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PAG LIN 1 1 Section 1. Section 321.19, subsection 2, unnumbered 1 2 paragraph 3, Code Supplement 1995, is amended to read as 1 3 follows: 1 4Section 452A.3 and chapterChapter 326areis not 1 5 applicable to urban transit companies or systems. 1 6 Sec. 2. Section 452A.2, subsections 2, 15, and 21, Code 1 7 Supplement 1995, are amended to read as follows: 1 8 2. "Blender" means a person who owns and blends alcohol 1 9 with gasoline to produce ethanol blended gasoline and blends 1 10 the product at a nonterminal location. The blender is not 1 11 restricted to blending alcohol with gasoline. Products 1 12 blended with gasoline other than grain alcohol aretreated and1 13 taxed as gasoline. "Blender" also means a person blending two 1 14 or more special fuel products at a nonterminal location where 1 15 the tax has not been paid on all of the products blended.The1 16 This blend is taxed as a special fuel. 1 17 15. "Licensed compressed natural gas and liquefied 1 18 petroleum gas user" means a person licensed by the department 1 19 who dispenses compressed natural gas or liquefied petroleum 1 20 gas, upon which the special fuel tax has not been previously 1 21 paid, for highway use from fuel sources owned and controlled 1 22 by the person into the fuel supply tank of a motor vehicle, or 1 23 commercial vehicle owned or controlled by the person. 1 24 21. "Special fuel" means fuel oils and all combustible 1 25 gases and liquids suitable for the generation of power for 1 26 propulsion of motor vehicles or turbine-powered aircraft, and 1 27 includes any substance used for that purpose, except that it 1 28 does not include motor fuel. Kerosene shall not be considered 1 29 to be a special fuel, unless blended with other special fuels 1 30 for use in a motor vehicle with a diesel engine. 1 31 Sec. 3. Section 452A.5, unnumbered paragraph 2, Code 1 32 Supplement 1995, is amended to read as follows: 1 33 The distribution allowance shall be prorated between the 1 34 supplier and the distributor or dealer as follows: 1 35 Sec. 4. Section 452A.8, subsection 2, unnumbered paragraph 2 1 1, Code Supplement 1995, is amended to read as follows: 2 2 At the time of filingofa report, a supplier,or 2 3 restrictive supplier, or importershall pay to the department 2 4 the full amount of the fuel tax due for the preceding calendar 2 5 month. An importer shall pay to the department the full 2 6 amount of fuel tax due for the preceding semimonthly period. 2 7 The tax shall be computed as follows: 2 8 Sec. 5. Section 452A.8, subsection 2, paragraph a, 2 9 unnumbered paragraph 1, Code Supplement 1995, is amended to 2 10 read as follows: 2 11 From the total number of invoiced gallons of motor fuel or 2 12 undyed special fuel withdrawn from the terminal by the 2 13 licenseewithin the stateduring the preceding calendar month 2 14 or semimonthly period the following deductions shall be made: 2 15 Sec. 6. Section 452A.8, subsection 2, paragraph c, Code 2 16 Supplement 1995, is amended to read as follows: 2 17 c. The tax due under paragraph "b" shall be the amount of 2 18 fuel tax due from the supplier, restrictive supplier, or 2 19 importer for the preceding reporting period. The director may 2 20 require by rule that the payment of taxes by suppliers, 2 21 restrictive suppliers, and importers be made by electronic 2 22 funds transfer. The director may allow a tax float by rule 2 23 where the eligible purchaser is not required to pay the tax to 2 24 the supplier until one business day prior to the date the tax 2 25 is due.Any credit calculated by the supplier, restrictive2 26supplier, or importer may be applied against the amount due.2 27 A licensed supplier who is unable to recover the tax from an 2 28 eligible purchaser is not liable for the tax, upon proper 2 29 documentation, and may credit the amount of unpaid tax against 2 30 a later remittance of tax. Under this provision, a supplier 2 31 does not qualify for a credit if the purchaser did not elect 2 32 to use the eligible purchaser status, or otherwise does not 2 33 qualify to be an eligible purchaser. To qualify for the 2 34 credit, the supplier must notify the department of the 2 35 uncollectible account no later than ten calendar days after 3 1 the due date for payment of the tax. If a supplier sells 3 2 additional motor fuel or undyed special fuel to a delinquent 3 3 eligible purchaser after notifying the department that the 3 4 supplier has an uncollectible debt with that eligible 3 5 purchaser, the limited liability provision does not apply to 3 6 the additional fuel. The supplier is liable for tax collected 3 7 from the purchaser. 