Senate File 2355 H-8314 Amend Senate File 2355, as amended, passed, and 1 reprinted by the Senate, as follows: 2 1. Page 15, after line 33 by inserting: 3 < DIVISION ___ 4 ROAD FUNDING —— MOTOR FUEL EXCISE TAXES 5 Sec. ___. Section 452A.3, subsection 1, unnumbered 6 paragraph 1, Code 2014, is amended to read 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 and state excise taxes, 31 for the twelve-month period beginning October 1 and 32 ending September 30 immediately preceding the calendar 33 year in which the adjusted tax rate will take effect, 34 rounded to the nearest tenth of a cent. 35 c. An excise tax is imposed on each gallon of 36 nonethanol blended gasoline in an amount equal to the 37 sum of sixteen cents per gallon plus five percent of 38 the statewide average retail price of a gallon of 39 nonethanol blended gasoline. The portion of the excise 40 tax that is based on the statewide average retail 41 price shall be computed by the department and adjusted 42 annually on January 1 by calculating five percent of 43 the statewide average retail price of a gallon of 44 nonethanol blended gasoline, exclusive of federal 45 and state excise taxes, for the twelve-month period 46 beginning October 1 and ending September 30 immediately 47 preceding the calendar year in which the adjusted tax 48 rate will take effect, rounded to the nearest tenth of 49 a cent. 50 -1- SF2355.4187 (1) 85 dea/nh 1/ 4 #1.

d. The department shall adopt rules prescribing 1 the process for computing the portion of the excise 2 tax under paragraph “b” that is based on the statewide 3 average retail price of a gallon of ethanol blended 4 gasoline and the portion of the excise tax under 5 paragraph “c” that is based on the statewide average 6 retail price of a gallon of nonethanol blended 7 gasoline. 8 Sec. ___. Section 452A.3, subsections 1B and 1C, 9 Code 2014, are amended by striking the subsections. 10 Sec. ___. Section 452A.3, subsection 3, Code 2014, 11 is amended to read as follows: 12 3. a. For the privilege of operating motor 13 vehicles or aircraft in this state, there is imposed 14 an excise tax on the use of special fuel in a motor 15 vehicle or aircraft. 16 (1) (a) The tax Beginning January 1, 2015, the 17 rate of the excise tax on special fuel for diesel 18 engines of motor vehicles is twenty-two and one-half an 19 amount equal to the sum of eighteen cents per gallon 20 plus five percent of the statewide average retail 21 price of a gallon of special fuel for diesel engines 22 of motor vehicles . The portion of the excise tax that 23 is based on the statewide average retail price shall 24 be computed by the department and adjusted annually on 25 January 1 by calculating five percent of the statewide 26 average retail price of a gallon of special fuel for 27 diesel engines of motor vehicles, exclusive of federal 28 and state excise taxes, for the twelve-month period 29 beginning October 1 and ending September 30 immediately 30 preceding the calendar year in which the adjusted tax 31 rate will take effect, rounded to the nearest tenth of 32 a cent. 33 (b) The department shall adopt rules prescribing 34 the process for computing the portion of the excise tax 35 that is based on the statewide average retail price of 36 a gallon of special fuel for diesel engines of motor 37 vehicles. 38 (2) The rate of tax on special fuel for aircraft is 39 three cents per gallon. 40 (3) On all other special fuel, unless otherwise 41 specified in this section , the per gallon rate is 42 the same as the motor fuel tax on nonethanol blended 43 gasoline . 44 b. Indelible dye meeting United States 45 environmental protection agency and internal revenue 46 service regulations must be added to fuel before or 47 upon withdrawal at a terminal or refinery rack for that 48 fuel to be exempt from tax and the dyed fuel may be 49 used only for an exempt purpose. 50 -2- SF2355.4187 (1) 85 dea/nh 2/ 4

Sec. ___. Section 452A.3, Code 2014, is amended by 1 adding the following new subsection: 2 NEW SUBSECTION . 6A. By December 15 of each year, 3 the director shall cause an advisory notice to be 4 published in the Iowa administrative bulletin and 5 in a newspaper of general circulation in this state, 6 stating the rate of excise taxes established pursuant 7 to subsection 1A and subsection 3, paragraph “a” , 8 subparagraph (1), both as enacted in this Act, that 9 will take effect the following January 1. 10 Sec. ___. Section 452A.3, subsection 4, as amended 11 by 2014 Iowa Acts, Senate File 2338, section 3, is 12 amended to read as follows: 13 4. For compressed natural gas used as a special 14 fuel, the rate of the excise tax is twenty-one cents 15 per gallon the rate imposed for nonethanol blended 16 gasoline under subsection 1A, paragraph “c” . 17 Sec. ___. Section 452A.3, subsection 4A, as enacted 18 by 2014 Iowa Acts, Senate File 2338, section 4, is 19 amended to read as follows: 20 4A. For liquefied natural gas used as a special 21 fuel, the rate of the excise tax is twenty-two and 22 one-half cents per gallon the rate imposed for special 23 fuel for diesel engines of motor vehicles under 24 subsection 3, paragraph “a” , subparagraph (1) . 25 Sec. ___. 2005 Iowa Acts, chapter 178, section 41, 26 subsection 3, is amended to read as follows: 27 3. REPEAL. This section is repealed effective July 28 1, 2015 2025 . 29 Sec. ___. APPLICABILITY —— INVENTORY TAX. 30 Notwithstanding section 452A.85, persons who have title 31 to motor fuel, ethanol blended gasoline, undyed special 32 fuel, compressed natural gas, liquefied natural gas, or 33 liquefied petroleum gas in storage and held for sale on 34 the effective date of an increase in the rate of excise 35 tax imposed on motor fuel, ethanol blended gasoline, 36 undyed special fuel, compressed natural gas, liquefied 37 natural gas, or liquefied petroleum gas pursuant to 38 this Act shall not be subject to an inventory tax on 39 the gallonage in storage as provided in section 452A.85 40 as a result of any tax increase due to implementation 41 of this Act. 42 Sec. ___. EFFECTIVE DATE. 43 1. Except as provided in subsection 2, this 44 division of this Act, being deemed of immediate 45 importance, takes effect upon enactment. 46 2. The following sections of this division of this 47 Act take effect January 1, 2015: 48 a. The section amending section 452A.3, subsection 49 3. 50 -3- SF2355.4187 (1) 85 dea/nh 3/ 4

b. The section amending section 452A.3, subsection 1 4, as amended by 2014 Acts, Senate File 2338, section 2 3. 3 c. The section amending section 452A.3, subsection 4 4A, as enacted by 2014 Acts, Senate File 2338, section 5 4. 6 d. The section relating to the applicability of the 7 inventory tax. > 8 2. Title page, line 2, after < transportation, > by 9 inserting < providing for certain road funding and motor 10 fuel excise taxes, > 11 3. By renumbering as necessary. 12 ______________________________ BYRNES of Mitchell -4- SF2355.4187 (1) 85 dea/nh 4/ 4 #2. #3.