House File 2444 H-8232 Amend the Senate amendment, H-8222, to House File 1 2444, as passed by the House, as follows: 2 1. Page 1, by striking lines 5 through 24 and 3 inserting: 4 << Sec. ___. Section 452A.3, subsection 1, 5 unnumbered paragraph 1, Code 2014, is amended to read 6 as follows: 7 Except as otherwise provided in this section and in 8 this division , until June 30 December 31 , 2014, this 9 subsection shall apply to the excise tax imposed on 10 each gallon of motor fuel used for any purpose for the 11 privilege of operating motor vehicles in this state. 12 Sec. ___. Section 452A.3, subsection 1A, Code 2014, 13 is amended by striking the subsection and inserting in 14 lieu thereof the following: 15 1A. a. Except as otherwise provided in this 16 section and in this division, beginning January 1, 17 2015, this subsection shall apply to the excise taxes 18 imposed on each gallon of motor fuel used for any 19 purpose for the privilege of operating motor vehicles 20 in this state. 21 b. An excise tax is imposed on each gallon of 22 ethanol blended gasoline in an amount equal to the sum 23 of sixteen cents per gallon plus five percent of the 24 statewide average retail price of a gallon of ethanol 25 blended gasoline. The portion of the excise tax that 26 is based on the statewide average retail price shall 27 be computed by the department and adjusted annually on 28 January 1 by calculating five percent of the statewide 29 average retail price of a gallon of ethanol blended 30 gasoline, exclusive of federal excise taxes and the 31 sixteen-cent per gallon portion of the state excise 32 tax, for the twelve-month period beginning October 33 1 and ending September 30 immediately preceding the 34 calendar year in which the adjusted tax rate will take 35 effect. 36 c. An excise tax is imposed on each gallon of 37 nonethanol blended gasoline in an amount equal to the 38 sum of sixteen cents per gallon plus five percent of 39 the statewide average retail price of a gallon of 40 nonethanol blended gasoline. The portion of the excise 41 tax that is based on the statewide average retail 42 price shall be computed by the department and adjusted 43 annually on January 1 by calculating five percent of 44 the statewide average retail price of a gallon of 45 nonethanol blended gasoline, exclusive of federal 46 excise taxes and the sixteen-cent per gallon portion 47 of the state excise tax, for the twelve-month period 48 beginning October 1 and ending September 30 immediately 49 preceding the calendar year in which the adjusted tax 50 -1- H8222.3886 (1) 85 mm/sc 1/ 4 #1.

rate will take effect. 1 d. The department shall adopt rules prescribing 2 the process for computing the portion of the excise 3 tax under paragraph “b” that is based on the statewide 4 average retail price of a gallon of ethanol blended 5 gasoline and the portion of the excise tax under 6 paragraph “c” that is based on the statewide average 7 retail price of a gallon of nonethanol blended 8 gasoline. 9 Sec. ___. Section 452A.3, subsections 1B and 1C, 10 Code 2014, are amended by striking the subsections. 11 Sec. ___. Section 452A.3, subsection 3, Code 2014, 12 is amended to read as follows: 13 3. a. For the privilege of operating motor 14 vehicles or aircraft in this state, there is imposed 15 an excise tax on the use of special fuel in a motor 16 vehicle or aircraft. 17 (1) (a) The tax Beginning January 1, 2015, the 18 rate of the excise tax on special fuel for diesel 19 engines of motor vehicles is twenty-two and one-half an 20 amount equal to the sum of eighteen cents per gallon 21 plus five percent of the statewide average retail price 22 of a gallon of special fuel for diesel engines of motor 23 vehicles . The portion of the excise tax that is based 24 on the statewide average retail price shall be computed 25 by the department and adjusted annually on January 1 26 by calculating five percent of the statewide average 27 retail price of a gallon of special fuel for diesel 28 engines of motor vehicles, exclusive of federal excise 29 taxes and the eighteen-cent per gallon portion of the 30 state excise tax, for the twelve-month period beginning 31 October 1 and ending September 30 immediately preceding 32 the calendar year in which the adjusted tax rate will 33 take effect. 34 (b) The department shall adopt rules prescribing 35 the process for computing the portion of the excise tax 36 that is based on the statewide average retail price of 37 a gallon of special fuel for diesel engines of motor 38 vehicles. 39 (2) The rate of tax on special fuel for aircraft is 40 three cents per gallon. 41 (3) On all other special fuel, unless otherwise 42 specified in this section , the per gallon rate is 43 the same as the motor fuel tax on nonethanol blended 44 gasoline . 45 b. Indelible dye meeting United States 46 environmental protection agency and internal revenue 47 service regulations must be added to fuel before or 48 upon withdrawal at a terminal or refinery rack for that 49 fuel to be exempt from tax and the dyed fuel may be 50 -2- H8222.3886 (1) 85 mm/sc 2/ 4

used only for an exempt purpose. 1 Sec. ___. Section 452A.3, Code 2014, is amended by 2 adding the following new subsection: 3 NEW SUBSECTION . 6A. By December 15 of each year, 4 the director shall cause an advisory notice to be 5 published in the Iowa administrative bulletin and 6 in a newspaper of general circulation in this state, 7 stating the rate of excise taxes established pursuant 8 to subsection 1A and subsection 3, paragraph “a” , 9 subparagraph (1), that will take effect the following 10 January 1. 11 Sec. ___. Section 452A.3, subsection 4, as amended 12 by 2014 Iowa Acts, Senate File 2338, section 3, is 13 amended to read as follows: 14 4. For compressed natural gas used as a special 15 fuel, the rate of the excise tax is twenty-one cents 16 per gallon the rate imposed for nonethanol blended 17 gasoline under subsection 1A, paragraph “c” . 18 Sec. ___. Section 452A.3, subsection 4A, as enacted 19 by 2014 Iowa Acts, Senate File 2338, section 4, is 20 amended to read as follows: 21 4A. For liquefied natural gas used as a special 22 fuel, the rate of the excise tax is twenty-two and 23 one-half cents per gallon the rate imposed for special 24 fuel for diesel engines of motor vehicles under 25 subsection 3, paragraph “a” , subparagraph (1) . > 26 ___. Page 2, after line 25 by inserting: 27 < Sec. ___. 2005 Iowa Acts, chapter 178, section 41, 28 subsection 3, is amended to read as follows: 29 3. REPEAL. This section is repealed effective July 30 1, 2015 2025 . 31 Sec. ___. APPLICABILITY —— INVENTORY 32 TAX. Notwithstanding section 452A.85, persons who have 33 title to motor fuel, ethanol blended gasoline, undyed 34 special fuel, compressed natural gas, liquefied natural 35 gas, or liquefied petroleum gas in storage and held for 36 sale on the effective date of an increase in the rate 37 of excise tax imposed on motor fuel, ethanol blended 38 gasoline, undyed special fuel, compressed natural 39 gas, liquefied natural gas, or liquefied petroleum 40 gas pursuant to this Act shall not be subject to an 41 inventory tax on the gallonage in storage as provided 42 in section 452A.85 as a result of any tax increase due 43 to implementation of this division of this Act. 44 Sec. ___. EFFECTIVE DATES. 45 1. Except as provided in subsection 2, this 46 division of this Act takes effect January 1, 2015. 47 2. The section of this division of this Act 48 amending section 452A.64 takes effect July 1, 2014. >> 49 2. By renumbering as necessary. 50 -3- H8222.3886 (1) 85 mm/sc 3/ 4