House File 640 H-1456 Amend the Senate amendment, H-1454, to House File 1 640, as amended, passed, and reprinted by the House, as 2 follows: 3 1. Page 7, by striking lines 33 through 46 and 4 inserting: 5 < Sec. ___. Section 312.2, Code 2013, is amended by 6 adding the following new subsection: 7 NEW SUBSECTION . 18. a. The treasurer of state, 8 before making the allotments provided for in this 9 section, shall credit monthly from the road use tax 10 fund to the TIME-21 fund created in section 312A.2 the 11 revenue accruing to the road use tax fund from the 12 excise tax on motor fuel and special fuel for motor 13 vehicles in the amount equal to the revenues collected 14 as follows: 15 (1) For the period beginning July 1, 2013, and 16 ending June 30, 2014, the following amounts: 17 (a) The amount of excise tax collected under 18 section 452A.3, subsection 1, paragraph “b” , from three 19 cents per gallon. 20 (b) The amount of excise tax collected under 21 section 452A.3, subsection 3, paragraph “b” , 22 subparagraph (1), from three cents per gallon. 23 (2) For the period beginning July 1, 2014, and 24 ending December 31, 2014, the following amounts: 25 (a) The amount of excise tax collected under 26 section 452A.3, subsection 1, paragraph “c” , from six 27 cents per gallon. 28 (b) The amount of excise tax collected under 29 section 452A.3, subsection 3, paragraph “b” , 30 subparagraph (2), from six cents per gallon. 31 (3) Beginning January 1, 2015, the following 32 amounts: 33 (a) The amount of excise tax collected under 34 section 452A.3, subsection 1, paragraph “d” , or section 35 452A.3, subsection 1A, from ten cents per gallon. 36 (b) The amount of excise tax collected under 37 section 452A.3, subsection 3, paragraph “b” , 38 subparagraph (3), from ten cents per gallon. 39 b. This subsection is repealed June 30, 2028. 40 Sec. ___. Section 452A.3, subsections 1 and 1A, 41 Code 2013, are amended to read as follows: 42 1. Except as otherwise provided in this section 43 and in this division , until June 30, 2013 2023 , this 44 subsection shall apply to the excise tax imposed on 45 each gallon of motor fuel used for any purpose for the 46 privilege of operating motor vehicles in this state. 47 a. The rate of the excise tax shall be based on the 48 number of gallons of ethanol blended gasoline that is 49 distributed in this state as expressed as a percentage 50 -1- H1454.2336 (2) 85 dea/nh 1/ 7 #1.

of the number of gallons of motor fuel distributed in 1 this state, which is referred to as the distribution 2 percentage. For purposes of this subsection , only 3 ethanol blended gasoline and nonblended gasoline, 4 not including aviation gasoline, shall be used in 5 determining the percentage basis for the excise tax. 6 The department shall determine the percentage basis 7 for each determination period beginning January 1 and 8 ending December 31. The rate for the excise tax shall 9 apply for the period beginning July 1 and ending June 10 30 following the end of the determination period. 11 b. The For the period beginning July 1, 2013, and 12 ending June 30, 2014, the rate for the excise tax shall 13 be as follows: 14 (1) If the distribution percentage is not greater 15 than fifty percent, the rate shall be nineteen 16 twenty-two cents for ethanol blended gasoline and 17 twenty twenty-three cents for motor fuel other than 18 ethanol blended gasoline. 19 (2) If the distribution percentage is greater 20 than fifty percent but not greater than fifty-five 21 percent, the rate shall be nineteen twenty-two cents 22 for ethanol blended gasoline and twenty twenty-three 23 and one-tenth cents for motor fuel other than ethanol 24 blended gasoline. 25 (3) If the distribution percentage is greater than 26 fifty-five percent but not greater than sixty percent, 27 the rate shall be nineteen twenty-two cents for 28 ethanol blended gasoline and twenty twenty-three and 29 three-tenths cents for motor fuel other than ethanol 30 blended gasoline. 