3 8 Sec. 7. Section 452A.8, subsection 2, paragraph e, 3 9 unnumbered paragraph 2, Code Supplement 1995, is amended to 3 10 read as follows: 3 11 The department shall adopt rules governing the dispensing 3 12 of compressed natural gas and liquefied petroleum gas by 3 13 licensed dealers and licensed users. For purposes of this 3 14 paragraph, "dealer" and "user" mean a licensed compressed 3 15 natural gas or liquefied petroleum gas dealer or user and 3 16 "fuel" means compressed natural gas or liquefied petroleum 3 17 gas. The department shall require that all pumps located at 3 18 dealer locations and user locations through which liquefied 3 19 petroleum gas can be dispensed,shall be metered, inspected, 3 20 tested for accuracy, and sealed and licensed by the state 3 21 department of agriculture and land stewardship, and that fuel 3 22 delivered into the fuel supply tank of any motor vehicle, 3 23 shall be dispensed only through tested metered pumps and may 3 24 be sold without temperature correction or corrected to a 3 25 temperature of sixty degrees. If the metered gallonage is to 3 26 be temperature-corrected, only a temperature-compensated meter 3 27 shall be used. Natural gas used as fuel shall be delivered 3 28 into compressing equipment through sealed meters certified for 3 29 accuracy by the department of agriculture and land 3 30 stewardship. 3 31 Sec. 8. Section 452A.17, subsection 1, paragraph a, 3 32 unnumbered paragraph 1, Code Supplement 1995, is amended to 3 33 read as follows: 3 34 The refund is allowable for motor fuel or undyed special 3 35 fuel sold directly toorand used for the following: 4 1 Sec. 9. Section 452A.17, subsection 1, paragraph a, 4 2 subparagraph (8), Code Supplement 1995, is amended to read as 4 3 follows: 4 4 (8) For motor fuel or undyed special fuel placed in motor 4 5 vehicles and used, other than on a public highway, in the 4 6 extraction and processing of natural deposits, without regard 4 7 to whether the motor vehicle was registered under section 4 8 321.18. An applicant under this subparagraph shall maintain 4 9 adequate records for a period of three years beyond the date 4 10 of the claim. 4 11 Sec. 10. Section 452A.17, subsection 1, paragraph b, 4 12 subparagraph (7), Code Supplement 1995, is amended to read as 4 13 follows: 4 14 (7) Claim shall be made by and the amount of the refund 4 15 shall be paid to the person who purchased the motor fuel or 4 16 undyed special fuel as shown in the supporting invoice unless 4 17 that person designates another person as an agent for purposes 4 18 of filing and receiving the refund for idle time, power 4 19 takeoff, reefer units, pumping credits, and transport 4 20 diversions. A governmental agency may be designated as an 4 21 agent for another governmental agency for purposes of filing 4 22 and receiving the refund under this section. 4 23 Sec. 11. Section 452A.17, subsection 3, paragraph b, Code 4 24 Supplement 1995, is amended to read as follows: 4 25 b. A refund shall not be paid with respect to any motor 4 26 fuel or undyed special fuel taken out of this state in supply 4 27 tanks of watercraft, aircraft, or motor vehicles. 4 28 Sec. 12. Section 452A.21, unnumbered paragraph 3, Code 4 29 Supplement 1995, is amended to read as follows: 4 30 A refundor credit memorandum willshall not be issued 4 31 unless the claim is filed within ninety days following the end 4 32 of the month during which the ethanol blended gasoline was 4 33 actually blended. 4 34 Sec. 13. Section 452A.67, Code 1995, is amended to read as 4 35 follows: 5 1 452A.67 LIMITATION ON COLLECTION PROCEEDINGS. 5 2An action or other proceeding shall not be maintained to5 3 The department shall examine the return and enforce collection 5 4 of any amount offueltax, penalty, fine, or interest over and 5 5 above the amount shown to be due by reports filed by a 5 6 licenseeexcept upon an assessment by the department of5 7revenue and finance as authorized in this chapteras soon as 5 8 practicable but no later than three years after the return is 5 9 filed. An assessment shall not be made covering a period 5 10 beyond three yearsprior to the date of assessmentafter the 5 11 return is filed except that the period for the examination and 5 12 determination of the correct amount of tax is unlimited in the 5 13 case of a false or fraudulent return made with the intent to 5 14 evade tax or in the case of a failure to file a return. 5 15 Sec. 14. Section 452A.71, Code Supplement 1995, is amended 5 16 to read as follows: 5 17 452A.71 REFUNDS TO PERSONS OTHER THAN DISTRIBUTORS AND 5 18 COMPRESSED NATURAL GAS AND LIQUEFIED PETROLEUM GAS DEALERS AND 5 19 USERS. 