Senate File 146
SENATE FILE
BY KIBBIE, COURTNEY, KREIMAN,
RAGAN, FRAISE, STEWART,
and BEALL
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the sale of gasoline, including ethanol
2 blended gasoline, providing for taxes on gasoline, and
3 providing for an effective date and applicability.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1375XS 80
6 da/pj/5
PAG LIN
1 1 Section 1. Section 214A.1, Code 2003, is amended to read
1 2 as follows:
1 3 214A.1 DEFINITIONS.
1 4 The following definitions shall apply to the various terms
1 5 used in this chapter:
1 6 1. "A.S.T.M." means the American society for testing and
1 7 materials.
1 8 2. "Motor vehicle fuel" means a substance or combination
1 9 of substances which is intended to be or is capable of being
1 10 used for the purpose of propelling or running by combustion
1 11 any internal combustion engine and is kept for sale or sold
1 12 for that purpose. The products commonly known as kerosene and
1 13 distillate or petroleum products of lower gravity (Baume
1 14 scale), when not used to propel a motor vehicle or for
1 15 compounding or combining with a motor vehicle fuel, are exempt
1 16 from this chapter except as provided in section 214A.2A.
1 17 2. "Ethanol blended gasoline" means gasoline containing at
1 18 least ten percent alcohol distilled from cereal grains.
1 19 3. "Motor vehicle" means a self=propelled vehicle that
1 20 operates using gasoline, including but not limited to any of
1 21 the following:
1 22 a. An automobile as defined in section 321.1.
1 23 b. A motor truck as defined in section 321.1.
1 24 c. A motor bus as used in section 452A.57.
1 25 d. A motorcycle as defined in section 321.1.
1 26 e. Watercraft as defined in section 462A.2.
1 27 f. An off=road vehicle which is a snowmobile or an all=
1 28 terrain vehicle as defined in section 321G.1.
1 29 4. "Motor vehicle fuel" means the same as defined in
1 30 section 214.1.
1 31 5. "Motor vehicle fuel pump" or "pump" means a stationary
1 32 pump located at a service station which is used for measuring
1 33 and dispensing motor vehicle fuel and which is required to be
1 34 licensed by the department pursuant to chapter 214.
1 35 3. 6. "Motor vehicle fuel storage tank" means an
2 1 aboveground or belowground container that is a fixture, used
2 2 to keep an accumulation of motor vehicle fuel.
2 3 4. 7. "MTBE" means methyl tertiary butyl ether.
2 4 5. 8. "Oxygenate octane enhancer" means oxygen=containing
2 5 compounds, including but not limited to alcohols, ethers, or
2 6 ethanol.
2 7 6. 9. "Retail dealer" shall mean and include any person,
2 8 firm, partnership, association, or corporation who operates,
2 9 maintains, or conducts, either in person, or by any agent,
2 10 employee, or servant, any place of business, filling station,
2 11 pump station, or tank wagon, from which any motor vehicle
2 12 fuel, as defined herein, is sold or offered for sale, at
2 13 retail, or to the final or ultimate consumer. means a person
2 14 who operates, maintains, or conducts a service station, either
2 15 in person, or by any agent or an employee.
2 16 7. 10. "Sell" means to sell or to offer for sale.
2 17 11. "Service station" means the location of a for=profit
2 18 or nonprofit business in this state where motor vehicle fuel
2 19 is sold or offered for sale on a retail basis.
2 20 8. 12. "Wholesale dealer" shall mean and include any
2 21 person, firm, partnership, association, or corporation, other
2 22 than retail dealers as defined in subsection 3 of this
2 23 section, who sells, keeps, or holds, for sale, or purchase for
2 24 the purpose of sale within this state, any means a person,
2 25 other than a retail dealer, who provides motor vehicle fuel
2 26 for sale within this state.
2 27 Sec. 2. Section 214A.2, subsection 1, Code 2003, is
2 28 amended to read as follows:
2 29 1. a. The secretary department shall adopt rules pursuant
2 30 to chapter 17A for carrying out this chapter. The rules may
2 31 include, but are not limited to, specifications relating to
2 32 motor vehicle fuel or oxygenate octane enhancers, including
2 33 ethanol blended gasoline.