31 (4) If the distribution percentage is greater 32 than sixty percent but not greater than sixty-five 33 percent, the rate shall be nineteen twenty-two cents 34 for ethanol blended gasoline and twenty twenty-three 35 and five-tenths cents for motor fuel other than ethanol 36 blended gasoline. 37 (5) If the distribution percentage is greater 38 than sixty-five percent but not greater than seventy 39 percent, the rate shall be nineteen twenty-two cents 40 for ethanol blended gasoline and twenty twenty-three 41 and seven-tenths cents for motor fuel other than 42 ethanol blended gasoline. 43 (6) If the distribution percentage is greater than 44 seventy percent but not greater than seventy-five 45 percent, the rate shall be nineteen twenty-two cents 46 for ethanol blended gasoline and twenty-one twenty-four 47 cents for motor fuel other than ethanol blended 48 gasoline. 49 (7) If the distribution percentage is greater 50 -2- H1454.2336 (2) 85 dea/nh 2/ 7

than seventy-five percent but not greater than eighty 1 percent, the rate shall be nineteen twenty-two and 2 three-tenths cents for ethanol blended gasoline and 3 twenty twenty-three and eight-tenths cents for motor 4 fuel other than ethanol blended gasoline. 5 (8) If the distribution percentage is greater 6 than eighty percent but not greater than eighty-five 7 percent, the rate shall be nineteen twenty-two and 8 five-tenths cents for ethanol blended gasoline and 9 twenty twenty-three and seven-tenths cents for motor 10 fuel other than ethanol blended gasoline. 11 (9) If the distribution percentage is greater 12 than eighty-five percent but not greater than ninety 13 percent, the rate shall be nineteen twenty-two and 14 seven-tenths cents for ethanol blended gasoline and 15 twenty twenty-three and four-tenths cents for motor 16 fuel other than ethanol blended gasoline. 17 (10) If the distribution percentage is greater 18 than ninety percent but not greater than ninety-five 19 percent, the rate shall be nineteen twenty-two and 20 nine-tenths cents for ethanol blended gasoline and 21 twenty twenty-three and one-tenth cents for motor fuel 22 other than ethanol blended gasoline. 23 (11) If the distribution percentage is greater 24 than ninety-five percent, the rate shall be twenty 25 twenty-three cents for ethanol blended gasoline and 26 twenty twenty-three cents for motor fuel other than 27 ethanol blended gasoline. 28 c. For the period beginning July 1, 2014, and 29 ending December 31, 2014, the rate for the excise tax 30 shall be as follows: 31 (1) If the distribution percentage is not greater 32 than fifty percent, the rate shall be twenty-five cents 33 for ethanol blended gasoline and twenty-six cents for 34 motor fuel other than ethanol blended gasoline. 35 (2) If the distribution percentage is greater than 36 fifty percent but not greater than fifty-five percent, 37 the rate shall be twenty-five cents for ethanol blended 38 gasoline and twenty-six and one-tenth cents for motor 39 fuel other than ethanol blended gasoline. 40 (3) If the distribution percentage is greater than 41 fifty-five percent but not greater than sixty percent, 42 the rate shall be twenty-five cents for ethanol blended 43 gasoline and twenty-six and three-tenths cents for 44 motor fuel other than ethanol blended gasoline. 45 (4) If the distribution percentage is greater than 46 sixty percent but not greater than sixty-five percent, 47 the rate shall be twenty-five cents for ethanol blended 48 gasoline and twenty-six and five-tenths cents for motor 49 fuel other than ethanol blended gasoline. 50 -3- H1454.2336 (2) 85 dea/nh 3/ 7

