Bill Text: IA HSB197 | 2019-2020 | 88th General Assembly | Introduced

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Bill Title: A bill for an act relating to motor vehicle taxes and fees, including registration fees for certain electric vehicles, an excise tax on hydrogen used as special fuel, and an excise tax on electricity used as electric fuel, providing penalties, making penalties applicable, and including effective date provisions.

Spectrum: Committee Bill

Status: (N/A - Dead) 2019-03-05 - Committee report, recommending amendment and passage. H.J. 406. [HSB197 Detail]

Download: Iowa-2019-HSB197-Introduced.html

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House Study Bill 197 - Introduced
HOUSE FILE _____
BY (PROPOSED COMMITTEE ON
TRANSPORTATION BILL BY
CHAIRPERSON HINSON)
A BILL FOR
An Act relating to motor vehicle taxes and fees, including
registration fees for certain electric vehicles, an excise
tax on hydrogen used as special fuel, and an excise tax on
electricity used as electric fuel, providing penalties,
making penalties applicable, and including effective date
provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
REGISTRATION FEES FOR ELECTRIC VEHICLES
Section 1. NEW SECTION . 321.116 Battery electric and
plug-in hybrid electric motor vehicle fees.
1. For each battery electric motor vehicle subject to an
annual registration fee under section 321.109, subsection 1,
paragraph “a” , and operated on the public highways of this
state, the owner shall pay an annual battery electric motor
vehicle registration fee of one hundred thirty dollars, which
shall be in addition to the annual registration fee imposed
for the vehicle under section 321.109, subsection 1, paragraph
“a” . For purposes of this subsection, “battery electric
motor vehicle” means a motor vehicle equipped with electrical
drivetrain components and not equipped with an internal
combustion engine, that is propelled exclusively by one or
more electrical motors using electrical energy stored in a
battery or other energy storage device that can be recharged by
plugging into an electrical outlet or electric vehicle charging
station.
2. For each plug-in hybrid electric motor vehicle subject to
an annual registration fee under section 321.109, subsection
1, paragraph “a” , and operated on the public highways of this
state, the owner shall pay an annual plug-in hybrid electric
motor vehicle registration fee of sixty-five dollars, which
shall be in addition to the annual registration fee imposed
for the vehicle under section 321.109, subsection 1, paragraph
“a” . For purposes of this subsection, “plug-in hybrid electric
motor vehicle” means a motor vehicle equipped with electrical
drivetrain components, an internal combustion engine, and a
battery or other energy storage device that can be recharged by
plugging into an electrical outlet or electric vehicle charging
station.
Sec. 2. Section 321.117, Code 2019, is amended to read as
follows:
321.117 Motorcycle, autocycle, ambulance, and hearse fees.
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1. For all motorcycles and autocycles the annual
registration fee shall be twenty dollars. For all motorized
bicycles the annual registration fee shall be seven dollars.
When the motorcycle or autocycle is more than five model
years old, the annual registration fee shall be ten dollars.
The annual registration fee for ambulances and hearses shall
be fifty dollars. Passenger car plates shall be issued for
ambulances and hearses.
2. In addition to the fee required for a motorcycle under
subsection 1, the owner of a motorcycle that is a battery
electric motor vehicle or plug-in hybrid electric motor
vehicle, as those terms are defined in section 321.116, shall
pay an annual electric motorcycle registration fee of nine
dollars.
Sec. 3. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2020.
DIVISION II
HYDROGEN FUEL EXCISE TAX
Sec. 4. Section 452A.2, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION . 20A. “Fuel supply tank” , with respect to
motor vehicles that use hydrogen as a special fuel, means a
motor vehicle’s hydrogen fuel cells.
Sec. 5. Section 452A.2, subsection 21, Code 2019, is amended
by adding the following new paragraph:
NEW PARAGRAPH . c. “Gallon” , with respect to hydrogen, means
a diesel gallon equivalent. A diesel gallon equivalent of
hydrogen is two and forty-nine hundredths pounds.
Sec. 6. Section 452A.2, subsections 25, 26, 39, and 45, Code
2019, are amended to read as follows:
25. “Licensed compressed natural gas, liquefied natural gas,
and liquefied petroleum gas , and hydrogen dealer” means a person
in the business of handling untaxed compressed natural gas,
liquefied natural gas, or liquefied petroleum gas , or hydrogen
who delivers any part of the fuel into a fuel supply tank of any
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motor vehicle.
26. “Licensed compressed natural gas, liquefied natural
gas, and liquefied petroleum gas , and hydrogen user” means a
person licensed by the department who dispenses compressed
natural gas, liquefied natural gas, or liquefied petroleum
gas, or hydrogen, upon which the special fuel tax has not been
previously paid, for highway use from fuel sources owned and
controlled by the person into the fuel supply tank of a motor
vehicle, or commercial vehicle owned or controlled by the
person.
39. “Special fuel” means fuel oils and all combustible gases
and liquids suitable for the generation of power for propulsion
of motor vehicles or turbine-powered aircraft, and includes
any substance used for that purpose, except that it does not
include motor fuel. Kerosene shall not be considered to be a
special fuel, unless blended with other special fuels for use
in a motor vehicle with a diesel engine. Methanol shall not
be considered to be a special fuel unless blended with other
special fuels for use in a motor vehicle with a diesel engine.
Hydrogen shall be considered to be a special fuel when used
or intended for use in combination with oxygen to generate
electricity for propulsion of a motor vehicle.
45. “Use” , with respect to liquefied petroleum gas, means
the receipt, delivery, or placing of liquefied petroleum gas by
a licensed liquefied petroleum gas user into a fuel supply tank
of a motor vehicle while the vehicle is in the state , except
that with . With respect to natural gas used as a special fuel,
“use” means the receipt, delivery, or placing of the natural gas
into equipment for compressing the gas for subsequent delivery
into the fuel supply tank of a motor vehicle while the vehicle
is in the state . With respect to hydrogen used as a special
fuel, “use” means the receipt, delivery, or placing of hydrogen
by a licensed hydrogen user into a fuel supply tank of a motor
vehicle while the vehicle is in the state.
