Bill Text: IA HF351 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to transportation funding by limiting the term of indebtedness for certain county projects, modifying certain permit fees, modifying the rate of the excise taxes on motor fuel and certain special fuel, establishing a fuel distribution percentage formula for certain special fuel used in motor vehicles, requiring legislative review of the fuel distribution percentage formulas, extending the repeal date of the access Iowa highway plan, and including effective date provisions. (Formerly HSB 129)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2015-02-26 - Withdrawn. H.J. 424. [HF351 Detail]
Download: Iowa-2015-HF351-Introduced.html
House File 351 - Introduced HOUSE FILE BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO HSB 129) (COMPANION TO sf 257 by committee on transportation) A BILL FOR 1 An Act relating to transportation funding by limiting the term 2 of indebtedness for certain county projects, modifying 3 certain permit fees, modifying the rate of the excise taxes 4 on motor fuel and certain special fuel, establishing a fuel 5 distribution percentage formula for certain special fuel 6 used in motor vehicles, requiring legislative review of 7 the fuel distribution percentage formulas, extending the 8 repeal date of the access Iowa highway plan, and including 9 effective date provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1782HV (1) 86 ns/sc PAG LIN 1 1 Section 1. NEW SECTION. 312.2A Restrictions on use. 1 2 Moneys credited pursuant to section 312.2, subsection 1 3 1, paragraphs "b" and "c", and section 312.2, subsection 1 4 12, paragraph "a", shall not be used for debt service or to 1 5 otherwise pay principal and interest on bonds, loans, or other 1 6 indebtedness issued or incurred on or after the effective date 1 7 of this section of this Act, including refunding, reissuance, 1 8 or other refinancing of such indebtedness, or refunding, 1 9 reissuance, or other refinancing of indebtedness issued or 1 10 incurred prior to the effective date of this section of this 1 11 Act, if the term for repayment of the indebtedness as financed 1 12 or refinanced would exceed the useful life of the asset being 1 13 constructed, reconstructed, improved, repaired, equipped, or 1 14 maintained. 1 15 Sec. 2. NEW SECTION. 315.4A Restrictions on use. 1 16 Moneys allocated pursuant to section 315.4, subsection 1, 1 17 paragraph "b", and section 315.4, subsection 2, shall not 1 18 be used for debt service or to otherwise pay principal and 1 19 interest on bonds, loans, or other indebtedness issued or 1 20 incurred on or after the effective date of this section of this 1 21 Act, including refunding, reissuance, or other refinancing 1 22 of such indebtedness, or refunding, reissuance, or other 1 23 refinancing of indebtedness issued or incurred prior to 1 24 the effective date of this section of this Act, if the term 1 25 for repayment of the indebtedness as financed or refinanced 1 26 would exceed the useful life of the asset being constructed, 1 27 reconstructed, improved, repaired, equipped, or maintained. 1 28 Sec. 3. Section 321E.14, subsection 1, Code 2015, is amended 1 29 to read as follows: 1 30 1. Permit=issuing authorities may charge the following 1 31 fees: 1 32 a.Twenty=fiveFifty dollars for an annual permit issued 1 33 pursuant to section 321E.8, subsection 1. 1 34 b.ThreeFour hundred dollars for an annual permit issued 1 35 pursuant to section 321E.8, subsection 2. 2 1 c. Two hundred dollars for a multi=trip permit issued 2 2 pursuant to section 321E.9A. 2 3 d. Six hundred dollars for a special alternative energy 2 4 multi=trip permit issued pursuant to section 321E.9B. 2 5 e.TenThirty=five dollars for a single=trip permit issued 2 6 pursuant to section 321E.9. 2 7 f. Twenty=five dollars for an annual permit for special 2 8 mobile equipment, as defined in section 321.1, subsection 2 9 74, issued pursuant to section 321E.7, subsection 3, with a 2 10 combined gross weight of not more than eighty thousand pounds. 