Bill Text: IA HSB514 | 2013-2014 | 85th General Assembly | Introduced

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Bill Title: A study bill for increasing the rate of the excise taxes on motor fuel and certain special fuel used in motor vehicles and providing for the use of revenues resulting from the increase.

Spectrum: Unknown

Status: (N/A - Dead) 2014-01-15 - In Transportation [HSB514 Detail]

Download: Iowa-2013-HSB514-Introduced.html

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House Study Bill 514 - Introduced
HOUSE FILE _____
BY (PROPOSED COMMITTEE ON
TRANSPORTATION BILL BY
CHAIRPERSON BYRNES)
A BILL FOR
An Act increasing the rate of the excise taxes on motor
fuel and certain special fuel used in motor vehicles
and providing for the use of revenues resulting from the
increase.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 312.2, Code 2014, is amended by adding
the following new subsection:
NEW SUBSECTION . 18. a. The treasurer of state, before
making the allotments provided for in this section, shall
credit monthly from the road use tax fund to the TIME-21 fund
created in section 312A.2 the revenue accruing to the road use
tax fund from the excise tax on motor fuel and special fuel for
diesel engines of motor vehicles in the amount equal to the
revenues collected as follows:
(1) For the period beginning July 1, 2014, and ending June
30, 2015, the following amounts:
(a) The amount of excise tax collected under section 452A.3,
subsection 1, paragraph “b” , from three cents per gallon.
(b) The amount of excise tax collected under section 452A.3,
subsection 3, paragraph “b” , subparagraph (1), from three cents
per gallon.
(2) For the period beginning July 1, 2015, and ending June
30, 2016, the following amounts:
(a) The amount of excise tax collected under section 452A.3,
subsection 1, paragraph “c” , from six cents per gallon.
(b) The amount of excise tax collected under section 452A.3,
subsection 3, paragraph “b” , subparagraph (2), from six cents
per gallon.
(3) Beginning July 1, 2016, the following amounts:
(a) The amount of excise tax collected under section 452A.3,
subsection 1, paragraph “d” , or, after June 30, 2024, under
section 452A.3, subsection 1A, from ten cents per gallon.
(b) The amount of excise tax collected under section 452A.3,
subsection 3, paragraph “b” , subparagraph (3), from ten cents
per gallon.
b. This subsection is repealed June 30, 2028.
Sec. 2. Section 452A.3, subsections 1 and 1A, Code 2014, are
amended to read as follows:
1. Except as otherwise provided in this section and in this
division , until June 30, 2014 2024 , this subsection shall apply
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to the excise tax imposed on each gallon of motor fuel used for
any purpose for the privilege of operating motor vehicles in
this state.
a. The rate of the excise tax shall be based on the number
of gallons of ethanol blended gasoline that is distributed
in this state as expressed as a percentage of the number of
gallons of motor fuel distributed in this state, which is
referred to as the distribution percentage. For purposes of
this subsection , only ethanol blended gasoline and nonblended
gasoline, not including aviation gasoline, shall be used in
determining the percentage basis for the excise tax. The
department shall determine the percentage basis for each
determination period beginning January 1 and ending December
31. The rate for the excise tax shall apply for the period
beginning July 1 and ending June 30 following the end of the
determination period.
b. The For the period beginning July 1, 2014, and ending
June 30, 2015, the rate for the excise tax shall be as follows:
(1) If the distribution percentage is not greater than
fifty percent, the rate shall be nineteen twenty-two cents for
ethanol blended gasoline and twenty twenty-three cents for
motor fuel other than ethanol blended gasoline.
(2) If the distribution percentage is greater than fifty
percent but not greater than fifty-five percent, the rate shall
be nineteen twenty-two cents for ethanol blended gasoline and
twenty twenty-three and one-tenth cents for motor fuel other
than ethanol blended gasoline.
(3) If the distribution percentage is greater than
fifty-five percent but not greater than sixty percent, the rate
shall be nineteen twenty-two cents for ethanol blended gasoline
and twenty twenty-three and three-tenths cents for motor fuel
other than ethanol blended gasoline.
(4) If the distribution percentage is greater than sixty
percent but not greater than sixty-five percent, the rate shall
be nineteen twenty-two cents for ethanol blended gasoline and
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twenty twenty-three and five-tenths cents for motor fuel other
than ethanol blended gasoline.
(5) If the distribution percentage is greater than
sixty-five percent but not greater than seventy percent, the
rate shall be nineteen twenty-two cents for ethanol blended
gasoline and twenty twenty-three and seven-tenths cents for
motor fuel other than ethanol blended gasoline.
(6) If the distribution percentage is greater than seventy
percent but not greater than seventy-five percent, the rate
shall be nineteen twenty-two cents for ethanol blended gasoline
and twenty-one twenty-four cents for motor fuel other than
ethanol blended gasoline.
(7) If the distribution percentage is greater than
seventy-five percent but not greater than eighty percent,
the rate shall be nineteen twenty-two and three-tenths cents
for ethanol blended gasoline and twenty twenty-three and
eight-tenths cents for motor fuel other than ethanol blended
gasoline.
