Text: SSB03117 Text: SSB03119 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 452A.3, subsection 2, paragraph b, Code 1 2 Supplement 1999, is amended by striking the paragraph. 1 3 Sec. 2. Section 452A.18, Code 1999, is amended to read as 1 4 follows: 1 5 452A.18 REFUND PERMIT. 1 6 A person shall not claim a refund under section 452A.17or1 7section 452A.21until the person has obtained a refund permit 1 8 from the department.A special permit shall be obtained by an1 9applicant claiming a refund under this chapter for motor fuel1 10used to blend ethanol blended gasoline.Application for a 1 11 refund permit shall be made to the department, shall be 1 12 certified by the applicant under penalty for false 1 13 certificate, and shall contain among other things, the name, 1 14 address, and occupation of the applicant, the nature of the 1 15 applicant's business, and a sufficient description for 1 16 identification of the machines and equipment in which the 1 17 motor fuel or undyed special fuel is to be used. Each permit 1 18 shall bear a separate number and each claim for refund shall 1 19 bear the number of the permit under which it is made. The 1 20 department shall keep a permanent record of all permits issued 1 21 and a cumulative record of the amount of refund claimed and 1 22 paid under each. A refund permit shall continue in effect 1 23 until it is revoked or becomes invalid. 1 24 Sec. 3. Section 452A.65, unnumbered paragraph 1, Code 1 25 1999, is amended to read as follows: 1 26 In addition to the tax or additional tax, the taxpayer 1 27 shall pay a penalty as provided in section 421.27. The 1 28 taxpayer shall also pay interest on the tax or additional tax 1 29 at the rate in effect under section 421.7 counting each 1 30 fraction of a month as an entire month, computed from the date 1 31 the return was required to be filed. If the amount of the tax 1 32 as determined by the appropriate state agency is less than the 1 33 amount paid, the excess shall be refunded with interest, the 1 34 interest to begin to accrue on the first day of the second 1 35 calendar month following the date of payment or the date the 2 1 return was due to be filed or was filed, whichever is the 2 2 latest, at the rate in effect under section 421.7 counting 2 3 each fraction of a month as an entire month under the rules 2 4 prescribed by the appropriate state agency. Claims for refund 2 5 filed undersectionssection 452A.17and 452A.21shall accrue 2 6 interest beginning with the first day of the second calendar 2 7 month following the date the refund claim is received by the 2 8 department. 2 9 Sec. 4. NEW SECTION. 452B.1 DEFINITIONS. 2 10 As used in this chapter, unless the context otherwise 2 11 requires: 2 12 1. "Blended gasoline" means gasoline that contains a 2 13 mixture of ten percent or more ethanol as provided by the 2 14 department of agriculture and land stewardship pursuant to 2 15 section 214A.2. 2 16 2. "Blended gasoline rebate" or "rebate" means the rebate 2 17 to qualified claimants as provided in this chapter. 2 18 3. "Blended gasoline rebate permit" or "permit" means the 2 19 blended gasoline rebate permit provided in section 452B.2. 2 20 4. "Calculation period" means the twelve-month period 2 21 prior to the filing of an application for a blended gasoline 2 22 rebate permit by a dealer as required pursuant to section 2 23 452B.2. 2 24 5. "Claimant" means a dealer or consumer who files a claim 2 25 for a blended gasoline rebate with the department as provided 2 26 in section 452B.4. 2 27 6. "Consumer" means a person who purchases gasoline on a 2 28 retail basis for use from a dealer. 2 29 7. "Consumer invoice" means a proof of purchase required 2 30 to be filed as part of an eligible claim as provided in 2 31 section 452B.4. 2 32 8. "Conventional gasoline" means gasoline that is not 2 33 ethanol blended gasoline. 2 34 9. "Dealer" means a person who engages in the business of 2 35 selling or distributing blended gasoline to a consumer in this 3 1 state. 3 2 10. "Department" means the department of revenue and 3 3 finance created pursuant to section 421.2. 3 4 11. "Gasoline" means motor vehicle fuel as defined in 3 5 section 214A.1 which meets the requirements for gasoline by 3 6 the department of agriculture and land stewardship, including 3 7 as provided in section 214A.2. 