Iowa-2019-HF168-Introduced

H.F. 168 Section 1. Section 452A.3, subsection 1, paragraph b, Code 1 2019, is amended to read as follows: 2 b. The rate for the excise tax shall be as follows: 3 (1) If the distribution percentage is not greater than 4 fifty percent, the rate shall be twenty-nine twenty-six cents 5 for ethanol blended gasoline and thirty twenty-seven cents for 6 motor fuel other than ethanol blended gasoline. 7 (2) If the distribution percentage is greater than fifty 8 percent but not greater than fifty-five percent, the rate shall 9 be twenty-nine twenty-six cents for ethanol blended gasoline 10 and thirty twenty-seven and one-tenth cents for motor fuel 11 other than ethanol blended gasoline. 12 (3) If the distribution percentage is greater than 13 fifty-five percent but not greater than sixty percent, the 14 rate shall be twenty-nine twenty-six cents for ethanol blended 15 gasoline and thirty twenty-seven and three-tenths cents for 16 motor fuel other than ethanol blended gasoline. 17 (4) If the distribution percentage is greater than sixty 18 percent but not greater than sixty-five percent, the rate shall 19 be twenty-nine twenty-six cents for ethanol blended gasoline 20 and thirty twenty-seven and five-tenths cents for motor fuel 21 other than ethanol blended gasoline. 22 (5) If the distribution percentage is greater than 23 sixty-five percent but not greater than seventy percent, the 24 rate shall be twenty-nine twenty-six cents for ethanol blended 25 gasoline and thirty twenty-seven and seven-tenths cents for 26 motor fuel other than ethanol blended gasoline. 27 (6) If the distribution percentage is greater than seventy 28 percent but not greater than seventy-five percent, the rate 29 shall be twenty-nine twenty-six cents for ethanol blended 30 gasoline and thirty-one twenty-eight cents for motor fuel other 31 than ethanol blended gasoline. 32 (7) If the distribution percentage is greater than 33 seventy-five percent but not greater than eighty percent, 34 the rate shall be twenty-nine twenty-six and three-tenths 35 -1- LSB 1589HH (2) 88 ns/jh 1/ 8

H.F. 168 cents for ethanol blended gasoline and thirty twenty-seven and 1 eight-tenths cents for motor fuel other than ethanol blended 2 gasoline. 3 (8) If the distribution percentage is greater than 4 eighty percent but not greater than eighty-five percent, the 5 rate shall be twenty-nine twenty-six and five-tenths cents 6 for ethanol blended gasoline and thirty twenty-seven and 7 seven-tenths cents for motor fuel other than ethanol blended 8 gasoline. 9 (9) If the distribution percentage is greater than 10 eighty-five percent but not greater than ninety percent, the 11 rate shall be twenty-nine twenty-six and seven-tenths cents 12 for ethanol blended gasoline and thirty twenty-seven and 13 four-tenths cents for motor fuel other than ethanol blended 14 gasoline. 15 (10) If the distribution percentage is greater than ninety 16 percent but not greater than ninety-five percent, the rate 17 shall be twenty-nine twenty-six and nine-tenths cents for 18 ethanol blended gasoline and thirty twenty-seven and one-tenth 19 cents for motor fuel other than ethanol blended gasoline. 20 (11) If the distribution percentage is greater than 21 ninety-five percent, the rate shall be thirty twenty-seven 22 cents for ethanol blended gasoline and thirty twenty-seven 23 cents for motor fuel other than ethanol blended gasoline. 24 Sec. 2. Section 452A.3, subsections 2 and 3, Code 2019, are 25 amended to read as follows: 26 2. Except as otherwise provided in this section and in this 27 subchapter , after June 30, 2020, an excise tax of thirty cents 28 is imposed on each gallon of motor fuel used for any purpose 29 for the privilege of operating motor vehicles in this state . 30 as follows: 31 a. For the period beginning July 1, 2020, and ending June 32 30, 2021, the excise tax is twenty-four cents per gallon. 33 b. For the period beginning July 1, 2021, and ending June 34 30, 2022, the excise tax is twenty-one cents per gallon. 35 -2- LSB 1589HH (2) 88 ns/jh 2/ 8