Sec. 7. Section 452A.3, Code 2019, is amended by adding the
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following new subsection:
NEW SUBSECTION . 9A. For hydrogen used as a special fuel,
the rate of tax is sixty-five cents per gallon.
Sec. 8. Section 452A.4, subsection 1, paragraph d, Code
2019, is amended to read as follows:
d. A dealer’s or user’s license shall be required for each
separate place of business or location where compressed natural
gas, liquefied natural gas, or liquefied petroleum gas , or
hydrogen is delivered or placed into the fuel supply tank of a
motor vehicle.
Sec. 9. Section 452A.8, subsection 2, paragraph e,
subparagraphs (1), (2), and (3), Code 2019, are amended to read
as follows:
(1) For purposes of this paragraph “e” , “dealer” or “user”
means a licensed compressed natural gas, liquefied natural gas,
and liquefied petroleum gas , and hydrogen dealer or user and
“fuel” means compressed natural gas, liquefied natural gas, or
liquefied petroleum gas , or hydrogen .
(2) The tax for compressed natural gas, liquefied natural
gas, and liquefied petroleum gas , and hydrogen delivered by
a licensed dealer for use in this state shall attach at the
time of the delivery and shall be collected by the dealer
from the purchaser and paid to the department as provided in
this chapter . The tax, with respect to compressed natural
gas, liquefied natural gas, and liquefied petroleum gas , and
hydrogen acquired by a purchaser in any manner other than by
delivery by a licensed dealer into a fuel supply tank of a
motor vehicle, attaches at the time of the use of the fuel
and shall be paid over to the department by the purchaser as
provided in this chapter .
(3) The department shall adopt rules governing the
dispensing of compressed natural gas, liquefied natural gas,
and liquefied petroleum gas , and hydrogen by licensed dealers
and licensed users. The director may require by rule that
reports and returns be filed by electronic transmission. The
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department shall require that all pumps located at dealer
locations and user locations through which liquefied petroleum
gas can be dispensed shall be metered, inspected, tested
for accuracy, and sealed and licensed by the department of
agriculture and land stewardship, and that fuel delivered
into the fuel supply tank of any motor vehicle shall be
dispensed only through tested metered pumps and may be sold
without temperature correction or corrected to a temperature
of 60 degrees Fahrenheit. If the metered gallonage is to be
temperature-corrected, only a temperature-compensated meter
shall be used. Natural gas used as fuel shall be delivered
into compressing equipment through sealed meters certified for
accuracy by the department of agriculture and land stewardship.
Hydrogen used as fuel shall be delivered into the fuel supply
tank of any motor vehicle through sealed meters certified for
accuracy by the department of agriculture and land stewardship.
The department of agriculture and land stewardship may adopt
rules pursuant to chapter 17A relating to the certification and
accuracy of meters used to deliver hydrogen.
Sec. 10. Section 452A.60, subsection 1, Code 2019, is
amended to read as follows:
1. The department of revenue or the state department of
transportation shall prescribe and furnish all forms, as
applicable, upon which reports, returns, and applications shall
be made and claims for refund presented under this chapter
and may prescribe forms of record to be kept by suppliers,
restrictive suppliers, importers, exporters, blenders, common
carriers, contract carriers, licensed compressed natural
gas, liquefied natural gas, and liquefied petroleum gas , and
hydrogen dealers and users, terminal operators, nonterminal
storage facility operations, and interstate commercial motor
vehicle operators.
Sec. 11. Section 452A.62, subsection 1, paragraph a,
subparagraph (2), Code 2019, is amended to read as follows:
(2) A licensed compressed natural gas, liquefied natural
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gas, or liquefied petroleum gas , or hydrogen dealer, user, or
person supplying compressed natural gas, liquefied natural
gas, or liquefied petroleum gas , or hydrogen to a licensed
compressed natural gas, liquefied natural gas, or liquefied
petroleum gas , or hydrogen dealer or user.
Sec. 12. Section 452A.62, subsection 1, paragraph b, Code
2019, is amended to read as follows:
b. To examine the records, books, papers, receipts, and
invoices of any distributor, supplier, restrictive supplier,
importer, blender, exporter, terminal operator, nonterminal
storage facility, licensed compressed natural gas, liquefied
natural gas, or liquefied petroleum gas , or hydrogen dealer or
user, or any other person who possesses fuel upon which the tax
has not been paid to determine financial responsibility for the
payment of the taxes imposed by this chapter .
Sec. 13. Section 452A.74, subsection 1, paragraphs e and g,
Code 2019, are amended to read as follows:
e. For any person to act as a supplier, restrictive
supplier, importer, exporter, blender, or compressed natural
gas, liquefied natural gas, or liquefied petroleum gas , or
hydrogen dealer or user without the required license.
g. For any licensed compressed natural gas, liquefied
natural gas, or liquefied petroleum gas , or hydrogen dealer or
user to dispense compressed natural gas, liquefied natural gas,
or liquefied petroleum gas , or hydrogen into the fuel supply
tank of any motor vehicle without collecting the fuel tax.
Sec. 14. Section 452A.74, subsection 2, Code 2019, is
amended to read as follows:
2. Any delivery of compressed natural gas, liquefied
natural gas, or liquefied petroleum gas , or hydrogen to a
compressed natural gas, liquefied natural gas, or liquefied
petroleum gas , or hydrogen dealer or user for the purpose of
evading the state tax on compressed natural gas, liquefied
natural gas, or liquefied petroleum gas, or hydrogen, into
facilities other than those licensed under this chapter knowing
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that the fuel will be used for highway use shall constitute
a violation of this section . Any compressed natural gas,
liquefied natural gas, or liquefied petroleum gas , or hydrogen
dealer or user for purposes of evading the state tax on
compressed natural gas, liquefied natural gas, or liquefied
petroleum gas, or hydrogen, who allows a distributor to place
compressed natural gas, liquefied natural gas, or liquefied
petroleum gas , or hydrogen for highway use in facilities other
than those licensed under this chapter , shall also be deemed
in violation of this section .