3 8 12. "Participating consumer" means a consumer who files an 3 9 eligible claim supported by a consumer invoice with the 3 10 department as provided in section 452B.4. 3 11 13. "Participating dealer" means a dealer who is certified 3 12 by the department pursuant to section 452B.3 to record and 3 13 submit a consumer invoice to a participating consumer as part 3 14 of an eligible claim as provided in section 452B.4. 3 15 14. "Qualified claimant" means any of the following: 3 16 a. A dealer who has obtained a valid blended gasoline 3 17 rebate permit pursuant to section 452B.2. 3 18 b. A consumer. 3 19 15. "Regular grade conventional gasoline" means 3 20 conventional unleaded gasoline with an octane number less than 3 21 ninety according to standards adopted by the department of 3 22 agriculture and land stewardship pursuant to section 214A.2. 3 23 16. "Required price differential" means the average price 3 24 for any quantity of blended gasoline that a dealer sells to a 3 25 consumer that is at least one cent less than the average price 3 26 for the same quantity of regular grade conventional gasoline 3 27 for each month during the calculation period. 3 28 17. "Year" means a calendar year. 3 29 Sec. 5. NEW SECTION. 452B.2 BLENDED GASOLINE REBATE 3 30 PERMIT. 3 31 1. A dealer shall not file a claim for a blended gasoline 3 32 rebate under section 452B.4 until the dealer has obtained a 3 33 blended gasoline rebate permit from the department. A dealer 3 34 shall be eligible to obtain a permit under this section if all 3 35 of the following apply: 4 1 a. The dealer is willing and able to issue a valid proof 4 2 of purchase to consumers as required in section 452B.4. If 4 3 the dealer does not have a permit, the dealer must post a 4 4 notice on the business premises in a conspicuous place 4 5 informing consumers that the dealer is unable to issue a valid 4 6 proof of purchase required for a rebate, as prescribed by the 4 7 department. The dealer shall also post a red square of not 4 8 less than three inches in diameter which shall be affixed next 4 9 to the price of blended gasoline posted by the dealer for 4 10 street or highway view. 4 11 b. The dealer has maintained the required price 4 12 differential between blended gasoline and regular grade 4 13 conventional gasoline for the calculation period. 4 14 2. The dealer shall apply for a permit according to 4 15 procedures and requirements provided by the department. The 4 16 application shall at least contain all of the following: 4 17 a. The name and address of the dealer. 4 18 b. The number of gallons of gasoline that the dealer 4 19 purchased for the previous year. 4 20 c. A statement certifying that the dealer has maintained 4 21 the required price differential between blended gasoline and 4 22 regular grade conventional gasoline for the calculation 4 23 period. The dealer shall state the amount of the required 4 24 price differential for each month of the calculation period. 4 25 d. Whether the dealer is applying to be a participating 4 26 dealer. 4 27 e. A statement verifying that the dealer is willing and 4 28 able to provide proof of purchase to consumers. 4 29 f. Information required to certify the dealer as a 4 30 participating dealer pursuant to section 452B.3. 4 31 3. Each permit issued by the department shall bear a 4 32 separate number. The department shall keep a permanent record 4 33 of all permits issued and a cumulative record of the amount of 4 34 rebate claimed and paid under each permit. A permit shall 4 35 continue in effect until any of the following occurs: 5 1 a. The permit expires. The permit shall expire twelve 5 2 months from the date that the department issues the permit to 5 3 the dealer. 5 4 b. The department revokes the permit as provided in 5 5 section 452B.8. 5 6 Sec. 6. NEW SECTION. 452B.3 CERTIFICATION OF 5 7 PARTICIPATING DEALERS. 5 8 The department shall certify a person as a participating 5 9 dealer as provided by rules adopted by the department. The 5 10 certification shall be noted on the blended gasoline rebate 5 11 permit issued by the department pursuant to section 452B.2. A 5 12 dealer who applies for certification must demonstrate in the 5 13 application that the dealer will record and submit a consumer 5 14 invoice to a participating consumer as part of an eligible 5 15 claim as provided in section 452B.4. The dealer must describe 5 16 the type of technology used in providing consumer invoices to 5 17 participating consumers. 