Senate
File
2224
-
Introduced
SENATE
FILE
2224
BY
COMMITTEE
ON
TRANSPORTATION
(SUCCESSOR
TO
SSB
3141)
A
BILL
FOR
An
Act
relating
to
funding
for
Iowa
roads,
including
by
1
increasing
the
excise
tax
on
motor
fuel
and
special
fuel
2
used
in
motor
vehicles,
providing
for
the
use
of
certain
3
revenues,
providing
for
related
studies,
evaluations,
and
4
reports,
and
including
effective
date
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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2224
DIVISION
I
1
MOTOR
FUEL
TAX
2
Section
1.
Section
312.2,
Code
2011,
is
amended
by
adding
3
the
following
new
subsection:
4
NEW
SUBSECTION
.
21.
a.
The
treasurer
of
state,
before
5
making
the
allotments
provided
for
in
this
section,
shall
6
credit
monthly
from
the
road
use
tax
fund
to
the
TIME-21
fund
7
created
in
section
312A.2
the
revenue
accruing
to
the
road
use
8
tax
fund
from
the
excise
tax
on
motor
fuel
and
special
fuel
for
9
motor
vehicles
in
the
amount
equal
to
the
revenues
collected
10
as
follows:
11
(1)
For
the
period
beginning
January
1,
2013,
and
ending
12
December
31,
2013,
the
following
amounts:
13
(a)
The
amount
of
excise
tax
collected
under
section
452A.3,
14
subsection
1,
paragraph
“c”
,
from
five
cents
per
gallon.
15
(b)
The
amount
of
excise
tax
on
special
fuel
for
diesel
16
engines
of
motor
vehicles,
other
than
biodiesel
blended
fuel
17
classified
as
B-10
or
higher,
collected
under
section
452A.3,
18
subsection
3,
paragraph
“a”
,
subparagraph
(2),
from
five
cents
19
per
gallon.
20
(2)
Beginning
January
1,
2014,
the
following
amounts:
21
(a)
The
amount
of
excise
tax
collected
under
section
452A.3,
22
subsection
1,
paragraph
“d”
,
or
section
452A.3,
subsection
1A,
23
from
ten
cents
per
gallon.
24
(b)
The
amount
of
excise
tax
on
special
fuel
for
diesel
25
engines
of
motor
vehicles,
other
than
biodiesel
blended
fuel
26
classified
as
B-10
or
higher,
collected
under
section
452A.3,
27
subsection
3,
paragraph
“a”
,
subparagraph
(3),
from
ten
cents
28
per
gallon.
29
b.
This
subsection
is
repealed
June
30,
2028.
30
Sec.
2.
Section
452A.3,
subsection
1,
paragraph
b,
31
unnumbered
paragraph
1,
Code
2011,
is
amended
to
read
as
32
follows:
33
The
Prior
to
January
1,
2013,
the
rate
for
the
excise
tax
34
shall
be
as
follows:
35
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Sec.
3.
Section
452A.3,
subsection
1,
Code
2011,
is
amended
1
by
adding
the
following
new
paragraphs:
2
NEW
PARAGRAPH
.
c.
For
the
period
beginning
January
1,
2013,
3
and
ending
December
31,
2013,
the
rate
for
the
excise
tax
shall
4
be
as
follows:
5
(1)
If
the
distribution
percentage
is
not
greater
than
6
fifty
percent,
the
rate
shall
be
twenty-four
cents
for
ethanol
7
blended
gasoline
and
twenty-five
cents
for
motor
fuel
other
8
than
ethanol
blended
gasoline.
9
(2)
If
the
distribution
percentage
is
greater
than
fifty
10
percent
but
not
greater
than
fifty-five
percent,
the
rate
11
shall
be
twenty-four
cents
for
ethanol
blended
gasoline
and
12
twenty-five
and
one-tenth
cents
for
motor
fuel
other
than
13
ethanol
blended
gasoline.
14
(3)
If
the
distribution
percentage
is
greater
than
15
fifty-five
percent
but
not
greater
than
sixty
percent,
the
rate
16
shall
be
twenty-four
cents
for
ethanol
blended
gasoline
and
17
twenty-five
and
three-tenths
cents
for
motor
fuel
other
than
18
ethanol
blended
gasoline.
19
(4)
If
the
distribution
percentage
is
greater
than
sixty
20
percent
but
not
greater
than
sixty-five
percent,
the
rate
21
shall
be
twenty-four
cents
for
ethanol
blended
gasoline
and
22
twenty-five
and
five-tenths
cents
for
motor
fuel
other
than
23
ethanol
blended
gasoline.