2 34 b. In the interest of uniformity, the secretary department
2 35 shall adopt by reference or otherwise specifications relating
3 1 to tests and standards for motor vehicle fuel or oxygenate
3 2 octane enhancers,. The specifications shall be based on those
3 3 established by the American society for testing and materials
3 4 (A.S.T.M.), unless the secretary department determines those
3 5 specifications are inconsistent with this chapter or are not
3 6 appropriate to the conditions which exist in this state.
3 7 Sec. 3. Section 214A.2, subsection 3, Code 2003, is
3 8 amended to read as follows:
3 9 3. a. Gasoline with a mixture of less than ten percent
3 10 ethanol shall be known as high=emission gasoline.
3 11 b. Gasoline with a mixture of ten percent or more ethanol,
3 12 but not more than thirteen percent, shall be known as
3 13 conventional blend ethanol.
3 14 b. c. Gasoline with a mixture of more than thirteen
3 15 percent ethanol, but not more than twenty=five percent
3 16 ethanol, shall be known as high blend ethanol. For purposes
3 17 of chapters 323A, 422, and 452A, high blend ethanol shall be
3 18 treated as conventional blend ethanol.
3 19 c. d. Gasoline shall not contain with a mixture of eighty=
3 20 five percent or more than twenty=five percent ethanol shall be
3 21 known as E=85 ethanol blended gasoline.
3 22 Sec. 4. Section 214A.2A, Code 2003, is amended to read as
3 23 follows:
3 24 214A.2A KEROSENE LABELING AND LOW GRAVITY PETROLEUM.
3 25 1. Fuel which is sold or is kept, offered, or exposed for
3 26 sale as kerosene shall be labeled as kerosene. The label
3 27 shall include the word "kerosene" and a designation as either
3 28 "K1" or "K2", and shall indicate that the kerosene is in
3 29 compliance with the standard specification adopted by the
3 30 A.S.T.M. in specification D=3699 (1982).
3 31 2. Kerosene and distillate or petroleum products of lower
3 32 gravity according to the Baume scale, when not used to propel
3 33 a motor vehicle or compounded or combined with a motor vehicle
3 34 fuel, are exempt from this chapter.
3 35 Sec. 5. Section 214A.16, Code 2003, is amended to read as
4 1 follows:
4 2 214A.16 NOTICE TO PUBLIC OF BLENDED FUEL == DECAL TYPES OF
4 3 MOTOR VEHICLE FUEL SOLD AT A PUMP.
4 4 1. If motor vehicle fuel containing a renewable fuel is
4 5 sold from a motor vehicle fuel pump, the pump shall have
4 6 affixed a decal identifying the name of the renewable fuel.
4 7 The decal may be different based on the type of renewable fuel
4 8 used. The design and location of the decal shall be
4 9 prescribed by rules adopted by the department. A decal
4 10 identifying a renewable fuel shall be consistent with
4 11 standards adopted pursuant to section 159A.6. The department
4 12 may approve an application to place a decal in a special
4 13 location on a pump or container or use a decal with special
4 14 lettering or colors, if the decal appears clear and
4 15 conspicuous to the consumer. The application shall be made in
4 16 writing pursuant to procedures adopted by the department.
4 17 2. If high=emission gasoline is sold from a motor vehicle
4 18 fuel pump, the pump shall have affixed a label. The label
4 19 shall identify the gasoline as high=emission gasoline and
4 20 provide notice that its use is restricted under this chapter.
4 21 The design and location of the decal shall be prescribed by
4 22 rules adopted by the department.
4 23 Sec. 6. NEW SECTION. 214A.18A PROHIBITION == HIGH=
4 24 EMISSION GASOLINE.
4 25 1. Except as provided in this section, a retail dealer
4 26 shall not sell high=emission gasoline, as described in section
4 27 214A.2, in this state.
4 28 2. This section shall not apply to a retail dealer that
4 29 sells gasoline used to operate any of the following:
4 30 a. An aircraft as defined in section 328.1.
4 31 b. A motor vehicle used exclusively for motor sports,
4 32 including on a raceway, if the motor vehicle cannot operate on
4 33 a highway as provided in chapter 321 or rules adopted by the
4 34 state department of transportation.