2 11 g. Twenty=five dollars for a permit issued pursuant to 2 12 section 321E.29 or 321E.29A. 2 13 h. One hundred dollars for a permit issued pursuant to 2 14 section 321E.30. 2 15 i. One hundredtwentysixty dollars for an annual 2 16 all=systems permit issued pursuant to section 321E.8, which 2 17 shall be deposited in the road use tax fund. 2 18 Sec. 4. NEW SECTION. 331.443A Restrictions on certain 2 19 projects. 2 20 The term of any indebtedness issued or incurred by a county 2 21 that will be paid in whole or in part with moneys from the 2 22 secondary road fund of the counties, the farm=to=market road 2 23 fund, the county bridge construction fund, or the revitalize 2 24 Iowa's sound economy fund, or any other moneys that may be 2 25 allocated from the road use tax fund for use by counties, shall 2 26 be subject to the provisions of sections 312.2A and 315.4A. 2 27 Sec. 5. Section 452A.3, subsection 1, unnumbered paragraph 2 28 1, Code 2015, is amended to read as follows: 2 29 Except as otherwise provided in this section and in this 2 30 division, until June 30,20152020, this subsection shall apply 2 31 to the excise tax imposed on each gallon of motor fuel used for 2 32 any purpose for the privilege of operating motor vehicles in 2 33 this state. 2 34 Sec. 6. Section 452A.3, subsection 1, paragraph b, Code 2 35 2015, is amended to read as follows: 3 1 b. The rate for the excise tax shall be as follows: 3 2 (1) If the distribution percentage is not greater than 3 3 fifty percent, the rate shall benineteentwenty=nine cents for 3 4 ethanol blended gasoline andtwentythirty cents for motor fuel 3 5 other than ethanol blended gasoline. 3 6 (2) If the distribution percentage is greater than fifty 3 7 percent but not greater than fifty=five percent, the rate shall 3 8 benineteentwenty=nine cents for ethanol blended gasoline and 3 9twentythirty and one=tenth cents for motor fuel other than 3 10 ethanol blended gasoline. 3 11 (3) If the distribution percentage is greater than 3 12 fifty=five percent but not greater than sixty percent, the 3 13 rate shall benineteentwenty=nine cents for ethanol blended 3 14 gasoline andtwentythirty and three=tenths cents for motor 3 15 fuel other than ethanol blended gasoline. 3 16 (4) If the distribution percentage is greater than sixty 3 17 percent but not greater than sixty=five percent, the rate shall 3 18 benineteentwenty=nine cents for ethanol blended gasoline and 3 19twentythirty and five=tenths cents for motor fuel other than 3 20 ethanol blended gasoline. 3 21 (5) If the distribution percentage is greater than 3 22 sixty=five percent but not greater than seventy percent, the 3 23 rate shall benineteentwenty=nine cents for ethanol blended 3 24 gasoline andtwentythirty and seven=tenths cents for motor 3 25 fuel other than ethanol blended gasoline. 3 26 (6) If the distribution percentage is greater than seventy 3 27 percent but not greater than seventy=five percent, the rate 3 28 shall benineteentwenty=nine cents for ethanol blended 3 29 gasoline andtwenty=onethirty=one cents for motor fuel other 3 30 than ethanol blended gasoline. 3 31 (7) If the distribution percentage is greater than 3 32 seventy=five percent but not greater than eighty percent, the 3 33 rate shall benineteentwenty=nine and three=tenths cents for 3 34 ethanol blended gasoline andtwentythirty and eight=tenths 3 35 cents for motor fuel other than ethanol blended gasoline. 4 1 (8) If the distribution percentage is greater than eighty 4 2 percent but not greater than eighty=five percent, the rate 4 3 shall benineteentwenty=nine and five=tenths cents for ethanol 4 4 blended gasoline andtwentythirty and seven=tenths cents for 4 5 motor fuel other than ethanol blended gasoline. 4 6 (9) If the distribution percentage is greater than 4 7 eighty=five percent but not greater than ninety percent, the 4 8 rate shall benineteentwenty=nine and seven=tenths cents for 4 9 ethanol blended gasoline andtwentythirty and four=tenths 4 10 cents for motor fuel other than ethanol blended gasoline. 