24
(5)
If
the
distribution
percentage
is
greater
than
25
sixty-five
percent
but
not
greater
than
seventy
percent,
the
26
rate
shall
be
twenty-four
cents
for
ethanol
blended
gasoline
27
and
twenty-five
and
seven-tenths
cents
for
motor
fuel
other
28
than
ethanol
blended
gasoline.
29
(6)
If
the
distribution
percentage
is
greater
than
seventy
30
percent
but
not
greater
than
seventy-five
percent,
the
rate
31
shall
be
twenty-four
cents
for
ethanol
blended
gasoline
and
32
twenty-six
cents
for
motor
fuel
other
than
ethanol
blended
33
gasoline.
34
(7)
If
the
distribution
percentage
is
greater
than
35
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seventy-five
percent
but
not
greater
than
eighty
percent,
the
1
rate
shall
be
twenty-four
and
three-tenths
cents
for
ethanol
2
blended
gasoline
and
twenty-five
and
eight-tenths
cents
for
3
motor
fuel
other
than
ethanol
blended
gasoline.
4
(8)
If
the
distribution
percentage
is
greater
than
eighty
5
percent
but
not
greater
than
eighty-five
percent,
the
rate
6
shall
be
twenty-four
and
five-tenths
cents
for
ethanol
blended
7
gasoline
and
twenty-five
and
seven-tenths
cents
for
motor
fuel
8
other
than
ethanol
blended
gasoline.
9
(9)
If
the
distribution
percentage
is
greater
than
10
eighty-five
percent
but
not
greater
than
ninety
percent,
the
11
rate
shall
be
twenty-four
and
seven-tenths
cents
for
ethanol
12
blended
gasoline
and
twenty-five
and
four-tenths
cents
for
13
motor
fuel
other
than
ethanol
blended
gasoline.
14
(10)
If
the
distribution
percentage
is
greater
than
ninety
15
percent
but
not
greater
than
ninety-five
percent,
the
rate
16
shall
be
twenty-four
and
nine-tenths
cents
for
ethanol
blended
17
gasoline
and
twenty-five
and
one-tenth
cents
for
motor
fuel
18
other
than
ethanol
blended
gasoline.
19
(11)
If
the
distribution
percentage
is
greater
than
20
ninety-five
percent,
the
rate
shall
be
twenty-five
cents
for
21
ethanol
blended
gasoline
and
twenty-five
cents
for
motor
fuel
22
other
than
ethanol
blended
gasoline.
23
NEW
PARAGRAPH
.
d.
For
the
period
beginning
January
1,
2014,
24
and
ending
June
30,
2022,
the
rate
for
the
excise
tax
shall
be
25
as
follows:
26
(1)
If
the
distribution
percentage
is
not
greater
than
27
fifty
percent,
the
rate
shall
be
twenty-nine
cents
for
ethanol
28
blended
gasoline
and
thirty
cents
for
motor
fuel
other
than
29
ethanol
blended
gasoline.
30
(2)
If
the
distribution
percentage
is
greater
than
fifty
31
percent
but
not
greater
than
fifty-five
percent,
the
rate
shall
32
be
twenty-nine
cents
for
ethanol
blended
gasoline
and
thirty
33
and
one-tenth
cents
for
motor
fuel
other
than
ethanol
blended
34
gasoline.
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(3)
If
the
distribution
percentage
is
greater
than
1
fifty-five
percent
but
not
greater
than
sixty
percent,
the
rate
2
shall
be
twenty-nine
cents
for
ethanol
blended
gasoline
and
3
thirty
and
three-tenths
cents
for
motor
fuel
other
than
ethanol
4
blended
gasoline.
5
(4)
If
the
distribution
percentage
is
greater
than
sixty
6
percent
but
not
greater
than
sixty-five
percent,
the
rate
shall
7
be
twenty-nine
cents
for
ethanol
blended
gasoline
and
thirty
8
and
five-tenths
cents
for
motor
fuel
other
than
ethanol
blended
9
gasoline.
10
(5)
If
the
distribution
percentage
is
greater
than
11
sixty-five
percent
but
not
greater
than
seventy
percent,
the
12
rate
shall
be
twenty-nine
cents
for
ethanol
blended
gasoline
13
and
thirty
and
seven-tenths
cents
for
motor
fuel
other
than
14
ethanol
blended
gasoline.