Sec. 15. Section 452A.85, subsection 1, Code 2019, is
amended to read as follows:
1. Persons having title to motor fuel, ethanol blended
gasoline, undyed special fuel, compressed natural gas,
liquefied natural gas, or liquefied petroleum gas , or hydrogen
in storage and held for sale on the effective date of an
increase in the excise tax rate imposed on motor fuel, ethanol
blended gasoline, undyed special fuel, compressed natural
gas, liquefied natural gas, or liquefied petroleum gas , or
hydrogen under this chapter shall be subject to an inventory
tax based upon the gallonage in storage as of the close of the
business day preceding the effective date of the increased
excise tax rate of motor fuel, ethanol blended gasoline, undyed
special fuel, compressed natural gas, liquefied natural gas, or
liquefied petroleum gas , or hydrogen which will be subject to
the increased excise tax rate.
Sec. 16. Section 452A.86, Code 2019, is amended to read as
follows:
452A.86 Method of determining gallonage.
The exclusive method of determining gallonage of any
purchases or sales of motor fuel, undyed special fuel,
or liquefied petroleum gas as defined in this chapter and
distillate fuels shall be on a gross volume basis, except
for compressed natural gas , and liquefied natural gas , and
hydrogen . The exclusive method of determining gallonage of any
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purchases or sales of compressed natural gas is the gasoline
gallon equivalent, as defined in section 452A.2, subsection
21 . The exclusive method of determining gallonage of any
purchase or sale of liquefied natural gas is the diesel gallon
equivalent, as defined in section 452A.2, subsection 21 . The
exclusive method of determining gallonage of any purchases or
sales of hydrogen is the diesel gallon equivalent, as defined
in section 452A.2, subsection 21. A temperature-adjusted
or other method shall not be used, except as it applies to
liquefied petroleum gas and the sale or exchange of petroleum
products between petroleum refiners. All invoices, bills of
lading, or other records of sale or purchase and all returns
or records required to be made, kept, and maintained by a
supplier, restrictive supplier, importer, exporter, blender,
or compressed natural gas, liquefied natural gas, or liquefied
petroleum gas , or hydrogen dealer or user shall be made, kept,
and maintained on the gross volume basis. For purposes of
this section , “distillate fuels” means any fuel oil, gas oil,
topped crude oil, or other petroleum oils derived by refining
or processing crude oil or unfinished oils which have a boiling
range at atmospheric pressure which falls completely or in part
between 550 and 1,200 degrees Fahrenheit.
Sec. 17. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2020.
DIVISION III
ELECTRIC FUEL EXCISE TAX
Sec. 18. Section 312.2, subsection 9, Code 2019, is amended
by adding the following new paragraph:
NEW PARAGRAPH . c. From the excise tax on electric fuel
imposed under the tax rate of section 452A.41, the amount of
excise tax collected from fifteen hundredths of one cent per
kilowatt hour.
Sec. 19. Section 312.2, subsection 10, Code 2019, is amended
by adding the following new paragraph:
NEW PARAGRAPH . c. From the excise tax on electric fuel
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imposed under the tax rate of section 452A.41, the amount
of excise tax collected from two hundredths of one cent per
kilowatt hour.
Sec. 20. Section 423.3, subsection 56, Code 2019, is amended
to read as follows:
56. The sales price from the sale of motor fuel , and
special fuel , and electric fuel consumed for highway use or in
watercraft or aircraft where the fuel tax has been imposed and
paid and no refund has been or will be allowed and the sales
price from the sales of ethanol blended gasoline, as defined
in section 214A.1 .
Sec. 21. Section 423B.5, subsection 1, Code 2019, is amended
to read as follows:
1. A local sales and services tax may be imposed by a
county on the sales price taxed by the state under chapter
423, subchapter II . A local sales and services tax shall be
imposed on the same basis as the state sales and services tax
or in the case of the use of natural gas, natural gas service,
electricity, or electric service on the same basis as the
state use tax and shall not be imposed on the sale of any
property or on any service not taxed by the state, except the
tax shall not be imposed on the sales price from the sale of
motor fuel , or special fuel , or electric fuel, as those terms
are defined in chapter 452A , which is consumed for highway use
or in watercraft or aircraft if the fuel tax is paid on the
transaction and a refund has not or will not be allowed, on the
sales price from the sale of equipment by the state department
of transportation, or on the sales price from the sale or use
of natural gas, natural gas service, electricity, or electric
service in a city or county where the sales price from the sale
of natural gas or electric energy is subject to a franchise
fee or user fee during the period the franchise or user fee
is imposed. A local sales and services tax is applicable to
transactions within those cities and unincorporated areas of
the county where it is imposed, which transactions include
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but are not limited to sales sourced pursuant to section
423.15 , 423.17 , 423.19 , or 423.20 , to a location within that
city or unincorporated area of the county. The tax shall be
collected by all persons required to collect state sales taxes.
However, a local sales and services tax is not applicable to
transactions sourced under chapter 423 to a place of business,
as defined in section 423.1 , of a retailer if such place of
business is located in part within a city or unincorporated
area of the county where the tax is not imposed.
Sec. 22. Section 423E.3, subsection 1, Code 2019, is amended
to read as follows:
1. The tax shall be imposed on the same basis as the state
sales and services tax or in the case of the use of natural
gas, natural gas service, electricity, or electric service on
the same basis as the state use tax and shall not be imposed
on the sale of any property or on any service not taxed by the
state, except the tax shall not be imposed on the sales price
from the sale of motor fuel , or special fuel , or electric fuel,
as those terms are defined in chapter 452A , which is consumed
for highway use or in watercraft or aircraft if the fuel tax
is paid on the transaction and a refund has not or will not
be allowed, on the sales price from the sale of equipment by
the state department of transportation, or on the sales price
from the sale or use of natural gas, natural gas service,
electricity, or electric service in a city or county where the
sales price from the sale of natural gas or electric energy is
subject to a franchise fee or user fee during the period the
franchise or user fee is imposed.
Sec. 23. NEW SECTION . 452A.40 Definitions.
As used in this subchapter, unless the context otherwise
requires:
1. “Department” means the department of revenue.
2. “Electric fuel” means electrical energy delivered or
placed into the battery or other energy storage device of an
electric motor vehicle from a source outside the motor vehicle
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for purposes of propelling the motor vehicle. “Electric fuel”
shall be deemed motor vehicle fuel for purposes of Article VII,
section 8, of the Constitution of the State of Iowa.