4 11 (10) If the distribution percentage is greater than ninety 4 12 percent but not greater than ninety=five percent, the rate 4 13 shall benineteentwenty=nine and nine=tenths cents for ethanol 4 14 blended gasoline andtwentythirty and one=tenth cents for 4 15 motor fuel other than ethanol blended gasoline. 4 16 (11) If the distribution percentage is greater than 4 17 ninety=five percent, the rate shall betwentythirty cents for 4 18 ethanol blended gasoline andtwentythirty cents for motor fuel 4 19 other than ethanol blended gasoline. 4 20 Sec. 7. Section 452A.3, subsection 1, Code 2015, is amended 4 21 by adding the following new paragraph: 4 22 NEW PARAGRAPH. c. The provisions of paragraph "b" and 4 23 subsection 6, paragraph "a", subparagraph (2), shall be 4 24 subject to legislative review at least every six years. The 4 25 review shall be based upon a fuel distribution percentage 4 26 formula status report containing the recommendations of a 4 27 legislative interim committee appointed to conduct a review 4 28 of the fuel distribution percentage formulas, to be prepared 4 29 with the assistance of the department of revenue in association 4 30 with the department of transportation. The report shall 4 31 include recommendations for changes or revisions to the 4 32 fuel distribution percentage formulas based upon advances 4 33 in technology, fuel use trends, and fuel price fluctuations 4 34 observed during the preceding six=year interval; an analysis 4 35 of the operation of the fuel distribution percentage formulas 5 1 during the preceding six=year interval; and a summary of issues 5 2 that have arisen since the previous review and potential 5 3 approaches for resolution of those issues. The first such 5 4 report shall be submitted to the general assembly no later 5 5 than January 1, 2020, with subsequent reports developed and 5 6 submitted by January 1 at least every sixth year thereafter. 5 7 Sec. 8. Section 452A.3, subsection 2, Code 2015, is amended 5 8 to read as follows: 5 9 2. Except as otherwise provided in this section and in this 5 10 division, after June 30,20152020, an excise tax oftwenty 5 11thirty cents is imposed on each gallon of motor fuel used for 5 12 any purpose for the privilege of operating motor vehicles in 5 13 this state. 5 14 Sec. 9. Section 452A.3, subsection 6, Code 2015, is amended 5 15 to read as follows: 5 16 6. a. For the privilege of operating motor vehicles or 5 17 aircraft in this state, there is imposed an excise tax on the 5 18 use of special fuel in a motor vehicle or aircraft.The tax 5 19 rate on special fuel for diesel engines of motor vehicles is 5 20 twenty=two and one=half cents per gallon.5 21 (1) Except as otherwise provided in this section and in 5 22 this division, after June 30, 2020, the tax rate on special 5 23 fuel for diesel engines of motor vehicles used for any purpose 5 24 for the privilege of operating motor vehicles in this state is 5 25 thirty=two and five=tenths cents per gallon. 5 26 (2) Except as provided in this section and in this 5 27 division, until June 30, 2020, this subparagraph shall apply 5 28 to the excise tax imposed on each gallon of special fuel for 5 29 diesel engines of motor vehicles used for any purpose for the 5 30 privilege of operating motor vehicles in this state. The rate 5 31 of the excise tax shall be based on the number of gallons of 5 32 biodiesel blended fuel classified as B=11 or higher that is 5 33 distributed in this state as expressed as a percentage of the 5 34 number of gallons of special fuel for diesel engines of motor 5 35 vehicles distributed in this state, which is referred to as 6 1 the distribution percentage. The department shall determine 6 2 the percentage basis for each determination period beginning 6 3 January 1 and ending December 31. The rate for the excise tax 6 4 shall apply for the period beginning July 1 and ending June 30 6 5 following the end of the determination period. The rate for 6 6 the excise tax shall be as follows: 6 7 (a) If the distribution percentage is not greater than fifty 6 8 percent, the rate shall be twenty=nine and five=tenths cents 6 9 for biodiesel blended fuel classified as B=11 or higher and 6 10 thirty=two and five=tenths cents for special fuel for diesel 6 11 engines of motor vehicles other than biodiesel blended fuel 6 12 classified as B=11 or higher. 