15
(6)
If
the
distribution
percentage
is
greater
than
seventy
16
percent
but
not
greater
than
seventy-five
percent,
the
rate
17
shall
be
twenty-nine
cents
for
ethanol
blended
gasoline
and
18
thirty-one
cents
for
motor
fuel
other
than
ethanol
blended
19
gasoline.
20
(7)
If
the
distribution
percentage
is
greater
than
21
seventy-five
percent
but
not
greater
than
eighty
percent,
the
22
rate
shall
be
twenty-nine
and
three-tenths
cents
for
ethanol
23
blended
gasoline
and
thirty
and
eight-tenths
cents
for
motor
24
fuel
other
than
ethanol
blended
gasoline.
25
(8)
If
the
distribution
percentage
is
greater
than
eighty
26
percent
but
not
greater
than
eighty-five
percent,
the
rate
27
shall
be
twenty-nine
and
five-tenths
cents
for
ethanol
blended
28
gasoline
and
thirty
and
seven-tenths
cents
for
motor
fuel
other
29
than
ethanol
blended
gasoline.
30
(9)
If
the
distribution
percentage
is
greater
than
31
eighty-five
percent
but
not
greater
than
ninety
percent,
the
32
rate
shall
be
twenty-nine
and
seven-tenths
cents
for
ethanol
33
blended
gasoline
and
thirty
and
four-tenths
cents
for
motor
34
fuel
other
than
ethanol
blended
gasoline.
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(10)
If
the
distribution
percentage
is
greater
than
ninety
1
percent
but
not
greater
than
ninety-five
percent,
the
rate
2
shall
be
twenty-nine
and
nine-tenths
cents
for
ethanol
blended
3
gasoline
and
thirty
and
one-tenth
cents
for
motor
fuel
other
4
than
ethanol
blended
gasoline.
5
(11)
If
the
distribution
percentage
is
greater
than
6
ninety-five
percent,
the
rate
shall
be
thirty
cents
for
ethanol
7
blended
gasoline
and
thirty
cents
for
motor
fuel
other
than
8
ethanol
blended
gasoline.
9
Sec.
4.
Section
452A.3,
subsection
1A,
Code
2011,
is
amended
10
to
read
as
follows:
11
1A.
Except
as
otherwise
provided
in
this
section
and
in
this
12
division
,
after
June
30,
2012
2022
,
an
excise
tax
of
twenty
13
thirty
cents
is
imposed
on
each
gallon
of
motor
fuel
used
for
14
any
purpose
for
the
privilege
of
operating
motor
vehicles
in
15
this
state.
16
Sec.
5.
Section
452A.3,
subsection
3,
Code
2011,
is
amended
17
to
read
as
follows:
18
3.
a.
For
the
privilege
of
operating
motor
vehicles
or
19
aircraft
in
this
state,
there
is
imposed
an
excise
tax
on
the
20
use
of
special
fuel
in
a
motor
vehicle
or
aircraft.
The
21
(1)
Prior
to
January
1,
2013,
the
tax
rate
on
special
fuel
22
for
diesel
engines
of
motor
vehicles
is
twenty-two
and
one-half
23
cents
per
gallon.
24
(2)
For
the
period
beginning
January
1,
2013,
and
ending
25
December
31,
2013,
the
tax
rate
on
biodiesel
blended
fuel
26
classified
as
B-10
or
higher
for
diesel
engines
of
motor
27
vehicles
is
twenty-two
and
one-half
cents
per
gallon
and
the
28
tax
rate
on
special
fuel
for
diesel
engines
of
motor
vehicles
29
other
than
biodiesel
blended
fuel
classified
as
B-10
or
higher
30
is
twenty-seven
and
one-half
cents
per
gallon.
31
(3)
Beginning
January
1,
2014,
the
tax
rate
on
biodiesel
32
blended
fuel
classified
as
B-10
or
higher
for
diesel
engines
33
of
motor
vehicles
is
twenty-two
and
one-half
cents
per
gallon
34
and
the
tax
rate
on
special
fuel
for
diesel
engines
of
motor
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vehicles
other
than
biodiesel
blended
fuel
classified
as
B-10
1
or
higher
is
thirty-two
and
one-half
cents
per
gallon.
2
(4)
The
rate
of
tax
on
special
fuel
for
aircraft
is
three
3
cents
per
gallon.