3. “Electric motor vehicle” means a motor vehicle equipped
with electrical drivetrain components that has the ability to
be propelled, fully or partially, by one or more electrical
motors using electrical energy stored in a battery or other
energy storage device that can be recharged by plugging into an
electrical outlet or electric vehicle charging station.
4. “Licensed electric fuel dealer” means a person licensed
by the department who dispenses electric fuel, upon which the
electric fuel tax has not been previously paid, for highway
use into the battery or other energy storage device of an
electric motor vehicle in this state at a location other than a
residence.
5. “Licensed electric fuel user” means a person licensed
by the department who dispenses electric fuel, upon which the
electric fuel tax has not been previously paid, for highway use
from a charging station owned and controlled by the person into
the battery or other energy storage device of an electric motor
vehicle owned or controlled by the person in this state at a
location other than a residence.
6. “Residence” means the place where a person resides,
permanently or temporarily.
7. “Use” means the receipt, delivery, or placing of electric
fuel by a licensed electric fuel user into the battery or other
energy storage device of an electric motor vehicle owned or
controlled by the user in this state at a location other than a
residence.
Sec. 24. NEW SECTION . 452A.41 Levy and collection of excise
tax on electric fuel.
1. An excise tax of two and six-tenths cents is imposed on
each kilowatt hour of electric fuel delivered or placed into
the battery or other energy storage device of an electric motor
vehicle at a location in this state other than a residence.
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2. The tax for electric fuel delivered by a licensed
electric fuel dealer for use in this state shall attach at the
time of the delivery and shall be collected by the dealer from
the purchaser and paid to the department in the same manner
as the excise taxes on natural gas and liquefied petroleum
gas are paid by dealers to the department as provided in this
chapter. The tax for electric fuel used by a licensed electric
fuel user shall attach at the time of the use of the fuel and
shall be paid to the department by the licensed electric fuel
user in the same manner as the excise taxes on natural gas and
liquefied petroleum gas are paid by users to the department as
provided in this chapter.
3. The department shall adopt rules governing the
dispensing of electric fuel by licensed dealers and users. The
director may require by rule that reports and returns be filed
by electronic transmission. The department shall require that
all charging stations located at dealer and user locations
through which electric fuel can be dispensed shall be metered,
inspected, tested for accuracy, and sealed and licensed by
the department of agriculture and land stewardship, and that
electric fuel delivered into the battery or other energy
storage device of any electric motor vehicle shall be dispensed
only through tested, metered charging stations. The department
of agriculture and land stewardship may adopt rules pursuant
to chapter 17A to administer the department of agriculture and
land stewardship’s duties under this subsection.
4. a. For the purpose of determining the amount of
liability for the electric fuel tax, each dealer and user
shall file with the department not later than the last day
of each calendar month a monthly tax return certified under
penalties for false certification. The return shall show, with
reference to each location at which fuel is delivered or placed
by the dealer or user into the battery or other energy storage
device of any electric motor vehicle during the next preceding
calendar month, information as required by the department.
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b. The amount of tax due shall be computed by multiplying
the appropriate tax rate per kilowatt hour by the number of
kilowatt hours of electric fuel delivered or placed by the
dealer or user into the batteries or other energy storage
devices of electric motor vehicles.
c. The return shall be accompanied by remittance in the
amount of the tax due for the month in which the fuel was placed
into the batteries or other energy storage devices of electric
motor vehicles.
5. Moneys collected under this subchapter by a licensed
electric fuel dealer or user are deemed to be held in trust for
the state of Iowa.
Sec. 25. NEW SECTION . 452A.42 Electric fuel dealer’s and
user’s license.
1. A person shall not sell or dispense electric fuel within
this state at a location other than a residence or otherwise
act as a licensed electric fuel dealer or user unless the
person holds an uncanceled license issued by the department.
2. To procure a license, a person shall file with the
department an application signed under penalty for false
certificate setting forth all of the following:
a. The name under which the licensee will transact business
in this state.
b. The location, with street number address, of the
principal office or place of business of the licensee within
this state.
c. The name and complete residence address of the owner
or the names and addresses of the partners, if the licensee
is a partnership, or the names and addresses of the principal
officers, if the licensee is a corporation or association.
3. A dealer’s or user’s license shall be required for each
separate place of business or location, other than a residence,
where electric fuel is delivered or placed into the battery or
other energy storage device of an electric motor vehicle.
4. a. The department may deny the issuance of a license to
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an applicant who is substantially delinquent in the payment of
a tax due, or the interest or penalty on the tax, administered
by the department. If the applicant is a partnership, a
license may be denied if a partner owes any delinquent tax,
interest, or penalty. If the applicant is a corporation, a
license may be denied if any officer having a substantial legal
or equitable interest in the ownership of the corporation owes
any delinquent tax, interest, or penalty of the applicant
corporation.
b. The department may deny the issuance of a license if
an application for a license to transact business as a dealer
or user in this state is filed by a person whose license or
registration has been canceled for cause at any time under the
provisions of this chapter or any prior motor fuel tax law, if
the department has reason to believe that the application is
not filed in good faith, or if the application is filed by some
person as a subterfuge for the real person in interest whose
license or registration has been canceled for cause under the
provisions of this chapter or any prior motor fuel tax law.
The applicant shall be given fifteen days’ notice in writing of
the date of the hearing and shall have the right to appear in
person or by counsel and present testimony.
5. a. The application in proper form having been accepted
for filing, and the other conditions and requirements of this
section and subchapter IV having been complied with, the
department shall issue to the applicant a license to transact
business as an electric fuel dealer or user in this state. The
license shall remain in full force and effect until canceled as
provided in this chapter.
b. The license shall not be assignable and shall be valid
only for the licensee in whose name it is issued.
c. The department shall keep and file all applications and
bonds and a record of all licensees.
Sec. 26. NEW SECTION . 452A.43 Records.
1. A licensed electric fuel dealer or user shall maintain,
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for a period of three years, records of all transactions by
which the dealer or user dispenses electric fuel into the
batteries or other energy storage devices of electric motor
vehicles, including pertinent records and papers as required
by the department.
2. If in the normal conduct of a dealer’s or user’s business
the records are maintained and kept at an office outside this
state, the records shall be made available for audit and
examination by the department at the office outside this state,
but the audit and examination shall be without expense to this
state.