(5) If the distribution percentage is greater 1 than sixty-five percent but not greater than 2 seventy percent, the rate shall be twenty-five cents 3 for ethanol blended gasoline and twenty-six and 4 seven-tenths cents for motor fuel other than ethanol 5 blended gasoline. 6 (6) If the distribution percentage is greater than 7 seventy percent but not greater than seventy-five 8 percent, the rate shall be twenty-five cents for 9 ethanol blended gasoline and twenty-seven cents for 10 motor fuel other than ethanol blended gasoline. 11 (7) If the distribution percentage is greater 12 than seventy-five percent but not greater than eighty 13 percent, the rate shall be twenty-five and three-tenths 14 cents for ethanol blended gasoline and twenty-six and 15 eight-tenths cents for motor fuel other than ethanol 16 blended gasoline. 17 (8) If the distribution percentage is greater 18 than eighty percent but not greater than eighty-five 19 percent, the rate shall be twenty-five and five-tenths 20 cents for ethanol blended gasoline and twenty-six and 21 seven-tenths cents for motor fuel other than ethanol 22 blended gasoline. 23 (9) If the distribution percentage is greater 24 than eighty-five percent but not greater than ninety 25 percent, the rate shall be twenty-five and seven-tenths 26 cents for ethanol blended gasoline and twenty-six and 27 four-tenths cents for motor fuel other than ethanol 28 blended gasoline. 29 (10) If the distribution percentage is greater 30 than ninety percent but not greater than ninety-five 31 percent, the rate shall be twenty-five and nine-tenths 32 cents for ethanol blended gasoline and twenty-six 33 and one-tenth cents for motor fuel other than ethanol 34 blended gasoline. 35 (11) If the distribution percentage is greater than 36 ninety-five percent, the rate shall be twenty-six cents 37 for ethanol blended gasoline and twenty-six cents for 38 motor fuel other than ethanol blended gasoline. 39 d. For the period beginning January 1, 2015, and 40 ending June 30, 2023, the rate for the excise tax shall 41 be as follows: 42 (1) If the distribution percentage is not greater 43 than fifty percent, the rate shall be twenty-nine cents 44 for ethanol blended gasoline and thirty cents for motor 45 fuel other than ethanol blended gasoline. 46 (2) If the distribution percentage is greater than 47 fifty percent but not greater than fifty-five percent, 48 the rate shall be twenty-nine cents for ethanol blended 49 gasoline and thirty and one-tenth cents for motor fuel 50 -4- H1454.2336 (2) 85 dea/nh 4/ 7

other than ethanol blended gasoline. 1 (3) If the distribution percentage is greater than 2 fifty-five percent but not greater than sixty percent, 3 the rate shall be twenty-nine cents for ethanol blended 4 gasoline and thirty and three-tenths cents for motor 5 fuel other than ethanol blended gasoline. 6 (4) If the distribution percentage is greater than 7 sixty percent but not greater than sixty-five percent, 8 the rate shall be twenty-nine cents for ethanol blended 9 gasoline and thirty and five-tenths cents for motor 10 fuel other than ethanol blended gasoline. 11 (5) If the distribution percentage is greater 12 than sixty-five percent but not greater than seventy 13 percent, the rate shall be twenty-nine cents for 14 ethanol blended gasoline and thirty and seven-tenths 15 cents for motor fuel other than ethanol blended 16 gasoline. 17 (6) If the distribution percentage is greater than 18 seventy percent but not greater than seventy-five 19 percent, the rate shall be twenty-nine cents for 20 ethanol blended gasoline and thirty-one cents for motor 21 fuel other than ethanol blended gasoline. 22 (7) If the distribution percentage is greater 23 than seventy-five percent but not greater than eighty 24 percent, the rate shall be twenty-nine and three-tenths 25 cents for ethanol blended gasoline and thirty and 26 eight-tenths cents for motor fuel other than ethanol 27 blended gasoline. 28 (8) If the distribution percentage is greater 29 than eighty percent but not greater than eighty-five 30 percent, the rate shall be twenty-nine and five-tenths 31 cents for ethanol blended gasoline and thirty and 32 seven-tenths cents for motor fuel other than ethanol 33 blended gasoline. 