H.F. 168 c. For the period beginning July 1, 2022, and ending June 1 30, 2023, the excise tax is eighteen cents per gallon. 2 d. For the period beginning July 1, 2023, and thereafter, 3 the excise tax is fifteen cents per gallon. 4 3. An excise tax of seventeen cents is imposed on each 5 gallon of E-85 gasoline, subject to the determination provided 6 in subsection 4 . , as follows: 7 a. For the period beginning July 1, 2019, and ending June 8 30, 2020, the excise tax is fifteen cents per gallon. 9 b. For the period beginning July 1, 2020, and ending June 10 30, 2021, the excise tax is thirteen cents per gallon. 11 c. For the period beginning July 1, 2021, and ending June 12 30, 2022, the excise tax is eleven cents per gallon. 13 d. For the period beginning July 1, 2022, and ending June 14 30, 2023, the excise tax is ten cents per gallon. 15 e. For the period beginning July 1, 2023, and thereafter, 16 the excise tax is nine cents per gallon. 17 Sec. 3. Section 452A.3, subsection 6, paragraph a, 18 subparagraphs (1) and (2), Code 2019, are amended to read as 19 follows: 20 (1) Except as otherwise provided in this section and in this 21 subchapter , for the period ending June 30, 2015, and for the 22 period beginning July 1, 2020, and thereafter, the tax rate 23 on special fuel for diesel engines of motor vehicles used for 24 any purpose for the privilege of operating motor vehicles in 25 this state is thirty-two and five-tenths cents per gallon. as 26 follows: 27 (a) For the period beginning July 1, 2020, and ending June 28 30, 2021, the excise tax is twenty-six and five-tenths cents 29 per gallon. 30 (b) For the period beginning July 1, 2021, and ending June 31 30, 2022, the excise tax is twenty-three and five-tenths cents 32 per gallon. 33 (c) For the period beginning July 1, 2022, and ending June 34 30, 2023, the excise tax is twenty and five-tenths cents per 35 -3- LSB 1589HH (2) 88 ns/jh 3/ 8

H.F. 168 gallon. 1 (d) For the period beginning July 1, 2023, and thereafter, 2 the excise tax is seventeen and five-tenths cents per gallon. 3 (2) Except as provided in this section and in this 4 subchapter , for the period beginning July 1, 2015, and ending 5 June 30, 2020, this subparagraph shall apply to the excise 6 tax imposed on each gallon of special fuel for diesel engines 7 of motor vehicles used for any purpose for the privilege 8 of operating motor vehicles in this state. The rate of 9 the excise tax shall be based on the number of gallons of 10 biodiesel blended fuel classified as B-11 or higher that is 11 distributed in this state as expressed as a percentage of the 12 number of gallons of special fuel for diesel engines of motor 13 vehicles distributed in this state, which is referred to as 14 the distribution percentage. The department shall determine 15 the percentage basis for each determination period beginning 16 January 1 and ending December 31. The rate for the excise tax 17 shall apply for the period beginning July 1 and ending June 30 18 following the end of the determination period. The rate for 19 the excise tax shall be as follows: 20 (a) If the distribution percentage is not greater than 21 fifty percent, the rate shall be twenty-nine twenty-six and 22 five-tenths cents for biodiesel blended fuel classified as B-11 23 or higher and thirty-two twenty-nine and five-tenths cents for 24 special fuel for diesel engines of motor vehicles other than 25 biodiesel blended fuel classified as B-11 or higher. 26 (b) If the distribution percentage is greater than fifty 27 percent but not greater than fifty-five percent, the rate shall 28 be twenty-nine twenty-six and eight-tenths cents for biodiesel 29 blended fuel classified as B-11 or higher and thirty-two 30 twenty-nine and five-tenths cents for special fuel for diesel 31 engines of motor vehicles other than biodiesel blended fuel 32 classified as B-11 or higher. 33 (c) If the distribution percentage is greater than 34 fifty-five percent but not greater than sixty percent, the rate 35 -4- LSB 1589HH (2) 88 ns/jh 4/ 8