6 13 (b) If the distribution percentage is greater than fifty 6 14 percent but not greater than fifty=five percent, the rate 6 15 shall be twenty=nine and eight=tenths cents for biodiesel 6 16 blended fuel classified as B=11 or higher and thirty=two and 6 17 five=tenths cents for special fuel for diesel engines of motor 6 18 vehicles other than biodiesel blended fuel classified as B=11 6 19 or higher. 6 20 (c) If the distribution percentage is greater than 6 21 fifty=five percent but not greater than sixty percent, the rate 6 22 shall be thirty and one=tenth cents for biodiesel blended fuel 6 23 classified as B=11 or higher and thirty=two and five=tenths 6 24 cents for special fuel for diesel engines of motor vehicles 6 25 other than biodiesel blended fuel classified as B=11 or higher. 6 26 (d) If the distribution percentage is greater than sixty 6 27 percent but not greater than sixty=five percent, the rate shall 6 28 be thirty and four=tenths cents for biodiesel blended fuel 6 29 classified as B=11 or higher and thirty=two and five=tenths 6 30 cents for special fuel for diesel engines of motor vehicles 6 31 other than biodiesel blended fuel classified as B=11 or higher. 6 32 (e) If the distribution percentage is greater than 6 33 sixty=five percent but not greater than seventy percent, the 6 34 rate shall be thirty and seven=tenths cents for biodiesel 6 35 blended fuel classified as B=11 or higher and thirty=two and 7 1 five=tenths cents for special fuel for diesel engines of motor 7 2 vehicles other than biodiesel blended fuel classified as B=11 7 3 or higher. 7 4 (f) If the distribution percentage is greater than seventy 7 5 percent but not greater than seventy=five percent, the rate 7 6 shall be thirty=one cents for biodiesel blended fuel classified 7 7 as B=11 or higher and thirty=two and five=tenths cents for 7 8 special fuel for diesel engines of motor vehicles other than 7 9 biodiesel blended fuel classified as B=11 or higher. 7 10 (g) If the distribution percentage is greater than 7 11 seventy=five percent but not greater than eighty percent, the 7 12 rate shall be thirty=one and three=tenths cents for biodiesel 7 13 blended fuel classified as B=11 or higher and thirty=two and 7 14 five=tenths cents for special fuel for diesel engines of motor 7 15 vehicles other than biodiesel blended fuel classified as B=11 7 16 or higher. 7 17 (h) If the distribution percentage is greater than eighty 7 18 percent but not greater than eighty=five percent, the rate 7 19 shall be thirty=one and six=tenths cents for biodiesel 7 20 blended fuel classified as B=11 or higher and thirty=two and 7 21 five=tenths cents for special fuel for diesel engines of motor 7 22 vehicles other than biodiesel blended fuel classified as B=11 7 23 or higher. 7 24 (i) If the distribution percentage is greater than 7 25 eighty=five percent but not greater than ninety percent, the 7 26 rate shall be thirty=one and nine=tenths cents for biodiesel 7 27 blended fuel classified as B=11 or higher and thirty=two and 7 28 five=tenths cents for special fuel for diesel engines of motor 7 29 vehicles other than biodiesel blended fuel classified as B=11 7 30 or higher. 7 31 (j) If the distribution percentage is greater than ninety 7 32 percent but not greater than ninety=five percent, the rate 7 33 shall be thirty=two and two=tenths cents for biodiesel 7 34 blended fuel classified as B=11 or higher and thirty=two and 7 35 five=tenths cents for special fuel for diesel engines of motor 8 1 vehicles other than biodiesel blended fuel classified as B=11 8 2 or higher. 