Bill Text: IA SF2403 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act relating to the excise taxes on motor fuel and certain special fuel, and including applicability provisions. (Formerly SF 628, SSB 1246.) Effective date: 07/01/2020. Applicability date: 01/01/2021.
Spectrum: Committee Bill
Status: (Passed) 2020-07-17 - Fiscal note. [SF2403 Detail]
Download: Iowa-2019-SF2403-Enrolled.html
Senate
File
2403
-
Enrolled
Senate
File
2403
AN
ACT
RELATING
TO
THE
EXCISE
TAXES
ON
MOTOR
FUEL
AND
CERTAIN
SPECIAL
FUEL,
AND
INCLUDING
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
452A.3,
subsections
1,
2,
3,
4,
5,
and
6,
Code
2020,
are
amended
to
read
as
follows:
1.
Except
as
otherwise
provided
in
this
section
and
in
this
subchapter
,
until
June
30,
2020,
this
subsection
shall
apply
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.
An
excise
tax
of
thirty
cents
is
imposed
on
each
gallon
of
motor
fuel
other
than
ethanol
blended
gasoline
classified
as
E-15
or
higher.
a.
b.
The
On
and
after
July
1,
2026,
an
excise
tax
of
thirty
cents
is
imposed
on
each
gallon
of
ethanol
blended
gasoline
classified
as
E-15
or
higher.
Before
July
1,
2026,
the
rate
of
the
excise
tax
on
ethanol
blended
gasoline
classified
as
E-15
or
higher
shall
be
based
on
the
number
of
gallons
of
ethanol
blended
gasoline
classified
as
E-15
or
higher
that
is
are
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
paragraph
,
only
ethanol
blended
gasoline
and
nonblended
gasoline,
not
including
Senate
File
2403,
p.
2
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
based
on
data
from
the
reports
filed
pursuant
to
section
452A.33
.
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.
Before
July
1,
2026,
the
rate
of
the
excise
tax
on
each
gallon
of
ethanol
blended
gasoline
classified
as
E-15
or
higher
shall
be
as
follows:
b.
The
rate
for
the
excise
tax
shall
be
as
follows:
(1)
If
the
distribution
percentage
is
not
greater
than
fifty
ten
percent,
the
rate
shall
be
twenty-nine
twenty-four
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
ten
percent
but
not
greater
than
fifty-five
twelve
percent,
the
rate
shall
be
twenty-nine
twenty-four
and
five-tenths
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
fifty-five
twelve
percent
but
not
greater
than
sixty
fourteen
percent,
the
rate
shall
be
twenty-nine
twenty-five
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
fourteen
percent
but
not
greater
than
sixty-five
sixteen
percent,
the
rate
shall
be
twenty-nine
twenty-five
and
five-tenths
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
sixteen
percent
but
not
greater
than
seventy
eighteen
percent,
the
rate
shall
be
twenty-nine
twenty-six
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
eighteen
percent
but
not
greater
than
seventy-five
twenty
percent,
the
rate
shall
be
twenty-nine
twenty-six
and
Senate
File
2403,
p.
3
five-tenths
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
twenty
percent
but
not
greater
than
eighty
twenty-two
percent,
the
rate
shall
be
twenty-nine
and
three-tenths
twenty-seven
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
twenty-two
percent
but
not
greater
than
eighty-five
twenty-six
percent,
the
rate
shall
be
twenty-nine
twenty-seven
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
twenty-six
percent
but
not
greater
than
ninety
thirty-five
percent,
the
rate
shall
be
twenty-nine
and
seven-tenths
twenty-eight
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
thirty-five
percent
but
not
greater
than
ninety-five
forty-five
percent,
the
rate
shall
be
twenty-nine
and
nine-tenths
twenty-eight
and
five-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
forty-five
percent
but
not
greater
than
sixty-five
percent
,
the
rate
shall
be
thirty
twenty-nine
cents
for
ethanol
blended
gasoline
and
thirty
cents
for
motor
fuel
other
than
ethanol
blended
gasoline
.
(12)
If
the
distribution
percentage
is
greater
than
sixty-five
percent
but
not
greater
than
eighty-five
percent,
the
rate
shall
be
twenty-nine
and
two-tenths
cents.
(13)
If
the
distribution
percentage
is
greater
than
eighty-five
percent
but
not
greater
than
ninety-five
percent,
the
rate
shall
be
twenty-nine
and
five-tenths
cents.
(14)
If
the
distribution
percentage
is
greater
than
ninety-five
percent,
the
rate
shall
be
thirty
cents.
Senate
File
2403,
p.
4
c.
The
provisions
of
paragraph
“b”
and
subsection
6
3
,
paragraph
“a”
,
subparagraph
(2),
shall
be
subject
to
legislative
review
at
least
every
six
five
years.