H.F. 168 shall be thirty twenty-seven and one-tenth cents for biodiesel 1 blended fuel classified as B-11 or higher and thirty-two 2 twenty-nine and five-tenths cents for special fuel for diesel 3 engines of motor vehicles other than biodiesel blended fuel 4 classified as B-11 or higher. 5 (d) If the distribution percentage is greater than sixty 6 percent but not greater than sixty-five percent, the rate shall 7 be thirty twenty-seven and four-tenths cents for biodiesel 8 blended fuel classified as B-11 or higher and thirty-two 9 twenty-nine and five-tenths cents for special fuel for diesel 10 engines of motor vehicles other than biodiesel blended fuel 11 classified as B-11 or higher. 12 (e) If the distribution percentage is greater than 13 sixty-five percent but not greater than seventy percent, the 14 rate shall be thirty twenty-seven and seven-tenths cents 15 for biodiesel blended fuel classified as B-11 or higher and 16 thirty-two twenty-nine and five-tenths cents for special fuel 17 for diesel engines of motor vehicles other than biodiesel 18 blended fuel classified as B-11 or higher. 19 (f) If the distribution percentage is greater than seventy 20 percent but not greater than seventy-five percent, the rate 21 shall be thirty-one twenty-eight cents for biodiesel blended 22 fuel classified as B-11 or higher and thirty-two twenty-nine 23 and five-tenths cents for special fuel for diesel engines of 24 motor vehicles other than biodiesel blended fuel classified as 25 B-11 or higher. 26 (g) If the distribution percentage is greater than 27 seventy-five percent but not greater than eighty percent, the 28 rate shall be thirty-one twenty-eight and three-tenths cents 29 for biodiesel blended fuel classified as B-11 or higher and 30 thirty-two twenty-nine and five-tenths cents for special fuel 31 for diesel engines of motor vehicles other than biodiesel 32 blended fuel classified as B-11 or higher. 33 (h) If the distribution percentage is greater than eighty 34 percent but not greater than eighty-five percent, the rate 35 -5- LSB 1589HH (2) 88 ns/jh 5/ 8

H.F. 168 shall be thirty-one twenty-eight and six-tenths cents for 1 biodiesel blended fuel classified as B-11 or higher and 2 thirty-two twenty-nine and five-tenths cents for special fuel 3 for diesel engines of motor vehicles other than biodiesel 4 blended fuel classified as B-11 or higher. 5 (i) If the distribution percentage is greater than 6 eighty-five percent but not greater than ninety percent, the 7 rate shall be thirty-one twenty-eight and nine-tenths cents 8 for biodiesel blended fuel classified as B-11 or higher and 9 thirty-two twenty-nine and five-tenths cents for special fuel 10 for diesel engines of motor vehicles other than biodiesel 11 blended fuel classified as B-11 or higher. 12 (j) If the distribution percentage is greater than ninety 13 percent but not greater than ninety-five percent, the rate 14 shall be thirty-two twenty-nine and two-tenths cents for 15 biodiesel blended fuel classified as B-11 or higher and 16 thirty-two twenty-nine and five-tenths cents for special fuel 17 for diesel engines of motor vehicles other than biodiesel 18 blended fuel classified as B-11 or higher. 19 (k) If the distribution percentage is greater than 20 ninety-five percent, the rate shall be thirty-two twenty-nine 21 and five-tenths cents for biodiesel blended fuel classified as 22 B-11 or higher and thirty-two twenty-nine and five-tenths cents 23 for special fuel for diesel engines of motor vehicles other 24 than biodiesel blended fuel classified as B-11 or higher. 25 Sec. 4. Section 452A.3, subsections 7, 8, and 9, Code 2019, 26 are amended to read as follows: 27 7. For liquefied petroleum gas used as a special fuel, the 28 rate of tax shall be thirty cents per gallon. is as follows: 29 a. For the period beginning July 1, 2019, and ending June 30 30, 2020, the excise tax is twenty-seven cents per gallon. 31 b. For the period beginning July 1, 2020, and ending June 32 30, 2021, the excise tax is twenty-four cents per gallon. 33 c. For the period beginning July 1, 2021, and ending June 34 30, 2022, the excise tax is twenty-one cents per gallon. 35 -6- LSB 1589HH (2) 88 ns/jh 6/ 8