5 20 Except as provided in section 452A.54,any person other5 21thana person who has paid or has had charged to the person's 5 22 account with a distributor, dealer, or user fuel taxes imposed 5 23 under this chapter with respect to motor fuel or undyed 5 24 special fuel in excess of one hundred gallons, which is 5 25 subsequently lost or destroyed, while the person is the owner, 5 26 through leakage, fire, explosion, lightning, flood, storm, or 5 27 other casualty, except evaporation, shrinkage,or unknown 5 28 causes,the personshall be entitled to a refund of the tax so 5 29 paid or charged. To qualify for the refund, the person shall 5 30 notify the department of revenue and finance in writing of the 5 31 loss or destruction and the gallonage lost or destroyed within 5 32 ten days from the date of discovery of the loss or 5 33 destruction. Within sixty days after filing the notice, the 5 34 person shall file with the department of revenue and finance 5 35 an affidavit sworn to by the person having immediate custody 6 1 of the motor fuel or undyed special fuel at the time of the 6 2 loss or destruction setting forth in full the circumstances 6 3 and amount of the loss or destruction and such other 6 4 information as the department of revenue and finance may 6 5 require. Any refund payable under this section may be applied 6 6 by the department against any tax liability outstanding on the 6 7 books of the department against the claimant. 6 8 Sec. 15. Section 452A.72, Code 1995, is amended to read as 6 9 follows: 6 10 452A.72 REFUNDOR CREDITFOR FUEL TAXES ERRONEOUSLY OR 6 11 ILLEGALLY COLLECTED OR PAID. 6 12 If any fuel taxes, penalties, or interest have been 6 13 erroneously or illegally collected by the appropriate state 6 14 agency from a licensee, the appropriate state agency may 6 15permit the licensee to take credit against a subsequent tax6 16return for the amount of the erroneous or illegal overpayment,6 17mayapply the overpayment against any tax liability 6 18 outstanding on the books of the department against the 6 19 claimant, or shall certify the amount to the director of 6 20 revenue and finance, who shall draw a warrant for the 6 21 certified amount on the treasurer of state payable to the 6 22 licensee. The refund shall be paid to the licensee 6 23 immediately. 6 24 A refundor creditshall not be made under this section 6 25 unless a written claim setting forth the circumstances for 6 26 which the refundor creditshould be allowed is filed with the 6 27 appropriate state agency within one year from the date of the 6 28 payment of the taxes erroneously or illegally collected or 6 29 paid. 6 30 However, if it is found during an examination by the 6 31 appropriate state agency that a licensee paid, as a result of 6 32 a mistake, an amount of tax, penalty, or interest which was 6 33 not due, and the mistake is found within three years of the 6 34 overpayment, the appropriate state agency shall credit the 6 35 amount against any penalty, interest or taxes due, or to7 1become due,or shall refund the amount to the person. 7 2 Sec. 16. Section 452A.74, subsections 1 and 6, Code 7 3 Supplement 1995, are amended to read as follows: 7 4 1. For any person to knowingly fail, neglect, or refuse to 7 5 make any required return or statement or pay over fuel taxes 7 6 required under thissectionchapter. 7 7 6. For any person to use motor fuel, undyed special fuel, 7 8 orillegal use ofdyed special fuel in the fuel supply tank of 7 9 a vehicle with respect to which the person knowingly has not 7 10 paid or had charged to the person's account with a distributor 7 11 or dealer, or with respect to which the person does not, 7 12 within the time required in this chapter, report and pay the 7 13 applicable fuel tax. 7 14 Sec. 17. Section 452A.74, subsection 8, unnumbered 7 15 paragraph 1, Code Supplement 1996, is amended to read as 7 16 follows: 7 17 Any deliveryby a distributorof compressed natural gas or 7 18 liquefied petroleum gas to a compressed natural gas or 7 19 liquefied petroleum gas dealer or user for the purpose of 7 20 evading the state tax on compressed natural gas or liquefied 7 21 petroleum gas, into facilities other than those licensed above 7 22 knowing that the fuel will be used for highway use shall 7 23 constitute a violation of this section. Any compressed 7 24 natural gas or liquefied petroleum gas dealer or user for 7 25 purposes of evading the state tax on compressed natural gas or 7 26 liquefied petroleum gas, who allows a distributor to place 7 27 compressed natural gas or liquefied petroleum gas for highway 7 28 use in facilities other than those licensed above, shall also 7 29 be deemed in violation of this section. 