S-5132

   Amend House File 2444, as passed by the House, as follows:
   1.  Page 1, after line 30 by inserting: 
   <Sec. ___.  Section 452A.3, subsection 1, unnumbered paragraph 1, Code 2014, is amended to read as follows:

   Except as otherwise provided in this section and in this division, until June 30 December 31, 2014, this subsection shall apply to the excise tax imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state.
   Sec. ___.  Section 452A.3, subsection 1A, Code 2014, is amended by striking the subsection and inserting in lieu thereof the following:
   1A.  a.  Except as otherwise provided in this section and in this division, beginning January 1, 2015, this subsection shall apply to the excise taxes imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state.
   b.  An excise tax is imposed on each gallon of ethanol blended gasoline in an amount equal to the sum of sixteen cents per gallon plus five percent of the statewide average retail price of a gallon of ethanol blended gasoline. The portion of the excise tax that is based on the statewide average retail price shall be computed by the department and adjusted annually on January 1 by calculating five percent of the statewide average retail price of a gallon of ethanol blended gasoline, exclusive of federal excise taxes and the sixteen-cent per gallon portion of the state excise tax, for the twelve-month period beginning October 1 and ending September 30 immediately preceding the calendar year in which the adjusted tax rate will take effect.
   c.  An excise tax is imposed on each gallon of nonethanol blended gasoline in an amount equal to the sum of sixteen cents per gallon plus five percent of the statewide average retail price of a gallon of nonethanol blended gasoline. The portion of the excise tax that is based on the statewide average retail price shall be computed by the department and adjusted annually on January 1 by calculating five percent of the statewide average retail price of a gallon of nonethanol blended gasoline, exclusive of federal excise taxes and the sixteen-cent per gallon portion of the state excise tax, for the twelve-month period beginning October 1 and ending September 30 immediately preceding the calendar year in which the adjusted tax rate will take effect.
   d.  The department shall adopt rules prescribing the process for computing the portion of the excise tax under paragraph “b” that is based on the statewide average retail price of a gallon of ethanol blended gasoline and the portion of the excise tax under paragraph “c” that is based on the statewide average retail price of a gallon of nonethanol blended gasoline.
   Sec. ___.  Section 452A.3, subsections 1B and 1C, Code 2014, are amended by striking the subsections.
   Sec. ___.  Section 452A.3, subsection 3, Code 2014, is amended to read as follows:
   3.  a.  For the privilege of operating motor vehicles or aircraft in this state, there is imposed an excise tax on the use of special fuel in a motor vehicle or aircraft.
   (1)  (a)  The tax Beginning January 1, 2015, the rate of the excise tax on special fuel for diesel engines of motor vehicles is twenty-two and one-half an amount equal to the sum of eighteen cents per gallon plus five percent of the statewide average retail price of a gallon of special fuel for diesel engines of motor vehicles.  The portion of the excise tax that is based on the statewide average retail price shall be computed by the department and adjusted annually on January 1 by calculating five percent of the statewide average retail price of a gallon of special fuel for diesel engines of motor vehicles, exclusive of federal excise taxes and the eighteen-cent per gallon portion of the state excise tax, for the twelve-month period beginning October 1 and ending September 30 immediately preceding the calendar year in which the adjusted tax rate will take effect.
   (b)  The department shall adopt rules prescribing the process for computing the portion of the excise tax that is based on the statewide average retail price of a gallon of special fuel for diesel engines of motor vehicles.
   (2)  The rate of tax on special fuel for aircraft is three cents per gallon.
   (3)  On all other special fuel, unless otherwise specified in this section, the per gallon rate is the same as the motor fuel tax on nonethanol blended gasoline.
   b.  Indelible dye meeting United States environmental protection agency and internal revenue service regulations must be added to fuel before or upon withdrawal at a terminal or refinery rack for that fuel to be exempt from tax and the dyed fuel may be used only for an exempt purpose.
   Sec. ___.  Section 452A.3, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  By December 15 of each year, the director shall cause an advisory notice to be published in the Iowa administrative bulletin and in a newspaper of general circulation in this state, stating the rate of excise taxes established pursuant to subsection 1A and subsection 3, paragraph “a”, subparagraph (1), that will take effect the following January 1.
   Sec. ___.  Section 452A.3, subsection 4, as amended by 2014 Iowa Acts, Senate File 2338, section 3, is amended to read as follows:
   4.  For compressed natural gas used as a special fuel, the rate of the excise tax is twenty-one cents per gallon the rate imposed for nonethanol blended gasoline under subsection 1A, paragraph “c”.
   Sec. ___.  Section 452A.3, subsection 4A, as enacted by 2014 Iowa Acts, Senate File 2338, section 4, is amended to read as follows:
   4A.  For liquefied natural gas used as a special fuel, the rate of the excise tax is twenty-two and one-half cents per gallon the rate imposed for special fuel for diesel engines of motor vehicles under subsection 3, paragraph “a”, subparagraph (1).>
   2.  Page 2, after line 25 by inserting: 
   <Sec. ___.  2005 Iowa Acts, chapter 178, section 41, subsection 3, is amended to read as follows:
   3.  REPEAL.  This section is repealed effective July 1, 2015 2025.
   Sec. ___.  APPLICABILITY —— INVENTORY TAX.  Notwithstanding section 452A.85, persons who have title to motor fuel, ethanol blended gasoline, undyed special fuel, compressed natural gas, liquefied natural gas, or liquefied petroleum gas in storage and held for sale on the effective date of an increase in the rate of excise tax imposed on motor fuel, ethanol blended gasoline, undyed special fuel, compressed natural gas, liquefied natural gas, or liquefied petroleum gas pursuant to this Act shall not be subject to an inventory tax on the gallonage in storage as provided in section 452A.85 as a result of any tax increase due to implementation of this division of this Act.
   Sec. ___.  EFFECTIVE DATES.
   1.  Except as provided in subsection 2, this division of this Act takes effect January 1, 2015.
   2.  The section of this division of this Act amending section 452A.64 takes effect July 1, 2014.>
   3.  Title page, line 5, before <retroactive> by inserting <effective date and>
   4.  By renumbering as necessary.

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TIM L. KAPUCIAN