House File 2444 S-5132 Amend House File 2444, as passed by the House, as 1 follows: 2 1. Page 1, after line 30 by inserting: 3 < Sec. ___. Section 452A.3, subsection 1, unnumbered 4 paragraph 1, Code 2014, is amended to read as follows: 5 Except as otherwise provided in this section and in 6 this division , until June 30 December 31 , 2014, this 7 subsection shall apply to the excise tax imposed on 8 each gallon of motor fuel used for any purpose for the 9 privilege of operating motor vehicles in this state. 10 Sec. ___. Section 452A.3, subsection 1A, Code 2014, 11 is amended by striking the subsection and inserting in 12 lieu thereof the following: 13 1A. a. Except as otherwise provided in this 14 section and in this division, beginning January 1, 15 2015, this subsection shall apply to the excise taxes 16 imposed on each gallon of motor fuel used for any 17 purpose for the privilege of operating motor vehicles 18 in this state. 19 b. An excise tax is imposed on each gallon of 20 ethanol blended gasoline in an amount equal to the sum 21 of sixteen cents per gallon plus five percent of the 22 statewide average retail price of a gallon of ethanol 23 blended gasoline. The portion of the excise tax that 24 is based on the statewide average retail price shall 25 be computed by the department and adjusted annually on 26 January 1 by calculating five percent of the statewide 27 average retail price of a gallon of ethanol blended 28 gasoline, exclusive of federal excise taxes and the 29 sixteen-cent per gallon portion of the state excise 30 tax, for the twelve-month period beginning October 31 1 and ending September 30 immediately preceding the 32 calendar year in which the adjusted tax rate will take 33 effect. 34 c. An excise tax is imposed on each gallon of 35 nonethanol blended gasoline in an amount equal to the 36 sum of sixteen cents per gallon plus five percent of 37 the statewide average retail price of a gallon of 38 nonethanol blended gasoline. The portion of the excise 39 tax that is based on the statewide average retail 40 price shall be computed by the department and adjusted 41 annually on January 1 by calculating five percent of 42 the statewide average retail price of a gallon of 43 nonethanol blended gasoline, exclusive of federal 44 excise taxes and the sixteen-cent per gallon portion 45 of the state excise tax, 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. 49 d. The department shall adopt rules prescribing 50 -1- HF2444.3846 (2) 85 mm/sc 1/ 4 #1.

the process for computing the portion of the excise 1 tax under paragraph “b” that is based on the statewide 2 average retail price of a gallon of ethanol blended 3 gasoline and the portion of the excise tax under 4 paragraph “c” that is based on the statewide average 5 retail price of a gallon of nonethanol blended 6 gasoline. 7 Sec. ___. Section 452A.3, subsections 1B and 1C, 8 Code 2014, are amended by striking the subsections. 9 Sec. ___. Section 452A.3, subsection 3, Code 2014, 10 is amended to read as follows: 11 3. a. For the privilege of operating motor 12 vehicles or aircraft in this state, there is imposed 13 an excise tax on the use of special fuel in a motor 14 vehicle or aircraft. 15 (1) (a) The tax Beginning January 1, 2015, the 16 rate of the excise tax on special fuel for diesel 17 engines of motor vehicles is twenty-two and one-half an 18 amount equal to the sum of eighteen cents per gallon 19 plus five percent of the statewide average retail price 20 of a gallon of special fuel for diesel engines of motor 21 vehicles . The portion of the excise tax that is based 22 on the statewide average retail price shall be computed 23 by the department and adjusted annually on January 1 24 by calculating five percent of the statewide average 25 retail price of a gallon of special fuel for diesel 26 engines of motor vehicles, exclusive of federal excise 27 taxes and the eighteen-cent per gallon portion of the 28 state excise tax, for the twelve-month period beginning 29 October 1 and ending September 30 immediately preceding 30 the calendar year in which the adjusted tax rate will 31 take effect. 32 (b) The department shall adopt rules prescribing 33 the process for computing the portion of the excise tax 34 that is based on the statewide average retail price of 35 a gallon of special fuel for diesel engines of motor 36 vehicles. 37 (2) The rate of tax on special fuel for aircraft is 38 three cents per gallon. 39 (3) On all other special fuel, unless otherwise 40 specified in this section , the per gallon rate is 41 the same as the motor fuel tax on nonethanol blended 42 gasoline . 43 b. Indelible dye meeting United States 44 environmental protection agency and internal revenue 45 service regulations must be added to fuel before or 46 upon withdrawal at a terminal or refinery rack for that 47 fuel to be exempt from tax and the dyed fuel may be 48 used only for an exempt purpose. 49 Sec. ___. Section 452A.3, Code 2014, is amended by 50 -2- HF2444.3846 (2) 85 mm/sc 2/ 4

adding the following new subsection: 1 NEW SUBSECTION . 6A. By December 15 of each year, 2 the director shall cause an advisory notice to be 3 published in the Iowa administrative bulletin and 4 in a newspaper of general circulation in this state, 5 stating the rate of excise taxes established pursuant 6 to subsection 1A and subsection 3, paragraph “a” , 7 subparagraph (1), that will take effect the following 8 January 1. 9 Sec. ___. Section 452A.3, subsection 4, as amended 10 by 2014 Iowa Acts, Senate File 2338, section 3, is 11 amended to read as follows: 12 4. For compressed natural gas used as a special 13 fuel, the rate of the excise tax is twenty-one cents 14 per gallon the rate imposed for nonethanol blended 15 gasoline under subsection 1A, paragraph “c” . 16 Sec. ___. Section 452A.3, subsection 4A, as enacted 17 by 2014 Iowa Acts, Senate File 2338, section 4, is 18 amended to read as follows: 19 4A. For liquefied natural gas used as a special 20 fuel, the rate of the excise tax is twenty-two and 21 one-half cents per gallon the rate imposed for special 22 fuel for diesel engines of motor vehicles under 23 subsection 3, paragraph “a” , subparagraph (1) . > 24 2. Page 2, after line 25 by inserting: 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 30 TAX. Notwithstanding section 452A.85, persons who have 31 title to motor fuel, ethanol blended gasoline, undyed 32 special fuel, compressed natural gas, liquefied natural 33 gas, or liquefied petroleum gas in storage and held for 34 sale on the effective date of an increase in the rate 35 of excise tax imposed on motor fuel, ethanol blended 36 gasoline, undyed special fuel, compressed natural 37 gas, liquefied natural gas, or liquefied petroleum 38 gas pursuant to this Act shall not be subject to an 39 inventory tax on the gallonage in storage as provided 40 in section 452A.85 as a result of any tax increase due 41 to implementation of this division of this Act. 42 Sec. ___. EFFECTIVE DATES. 43 1. Except as provided in subsection 2, this 44 division of this Act takes effect January 1, 2015. 45 2. The section of this division of this Act 46 amending section 452A.64 takes effect July 1, 2014. > 47 3. Title page, line 5, before < retroactive > by 48 inserting < effective date and > 49 4. By renumbering as necessary. 50 -3- HF2444.3846 (2) 85 mm/sc 3/ 4 #2. #3.