8 3 (k) If the distribution percentage is greater than 8 4 ninety=five percent, the rate shall be thirty=two and 8 5 five=tenths cents for biodiesel blended fuel classified as B=11 8 6 or higher and thirty=two and five=tenths cents for special 8 7 fuel for diesel engines of motor vehicles other than biodiesel 8 8 blended fuel classified as B=11 or higher. 8 9 (3) The rate of tax on special fuel for aircraft isthree 8 10five cents per gallon. 8 11 (4) On all other special fuel, unless otherwise specified in 8 12 this section, the per gallon rate is the same as the motor fuel 8 13 tax. 8 14 b. Indelible dye meeting United States environmental 8 15 protection agency and internal revenue service regulations must 8 16 be added to fuel before or upon withdrawal at a terminal or 8 17 refinery rack for that fuel to be exempt from tax and the dyed 8 18 fuel may be used only for an exempt purpose. 8 19 Sec. 10. Section 452A.3, subsections 7, 8, and 9, Code 2015, 8 20 are amended to read as follows: 8 21 7. For liquefied petroleum gas used as a special fuel, the 8 22 rate of tax shall betwentythirty cents per gallon. 8 23 8. For compressed natural gas used as a special fuel, the 8 24 rate of tax istwenty=onethirty=one cents per gallon. 8 25 9. For liquefied natural gas used as a special fuel, the 8 26 rate of tax istwenty=twothirty=two and one=half cents per 8 27 gallon. 8 28 Sec. 11. 2005 Iowa Acts, chapter 178, section 41, subsection 8 29 3, is amended to read as follows: 8 30 3. REPEAL. This section is repealed effective July 1,2015 8 312025. 8 32 Sec. 12. LEGISLATIVE INTENT. 8 33 1. It is the intent of the general assembly that one 8 34 hundred percent of the revenue produced as a result of the 8 35 increase in the excise taxes on motor fuel and certain special 9 1 fuel enacted in this Act and credited to the secondary road 9 2 fund or the farm=to=market road fund from the road use tax 9 3 fund pursuant to section 312.2, subsection 1, shall be used 9 4 exclusively for critical road and bridge construction projects 9 5 that significantly extend the life of such assets. 9 6 2. It is the intent of the general assembly that the state 9 7 department of transportation and the state transportation 9 8 commission shall utilize one hundred percent of the revenue 9 9 produced as a result of the increase in the excise taxes on 9 10 motor fuel and certain special fuel enacted in this Act that 9 11 is allocated to the department on critical road and bridge 9 12 construction projects. The department shall identify the 9 13 critical road and bridge construction projects funded with such 9 14 revenue in the department's annual five=year transportation 9 15 improvement program report. 9 16 3. The department of transportation shall identify ten 9 17 million dollars in efficiencies for the fiscal year beginning 9 18 July 1, 2015, and ten million dollars in efficiencies for 9 19 the fiscal year beginning July 1, 2016, in addition to the 9 20 identification of any other efficiencies as required by law. 9 21 The department shall provide details of activities undertaken 9 22 to implement these efficiencies in the annual "Road Use Tax 9 23 Fund Efficiency Report" required by 2012 Iowa Acts, chapter 9 24 1129, section 4, as amended by 2014 Iowa Acts, chapter 1123, 9 25 section 21. 9 26 Sec. 13. INVENTORY TAX EXEMPTION. Notwithstanding 9 27 section 452A.85, persons who have title to motor fuel, ethanol 9 28 blended gasoline, undyed special fuel, compressed natural 9 29 gas, liquefied natural gas, or liquefied petroleum gas in 9 30 storage and held for sale on the effective date of an increase 9 31 in the rate of excise tax imposed on motor fuel, ethanol 9 32 blended gasoline, undyed special fuel, compressed natural gas, 9 33 liquefied natural gas, or liquefied petroleum gas pursuant 9 34 to this Act shall not be subject to an inventory tax on the 9 35 gallonage in storage as a result of the tax increases provided 10 1 in this Act. 10 2 Sec. 14. EFFECTIVE UPON ENACTMENT. The following 10 3 provisions of this Act, being deemed of immediate importance, 10 4 take effect upon enactment: 10 5 1. The section of this Act enacting section 312.2A. 10 6 2. The section of this Act enacting section 315.4A. 10 7 3. The section of this Act enacting section 331.443A. 10 8 4. The section of this Act amending 2005 Iowa Acts, chapter 10 9 178, section 41. 