34 (9) If the distribution percentage is greater 35 than eighty-five percent but not greater than ninety 36 percent, the rate shall be twenty-nine and seven-tenths 37 cents for ethanol blended gasoline and thirty and 38 four-tenths cents for motor fuel other than ethanol 39 blended gasoline. 40 (10) If the distribution percentage is greater 41 than ninety percent but not greater than ninety-five 42 percent, the rate shall be twenty-nine and nine-tenths 43 cents for ethanol blended gasoline and thirty and 44 one-tenth cents for motor fuel other than ethanol 45 blended gasoline. 46 (11) If the distribution percentage is greater than 47 ninety-five percent, the rate shall be thirty cents for 48 ethanol blended gasoline and thirty cents for motor 49 fuel other than ethanol blended gasoline. 50 -5- H1454.2336 (2) 85 dea/nh 5/ 7

1A. Except as otherwise provided in this section 1 and in this division , after June 30, 2013 2023 , an 2 excise tax of twenty thirty cents is imposed on each 3 gallon of motor fuel used for any purpose for the 4 privilege of operating motor vehicles in this state. 5 Sec. ___. Section 452A.3, subsection 3, Code 2013, 6 is amended to read as follows: 7 3. a. For the privilege of operating motor 8 vehicles or aircraft in this state, there is imposed 9 an excise tax on the use of special fuel in a motor 10 vehicle or aircraft. The 11 b. (1) For the period beginning July 1, 2013, and 12 ending June 30, 2014, the tax rate on special fuel for 13 diesel engines of motor vehicles other than biodiesel 14 blended fuel classified as B-10 or higher is twenty-two 15 twenty-five and one-half cents per gallon. 16 (2) For the period beginning July 1, 2014, and 17 ending December 31, 2014, the tax rate on special 18 fuel for diesel engines of motor vehicles other than 19 biodiesel blended fuel classified as B-10 or higher is 20 twenty-eight and one-half cents per gallon. 21 (3) After December 31, 2014, the tax rate on 22 special fuel for diesel engines of motor vehicles other 23 than biodiesel blended fuel classified as B-10 or 24 higher is thirty-two and one-half cents per gallon. 25 (4) The tax rate on biodiesel blended fuel 26 classified as B-10 or higher for diesel engines of 27 motor vehicles is twenty-two and one-half cents per 28 gallon. 29 (5) The rate of tax on special fuel for aircraft is 30 three cents per gallon. 31 (6) On all other special fuel, unless otherwise 32 specified in this section , the per gallon rate is the 33 same as the motor fuel tax. 34 c. Indelible dye meeting United States 35 environmental protection agency and internal revenue 36 service regulations must be added to fuel before or 37 upon withdrawal at a terminal or refinery rack for that 38 fuel to be exempt from tax and the dyed fuel may be 39 used only for an exempt purpose. 40 Sec. ___. APPLICABILITY —— INVENTORY 41 TAX. Notwithstanding section 452A.85, persons who have 42 title to motor fuel, ethanol blended gasoline, undyed 43 special fuel, compressed natural gas, or liquefied 44 petroleum gas in storage and held for sale on the 45 effective date of an increase in the rate of excise 46 tax imposed on motor fuel, ethanol blended gasoline, 47 or special fuel pursuant to this division of this 48 Act shall not be subject to an inventory tax on the 49 gallonage in storage as provided in section 452A.85 as 50 -6- H1454.2336 (2) 85 dea/nh 6/ 7

a result of the tax increases provided in this division 1 of this Act. > 2 2. Page 8, after line 1 by inserting: 3 < ___. Title page, line 7, by striking < extending 4 the period for determining the rates > 5 ___. Title page, by striking lines 8 and 9 and 6 inserting < relating to the rate of excise taxes on 7 motor fuel and certain special fuel used in motor 8 vehicles and providing for the use of certain revenues 9 resulting from the excise taxes, including >> 10 3. By renumbering as necessary. 11 ______________________________ BYRNES of Mitchell -7- H1454.2336 (2) 85 dea/nh 7/ 7 #2. #3.