Text: HSB00725                          Text: HSB00727
Text: HSB00700 - HSB00799               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 726

Bill Text

PAG LIN
  1  1    Section 1.  Section 214A.2, subsection 3, Code Supplement
  1  2 2003, is amended by adding the following new paragraph:
  1  3    NEW PARAGRAPH.  c.  Gasoline with a mixture of at least
  1  4 eighty-five percent ethanol shall be known as E-85 blended
  1  5 gasoline.  However, during the period beginning on November 1
  1  6 and ending on March 31, gasoline with a mixture of at least
  1  7 seventy percent ethanol shall also be known as E-85 blended
  1  8 gasoline.
  1  9    Sec. 2.  Section 452A.2, Code Supplement 2003, is amended
  1 10 by adding the following new subsection:
  1 11    NEW SUBSECTION.  9A.  "E-85 blended gasoline" means
  1 12 gasoline with a mixture of ethanol according to specifications
  1 13 provided in section 214A.2.
  1 14    Sec. 3.  Section 452A.3, subsection 1A, Code 2003, is
  1 15 amended to read as follows:
  1 16    1A.  Except as otherwise provided in this section and in
  1 17 this division, after June 30, all of the following shall
  1 18 apply:
  1 19    a.  For the period beginning on July 1, 2007, and ending on
  1 20 June 30, 2008, an excise tax of twenty and one-tenth cents is
  1 21 imposed on each gallon of motor fuel used for any purpose for
  1 22 the privilege of operating motor vehicles in this state.
  1 23 However, for that same period, an excise tax of twenty cents
  1 24 is imposed on each gallon of ethanol blended gasoline used for
  1 25 any purpose for the privilege of operating motor vehicles in
  1 26 this state.
  1 27    b.  On and after July 1, 2008, an excise tax of twenty
  1 28 cents is imposed on each gallon of motor fuel used for any
  1 29 purpose for the privilege of operating motor vehicles in this
  1 30 state.
  1 31    Sec. 4.  Section 452A.3, Code 2003, is amended by adding
  1 32 the following new subsection:
  1 33    NEW SUBSECTION.  1B.  An excise tax is imposed on each
  1 34 gallon of E-85 blended gasoline as follows:
  1 35    a.  For the period beginning July 1, 2004, and ending June
  2  1 30, 2008, the excise tax shall be nine cents.
  2  2    b.  For the period beginning July 1, 2008, and ending June
  2  3 30, 2009, the excise tax shall be ten and one-half cents.
  2  4    c.  For the period beginning July 1, 2009, and ending June
  2  5 30, 2010, the excise tax shall be twelve cents.
  2  6    d.  For the period beginning July 1, 2010, and ending June
  2  7 30, 2011, the excise tax shall be thirteen and one-half cents.
  2  8    e.  For the period beginning July 1, 2011, and ending June
  2  9 30, 2012, the excise tax shall be fifteen cents.
  2 10    f.  For the period beginning July 1, 2012, and ending June
  2 11 30, 2013, the excise tax shall be sixteen and one-half cents.
  2 12    g.  For the period beginning July 1, 2013, and ending June
  2 13 30, 2014, the excise tax shall be eighteen cents.
  2 14    h.  For the period beginning July 1, 2014, and ending June
  2 15 30, 2015, the excise tax shall be nineteen and one-half cents.
  2 16    i.  For the period beginning July 1, 2015, and ending June
  2 17 30, 2016, the excise tax shall be twenty cents.  
  2 18                           EXPLANATION
  2 19    This bill amends provisions relating to gasoline containing
  2 20 a high mixture of grain alcohol, commonly referred to as "E-
  2 21 85".  The bill amends Code section 214A.2, which authorizes
  2 22 the department of agriculture and land stewardship to
  2 23 establish standards for gasoline.  It provides that gasoline
  2 24 with at least 85 percent alcohol may be classified as E-85
  2 25 blended gasoline with one exception.  During the months of
  2 26 November through March, such gasoline may have 70 percent or
  2 27 more alcohol.
  2 28    The bill also amends current provisions in Code section
  2 29 452A.3 that impose an excise tax on motor fuel sold in the
  2 30 state.  The general rate is 20 cents per gallon, but there are
  2 31 a number of exceptions, including an exception for ethanol
  2 32 blended gasoline (gasoline containing at least 10 percent
  2 33 alcohol).  Until June 30, 2007, the rates for gasoline that is
  2 34 blended with ethanol are adjusted each year based on the
  2 35 number of gallons of ethanol blended gasoline that are
  3  1 distributed in this state as expressed as a percentage of the
  3  2 total number of gallons of gasoline distributed in this state.
  3  3 On and after July 1, 2007, the rate for unblended gasoline and
  3  4 ethanol blended gasoline is 20 cents.
  3  5    The bill creates another schedule for excise taxes on
  3  6 gasoline and E-85 ethanol blended gasoline.  For the period
  3  7 beginning July 1, 2007, and ending on June 30, 2008, the
  3  8 excise tax is increased to 20 and one-tenth cents for
  3  9 unblended gasoline and thereafter reverts to its 20 cent
  3 10 level.  However, the bill creates a special schedule for E-85
  3 11 blended gasoline.  For the first four years beginning on July
  3 12 1, 2004, the excise tax is 9 cents.  Each year beginning July
  3 13 1, 2008, the excise tax increases by one and one-half cents
  3 14 until July 1, 2015.  On and after that date the rate for E-85
  3 15 blended gasoline also equals 20 cents.  
  3 16 LSB 6898HC 80
  3 17 da/sh/8.2
     

Text: HSB00725                          Text: HSB00727
Text: HSB00700 - HSB00799               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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