(8) If the distribution percentage is greater than eighty
percent but not greater than eighty-five percent, the rate
shall be nineteen twenty-two and five-tenths cents for ethanol
blended gasoline and twenty twenty-three and seven-tenths cents
for motor fuel other than ethanol blended gasoline.
(9) If the distribution percentage is greater than
eighty-five percent but not greater than ninety percent, the
rate shall be nineteen twenty-two and seven-tenths cents
for ethanol blended gasoline and twenty twenty-three and
four-tenths cents for motor fuel other than ethanol blended
gasoline.
(10) If the distribution percentage is greater than ninety
percent but not greater than ninety-five percent, the rate
shall be nineteen twenty-two and nine-tenths cents for ethanol
blended gasoline and twenty twenty-three and one-tenth cents
for motor fuel other than ethanol blended gasoline.
(11) If the distribution percentage is greater than
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ninety-five percent, the rate shall be twenty twenty-three
cents for ethanol blended gasoline and twenty twenty-three
cents for motor fuel other than ethanol blended gasoline.
c. For the period beginning July 1, 2015, and ending June
30, 2016, the rate for the excise tax shall be as follows:
(1) If the distribution percentage is not greater than
fifty percent, the rate shall be twenty-five cents for ethanol
blended gasoline and twenty-six cents for motor fuel other than
ethanol blended gasoline.
(2) If the distribution percentage is greater than fifty
percent but not greater than fifty-five percent, the rate
shall be twenty-five cents for ethanol blended gasoline and
twenty-six and one-tenth cents for motor fuel other than
ethanol blended gasoline.
(3) If the distribution percentage is greater than
fifty-five percent but not greater than sixty percent, the rate
shall be twenty-five cents for ethanol blended gasoline and
twenty-six and three-tenths cents for motor fuel other than
ethanol blended gasoline.
(4) If the distribution percentage is greater than sixty
percent but not greater than sixty-five percent, the rate
shall be twenty-five cents for ethanol blended gasoline and
twenty-six and five-tenths cents for motor fuel other than
ethanol blended gasoline.
(5) If the distribution percentage is greater than
sixty-five percent but not greater than seventy percent, the
rate shall be twenty-five cents for ethanol blended gasoline
and twenty-six and seven-tenths cents for motor fuel other than
ethanol blended gasoline.
(6) If the distribution percentage is greater than seventy
percent but not greater than seventy-five percent, the rate
shall be twenty-five cents for ethanol blended gasoline and
twenty-seven cents for motor fuel other than ethanol blended
gasoline.
(7) If the distribution percentage is greater than
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seventy-five percent but not greater than eighty percent, the
rate shall be twenty-five and three-tenths cents for ethanol
blended gasoline and twenty-six and eight-tenths cents for
motor fuel other than ethanol blended gasoline.
(8) If the distribution percentage is greater than eighty
percent but not greater than eighty-five percent, the rate
shall be twenty-five and five-tenths cents for ethanol blended
gasoline and twenty-six and seven-tenths cents for motor fuel
other than ethanol blended gasoline.
(9) If the distribution percentage is greater than
eighty-five percent but not greater than ninety percent, the
rate shall be twenty-five and seven-tenths cents for ethanol
blended gasoline and twenty-six and four-tenths cents for motor
fuel other than ethanol blended gasoline.
(10) If the distribution percentage is greater than ninety
percent but not greater than ninety-five percent, the rate
shall be twenty-five and nine-tenths cents for ethanol blended
gasoline and twenty-six and one-tenth cents for motor fuel
other than ethanol blended gasoline.
(11) If the distribution percentage is greater than
ninety-five percent, the rate shall be twenty-six cents for
ethanol blended gasoline and twenty-six cents for motor fuel
other than ethanol blended gasoline.
d. For the period beginning July 1, 2016, and ending June
30, 2024, the rate for the excise tax shall be as follows:
(1) If the distribution percentage is not greater than
fifty percent, the rate shall be twenty-nine cents for ethanol
blended gasoline and thirty cents for motor fuel other than
ethanol blended gasoline.
(2) If the distribution percentage is greater than fifty
percent but not greater than fifty-five percent, the rate shall
be twenty-nine cents for ethanol blended gasoline and thirty
and one-tenth cents for motor fuel other than ethanol blended
gasoline.
(3) If the distribution percentage is greater than
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fifty-five percent but not greater than sixty percent, the rate
shall be twenty-nine cents for ethanol blended gasoline and
thirty and three-tenths cents for motor fuel other than ethanol
blended gasoline.
(4) If the distribution percentage is greater than sixty
percent but not greater than sixty-five percent, the rate shall
be twenty-nine cents for ethanol blended gasoline and thirty
and five-tenths cents for motor fuel other than ethanol blended
gasoline.
(5) If the distribution percentage is greater than
sixty-five percent but not greater than seventy percent, the
rate shall be twenty-nine cents for ethanol blended gasoline
and thirty and seven-tenths cents for motor fuel other than
ethanol blended gasoline.
(6) If the distribution percentage is greater than seventy