5 18 Sec. 7. NEW SECTION. 452B.4 PROCEDURE FOR FILING CLAIMS 5 19 AND DETERMINING ELIGIBILITY. 5 20 1. A person may file a claim with the department for a 5 21 blended gasoline rebate as provided in this section. The 5 22 claim shall be filed in the manner prescribed by rules which 5 23 shall be adopted by the department. The department in 5 24 cooperation with the Iowa corn promotion board established 5 25 pursuant to section 185C.3 shall distribute claim forms. 5 26 2. The department shall determine a claim to be eligible 5 27 for payment if the department finds all of the following 5 28 apply: 5 29 a. The claim is timely filed. To be timely, a claim must 5 30 be filed on or after March 1 and before June 30 for gasoline 5 31 purchased by the claimant during the previous year. 5 32 b. The claim is filed with the department by a qualified 5 33 claimant. 5 34 c. The total dollar amount of the rebate claimed. 5 35 d. The claim is for any of the following: 6 1 (1) For a dealer, the blended gasoline must be sold to a 6 2 consumer. 6 3 (2) For a consumer, the blended gasoline must be purchased 6 4 for purposes of use. 6 5 e. The claim must be on a form prescribed by the 6 6 department and be certified by the claimant. The claim must 6 7 be supported by proof as prescribed by the department. The 6 8 supporting proof for dealers and consumers shall to every 6 9 extent practicable be a uniform document as prescribed by 6 10 rules which shall be adopted by the department. 6 11 (1) If the claimant is a dealer, all of the following 6 12 shall apply: 6 13 (a) The claim shall include the serial number of the 6 14 dealer's blended gasoline rebate permit as required pursuant 6 15 to section 452B.2. 6 16 (b) The claim shall state the total number of gallons of 6 17 blended gasoline sold during the previous year for which the 6 18 dealer is claiming a rebate. 6 19 (c) The claim shall be supported by business records 6 20 maintained by the dealer, as required by the department. The 6 21 business records shall include proof of purchase which shall 6 22 be a separate serially numbered invoice for each gallon of 6 23 blended gasoline or alcohol and conventional gasoline blended 6 24 by the dealer during the year for which the rebate is claimed. 6 25 The invoice shall contain information regarding the purchase 6 26 of blended gasoline or alcohol and conventional gasoline 6 27 blended by the dealer. The business records shall include the 6 28 identity of sellers of the blended gasoline or alcohol and 6 29 conventional gasoline blended by the dealer, the dates of 6 30 sale, and the number of gallons purchased. 6 31 (2) If the claimant is a consumer, the supporting proof 6 32 shall be proof of purchase. The proof of purchase must be one 6 33 of the following: 6 34 (a) A receipt of purchase for blended gasoline claimed for 6 35 a rebate as issued by a dealer who has obtained a blended 7 1 gasoline rebate permit as provided in section 452B.2. 7 2 (b) A consumer invoice issued to a participating consumer 7 3 by a participating dealer. The consumer invoice shall list 7 4 sales of blended gasoline by the participating dealer to the 7 5 participating consumer during the year in which the claim for 7 6 a rebate is filed. 7 7 f. If an original proof of purchase is lost or destroyed, 7 8 the department may in its discretion accept a copy identified 7 9 and certified by the seller as being a true copy of the 7 10 original. 7 11 3. In order to verify that a claim is qualified, the 7 12 department may require any of the following: 7 13 a. A claimant to furnish additional supporting proof as 7 14 the department may determine appropriate. 7 15 b. A participating dealer or participating consumer to 7 16 furnish business records to the department for examination. 7 17 Sec. 8. NEW SECTION. 452B.5 STANDING APPROPRIATION. 7 18 On and after July 1 of each year there is appropriated from 7 19 the general fund of the state to the department, the amount 7 20 required for payment of blended gasoline rebates as provided 7 21 in this chapter. 