Bill Text: IA SF257 | 2015-2016 | 86th General Assembly | Enrolled
Bill Title: A bill for an act relating to transportation funding by limiting the term of indebtedness for certain county projects, modifying certain permit fees, modifying the rate of the excise taxes on motor fuel and certain special fuel, establishing a fuel distribution percentage formula for certain special fuel used in motor vehicles, requiring legislative review of the fuel distribution percentage formulas, extending the repeal date of the access Iowa highway plan, and including effective date provisions. (Formerly SSB 1168.) Various effective dates; see sections 14 and 15 of bill.
Sponsorship: Committee Bill
Status: (Passed) 2015-02-25 - Signed by Governor. S.J. 390. [SF257 Detail]
Download: Iowa-2015-SF257-Enrolled.html
Senate File 257 - Enrolled
SENATE FILE
BY COMMITTEE ON
TRANSPORTATION
(SUCCESSOR TO SSB
1168)
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A BILL FOR
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Senate File 257
AN ACT
RELATING TO TRANSPORTATION FUNDING BY LIMITING THE TERM OF
INDEBTEDNESS FOR CERTAIN COUNTY PROJECTS, MODIFYING CERTAIN
PERMIT FEES, MODIFYING THE RATE OF THE EXCISE TAXES ON
MOTOR FUEL AND CERTAIN SPECIAL FUEL, ESTABLISHING A FUEL
DISTRIBUTION PERCENTAGE FORMULA FOR CERTAIN SPECIAL FUEL
USED IN MOTOR VEHICLES, REQUIRING LEGISLATIVE REVIEW OF
THE FUEL DISTRIBUTION PERCENTAGE FORMULAS, EXTENDING THE
REPEAL DATE OF THE ACCESS IOWA HIGHWAY PLAN, AND INCLUDING
EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION. 312.2A Restrictions on use.
Moneys credited pursuant to section 312.2, subsection
1, paragraphs "b" and "c", and section 312.2, subsection
12, paragraph "a", shall not be used for debt service or to
otherwise pay principal and interest on bonds, loans, or other
indebtedness issued or incurred on or after the effective date
of this section of this Act, including refunding, reissuance,
or other refinancing of such indebtedness, or refunding,
reissuance, or other refinancing of indebtedness issued or
incurred prior to the effective date of this section of this
Act, if the term for repayment of the indebtedness as financed
or refinanced would exceed the useful life of the asset being
constructed, reconstructed, improved, repaired, equipped, or
maintained.
Sec. 2. NEW SECTION. 315.4A Restrictions on use.
Moneys allocated pursuant to section 315.4, subsection 1,
paragraph "b", and section 315.4, subsection 2, shall not
be used for debt service or to otherwise pay principal and
interest on bonds, loans, or other indebtedness issued or
incurred on or after the effective date of this section of this
Act, including refunding, reissuance, or other refinancing
of such indebtedness, or refunding, reissuance, or other
refinancing of indebtedness issued or incurred prior to
the effective date of this section of this Act, if the term
for repayment of the indebtedness as financed or refinanced
would exceed the useful life of the asset being constructed,
reconstructed, improved, repaired, equipped, or maintained.
Sec. 3. Section 321E.14, subsection 1, Code 2015, is amended
to read as follows:
1. Permit=issuing authorities may charge the following
fees:
a. Twenty=five Fifty dollars for an annual permit issued
pursuant to section 321E.8, subsection 1.
b. Three Four hundred dollars for an annual permit issued
pursuant to section 321E.8, subsection 2.
c. Two hundred dollars for a multi=trip permit issued
pursuant to section 321E.9A.
d. Six hundred dollars for a special alternative energy
multi=trip permit issued pursuant to section 321E.9B.
e. Ten Thirty=five dollars for a single=trip permit issued
pursuant to section 321E.9.
f. Twenty=five dollars for an annual permit for special
mobile equipment, as defined in section 321.1, subsection
74, issued pursuant to section 321E.7, subsection 3, with a
combined gross weight of not more than eighty thousand pounds.
g. Twenty=five dollars for a permit issued pursuant to
section 321E.29 or 321E.29A.
h. One hundred dollars for a permit issued pursuant to
section 321E.30.
i. One hundred twenty sixty dollars for an annual
all=systems permit issued pursuant to section 321E.8, which
shall be deposited in the road use tax fund.
Sec. 4. NEW SECTION. 331.443A Restrictions on certain
projects.
The term of any indebtedness issued or incurred by a county
that will be paid in whole or in part with moneys from the
secondary road fund of the counties, the farm=to=market road
fund, the county bridge construction fund, or the revitalize
Iowa's sound economy fund, or any other moneys that may be
allocated from the road use tax fund for use by counties, shall
be subject to the provisions of sections 312.2A and 315.4A.
Sec. 5. Section 452A.3, subsection 1, unnumbered paragraph
1, Code 2015, is amended to read as follows:
Except as otherwise provided in this section and in this
division, until June 30, 2015 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.
