Text: SF00517 Text: SF00519 Text: SF00500 - SF00599 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 422.11C ETHANOL BLENDED GASOLINE 1 2 TAX CREDIT. 1 3 1. As used in this section, unless the context otherwise 1 4 requires: 1 5 a. "Ethanol blended gasoline" means the same as defined in 1 6 section 452A.2. 1 7 b. "Gasoline" means gasoline that meets the specifications 1 8 required by the department of agriculture and land stewardship 1 9 pursuant to section 214A.2 that is dispensed through a metered 1 10 pump. 1 11 c. "Metered pump" means a motor vehicle fuel pump licensed 1 12 by the department of agriculture and land stewardship pursuant 1 13 to chapter 214. 1 14 d. "Retail dealer" means a retail dealer as defined in 1 15 section 214A.1 who operates a metered pump at a service 1 16 station. 1 17 e. "Sell" means to sell on a retail basis. 1 18 f. "Service station" means each geographic location in 1 19 this state where a retail dealer sells and dispenses gasoline 1 20 on a retail basis. 1 21 g. "Tax credit" means the designated ethanol blended 1 22 gasoline tax credit as provided in this section. 1 23 2. The taxes imposed under this division, less the credits 1 24 allowed under sections 422.12 and 422.12B, shall be reduced by 1 25 an ethanol blended gasoline tax credit for each tax year that 1 26 the taxpayer is eligible to claim the tax credit under this 1 27 section. In order to be eligible, all of the following must 1 28 apply: 1 29 a. The taxpayer is a retail dealer. 1 30 b. The taxpayer operates at least one service station at 1 31 which more than sixty percent of the total gallons of gasoline 1 32 sold and dispensed through one or more metered pumps by the 1 33 taxpayer in the tax year is ethanol blended gasoline. 1 34 c. The taxpayer complies with requirements of the 1 35 department required to administer this section. 2 1 3. For each service station, the department shall to the 2 2 extent necessary in order to administer this section, require 2 3 that a retail dealer claiming a tax credit be certified to 2 4 claim the tax credit, maintain records that the retail dealer 2 5 is eligible for the tax credit, or periodically report to the 2 6 department information about the total amount of gasoline sold 2 7 and dispensed through metered pumps, the amount of ethanol 2 8 blended gasoline sold and dispensed through metered pumps, and 2 9 the percentage of gasoline sold and dispensed through metered 2 10 pumps that is ethanol blended gasoline. The department may 2 11 make the requirements applicable under this section or section 2 12 452A.9A. 2 13 A certificate, record, or report required under this 2 14 section shall be certified by the retail dealer under 2 15 penalties for false certification as provided in section 2 16 714.8. 2 17 4. The tax credit shall be calculated separately for each 2 18 service station site operated by the taxpayer. The amount of 2 19 the tax credit for each eligible service station is two and 2 20 one-half cents multiplied by the total number of gallons of 2 21 ethanol blended gasoline sold and dispensed through all 2 22 metered pumps located at that service station during the tax 2 23 year in excess of sixty percent of all gasoline sold and 2 24 dispensed through metered pumps at that service station during 2 25 the tax year. 2 26 5. Any credit in excess of the taxpayer's tax liability 2 27 shall be refunded. In lieu of claiming a refund, the taxpayer 2 28 may elect to have the overpayment shown on the taxpayer's 2 29 final, completed return credited to the tax liability for the 2 30 following tax year. 2 31 6. An individual may claim the tax credit allowed a 2 32 partnership, limited liability company, S corporation, estate, 2 33 or trust electing to have the income taxed directly to the 2 34 individual. The amount claimed by the individual shall be 2 35 based upon the pro rata share of the individual's earnings of 3 1 a partnership, limited liability company, S corporation, 3 2 estate, or trust. 3 3 Sec. 2. Section 422.33, Code 2001, is amended by adding 3 4 the following new subsection: 3 5 NEW SUBSECTION. 11. a. As used in this subsection, 3 6 unless the context otherwise requires: 3 7 (1) "Ethanol blended gasoline", "gasoline", "metered 3 8 pump", "retail dealer", "sell", and "service station", mean 3 9 the same as defined in section 422.11C. 3 10 (2) "Tax credit" means the designated ethanol blended 3 11 gasoline tax credit as provided in this subsection. 3 12 b. The taxes imposed under this division shall be reduced 3 13 by an ethanol blended gasoline tax credit for each tax year 3 14 that the taxpayer is eligible to claim the tax credit under 3 15 this subsection. In order to be eligible, all of the 3 16 following must apply: 3 17 (1) The taxpayer is a retail dealer. 3 18 (2) The taxpayer operates at least one service station at 3 19 which more than sixty percent of the total gallons of gasoline 3 20 sold and dispensed through one or more metered pumps by the 3 21 taxpayer is ethanol blended gasoline. 3 22 (3) The taxpayer complies with requirements of the 3 23 department required to administer this subsection. 