4
(5)
On
all
other
special
fuel,
unless
otherwise
specified
in
5
this
section
,
the
per
gallon
rate
is
the
same
as
the
motor
fuel
6
tax.
7
b.
Indelible
dye
meeting
United
States
environmental
8
protection
agency
and
internal
revenue
service
regulations
must
9
be
added
to
fuel
before
or
upon
withdrawal
at
a
terminal
or
10
refinery
rack
for
that
fuel
to
be
exempt
from
tax
and
the
dyed
11
fuel
may
be
used
only
for
an
exempt
purpose.
12
Sec.
6.
APPLICABILITY
——
INVENTORY
TAX.
Notwithstanding
13
section
452A.85,
persons
who
have
title
to
motor
fuel,
ethanol
14
blended
gasoline,
undyed
special
fuel,
compressed
natural
gas,
15
or
liquefied
petroleum
gas
in
storage
and
held
for
sale
on
16
the
effective
date
of
an
increase
in
the
rate
of
excise
tax
17
imposed
on
motor
fuel,
ethanol
blended
gasoline,
or
special
18
fuel
pursuant
to
this
division
of
this
Act
shall
not
be
subject
19
to
an
inventory
tax
on
the
gallonage
in
storage
as
provided
in
20
section
452A.85
as
a
result
of
the
tax
increases
provided
in
21
this
division
of
this
Act.
22
DIVISION
II
23
ROAD
FUNDING
NEEDS
——
EQUITABLE
SOLUTIONS
24
Sec.
7.
Section
307.31,
Code
2011,
is
amended
to
read
as
25
follows:
26
307.31
Periodic
review
of
revenues
——
evaluation
of
27
alternative
funding
sources.
28
1.
The
department
shall
periodically
review
the
current
29
revenue
levels
of
the
road
use
tax
fund
and
the
sufficiency
of
30
those
revenues
for
the
projected
construction
and
maintenance
31
needs
of
city,
county,
and
state
governments
in
the
future.
32
The
department
shall
submit
a
written
report
to
the
general
33
assembly
regarding
its
findings
by
December
31
every
five
34
two
years,
beginning
in
2011
2013
.
The
report
may
include
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2224
recommendations
concerning
funding
levels
needed
to
support
the
1
future
mobility
and
accessibility
for
users
of
Iowa’s
public
2
road
system.
3
2.
The
department
shall
evaluate
alternative
funding
4
sources
for
road
maintenance
and
construction
and
report
to
5
the
general
assembly
at
least
every
five
two
years
on
the
6
advantages
and
disadvantages
and
the
viability
of
alternative
7
funding
mechanisms.
The
department’s
evaluation
of
alternative
8
funding
sources
may
be
included
in
the
report
submitted
to
the
9
general
assembly
under
subsection
1
.
10
Sec.
8.
NEW
SECTION
.
307.32
Operation,
maintenance,
and
11
improvement
of
state
roads
——
annual
review.
12
The
department
shall
convene
a
meeting,
at
least
annually,
13
of
representatives
of
Iowa
cities
and
counties
and
the
14
department
to
review
practices
relating
to
the
operation,
15
maintenance,
and
improvement
of
the
state’s
public
road
system
16
and
to
identify
ways
to
jointly
increase
the
efficiency
of
17
those
practices.
18
Sec.
9.
ALTERNATIVELY
FUELED,
HYBRID,
AND
HIGH
FUEL
19
EFFICIENCY
VEHICLES.
The
department
of
transportation
shall
20
evaluate
mechanisms
that
could
be
used
as
an
alternative
21
to
the
motor
fuel
tax
in
relation
to
alternatively
fueled,
22
hybrid,
and
high
fuel
efficiency
vehicles,
including
commercial
23
vehicles,
to
assure
that
owners
and
operators
of
those
vehicles
24
are
required
to
share
in
the
cost
of
maintaining,
operating,
25
and
improving
Iowa
roads.
The
department
shall
recommend
an
26
alternative
funding
mechanism
in
its
next
report
to
the
general
27
assembly
regarding
alternative
funding
sources
for
roads
as
28
required
under
section
307.31.
29
Sec.
10.
EQUITABLE
FEE
STUDY.
The
department
of
30
transportation
shall
conduct
a
study
to
determine
whether
31
the
various
types
of
vehicles
and
equipment
using
the
public
32
roadways
are
paying
equitable
fees
used
for
the
construction
33
and
maintenance
of
Iowa
roads.