percent but not greater than seventy-five percent, the rate
shall be twenty-nine cents for ethanol blended gasoline and
thirty-one cents for motor fuel other than ethanol blended
gasoline.
(7) If the distribution percentage is greater than
seventy-five percent but not greater than eighty percent, the
rate shall be twenty-nine and three-tenths cents for ethanol
blended gasoline and thirty and eight-tenths cents for motor
fuel other than ethanol blended gasoline.
(8) If the distribution percentage is greater than eighty
percent but not greater than eighty-five percent, the rate
shall be twenty-nine and five-tenths cents for ethanol blended
gasoline and thirty and seven-tenths cents for motor fuel other
than ethanol blended gasoline.
(9) If the distribution percentage is greater than
eighty-five percent but not greater than ninety percent, the
rate shall be twenty-nine and seven-tenths cents for ethanol
blended gasoline and thirty and four-tenths cents for motor
fuel other than ethanol blended gasoline.
(10) If the distribution percentage is greater than ninety
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percent but not greater than ninety-five percent, the rate
shall be twenty-nine and nine-tenths cents for ethanol blended
gasoline and thirty and one-tenth cents for motor fuel other
than ethanol blended gasoline.
(11) If the distribution percentage is greater than
ninety-five percent, the rate shall be thirty cents for ethanol
blended gasoline and thirty cents for motor fuel other than
ethanol blended gasoline.
1A. Except as otherwise provided in this section and in this
division , after June 30, 2014 2024 , an excise tax of twenty
thirty cents is imposed on each gallon of motor fuel used for
any purpose for the privilege of operating motor vehicles in
this state.
Sec. 3. Section 452A.3, subsection 3, Code 2013, is amended
to read as follows:
3. a. For the privilege of operating motor vehicles or
aircraft in this state, there is imposed an excise tax on the
use of special fuel in a motor vehicle or aircraft. The
b. (1) For the period beginning July 1, 2014, and ending
June 30, 2015, the tax rate on special fuel for diesel engines
of motor vehicles other than biodiesel blended fuel classified
as B-10 or higher is twenty-two twenty-five and one-half cents
per gallon.
(2) For the period beginning July 1, 2015, and ending June
30, 2016, the tax rate on special fuel for diesel engines of
motor vehicles other than biodiesel blended fuel classified as
B-10 or higher is twenty-eight and one-half cents per gallon.
(3) After June 30, 2016, the tax rate on special fuel for
diesel engines of motor vehicles other than biodiesel blended
fuel classified as B-10 or higher is thirty-two and one-half
cents per gallon.
(4) The tax rate on biodiesel blended fuel classified
as B-10 or higher for diesel engines of motor vehicles is
twenty-two and one-half cents per gallon.
(5) The rate of tax on special fuel for aircraft is three
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cents per gallon.
(6) On all other special fuel, unless otherwise specified in
this section , the per gallon rate is the same as the motor fuel
tax.
c. Indelible dye meeting United States environmental
protection agency and internal revenue service regulations must
be added to fuel before or upon withdrawal at a terminal or
refinery rack for that fuel to be exempt from tax and the dyed
fuel may be used only for an exempt purpose.
Sec. 4. APPLICABILITY —— INVENTORY TAX. Notwithstanding
section 452A.85, persons who have title to motor fuel, ethanol
blended gasoline, undyed special fuel, compressed natural gas,
or liquefied petroleum gas in storage and held for sale on
the effective date of an increase in the rate of excise tax
imposed on motor fuel, ethanol blended gasoline, or special
fuel pursuant to this Act shall not be subject to an inventory
tax on the gallonage in storage as provided in section 452A.85
as a result of the tax increases provided in this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill contains provisions relating to the excise taxes
on motor fuel and certain special fuel used in motor vehicles.
The bill increases the rate of the excise taxes on motor
fuel and special fuel for diesel engines of motor vehicles,
other than biodiesel blended fuel classified as B-10 or
higher, by three cents beginning July 1, 2014, by an additional
three cents beginning July 1, 2015, and by an additional four
cents beginning July 1, 2016. The additional revenues shall
be credited to the TIME-21 fund, subject to the statutory
limitation on annual deposits to that fund. After the repeal
of the TIME-21 fund on June 30, 2028, the revenues will accrue
to the road use tax fund.
The bill provides that the distribution percentage formula
for determining the difference in the excise tax imposed on
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ethanol blended gasoline and motor fuel other than ethanol
blended gasoline, which is due to expire on June 30, 2014, is
extended until June 30, 2024.
Pursuant to current law, when the rate of excise tax on
motor fuel, ethanol blended gasoline, undyed special fuel,
compressed natural gas, or liquefied petroleum gas is increased
by more than one-half cent per gallon, a person who has title
to such fuel held in storage for eventual sale is subject to an
inventory tax based on the gallonage in storage at the close of
the business day preceding the effective date of the increase.
The bill waives that requirement by stating that the inventory
tax shall not be imposed as a result of the tax increases
provided in the bill.
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