3. The department, after an audit and examination of records
required to be maintained under this section, may authorize
their disposal upon the written request of the dealer or user.
Sec. 27. NEW SECTION . 452A.44 Refunds.
1. A person who uses electric fuel for any of the nontaxable
purposes set forth in section 452A.17, subsection 1, paragraph
“a” , for motor fuel and undyed special fuel, and who has paid
the electric fuel tax either directly to the department or by
having the tax added to the price of the fuel, and who has
a refund permit, upon presentation to and approval by the
department of a claim for refund, subject to the conditions set
forth in section 452A.17, subsection 1, paragraph “b” , shall be
reimbursed and repaid the amount of the tax which the claimant
has paid on the kilowatt hours so used, except that the amount
of a refund payable may be applied by the department against
any tax liability outstanding on the books of the department
against the claimant. Refunds under this section are subject
to the limitations and requirements set forth in section
452A.17, subsection 3, for motor fuel and undyed special fuel
refunds.
2. A person shall not claim a refund under this section
until the person has obtained a refund permit meeting the
requirements of section 452A.18 from the department. The
department may revoke a refund permit pursuant to section
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452A.19.
3. Tax collected on electric fuel that is not taxable, or
tax collected in excess of the actual amount of tax due, is
subject to section 452A.22.
Sec. 28. Section 452A.52, Code 2019, is amended to read as
follows:
452A.52 Fuels imported in supply tanks of motor vehicles ——
applicability .
1. a. No A person shall not bring into this state in
the fuel supply tanks of a commercial motor vehicle, or any
other container, regardless of whether or not the supply tanks
are connected to the motor of the vehicle, any motor fuel or
special fuel to be used in the operation of the vehicle in
this state unless that person has paid or made arrangements in
advance with the state department of transportation for payment
of Iowa fuel taxes on the gallonage consumed in operating the
vehicle in this state ; except that this subchapter shall not
apply to a private passenger automobile .
b. A person shall not bring into this state in the batteries
or other energy storage devices of a commercial motor vehicle,
or any other energy storage device, regardless of whether the
batteries or storage devices are connected to the motor of
the vehicle, any electric fuel to be used in the operation
of the vehicle in this state unless that person has paid or
made arrangements in advance with the state department of
transportation for payment of Iowa fuel taxes on the kilowatt
hours consumed in operating the vehicle in this state.
2. Any person who is unable to display either of the
permits or the license provided in section 452A.53 and brings
into the state in the fuel supply tanks of a commercial motor
vehicle more than thirty gallons of motor fuel or special fuel ,
or brings into the state in the batteries or other energy
storage devices of a commercial motor vehicle more than three
hundred fifty kilowatt hours of electric fuel, in violation
of subsection 1 commits a simple misdemeanor punishable as
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a scheduled violation under section 805.8A, subsection 13 ,
paragraph “c” .
3. This subchapter shall not apply to a private passenger
automobile.
Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code
2019, are amended to read as follows:
2. Persons choosing not to make advance arrangements with
the state department of transportation by procuring a permit or
license are not relieved of their responsibility to purchase
motor fuel , and special fuel , and electric fuel commensurate
with their use of the state’s highway system. When there
is reasonable cause to believe that there is evasion of the
fuel tax on commercial motor vehicles, the state department
of transportation may audit persons not holding a permit
or license. Audits shall be conducted pursuant to section
452A.55 and in accordance with international fuel tax agreement
guidelines. The state department of transportation shall
collect all taxes due and refund any overpayment.
3. A permanent international fuel tax agreement permit
or license may be obtained upon application to the state
department of transportation. A fee of ten dollars shall be
charged for each permit or license issued. The holder of
a permanent permit or license shall have the privilege of
bringing into this state in the fuel supply tanks of commercial
motor vehicles any amount of motor fuel or special fuel , or in
the batteries or other energy storage devices of commercial
motor vehicles any amount of electric fuel, to be used in the
operation of the vehicles and for that privilege shall pay
Iowa motor fuel or special fuel taxes as provided in section
452A.54 .
5. Each vehicle operated into or through Iowa in interstate
operations using motor fuel , or special fuel , or electric fuel
acquired in any other state shall carry in or on the vehicle a
duplicate or evidence of the permit or license required in this
section . A fee not to exceed fifty cents shall be charged for
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each duplicate or other evidence of a permit or license issued.
Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code
2019, are amended to read as follows:
1. Fuel tax liability under this subchapter shall be
computed on the total number of gallons of each kind of
motor fuel and special fuel , and the total number of kilowatt
hours of electric fuel, consumed in the operation in Iowa by
commercial motor vehicles subject to this subchapter at the
same rate for each kind of fuel as would be applicable if taxed
under subchapter I of this chapter and section 452A.41 . A
refund against the fuel tax liability so computed shall be
allowed, on excess Iowa motor fuel purchased, in the amount
of fuel tax paid at the prevailing rate per gallon set out
under subchapter I of this chapter on motor fuel and special
fuel , and rate per kilowatt hour set out under section 452A.41
on electric fuel, consumed by commercial motor vehicles, the
operation of which is subject to this subchapter .
2. Notwithstanding any provision of this chapter to the
contrary, except as provided in this section , the holder of a
permanent international fuel tax agreement permit or license
may make application to the state department of transportation
for a refund, not later than the last day of the third month
following the quarter in which the overpayment of Iowa fuel
tax paid on excess purchases of motor fuel or special fuel
was reported as provided in section 452A.8 , or electric
fuel was reported as provided in section 452A.41, and which
application is supported by such proof as the state department
of transportation may require. The state department of
transportation shall refund Iowa fuel tax paid on motor fuel ,
or special fuel , or electric fuel purchased in excess of the
amount consumed by such commercial motor vehicles in their
operation on the highways of this state.
4. To determine the amount of fuel taxes due under this
subchapter and to prevent the evasion thereof, the state
department of transportation shall require a quarterly report
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on forms prescribed by the state department of transportation.
It shall be filed not later than the last day of the month
following the quarter reported, and each quarter thereafter.