Sec. 6. Section 452A.3, subsection 1, paragraph b, Code
2015, is amended to read as follows:
b. 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=nine cents for
ethanol blended gasoline and twenty 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 nineteen twenty=nine cents for ethanol blended gasoline and
twenty thirty 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=nine cents for ethanol blended
gasoline and twenty 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 nineteen twenty=nine cents for ethanol blended gasoline and
twenty 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 nineteen twenty=nine cents for ethanol blended
gasoline and twenty 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 nineteen twenty=nine cents for ethanol blended
gasoline and twenty=one 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 nineteen twenty=nine and three=tenths cents for
ethanol blended gasoline and twenty 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 nineteen twenty=nine and five=tenths cents for ethanol
blended gasoline and twenty 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 nineteen twenty=nine and seven=tenths cents for
ethanol blended gasoline and twenty thirty 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=nine and nine=tenths cents for ethanol
blended gasoline and twenty 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 twenty thirty cents for
ethanol blended gasoline and twenty thirty cents for motor fuel
other than ethanol blended gasoline.
Sec. 7. Section 452A.3, subsection 1, Code 2015, is amended
by adding the following new paragraph:
NEW PARAGRAPH. c. The provisions of paragraph "b" and
subsection 6, paragraph "a", subparagraph (2), shall be
subject to legislative review at least every six 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 interval; an analysis
of the operation of the fuel distribution percentage formulas
during the preceding six=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 year thereafter.
Sec. 8. Section 452A.3, subsection 2, Code 2015, is amended
to read as follows:
2. Except as otherwise provided in this section and in this
division, after June 30, 2015 2020, 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. 9. Section 452A.3, subsection 6, Code 2015, is amended
to read as follows:
6. 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 tax
rate on special fuel for diesel engines of motor vehicles is
twenty=two and one=half cents per gallon.
(1) Except as otherwise provided in this section and in
this division, for the period ending June 30, 2015, and for the
period beginning July 1, 2020, and thereafter, the tax rate on
special fuel for diesel engines of motor vehicles used for any
purpose for the privilege of operating motor vehicles in this
state is thirty=two and five=tenths cents per gallon.
(2) Except as provided in this section and in this division,
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 used for any purpose for the privilege of operating
motor vehicles in this state. 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. 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. The rate for the excise
tax 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
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 tax on special fuel for aircraft is three
five cents per gallon.
(4) On all other special fuel, unless otherwise specified in
this section, the per gallon rate is the same as the motor fuel
tax.
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. 10. Section 452A.3, subsections 7, 8, and 9, Code 2015,
are amended to read as follows:
7. For liquefied petroleum gas used as a special fuel, the
rate of tax shall be twenty thirty cents per gallon.
8. For compressed natural gas used as a special fuel, the
rate of tax is twenty=one thirty=one cents per gallon.
9. For liquefied natural gas used as a special fuel, the
rate of tax is twenty=two thirty=two and one=half cents per
gallon.
Sec. 11. 2005 Iowa Acts, chapter 178, section 41, subsection
3, is amended to read as follows:
3. REPEAL. This section is repealed effective July 1, 2015
2025.
Sec. 12. LEGISLATIVE INTENT.
1. It is the intent of the general assembly that one
hundred percent of the revenue produced as a result of the
increase in the excise taxes on motor fuel and certain special
fuel enacted in this Act and credited to the secondary road
fund or the farm=to=market road fund from the road use tax
fund pursuant to section 312.2, subsection 1, shall be used
exclusively for critical road and bridge construction projects
that significantly extend the life of such assets.
2. It is the intent of the general assembly that the state
department of transportation and the state transportation
commission shall utilize one hundred percent of the revenue
produced as a result of the increase in the excise taxes on
motor fuel and certain special fuel enacted in this Act that
is allocated to the department on critical road and bridge
construction projects. The department shall identify the
critical road and bridge construction projects funded with such
revenue in the department's annual five=year transportation
improvement program report.
3. The department of transportation shall identify ten
million dollars in efficiencies for the fiscal year beginning
July 1, 2015, and ten million dollars in efficiencies for
the fiscal year beginning July 1, 2016, in addition to the
identification of any other efficiencies as required by law.
The department shall provide details of activities undertaken
to implement these efficiencies in the annual "Road Use Tax
Fund Efficiency Report" required by 2012 Iowa Acts, chapter
1129, section 4, as amended by 2014 Iowa Acts, chapter 1123,
section 21.
Sec. 13. INVENTORY TAX EXEMPTION. Notwithstanding
section 452A.85, persons who have title to motor fuel, ethanol
blended gasoline, undyed special fuel, compressed natural
gas, liquefied 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, undyed special fuel, compressed natural gas,
liquefied natural gas, or liquefied petroleum gas pursuant
to this Act shall not be subject to an inventory tax on the
gallonage in storage as a result of the tax increases provided
in this Act.
Sec. 14. EFFECTIVE UPON ENACTMENT. The following
provisions of this Act, being deemed of immediate importance,
take effect upon enactment:
1. The section of this Act enacting section 312.2A.
2. The section of this Act enacting section 315.4A.
3. The section of this Act enacting section 331.443A.
4. The section of this Act amending 2005 Iowa Acts, chapter
178, section 41.
Sec. 15. EFFECTIVE DATES.
1. Except as otherwise provided in this Act, this Act
takes effect the first day of the month following the month of
enactment of this Act.
2. The section of this Act amending section 321E.14 takes
effect January 1, 2016.
PAM JOCHUM
President of the Senate
KRAIG PAULSEN
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 257, Eighty=sixth General Assembly.
MICHAEL E. MARSHALL
Secretary of the Senate
Approved , 2015
TERRY E. BRANSTAD
Governor
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