beginning July 1, 2020, and ending June
30, 2021, the excise tax is twenty-four cents per gallon.
c. For the period beginning July 1, 2021, and ending June
30, 2022, the excise tax is twenty-one cents per gallon.
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d. For the period beginning July 1, 2022, and ending June
30, 2023, the excise tax is eighteen cents per gallon.
e. For the period beginning July 1, 2023, and thereafter,
the excise tax is fifteen cents per gallon.
8. For compressed natural gas used as a special fuel, the
rate of tax is thirty-one cents per gallon. as follows:
a. For the period beginning July 1, 2019, and ending June
30, 2020, the excise tax is twenty-eight cents per gallon.
b. For the period beginning July 1, 2020, and ending June
30, 2021, the excise tax is twenty-five cents per gallon.
c. For the period beginning July 1, 2021, and ending June
30, 2022, the excise tax is twenty-two cents per gallon.
d. For the period beginning July 1, 2022, and ending June
30, 2023, the excise tax is nineteen cents per gallon.
e. For the period beginning July 1, 2023, and thereafter,
the excise tax is sixteen cents per gallon.
9. For liquefied natural gas used as a special fuel, the
rate of tax is thirty-two and one-half cents per gallon. as
follows:
a. For the period beginning July 1, 2019, and ending June
30, 2020, the excise tax is twenty-nine and five-tenths cents
per gallon.
b. For the period beginning July 1, 2020, and ending June
30, 2021, the excise tax is twenty-six and five-tenths cents
per gallon.
c. For the period beginning July 1, 2021, and ending June
30, 2022, the excise tax is twenty-three and five-tenths cents
per gallon.
d. For the period beginning July 1, 2022, and ending June
30, 2023, the excise tax is twenty and five-tenths cents per
gallon.
e. For the period beginning July 1, 2023, and thereafter,
the excise tax is seventeen and five-tenths cents per gallon.
Sec. 5. APPLICABILITY. This Act applies to fuel sold to
consumers on and after July 1, 2019.
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EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill decreases the excise tax on motor fuel, ethanol
blended gasoline, special fuel for diesel engines of motor
vehicles, biodiesel blended fuel classified as B-11 or higher,
liquefied petroleum gas, compressed natural gas, and liquefied
natural gas 3 cents per year over the next five years. The bill
decreases the excise tax on E-85 gasoline 2 cents per year over
the next three years, and 1 cent per year over the following
two years.
For the period beginning July 1, 2023, and thereafter,
the excise tax for motor fuel, including ethanol blended
gasoline, is 15 cents; the excise tax for E-85 gasoline is 9
cents; the excise tax for special fuel for diesel engines of
motor vehicles, including biodiesel blended fuel classified as
B-11 or higher, is 17.5 cents; the excise tax for liquefied
petroleum gas is 15 cents; the excise tax for compressed
natural gas is 16 cents; and the excise tax for liquefied
natural gas is 17.5 cents.
The bill applies to fuel sold to consumers on and after July
1, 2019.
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