10 10 Sec. 15. EFFECTIVE DATES. 10 11 1. Except as otherwise provided in this Act, this Act 10 12 takes effect the first day of the month following the month of 10 13 enactment of this Act. 10 14 2. The section of this Act amending section 321E.14 takes 10 15 effect January 1, 2016. 10 16 3. The section of this Act amending section 452A.3, 10 17 subsection 6, takes effect July 1, 2015. 10 18 EXPLANATION 10 19 The inclusion of this explanation does not constitute agreement with 10 20 the explanation's substance by the members of the general assembly. 10 21 This bill relates to transportation funding by limiting the 10 22 term of indebtedness for certain county projects, modifying 10 23 certain permit fees, modifying the rate of the excise taxes 10 24 on motor fuel and certain special fuel, establishing a fuel 10 25 distribution percentage formula for certain special fuel used 10 26 in motor vehicles, requiring legislative review of the fuel 10 27 distribution percentage formulas, and extending the repeal date 10 28 of the access Iowa highway plan. 10 29 The bill provides for limitations on the use by counties of 10 30 moneys allocated from the road use tax fund, including moneys 10 31 from the secondary road fund, the farm=to=market road fund, the 10 32 county bridge construction fund, and the RISE fund. The bill 10 33 provides that such moneys shall not be used for debt service 10 34 or to otherwise pay principal and interest on bonds, loans, or 10 35 other indebtedness issued or incurred on or after the effective 11 1 date of this section of the bill, including refunding, 11 2 reissuance, or other refinancing of such indebtedness, or 11 3 refunding, reissuance, or other refinancing of indebtedness 11 4 issued or incurred prior to the effective date of this section 11 5 of the bill, if the term for repayment of the indebtedness as 11 6 financed or refinanced would exceed the useful life of the 11 7 asset being constructed, reconstructed, improved, repaired, 11 8 equipped, or maintained. 11 9 Beginning January 1, 2016, the bill provides for increases 11 10 in fees for single=trip permits, all=systems permits, and 11 11 certain permits relating to length, height, and gross weight of 11 12 vehicles of excessive size and weight (Code chapter 321E). 11 13 The bill increases by 10 cents the rate of the excise tax on 11 14 motor fuel, special fuel for diesel engines, compressed natural 11 15 gas, liquefied natural gas, and liquefied petroleum gas, and 11 16 increases by 2 cents the rate of the excise tax on special fuel 11 17 for aircraft. In addition, the bill establishes a distribution 11 18 percentage formula for biodiesel blended fuel classified as 11 19 B=11 or higher and special fuel for diesel engines of motor 11 20 vehicles other than biodiesel blended fuel classified as B=11 11 21 or higher. If the distribution percentage is not greater than 11 22 50 percent, the tax rate for biodiesel blended fuel classified 11 23 as B=11 or higher is 29.5 cents, 3 cents less than special 11 24 fuel for diesel engines of motor vehicles other than biodiesel 11 25 blended fuel classified as B=11 or higher. As the distribution 11 26 percentage increases, the difference in the tax rates on the 11 27 two types of fuel decreases until the distribution percentage 11 28 is greater than 95 percent, at which point the tax rate for 11 29 both types of fuel is 32.5 cents. 