The
review
shall
be
based
upon
a
fuel
distribution
percentage
formula
status
report
containing
the
recommendations
of
a
legislative
interim
committee
appointed
to
conduct
a
review
of
the
fuel
distribution
percentage
formulas,
to
be
prepared
with
the
assistance
of
the
department
of
revenue
in
association
with
the
department
of
transportation.
The
report
shall
include
recommendations
for
changes
or
revisions
to
the
fuel
distribution
percentage
formulas
based
upon
advances
in
technology,
fuel
use
trends,
and
fuel
price
fluctuations
observed
during
the
preceding
six-year
five-year
interval;
an
analysis
of
the
operation
of
the
fuel
distribution
percentage
formulas
during
the
preceding
six-year
five-year
interval;
and
a
summary
of
issues
that
have
arisen
since
the
previous
review
and
potential
approaches
for
resolution
of
those
issues.
The
first
such
report
shall
be
submitted
to
the
general
assembly
no
later
than
January
1,
2020,
with
subsequent
reports
developed
and
submitted
by
January
1
at
least
every
sixth
fifth
year
thereafter.
2.
Except
as
otherwise
provided
in
this
section
and
in
this
subchapter
,
after
June
30,
2020,
an
excise
tax
of
thirty
cents
is
imposed
on
each
gallon
of
motor
fuel
used
for
any
purpose
for
the
privilege
of
operating
motor
vehicles
in
this
state.
3.
An
excise
tax
of
seventeen
cents
is
imposed
on
each
gallon
of
E-85
gasoline,
subject
to
the
determination
provided
in
subsection
4.
4.
The
rate
of
the
excise
tax
on
E-85
gasoline
imposed
in
subsection
3
shall
be
determined
based
on
the
number
of
gallons
of
E-85
gasoline
that
are
distributed
in
this
state
during
the
previous
calendar
year.
The
department
shall
determine
the
actual
tax
paid
for
E-85
gasoline
for
each
period
beginning
January
1
and
ending
December
31.
The
amount
of
the
tax
paid
on
E-85
gasoline
during
the
past
calendar
year
shall
be
compared
to
the
amount
of
tax
on
E-85
gasoline
that
would
have
been
paid
using
the
tax
rate
for
gasoline
imposed
in
subsection
1
or
2
and
a
difference
shall
be
established.
If
this
difference
is
equal
to
or
greater
than
twenty-five
thousand
dollars,
the
Senate
File
2403,
p.
5
tax
rate
for
E-85
gasoline
for
the
period
beginning
July
1
following
the
end
of
the
determination
period
shall
be
the
rate
in
effect
as
stated
in
subsection
1
or
2.
5.
2.
For
the
privilege
of
operating
aircraft
in
this
state
an
excise
tax
of
eight
cents
per
gallon
is
imposed
on
the
use
of
all
aviation
gasoline.
6.
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.
(1)
Except
as
otherwise
provided
in
this
section
and
in
this
subchapter
,
for
the
period
ending
June
30,
2015,
and
for
the
period
beginning
July
1,
2020,
and
thereafter,
the
rate
of
the
excise
tax
rate
on
each
gallon
of
special
fuel
for
diesel
engines
of
motor
vehicles
used
for
any
purpose
for
the
privilege
of
operating
motor
vehicles
in
this
state
,
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher,
is
thirty-two
and
five-tenths
cents
per
gallon.
(2)
Except
as
otherwise
provided
in
this
section
and
in
this
subchapter
,
for
the
period
beginning
July
1,
2015,
and
ending
June
30,
2020,
this
subparagraph
shall
apply
to
the
excise
tax
imposed
on
each
gallon
of
special
fuel
for
diesel
engines
of
motor
vehicles
biodiesel
blended
fuel
classified
as
B-11
or
higher
used
for
any
purpose
for
the
privilege
of
operating
motor
vehicles
in
this
state.
The
On
and
after
July
1,
2026,
the
rate
of
the
excise
tax
on
each
gallon
of
biodiesel
blended
fuel
classified
as
B-11
or
higher
is
thirty-two
and
five-tenths
cents.
Before
July
1,
2026,
the
rate
of
the
excise
tax
shall
be
based
on
the
number
of
gallons
of
biodiesel
blended
fuel
classified
as
B-11
or
higher
that
is
distributed
in
this
state
as
expressed
as
a
percentage
of
the
number
of
gallons
of
special
fuel
for
diesel
engines
of
motor
vehicles
distributed
in
this
state,
which
is
referred
to
as
the
distribution
percentage.
The
department
shall
determine
the
percentage
basis
for
each
determination
period
beginning
January
1
and
ending
December
31
based
on
data
from
the
reports
filed
pursuant
to
section
452A.33
.
The
rate
for
of
the
excise
tax
shall
apply
for
the
period
beginning
July
1
and
ending
June
30
following
the
end
of
the
determination
period.
The
Before
July
1,
2026,
the
rate
for
of
the
excise
tax
on
each
gallon
of
Senate
File
2403,
p.