These reports shall be required of all persons who have been
issued a permit or license under this subchapter and shall
cover actual operation and fuel consumption in Iowa on the
basis of the permit or license holder’s average consumption
of fuel in Iowa, determined by the total miles traveled and
the total fuel purchased and consumed for highway use by the
permittee’s or licensee’s commercial motor vehicles in the
permittee’s or licensee’s entire operation in all states to
establish an overall miles per gallon ratio or miles per
kilowatt hour ratio , which ratio shall be used to compute the
gallons or kilowatt hours used for the miles traveled in Iowa.
Failure to receive a quarterly report or fuel credentials by
mail, facsimile transmission, or any other means of delivery
does not relieve a person from the person’s fuel tax liability
or from the requirement to display current fuel credentials.
Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code
2019, are amended to read as follows:
3. “Commercial motor vehicle” means a passenger vehicle
that has seats for more than nine passengers in addition to
the driver, any road tractor, any truck tractor, or any truck
having two or more axles which passenger vehicle, road tractor,
truck tractor, or truck is propelled on the public highways
by either motor fuel , or special fuel , or electric fuel .
“Commercial motor vehicle” does not include a motor truck with a
combined gross weight of less than twenty-six thousand pounds,
operated as a part of an identifiable one-way fleet and which
is leased for less than thirty days to a lessee for the purpose
of moving property which is not owned by the lessor.
5. “Fuel taxes” means the per gallon and per kilowatt excise
taxes imposed under subchapters I and III of this chapter , and
section 452A.41, with respect to motor fuel , and undyed special
fuel , and electric fuel .
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8. “Motor vehicle” shall mean and include all vehicles,
except those operated on rails, which are propelled by internal
combustion engines or electric motors and are of such design as
to permit their mobile use on public highways for transporting
persons or property. A farm tractor while operated on a farm
or for the purpose of hauling farm machinery, equipment, or
produce shall not be deemed to be a motor vehicle. “Motor
vehicle” shall not include “mobile machinery and equipment” as
defined in this section .
Sec. 32. Section 452A.58, subsection 2, Code 2019, is
amended to read as follows:
2. A lessor of a commercial motor vehicle shall be deemed
a carrier with respect to such vehicles leased to others by
the lessor and motor fuel , or special fuel , or electric fuel
consumed thereby if the lessor supplies or pays for the motor
fuel , or special fuel , or electric fuel consumed by such
vehicle or makes rental or other charges calculated to include
the cost of such fuel.
Sec. 33. Section 452A.59, Code 2019, is amended to read as
follows:
452A.59 Administrative rules.
The department of revenue and the state department
of transportation are authorized and empowered to adopt
rules under chapter 17A , relating to the administration
and enforcement of this chapter as deemed necessary by the
departments. However, when in the opinion of the director
it is necessary for the efficient administration of this
chapter , the director may regard persons in possession of motor
fuel, special fuel, biofuel, alcohol, or alcohol derivative
substances as blenders, dealers, eligible purchasers,
exporters, importers, restrictive suppliers, suppliers,
terminal operators, or nonterminal storage facility operators ,
or persons in possession of electric fuel as electric fuel
dealers or users .
Sec. 34. Section 452A.60, subsection 1, Code 2019, is
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amended to read as follows:
1. The department of revenue or the state department of
transportation shall prescribe and furnish all forms, as
applicable, upon which reports, returns, and applications shall
be made and claims for refund presented under this chapter
and may prescribe forms of record to be kept by suppliers,
restrictive suppliers, importers, exporters, blenders, common
carriers, contract carriers, licensed compressed natural gas,
liquefied natural gas, and liquefied petroleum gas dealers
and users, licensed electric fuel dealers and users, terminal
operators, nonterminal storage facility operations, and
interstate commercial motor vehicle operators.
Sec. 35. Section 452A.62, subsection 1, paragraph a, Code
2019, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (5) A licensed electric fuel dealer or
user or person supplying electric fuel to a licensed electric
fuel dealer or user.
Sec. 36. Section 452A.62, subsection 1, paragraph b, Code
2019, is amended to read as follows:
b. To examine the records, books, papers, receipts, and
invoices of any distributor, supplier, restrictive supplier,
importer, blender, exporter, terminal operator, nonterminal
storage facility, licensed compressed natural gas, liquefied
natural gas, or liquefied petroleum gas dealer or user,
licensed electric fuel dealer or user, or any other person
who possesses fuel upon which the tax has not been paid to
determine financial responsibility for the payment of the taxes
imposed by this chapter .
Sec. 37. Section 452A.63, subsection 1, Code 2019, is
amended to read as follows:
1. All information obtained by the department of revenue or
the state department of transportation from the examining of
reports, returns, or records required to be filed or kept under
this chapter shall be treated as confidential and shall not be
divulged except to other state officers, a member or members of
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the general assembly, or any duly appointed committee of either
or both houses of the general assembly, or to a representative
of the state having some responsibility in connection with the
collection of the taxes imposed or in proceedings brought under
this chapter . The appropriate state agency may make available
to the public on or before forty-five days following the last
day of the month in which the tax is required to be paid, the
names of suppliers, restrictive suppliers, and importers and as
to each of them the total gallons of motor fuel, undyed special
fuel, and ethanol blended gasoline withdrawn from terminals
or imported into the state during that month. The department
of revenue or the state department of transportation, upon
request of officials entrusted with enforcement of the motor
fuel tax laws of the federal government or any other state, may
forward to these officials any pertinent information which the
appropriate state agency may have relative to motor fuel , and
special fuel, and electric fuel, provided the officials of the
other state furnish like information.
Sec. 38. Section 452A.73, Code 2019, is amended to read as
follows:
452A.73 Embezzlement of fuel tax money —— penalty.
Every sale of motor fuel in this state , and every sale
of undyed special fuel dispensed by the seller into a fuel
supply tank of a motor vehicle , and every sale of electric
fuel dispensed by the seller into the battery or other energy
storage device of an electric motor vehicle shall, unless
otherwise provided, be presumed to include as a part of the
purchase price the fuel tax due the state of Iowa under the
provisions of this chapter . Every person collecting fuel tax
money as part of the selling price of motor fuel , or undyed
special fuel, or electric fuel shall hold the tax money in
trust for the state of Iowa unless the fuel tax on the fuel
has been previously paid to the state of Iowa. Any person
receiving fuel tax money in trust and failing to remit it to
the department of revenue on or before time required shall be
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guilty of theft.
Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and
f, Code 2019, are amended to read as follows:
c. For any seller to issue or any purchaser to receive
and retain any incorrect or false invoice or sales ticket in
connection with the sale or purchase of motor fuel , or undyed
special fuel , or electric fuel .
e. For any person to act as a supplier, restrictive
supplier, importer, exporter, blender, or compressed natural
gas, liquefied natural gas, or liquefied petroleum gas dealer
or user , or electric fuel dealer or user without the required
license.
f. For any person to use motor fuel, undyed special fuel,
or dyed special fuel in the fuel supply tank of a vehicle , or
electric fuel in the battery or other energy storage device of
an electric vehicle, with respect to which the person knowingly
has not paid or had charged to the person’s account with a
distributor or dealer, or with respect to which the person does
not, within the time required in this chapter , report and pay
the applicable fuel tax.
Sec. 40. Section 452A.74, subsection 1, Code 2019, is
amended by adding the following new paragraph:
NEW PARAGRAPH . h. For any licensed electric fuel dealer or
user to dispense electric fuel into the battery or other energy
storage device of any electric motor vehicle without collecting
the fuel tax.
Sec. 41. Section 452A.76, subsection 2, Code 2019, is
amended to read as follows:
2. Authority is given to the department of revenue,
the state department of transportation, the department of
public safety, and any peace officer as requested by such
departments to enforce the provisions of subchapter I , sections
452A.40 through 452A.44, and this subchapter of this chapter .
The department of revenue shall adopt rules providing for
enforcement under subchapter I and this subchapter of this
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chapter regarding the use of motor fuel or special fuel in
implements of husbandry. Enforcement personnel or requested
peace officers are authorized to stop a conveyance suspected
to be illegally transporting motor fuel or special fuel on
the highways, to investigate the cargo, and also have the
authority to inspect or test the fuel in the supply tank of a
conveyance to determine if legal fuel is being used to power
the conveyance. The operator of any vehicle transporting
motor fuel or special fuel shall, upon request, produce and
offer for inspection the manifest or loading and delivery
invoices pertaining to the load and trip in question and shall
permit the authority to inspect and measure the contents of
the vehicle. If the vehicle operator fails to produce the
evidence or if, when produced, the evidence fails to contain
the required information and it appears that there is an
attempt to evade payment of the fuel tax, the vehicle operator
will be subject to the penalty provisions contained in section
452A.74A .
Sec. 42. Section 452A.78, Code 2019, is amended to read as
follows:
452A.78 Other remedies available.
The special remedies provided under the provisions of this
chapter to enable the state to collect motor a fuel excise tax
imposed by this chapter shall not be construed as depriving the
state of any other remedy it might have either at law or in
equity independent of this chapter . The state shall have the
right to maintain an action at law for the collection of said
taxes required to be paid herein and in connection therewith
shall be entitled to a writ of attachment without bond.
Sec. 43. Section 452A.79, Code 2019, is amended to read as
follows:
452A.79 Use of revenue.
Except as provided in sections 452A.79A , 452A.82 , and
452A.84 , the net proceeds of the excise tax on the diesel
special fuel , and the excise tax on motor fuel and other
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special fuel, the excise tax on electric fuel, and penalties
collected under the provision of this chapter , shall be
credited to the road use tax fund.
Sec. 44. Section 452A.80, Code 2019, is amended to read as
follows:
452A.80 Microfilm or photographic copies —— originals
destroyed.
The appropriate state agency shall have the power and
authority to record, copy, or reproduce by any photographic,
photostatic, microfilm, microcard, miniature photographic,
or other process which accurately reproduces or forms a
durable medium for so reproducing the original of any forms
or records pertaining to motor a fuel tax or undyed special
fuel tax imposed by this chapter , or any paper or document with
respect to refund of the tax. If the forms and records have
been reproduced in accordance with this section , the state
agency may destroy the originals and the reproductions shall
be competent evidence in any court in accordance with the
provision of section 622.30 .
Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall
designate sections 452A.40 through 452A.44, as enacted by
this division of this Act, as a new subchapter within chapter
452A, and may redesignate the new and preexisting subchapters,
replace references to sections 452A.40 through 452A.44
with references to the new subchapter, and correct internal
references as necessary, including references in subchapter
headnotes.
Sec. 46. EFFECTIVE DATE. This division of this Act takes
effect July 1, 2020.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to motor vehicle taxes and fees.
DIVISION I —— REGISTRATION FEES FOR ELECTRIC VEHICLES.
Under current law, Code section 321.109(1)(a) provides that all
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motor vehicles including vehicles designated by manufacturers
as station wagons, 1993 and subsequent model year multipurpose
vehicles, and 2010 and subsequent model year motor trucks
with an unladen weight of 10,000 pounds or less, except motor
trucks registered under Code section 321.122, business-trade
trucks, special trucks, motor homes, motorsports recreational
vehicles, ambulances, hearses, autocycles, motorcycles,
motorized bicycles, and 1992 and older model year multipurpose
vehicles, are subject to an annual registration fee equal to 1
percent of the value of the vehicle as fixed by the department
of transportation (DOT) plus 40 cents for each 100 pounds of
weight of the vehicle as fixed by the DOT.
For each battery electric motor vehicle subject to an annual
registration fee under Code section 321.109(1)(a), the bill
requires the owner to pay an annual battery electric motor
vehicle registration fee of $130, which is in addition to the
regular annual registration fee imposed for the vehicle. For
each plug-in hybrid electric motor vehicle subject to an annual
registration fee under Code section 321.109(1)(a), the bill
requires the owner to pay an annual plug-in hybrid electric
motor vehicle registration fee of $65, which is in addition to
the regular annual registration fee imposed for the vehicle.
Under current law, motorcycles are subject to an annual
registration fee of $20. However, if a motorcycle is more
than five model years old, the annual registration fee is $10.
The bill requires the owner of a motorcycle that is a battery
electric motor vehicle or plug-in hybrid electric motor vehicle
to pay an annual electric motorcycle registration fee of $9,
which is in addition to the regular annual registration fee
imposed for the motorcycle.