7 22 Sec. 9. NEW SECTION. 452B.6 REBATE PAID TO QUALIFIED 7 23 CLAIMANTS. 7 24 1. A qualified claimant who files a claim with the 7 25 department pursuant to section 452B.4 shall receive a blended 7 26 gasoline rebate as provided in this chapter. 7 27 2. The following shall apply to eligible claims submitted 7 28 by qualified claimants as provided in section 452B.4: 7 29 a. The amount of the claim shall not exceed the following: 7 30 (1) For a dealer, one cent for each gallon of blended 7 31 gasoline sold in this state. 7 32 (2) For a consumer, five cents for each gallon of blended 7 33 gasoline purchased in this state. 7 34 b. The department shall provide for payment of one hundred 7 35 percent of each eligible claim. However, all of the following 8 1 shall apply: 8 2 (1) A dealer shall not be paid more than twenty thousand 8 3 dollars for any year. 8 4 (2) A consumer shall not be paid more than one thousand 8 5 dollars for any year. 8 6 3. The amount of a rebate payable under this chapter may 8 7 be applied by the department against any tax liability 8 8 outstanding on the books of the department against the 8 9 claimant. 8 10 Sec. 10. NEW SECTION. 452B.7 CIVIL PENALTIES. 8 11 A person who violates this chapter shall be subject to the 8 12 following civil penalties: 8 13 1. The following shall apply to dealers: 8 14 a. A dealer who files a fraudulent claim is subject to a 8 15 civil penalty of not more than fifty thousand dollars. 8 16 b. A dealer who issues a fraudulent proof of purchase is 8 17 subject to a civil penalty of not more than one hundred 8 18 dollars. A dealer who issues a fraudulent consumer invoice is 8 19 subject to a civil penalty of not more than five thousand 8 20 dollars. 8 21 2. A consumer who files a fraudulent claim is subject to a 8 22 civil penalty of not more than five thousand dollars. 8 23 Sec. 11. NEW SECTION. 452B.8 PERMIT REVOCATION. 8 24 The department may revoke a blended gasoline rebate permit 8 25 issued pursuant to section 452B.2 as follows: 8 26 1. The revocation may be based on any of the following: 8 27 a. Filing a false, inaccurate, or misleading statement in 8 28 an application for a rebate permit as provided in section 8 29 452B.2. 8 30 b. Filing a false, inaccurate, or misleading claim as 8 31 provided in section 452B.4, including maintaining a false or 8 32 altered proof of purchase. 8 33 c. Making a false statement in response to an 8 34 investigation by the department of a claim for rebate. 8 35 d. Refusing to submit the records for examination by the 9 1 department as provided in section 452B.4. 9 2 2. A claimant whose rebate permit is revoked under this 9 3 section shall not be issued another rebate permit for a period 9 4 of one year after the revocation. 9 5 Sec. 12. NEW SECTION. 452B.9 NO OBLIGATION OF THE STATE. 9 6 This chapter does not imply any guarantee or obligation on 9 7 the part of the state of Iowa, or any of its agencies, 9 8 employees, or officials, either elective or appointive, in 9 9 respect of any agreement or undertaking to which this chapter 9 10 relates. 9 11 Sec. 13. FIRST REFUND PERIOD. Notwithstanding section 9 12 452B.4, as provided in this Act, a dealer or consumer may 9 13 claim a blended gasoline refund for the period beginning July 9 14 1, 2000, and ending December 31, 2001, by filing a claim with 9 15 the department of revenue and finance on and after March 1, 9 16 2002, but not after June 30, 2002, as otherwise provided in 9 17 this Act. 9 18 Sec. 14. Section 452A.21, Code 1999, is repealed. 9 19 Sec. 15. EFFECTIVE DATES. 9 20 1. Except as provided in subsection 2, this Act takes 9 21 effect upon enactment. 9 22 2. The following amended provisions of this Act take 9 23 effect on July 1, 2002: 9 24 a. Section 452A.18, Code 1999, as amended in this Act. 9 25 b. Section 452A.21, Code 1999, as repealed in this Act. 9 26 c. Section 452A.65, unnumbered paragraph 1, Code 1999, as 9 27 amended in this Act. 9 28 EXPLANATION 9 29 This bill provides rebates for purchases of gasoline 9 30 blended with ethanol. Currently, an excise tax of $.20 per 9 31 gallon is imposed upon the use of motor fuel used in this 9 32 state. However, the excise tax is currently $.19 per gallon 9 33 on the use of motor fuel containing at least 10 percent 9 34 ethanol, until June 30, 2007. This bill eliminates that 9 35 exception. It also eliminates provisions that refer to a 10 1 refund to persons who pay the $.20 tax on gasoline which they 10 2 blend with grain alcohol to create ethanol blended fuel. 10 3 The bill provides that a retail dealer of ethanol blended 10 4 gasoline (referred to as a "dealer") may file a claim for a 10 5 blended gasoline rebate with the department of revenue and 10 6 finance. The bill also provides a rebate for a consumer who 10 7 files claims with the department. 