6
biodiesel
blended
fuel
classified
as
B-11
or
higher
shall
be
as
follows:
(a)
If
the
distribution
percentage
is
not
greater
than
fifty
percent,
the
rate
shall
be
twenty-nine
and
five-tenths
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(b)
If
the
distribution
percentage
is
greater
than
fifty
percent
but
not
greater
than
fifty-five
percent,
the
rate
shall
be
twenty-nine
and
eight-tenths
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(c)
If
the
distribution
percentage
is
greater
than
fifty-five
percent
but
not
greater
than
sixty
percent,
the
rate
shall
be
thirty
and
one-tenth
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(d)
If
the
distribution
percentage
is
greater
than
sixty
percent
but
not
greater
than
sixty-five
percent,
the
rate
shall
be
thirty
and
four-tenths
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(e)
If
the
distribution
percentage
is
greater
than
sixty-five
percent
but
not
greater
than
seventy
percent,
the
rate
shall
be
thirty
and
seven-tenths
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(f)
If
the
distribution
percentage
is
greater
than
seventy
percent
but
not
greater
than
seventy-five
percent,
the
rate
shall
be
thirty-one
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
Senate
File
2403,
p.
7
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(g)
If
the
distribution
percentage
is
greater
than
seventy-five
percent
but
not
greater
than
eighty
percent,
the
rate
shall
be
thirty-one
and
three-tenths
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(h)
If
the
distribution
percentage
is
greater
than
eighty
percent
but
not
greater
than
eighty-five
percent,
the
rate
shall
be
thirty-one
and
six-tenths
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(i)
If
the
distribution
percentage
is
greater
than
eighty-five
percent
but
not
greater
than
ninety
percent,
the
rate
shall
be
thirty-one
and
nine-tenths
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(j)
If
the
distribution
percentage
is
greater
than
ninety
percent
but
not
greater
than
ninety-five
percent,
the
rate
shall
be
thirty-two
and
two-tenths
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(k)
If
the
distribution
percentage
is
greater
than
ninety-five
percent,
the
rate
shall
be
thirty-two
and
five-tenths
cents
for
biodiesel
blended
fuel
classified
as
B-11
or
higher
and
thirty-two
and
five-tenths
cents
for
special
fuel
for
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
B-11
or
higher
.
(3)
The
rate
of
the
excise
tax
on
special
fuel
for
aircraft
is
five
cents
per
gallon.
(4)
On
all
other
special
fuel,
unless
otherwise
specified
in
this
section
,
the
per
gallon
rate
of
the
excise
tax
is
the
same
Senate
File
2403,
p.
8
as
the
motor
fuel
tax
under
subsection
1
.
b.
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.
2.
Section
452A.31,
subsection
2,
paragraph
a,
subparagraph
(1),
Code
2020,
is
amended
by
adding
the
following
new
subparagraph
division:
NEW
SUBPARAGRAPH
DIVISION
.
(c)
The
total
E-15
gasoline
gallonage
which
is
the
total
number
of
gallons
of
ethanol
blended
gasoline
classified
as
E-15
or
higher,
including
E-85
gasoline.
Sec.
3.
Section
452A.31,
subsection
3,
paragraph
a,
Code
2020,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(02)
The
total
B-11
gallonage
which
is
the
total
number
of
gallons
of
biodiesel
blended
fuel
classified
as
B-11
or
higher.
Sec.
4.
Section
452A.31,
subsection
4,
paragraph
a,
subparagraph
(1),
Code
2020,
is
amended
by
adding
the
following
new
subparagraph
division:
NEW
SUBPARAGRAPH
DIVISION
.
(c)
The
aggregate
E-15
gasoline
gallonage
which
is
the
aggregate
total
number
of
gallons
of
ethanol
blended
gasoline
classified
as
E-15
or
higher,
including
E-85
gasoline.
Sec.
5.
Section
452A.31,
subsection
5,
paragraph
a,
Code
2020,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(02)
The
aggregate
B-11
gallonage
which
is
the
aggregate
total
number
of
gallons
of
biodiesel
blended
fuel
classified
as
B-11
or
higher.
Sec.
6.
APPLICABILITY.
The
provision
of
the
section
of
this
Act
amending
section
452A.3
to
require
the
department
of
revenue
to
determine
the
percentage
basis
for
each
determination
period
beginning
January
1
and
ending
December
31
based
on
data
from
the
reports
filed
pursuant
to
section
452A.33
for
purposes
of
the
excise
tax
on
biodiesel
blended
fuel
classified
as
B-11
or
higher
applies
to
the
determination
period
beginning
January
1,
2021,
and
to
each
determination
period
thereafter,
for
the
rate
of
the
excise
tax
on
each
Senate
File
2403,
p.
9
gallon
of
biodiesel
blended
fuel
classified
as
B-11
or
higher
beginning
July
1,
2021.
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
2403,
Eighty-eighth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2020
______________________________
KIM
REYNOLDS
Governor