The
department
shall
report
34
its
findings
and
any
recommendations
to
the
general
assembly
35
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by
June
30,
2012.
1
Sec.
11.
EFFECTIVE
UPON
ENACTMENT.
The
following
provision
2
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
3
upon
enactment:
4
1.
The
section
of
this
Act
relating
to
an
equitable
fee
5
study
to
be
conducted
by
the
department
of
transportation.
6
EXPLANATION
7
This
bill
contains
various
provisions
relating
to
the
8
funding
of
Iowa
roads.
9
DIVISION
I
——
MOTOR
FUEL
TAX.
The
bill
increases
the
excise
10
tax
on
motor
fuel
and
special
fuel
used
in
motor
vehicles,
11
other
than
biodiesel
blended
fuel
classified
as
B-10
or
higher,
12
by
five
cents
beginning
January
1,
2013,
and
by
an
additional
13
five
cents
beginning
January
1,
2014.
The
additional
revenues
14
shall
be
credited
to
the
TIME-21
fund,
subject
to
the
statutory
15
limitation
on
annual
deposits
to
that
fund.
After
the
repeal
16
of
the
TIME-21
fund
on
June
30,
2028,
the
revenues
will
accrue
17
to
the
road
use
tax
fund.
18
The
bill
provides
that
the
distribution
percentage
formula
19
for
determining
the
difference
in
the
excise
tax
imposed
on
20
ethanol
blended
gasoline
and
motor
fuel
other
than
ethanol
21
blended
gasoline,
which
is
due
to
expire
on
June
30,
2012,
is
22
extended
until
June
30,
2022.
23
Pursuant
to
current
law,
when
the
rate
of
excise
tax
on
24
motor
fuel,
ethanol
blended
gasoline,
undyed
special
fuel,
25
compressed
natural
gas,
or
liquefied
petroleum
gas
is
increased
26
by
more
than
one-half
cent
per
gallon,
a
person
who
has
title
27
to
such
fuel
held
in
storage
for
eventual
sale
is
subject
to
an
28
inventory
tax
based
on
the
gallonage
in
storage
at
the
close
of
29
the
business
day
preceding
the
effective
date
of
the
increase.
30
The
bill
waives
that
requirement
by
stating
that
the
inventory
31
tax
shall
not
be
imposed
as
a
result
of
the
tax
increases
32
provided
in
the
bill.
33
DIVISION
II
——
ROAD
FUNDING
NEEDS
——
EQUITABLE
SOLUTIONS.
34
Under
current
law,
the
department
of
transportation
is
required
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to
periodically
review
current
road
use
tax
fund
revenues
1
and
the
sufficiency
of
those
revenues
to
meet
projected
2
construction
and
maintenance
needs
of
cities,
counties,
and
the
3
state
and
submit
a
report
of
its
findings
and
recommendations
4
to
the
general
assembly
every
five
years.
The
bill
requires
5
more
frequent
reports,
every
two
years.
In
addition,
the
6
department
is
currently
required
to
report
to
the
general
7
assembly
at
least
every
five
years
regarding
the
viability
of
8
alternative
funding
mechanisms
for
roads.
The
bill
requires
9
that
the
report
on
alternative
funding
mechanisms
be
made
at
10
least
every
two
years.
11
The
bill
requires
the
department
to
convene
a
meeting
of
12
representatives
of
Iowa
cities,
counties,
and
the
department
at
13
least
annually
to
review
practices
relating
to
the
operation,
14
maintenance,
and
improvement
of
the
state’s
public
road
system
15
and
identify
ways
to
jointly
increase
efficiency.
16
The
bill
requires
the
department
to
evaluate
and
recommend
17
mechanisms
to
be
used
as
an
alternative
to
the
motor
fuel
tax
18
for
alternatively
fueled,
hybrid,
and
high
fuel
efficiency
19
vehicles
including
commercial
vehicles.
The
department’s
20
recommendations
are
to
be
included
in
its
next
periodic
report
21
to
the
general
assembly
regarding
alternative
funding
sources.
22
That
report
is
due
by
December
31,
2013.
23
The
department
is
also
required
to
conduct
a
study
to
24
determine
whether
the
various
types
of
vehicles
and
equipment
25
that
use
the
public
roadways
are
paying
equitable
fees
in
26
support
of
Iowa
roads.
The
department
shall
report
its
27
findings
and
any
recommendations
to
the
general
assembly
by
28
June
30,
2012.
This
provision
of
the
bill
is
effective
upon
29
enactment.
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