7 30 Sec. 18. Section 452A.74A, subsection 2, unnumbered 7 31 paragraph 1, Code Supplement 1995, is amended to read as 7 32 follows: 7 33 A person whoillegallyimports motor fuel or undyed special 7 34 fuel without a valid importer's license or supplier's license 7 35 shall be assessed a civil penalty as provided in this 8 1 subsection. However, the owner or operator of the importing 8 2 vehicle shall not be guilty of violating this subsection if it 8 3 is shown by the owner or operator that the owner or operator 8 4 reasonably did not know or reasonably should not have known of 8 5 the illegal importation. 8 6 Sec. 19. Section 452A.74A, subsection 3, Code Supplement 8 7 1995, is amended to read as follows: 8 8 3. IMPROPER RECEIPT OF FUELCREDIT ORREFUND. If a person 8 9 files an incorrect refund claim, in addition to the excess 8 10 amount of the claim, a penalty of ten percent shall be added 8 11 to the amount by which the amount claimed and refunded exceeds 8 12 the amount actually due and shall be paid to the department. 8 13 If a person knowingly files a fraudulent refund claim with the 8 14 intent to evade the tax, the penalty shall be seventy-five 8 15 percent in lieu of the ten percent. The person shall also pay 8 16 interest on the excess refunded at the rate per month 8 17 specified in section 421.7, counting each fraction of a month 8 18 as an entire month, computed from the date the refund was 8 19 issued to the date the excess refund is repaid to the state. 8 20 Sec. 20. EFFECTIVE DATE. This Act, being deemed of 8 21 immediate importance, takes effect upon enactment and applies 8 22 retroactively to January 1, 1996. 8 23 EXPLANATION 8 24 The bill makes several corrective changes to the motor fuel 8 25 tax law that was enacted in House File 552 in 1995 changing 8 26 the point of taxation. 8 27 Section 1 corrects an inconsistency between chapters 321 8 28 and 452A. Section 321.19 states that no tax is imposed on 8 29 urban transit systems, which is incorrect with the enactment 8 30 of House File 552. Tax is now imposed on such systems and 8 31 subject to refund. 8 32 Section 2 amends the definition of blender to provide that 8 33 any product blended with gasoline other than grain alcohol 8 34 will be taxed as gasoline and amends the definition of special 8 35 fuel to provide that kerosene is not a special fuel, unless 9 1 blended with other special fuels for use in a motor vehicle 9 2 with a diesel engine. 9 3 Section 3 provides that a special fuel dealer also shares 9 4 in the distribution allowance. 9 5 Sections 4 and 5 insert the correct reporting period 9 6 instead of calendar month to reflect that importers pay tax 9 7 semimonthly rather than monthly. 9 8 Section 6 removes a provision allowing supplier, 9 9 restrictive supplier, and importer credits to be applied 9 10 against tax due. 9 11 Section 7 corrects a grammatical error. 9 12 Section 8 provides that motor fuel or undyed special fuel 9 13 must be sold directly to an exempt entity and used for an 9 14 exempt purpose to qualify for a refund of tax paid. 9 15 Section 9 inserts the word "undyed" to provide that the tax 9 16 on undyed special fuel is subject to refund if used in motor 9 17 vehicles for natural deposit extraction purposes. 9 18 Section 10 allows a governmental agency to designate 9 19 another governmental agency as an agent for purposes of filing 9 20 and receiving the tax refund. 9 21 Section 11 inserts the word "not" to provide that no refund 9 22 is allowable for tax paid on fuel taken out of state in the 9 23 supply tank of a motor vehicle. 9 24 Section 12 strikes a reference to credit memorandums which 9 25 are no longer used by the department of revenue and finance. 9 26 Section 13 provides that an assessment must be made by the 9 27 department within three years after a return is filed rather 9 28 than three years prior to the date of the assessment. 9 29 Section 14 stipulates who can claim a refund of tax paid on 9 30 fuel lost as a result of a casualty. 9 31 Section 15 strikes references to tax credits since the 1995 9 32 legislative changes provide only for a refund of taxes 9 33 erroneously paid rather than a credit. 9 34 Sections 16 and 17 correct an erroneous reference to 9 35 section when it should have been chapter, corrects two 10 1 grammatical errors, and deletes an incorrect reference to 10 2 distributor. 10 3 Sections 18 and 19 strike the word "illegally" because its 10 4 use is not appropriate when read in context with the remainder 10 5 of the sentence, delete the word "credit" because credits are 10 6 no longer used by the department of revenue and finance, and 10 7 inserts the word "excess" to clarify that only the excess 10 8 rather than the entire amount of the claim for refund must be 10 9 repaid to the department. 10 10 This bill is effective upon enactment and is retroactive to 10 11 January 1, 1996. 10 12 LSB 3771SV 76 10 13 js/jj/8
Text: SF02172 Text: SF02174 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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