11 30 The bill provides that both fuel distribution percentage 11 31 formulas will expire on June 30, 2020. The bill also provides 11 32 that both distribution percentage formulas shall be subject 11 33 to legislative review at least every six years. The review 11 34 shall be based upon a report containing the recommendations of 11 35 a legislative interim committee appointed to conduct a review 12 1 of the fuel distribution percentage formulas, to be prepared 12 2 with the assistance of the department of revenue in association 12 3 with the department of transportation. The report shall 12 4 include recommendations for changes or revisions to the fuel 12 5 distribution percentage formulas. The first such report shall 12 6 be submitted to the general assembly no later than January 1, 12 7 2020. 12 8 The 2005 Iowa Acts provide for the designation of certain 12 9 highways as access Iowa highways, which receive priority 12 10 funding from certain moneys in the TIME=21 and RISE funds 12 11 created in Code sections 312A.2 and 315.2. These provisions 12 12 will be repealed by operation of law on July 1, 2015. The bill 12 13 extends the date of repeal to July 1, 2025. 12 14 The bill provides that it is the intent of the general 12 15 assembly that 100 percent of the revenue produced as a result 12 16 of the increase in the excise taxes on motor fuel and certain 12 17 special fuel enacted in the bill and credited to the secondary 12 18 road fund or the farm=to=market road fund from the road use tax 12 19 fund shall be used exclusively for critical road and bridge 12 20 construction projects that significantly extend the life of 12 21 such assets. In addition, the bill provides that it is also 12 22 the intent of the general assembly that the state department of 12 23 transportation and the state transportation commission shall 12 24 utilize 100 percent of the revenue produced as a result of the 12 25 increase in the excise taxes on motor fuel and certain special 12 26 fuel enacted in the bill that is allocated to the department on 12 27 critical road and bridge construction projects. The department 12 28 shall identify the critical road and bridge construction 12 29 projects funded with such revenue in the department's annual 12 30 five=year transportation improvement program report. 12 31 The bill further provides that the department of 12 32 transportation shall identify $10 million in efficiencies for 12 33 the fiscal year beginning July 1, 2015, and $10 million in 12 34 efficiencies for the fiscal year beginning July 1, 2016. The 12 35 department shall provide details of activities undertaken to 13 1 implement these efficiencies in the annual "road use tax fund 13 2 efficiency report". 13 3 Pursuant to current law, when the rate of excise tax on motor 13 4 fuel, ethanol blended gasoline, undyed special fuel, compressed 13 5 natural gas, liquefied natural gas, or liquefied petroleum gas 13 6 is increased by more than one=half cent per gallon, a person 13 7 who has title to such fuel held in storage for eventual sale is 13 8 subject to an inventory tax based on the gallonage in storage 13 9 at the close of the business day preceding the effective date 13 10 of the increase. The bill provides that the inventory tax 13 11 shall not be imposed as a result of the tax increases provided 13 12 in the bill. 13 13 The bill takes effect the first day of the month following 13 14 the month of enactment except as follows: the section of the 13 15 bill modifying certain permit fees takes effect January 1, 13 16 2016, the section of the bill modifying the excise taxes on 13 17 special fuel for diesel engines and aircraft and creating the 13 18 distribution percentage formula for biodiesel blended fuel and 13 19 special fuel for diesel engines takes effect July 1, 2015, and 13 20 the sections of the bill limiting the term of indebtedness for 13 21 certain county projects and the section of the bill relating 13 22 to extending the access Iowa highway plan take effect upon 13 23 enactment. LSB 1782HV (1) 86 ns/sc