H.F. 168 d. For the period beginning July 1, 2022, and ending June 1 30, 2023, the excise tax is eighteen cents per gallon. 2 e. For the period beginning July 1, 2023, and thereafter, 3 the excise tax is fifteen cents per gallon. 4 8. For compressed natural gas used as a special fuel, the 5 rate of tax is thirty-one cents per gallon. as follows: 6 a. For the period beginning July 1, 2019, and ending June 7 30, 2020, the excise tax is twenty-eight cents per gallon. 8 b. For the period beginning July 1, 2020, and ending June 9 30, 2021, the excise tax is twenty-five cents per gallon. 10 c. For the period beginning July 1, 2021, and ending June 11 30, 2022, the excise tax is twenty-two cents per gallon. 12 d. For the period beginning July 1, 2022, and ending June 13 30, 2023, the excise tax is nineteen cents per gallon. 14 e. For the period beginning July 1, 2023, and thereafter, 15 the excise tax is sixteen cents per gallon. 16 9. For liquefied natural gas used as a special fuel, the 17 rate of tax is thirty-two and one-half cents per gallon. as 18 follows: 19 a. For the period beginning July 1, 2019, and ending June 20 30, 2020, the excise tax is twenty-nine and five-tenths cents 21 per gallon. 22 b. For the period beginning July 1, 2020, and ending June 23 30, 2021, the excise tax is twenty-six and five-tenths cents 24 per gallon. 25 c. For the period beginning July 1, 2021, and ending June 26 30, 2022, the excise tax is twenty-three and five-tenths cents 27 per gallon. 28 d. For the period beginning July 1, 2022, and ending June 29 30, 2023, the excise tax is twenty and five-tenths cents per 30 gallon. 31 e. For the period beginning July 1, 2023, and thereafter, 32 the excise tax is seventeen and five-tenths cents per gallon. 33 Sec. 5. APPLICABILITY. This Act applies to fuel sold to 34 consumers on and after July 1, 2019. 35 -7- LSB 1589HH (2) 88 ns/jh 7/ 8

H.F. 168 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill decreases the excise tax on motor fuel, ethanol 4 blended gasoline, special fuel for diesel engines of motor 5 vehicles, biodiesel blended fuel classified as B-11 or higher, 6 liquefied petroleum gas, compressed natural gas, and liquefied 7 natural gas 3 cents per year over the next five years. The bill 8 decreases the excise tax on E-85 gasoline 2 cents per year over 9 the next three years, and 1 cent per year over the following 10 two years. 11 For the period beginning July 1, 2023, and thereafter, 12 the excise tax for motor fuel, including ethanol blended 13 gasoline, is 15 cents; the excise tax for E-85 gasoline is 9 14 cents; the excise tax for special fuel for diesel engines of 15 motor vehicles, including biodiesel blended fuel classified as 16 B-11 or higher, is 17.5 cents; the excise tax for liquefied 17 petroleum gas is 15 cents; the excise tax for compressed 18 natural gas is 16 cents; and the excise tax for liquefied 19 natural gas is 17.5 cents. 20 The bill applies to fuel sold to consumers on and after July 21 1, 2019. 22 -8- LSB 1589HH (2) 88 ns/jh 8/ 8