3 24 c. For each service station, the department shall to the 3 25 extent necessary in order to administer this subsection, 3 26 require that a retail dealer claiming a tax credit be 3 27 certified to claim the tax credit, maintain records that the 3 28 retail dealer is eligible for the tax credit, or periodically 3 29 report to the department information about the total amount of 3 30 gasoline sold and dispensed through metered pumps, the amount 3 31 of the gasoline classified as designated ethanol blended 3 32 gasoline sold and dispensed through metered pumps, and the 3 33 percentage of gasoline sold and dispensed through metered 3 34 pumps that is ethanol blended gasoline. The department may 3 35 make the requirements applicable under this subsection or 4 1 section 452A.9A. 4 2 A certificate, record, or report required under this 4 3 paragraph shall be certified by the retail dealer under 4 4 penalties for false certification as provided in section 4 5 714.8. 4 6 d. The tax credit shall be calculated separately for each 4 7 service station site operated by the taxpayer. The amount of 4 8 the tax credit for each eligible service station is two and 4 9 one-half cents multiplied by the total number of gallons of 4 10 ethanol blended gasoline sold and dispensed through all 4 11 metered pumps located at that service station during the tax 4 12 year in excess of sixty percent of all gasoline sold and 4 13 dispensed through metered pumps at that service station during 4 14 the tax year. 4 15 e. Any credit in excess of the taxpayer's tax liability 4 16 shall be refunded. In lieu of claiming a refund, the taxpayer 4 17 may elect to have the overpayment shown on the taxpayer's 4 18 final, completed return credited to the tax liability for the 4 19 following tax year. 4 20 Sec. 3. Section 452A.3, subsection 1, Code 2001, is 4 21 amended by striking the subsection and inserting in lieu 4 22 thereof the following: 4 23 1. Except as otherwise provided in this section and in 4 24 this division, until June 30, 2007, this subsection shall 4 25 apply to the excise tax imposed on each gallon of motor fuel 4 26 used for any purpose for the privilege of operating motor 4 27 vehicles in this state. 4 28 a. The rate of the excise tax shall be based on the number 4 29 of gallons of ethanol blended gasoline that is distributed in 4 30 this state as expressed as a percentage of the number of 4 31 gallons of motor fuel distributed in this state, which is 4 32 referred to as the distribution percentage. The department 4 33 shall determine the percentage basis for each determination 4 34 period beginning January 1 and ending December 31. The rate 4 35 for the excise tax shall apply for the period beginning July 1 5 1 and ending June 30 following the end of the determination 5 2 period. Information compiled by the department in order to 5 3 make its determination shall be a public record subject to 5 4 examination and copying under section 22.2. 5 5 b. The rate for the excise tax shall be as follows: 5 6 (1) If the distribution percentage is not greater than 5 7 fifty percent, the rate shall be nineteen cents for ethanol 5 8 blended gasoline and twenty cents for motor fuel other than 5 9 ethanol blended gasoline. 5 10 (2) If the distribution percentage is greater than fifty 5 11 percent but not greater than fifty-five percent, the rate 5 12 shall be nineteen cents for ethanol blended gasoline and 5 13 twenty and one-tenth cents for motor fuel other than ethanol 5 14 blended gasoline. 5 15 (3) If the distribution percentage is greater than fifty- 5 16 five percent but not greater than sixty percent, the rate 5 17 shall be nineteen cents for ethanol blended gasoline and 5 18 twenty and three-tenths cents for motor fuel other than 5 19 ethanol blended gasoline. 5 20 (4) If the distribution percentage is greater than sixty 5 21 percent but not greater than sixty-five percent, the rate 5 22 shall be nineteen cents for ethanol blended gasoline and 5 23 twenty and five-tenths cents for motor fuel other than ethanol 5 24 blended gasoline. 5 25 (5) If the distribution percentage is greater than sixty- 5 26 five percent but not greater than seventy percent, the rate 5 27 shall be nineteen cents for ethanol blended gasoline and 5 28 twenty and seven-tenths cents for motor fuel other than 5 29 ethanol blended gasoline. 5 30 (6) If the distribution percentage is greater than seventy 5 31 percent but not greater than seventy-five percent, the rate 5 32 shall be nineteen cents for ethanol blended gasoline and 5 33 twenty-one cents for motor fuel other than ethanol blended 5 34 gasoline. 5 35 (7) If the distribution percentage is greater than 6 1 seventy-five percent but not greater than eighty percent, the 6 2 rate shall be nineteen and three-tenths cents for ethanol 6 3 blended gasoline and twenty and eight-tenths cents for motor 6 4 fuel other than ethanol blended gasoline. 