10 8 According to the bill, a qualified claimant may file a 10 9 claim with the department for a rebate. To be timely, a claim 10 10 must be filed on or after March 1 and before June 30 for 10 11 gasoline purchased by the claimant during the previous 10 12 calendar year. A dealer must hold a current blended gasoline 10 13 rebate permit. The dealer must be willing and able to issue a 10 14 valid proof of purchase to consumers who purchase ethanol 10 15 blended gasoline. If the dealer does not have a rebate 10 16 permit, the dealer must post a notice on the business premises 10 17 in a conspicuous place informing consumers that the dealer is 10 18 unable to issue a valid proof of purchase. Under the bill, 10 19 the department must certify a person as a participating dealer 10 20 if the dealer agrees to record and submit a consumer invoice 10 21 to participating consumers as part of an eligible claim by 10 22 consumers at the end of each year. 10 23 A claim filed by a qualified claimant must include 10 24 supporting proof. The supporting proof must, to every extent 10 25 practicable, be a uniform document as prescribed by the 10 26 department. For a dealer, the supporting proof must be 10 27 business records including a separate serially numbered 10 28 invoice for gasoline claimed for a rebate. If the blended 10 29 gasoline is purchased by a consumer, the supporting proof must 10 30 be a receipt of purchase for the blended gasoline or a 10 31 consumer invoice issued to a participating consumer by a 10 32 participating dealer. The consumer invoice must list sales of 10 33 ethanol blended gasoline by the participating dealer to the 10 34 participating consumer during the year in which the claim for 10 35 a rebate is filed. The bill requires that a dealer who 11 1 applies for a rebate permit may be certified as a 11 2 participating dealer. 11 3 The bill provides an unlimited standing appropriation each 11 4 year for purposes of supporting the rebate. A dealer is 11 5 entitled to receive $.01 for each gallon of gasoline sold. A 11 6 consumer is entitled to receive $.05 for each gallon of 11 7 blended gasoline purchased. The bill places certain 11 8 limitations on the payment of the rebate. A dealer cannot be 11 9 paid more than $20,000 and a consumer cannot be paid more than 11 10 $1,000 for rebates filed during a single year. 11 11 The bill provides that a dealer or consumer who violates 11 12 the provisions of the bill is subject to a civil penalty, 11 13 including penalties relating to filing a fraudulent claim or 11 14 issuing a fraudulent proof of purchase. The bill provides 11 15 that the department may revoke a dealer's permit based on 11 16 filing false, inaccurate, or misleading information for a 11 17 permit or a claim; making a false statement in response to an 11 18 investigation by the department of a claim for rebate; or 11 19 refusing to submit the records for examination by the 11 20 department. 11 21 The bill provides that its provisions do not imply any 11 22 guarantee or obligation on the part of the state. 11 23 The bill includes a provisional section stating that a 11 24 dealer or consumer may claim a refund for the period beginning 11 25 July 1, 2000, and ending December 31, 2001, by filing a claim 11 26 with the department of revenue and finance on and after March 11 27 1, 2002, but not after June 30, 2002. 11 28 The bill provides that provisions eliminating the reduced 11 29 amount of excise tax imposed on ethanol-based gasoline take 11 30 effect on July 1, 2002. 11 31 LSB 6640XC 78 11 32 da/as/5
Text: SSB03117 Text: SSB03119 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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