Under Code section 321.17, operating a motor vehicle of a
type required to be registered which is not registered, or for
which the appropriate fees have not been paid, is punishable by
a scheduled fine of $50.
This division of the bill takes effect January 1, 2020.
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DIVISION II —— HYDROGEN FUEL EXCISE TAX. The bill imposes
an excise tax of 65 cents per gallon on hydrogen used as a
special fuel in motor vehicles. The bill specifies that a
diesel gallon equivalent of hydrogen is 2.49 pounds. The
bill makes corresponding changes to Code chapter 452A (motor
fuel and special fuel taxes) to ensure that the excise tax
on hydrogen is collected in the same manner as the existing
excise taxes on compressed natural gas, liquefied natural
gas, and liquefied petroleum gas. The bill applies the
provisions of Code chapter 452A to dealers and users of
hydrogen, including but not limited to provisions relating to
license requirements, reporting and filing requirements, record
retention requirements and audits, refunds, the interstate fuel
use tax, the inventory tax, and a variety of unlawful acts that
may result in a conviction for theft or fraudulent practice,
including but not limited to those listed in Code sections
452A.73, 452A.74, 452A.74A, and 452A.75. In accordance with
article VII, section 8, of the Iowa Constitution and Code
section 452A.79, revenues from the excise tax on hydrogen used
as a special fuel in motor vehicles are credited to the road
use tax fund.
By operation of law, Code section 321.40(9) provides that
a person who owns or controls a vehicle that uses hydrogen
will be issued a special fuel user identification sticker by
the county treasurer, and the person must place the sticker
adjacent to the place where the special fuel is delivered into
the vehicle fuel supply tank. Under Code section 312.2(9),
1.75 cents per gallon from the excise tax on hydrogen will be
deposited in the revitalize Iowa’s sound economy fund. Under
Code section 312.2(10), .25 cents per gallon from the excise
tax on hydrogen will be deposited in the secondary road fund.
The provisions of Code chapter 323 (dealer and distributor
franchises for motor fuel and special fuel) apply to dealers
and distributors that sell hydrogen used as a special fuel.
Hydrogen used as a special fuel is excluded from the sales and
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use tax under Code section 423.2(56) and the local sales and
services tax under Code section 423B.5(1).
The bill does not amend Code chapter 476C, which authorizes
a renewable energy fuel tax credit for producers and purchasers
of hydrogen fuel. The bill also does not amend Code section
216B.3 (department for the blind), 260C.19A (community
colleges), 262.25A (board of regents), 307.21 (department of
transportation), or 904.312A (department of corrections), which
require that 10 percent of motor vehicles purchased by such
entities be equipped with engines which utilize alternative
methods of propulsion, including electricity but not including
hydrogen.
This division of the bill takes effect January 1, 2020.
DIVISION III —— ELECTRIC FUEL EXCISE TAX. The bill provides
that electric fuel means electrical energy delivered or placed
into the battery or other energy storage device of an electric
motor vehicle from a source outside the motor vehicle for
purposes of propelling the motor vehicle. The bill imposes an
excise tax of 2.6 cents on each kilowatt hour of electric fuel
delivered or placed into the battery or other energy storage
device of an electric motor vehicle at a location in this
state other than a residence. The tax attaches at the time of
the delivery by a dealer and must be collected by the dealer
from the purchaser and paid to the Iowa department of revenue
(IDR) in the same manner as the excise taxes on natural gas
and liquefied petroleum gas are paid by dealers under current
law. Alternatively, the tax attaches at the time of use by
a licensed electric fuel user and must be paid to IDR in the
same manner as the excise taxes on natural gas and liquefied
petroleum gas are paid by users under current law.
All charging stations located at dealer and user locations
through which electric fuel can be dispensed must be metered,
inspected, tested for accuracy, and sealed and licensed by the
department of agriculture and land stewardship.
For the purpose of determining the amount of liability for
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the electric fuel tax, each dealer and user must file with IDR
not later than the last day of each calendar month a monthly
tax return certified under penalties for false certification.
The return must be accompanied by remittance in the amount of
the tax due for the month in which the fuel was placed into
the batteries or other energy storage devices of electric
motor vehicles. The bill specifies that moneys collected by a
licensed electric fuel dealer or user for the excise tax are
deemed to be held in trust for the state of Iowa.
The bill prohibits a person from selling or dispensing
electric fuel within this state at a location other than a
residence or from otherwise acting as a licensed electric fuel
dealer or user unless the person holds an uncanceled license
issued by IDR. The bill specifies the application requirements
for a license, and provides for grounds under which IDR may
deny the issuance of a license.
The bill requires a licensed electric fuel dealer or user
to maintain, for a period of three years, records of all
transactions by which the dealer or user dispenses electric
fuel into the batteries or other energy storage devices of
electric motor vehicles, including pertinent records and papers
as required by IDR. After an audit and examination of such
records, IDR may authorize their disposal upon the written
request of the dealer or user.
The bill provides that a person who uses electric fuel for
any of the nontaxable purposes set forth under current law for
motor fuel and undyed special fuel, who has paid the electric
fuel tax and who has a refund permit, upon presentation to and
approval by IDR of a claim for refund, must be reimbursed and
repaid the amount of the tax which the claimant has paid on
the kilowatt hours so used. Such refunds are subject to the
limitations and requirements set forth under current law for
refunds of the tax on motor fuel and undyed special fuel. The
bill prohibits a person from claiming a refund until the person
has obtained a refund permit from IDR meeting the requirements
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set forth under current law.
The bill makes corresponding changes to Code chapter
452A, including provisions of the interstate fuel use tax
law. In accordance with article VII, section 8, of the Iowa
Constitution and Code section 452A.79, revenues from the excise
tax on electric fuel are credited to the road use tax fund. The
bill provides that 0.15 cents per kilowatt hour of the excise
tax must be credited to the revitalize Iowa’s sound economy
fund, and 0.02 cents per kilowatt hour of the excise tax must
be credited to the secondary road fund, in accordance with
similar provisions for other types of fuel. In addition, the
bill exempts electric fuel from the state sales and use tax and
local option taxes.
This division of the bill takes effect July 1, 2020.
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