6 5 (8) If the distribution percentage is greater than eighty 6 6 percent but not greater than eighty-five percent, the rate 6 7 shall be nineteen and five-tenths cents for ethanol blended 6 8 gasoline and twenty and seven-tenths cents for motor fuel 6 9 other than ethanol blended gasoline. 6 10 (9) If the distribution percentage is greater than eighty- 6 11 five percent but not greater than ninety percent, the rate 6 12 shall be nineteen and seven-tenths cents for ethanol blended 6 13 gasoline and twenty and four-tenths cents for motor fuel other 6 14 than ethanol blended gasoline. 6 15 (10) If the distribution percentage is greater than ninety 6 16 percent but not greater than ninety-five percent, the rate 6 17 shall be nineteen and nine-tenths cents for ethanol blended 6 18 gasoline and twenty and one-tenth cents for motor fuel other 6 19 than ethanol blended gasoline. 6 20 (11) If the distribution percentage is greater than 6 21 ninety-five percent, the rate shall be twenty cents for 6 22 ethanol blended gasoline and twenty cents for motor fuel other 6 23 than ethanol blended gasoline. 6 24 1A. Except as otherwise provided in this section and in 6 25 this division, after June 30, 2007, an excise tax of twenty 6 26 cents is imposed on each gallon of motor fuel used for any 6 27 purpose for the privilege of operating motor vehicles in this 6 28 state. 6 29 Sec. 4. Section 452A.3, subsection 2, paragraph b, Code 6 30 2001, is amended by striking the paragraph. 6 31 Sec. 5. NEW SECTION. 452A.9A ETHANOL BLENDED GASOLINE 6 32 TAX CREDIT. 6 33 The department shall to the extent necessary in order to 6 34 administer this section, require that a dealer claiming an 6 35 ethanol blended gasoline tax credit as provided in section 7 1 422.11C or section 422.33 be certified to claim the tax 7 2 credit, maintain records that the dealer is eligible for the 7 3 tax credit, or periodically report to the department 7 4 information as otherwise required under those provisions as 7 5 part of the department's administration of this chapter. 7 6 Sec. 6. APPLICABILITY. 7 7 1. Notwithstanding section 452A.3, as amended in this Act, 7 8 the excise tax imposed upon motor vehicle fuel, including 7 9 ethanol blended gasoline, as provided in that section shall be 7 10 the same as provided in that section on June 30, 2001, until 7 11 July 1, 2002. The excise tax for the period beginning July 1, 7 12 2002, and ending June 30, 2003, and for each subsequent 7 13 period, shall be based on a determination made by the 7 14 department of revenue and finance as provided in section 7 15 452A.3, subsection 1. 7 16 2. The ethanol blended gasoline tax credits provided in 7 17 sections 422.11C, 422.33, and 452A.9A apply to tax years 7 18 beginning on or after January 1, 2002. The department of 7 19 revenue and finance shall perform functions, prior to the 7 20 beginning of that tax year, necessary in order to implement 7 21 the tax credits. 7 22 EXPLANATION 7 23 This bill provides for the sale of ethanol blended 7 24 gasoline. According to Code section 452A.2, this means motor 7 25 fuel containing at least 10 percent alcohol distilled from 7 26 cereal grains. 7 27 The bill provides an income tax credit for retail dealers 7 28 of gasoline who sell ethanol blended gasoline. The tax credit 7 29 applies to both taxpayers filing as individuals under Code 7 30 section 422.11C and businesses under Code section 422.33. The 7 31 bill provides for the tax credit for each service station at 7 32 which more than 60 percent of the total gallons of gasoline 7 33 sold by the taxpayer is ethanol blended gasoline. The amount 7 34 of the tax credit is 2 1/2 cents multiplied by the total 7 35 number of gallons of ethanol blended gasoline sold at that 8 1 service station that is in excess of 60 percent of all 8 2 gasoline sold at the service station during the tax year. The 8 3 bill also provides for refund or carryforward of any credit in 8 4 excess of the taxpayer's liability. 8 5 The bill also amends provisions in Code section 452A.3 that 8 6 provide for an excise tax on each gallon of motor fuel sold in 8 7 the state. The general rate is 20 cents per gallon. The 8 8 section provides a number of exceptions. One exception 8 9 provides that until June 30, 2007, the rate is 19 cents per 8 10 gallon of ethanol blended gasoline. The bill provides that 8 11 until that date the general rate and the special rate for 8 12 ethanol blended gasoline is determined each year beginning on 8 13 July 1 and ending on June 30 by the department of revenue and 8 14 finance, based on the number of gallons of ethanol blended 8 15 gasoline distributed in this state. The general rate is 8 16 between 20 cents and 20.8 cents and the special rate for 8 17 ethanol blended gasoline is between 19 and 20 cents. 8 18 The bill contains special applicability provisions. It 8 19 provides that the tax credit applies to tax years beginning on 8 20 and after January 1, 2002. It also provides that the excise 8 21 tax provisions apply on and after July 1, 2002. 8 22 LSB 2151SZ 79 8 23 da/cf/24
Text: SF00517 Text: SF00519 Text: SF00500 - SF00599 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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