4 35 c. A motor vehicle operated by using diesel fuel.
5 1 3. A retail dealer may sell high=emission gasoline if all
5 2 of the following apply:
5 3 a. The high=emission gasoline is premium grade unleaded
5 4 gasoline as provided in section 214A.2.
5 5 b. The high=emission gasoline is sold exclusively for the
5 6 operation of one of the following:
5 7 (1) A motorcycle as defined in section 321.1.
5 8 (2) An antique vehicle registered under section 321.115.
5 9 (3) A snowmobile as defined in section 321G.1.
5 10 (4) An all=terrain vehicle as defined in section 321G.1.
5 11 (5) Watercraft as defined in section 462A.2.
5 12 (6) A small motor vehicle such as a lawnmower.
5 13 c. The retail dealer's service station does not use more
5 14 than one motor vehicle fuel pump to sell high=emission
5 15 gasoline at any one time.
5 16 Sec. 7. Section 422.11C, Code 2003, is amended to read as
5 17 follows:
5 18 422.11C ETHANOL BLENDED E=85 GASOLINE TAX CREDIT.
5 19 1. As used in this section, unless the context otherwise
5 20 requires:
5 21 a. "Ethanol blended gasoline" means the same as defined in
5 22 section 452A.2. "E=85 ethanol blended gasoline" means E=85
5 23 ethanol blended gasoline that meets the specifications
5 24 required by the department of agriculture and land stewardship
5 25 pursuant to section 214A.2 and that is dispensed through a
5 26 motor vehicle fuel pump.
5 27 b. "Gasoline" means gasoline that meets the specifications
5 28 required by the department of agriculture and land stewardship
5 29 pursuant to section 214A.2 and that is dispensed through a
5 30 metered motor vehicle fuel pump.
5 31 c. "Metered pump" means a motor vehicle fuel pump licensed
5 32 by the department of agriculture and land stewardship pursuant
5 33 to chapter 214 "Motor vehicle fuel pump", "retail dealer",
5 34 "sell", and "service station" mean the same as defined in
5 35 section 214A.1.
6 1 d. "Retail dealer" means a retail dealer as defined in
6 2 section 214A.1 who operates a metered pump at a service
6 3 station.
6 4 e. "Sell" means to sell on a retail basis.
6 5 f. "Service station" means each geographic location in
6 6 this state where a retail dealer sells and dispenses gasoline
6 7 on a retail basis.
6 8 g. d. "Tax credit" means the designated ethanol blended E=
6 9 85 gasoline tax credit as provided in this section.
6 10 2. The taxes imposed under this division, less the credits
6 11 allowed under sections 422.12 and 422.12B, shall be reduced by
6 12 an ethanol blended E=85 gasoline tax credit for each tax year
6 13 that the taxpayer is eligible to claim the tax credit under
6 14 this section. In order to be eligible, all of the following
6 15 must apply:
6 16 a. The taxpayer is a retail dealer.
6 17 b. The taxpayer who operates at least one or more service
6 18 station stations at which more than sixty percent of the total
6 19 gallons of E=85 ethanol blended gasoline is sold and dispensed
6 20 through one or more metered motor vehicle fuel pumps by the
6 21 taxpayer located at the service stations in the tax year is
6 22 ethanol blended gasoline.
6 23 c. b. The taxpayer complies with requirements of the
6 24 department required to administer this section.
6 25 3. a. The tax credit shall be calculated separately for
6 26 each service station site operated by the taxpayer. The
6 27 amount of the E=85 ethanol blended gasoline tax credit for
6 28 each eligible service station is two and one=half ten cents
6 29 multiplied by the total number of gallons of ethanol blended
6 30 E=85 ethanol blended gasoline sold and dispensed through all
6 31 metered motor vehicle fuel pumps located at that service
6 32 station operated at each of the taxpayer's service stations
6 33 during the tax year in excess of sixty percent of all gasoline
6 34 sold and dispensed through metered pumps at that service
6 35 station during the tax year.
7 1 4. b. Any credit in excess of the taxpayer's tax liability
7 2 shall be refunded. In lieu of claiming a refund, the taxpayer
7 3 may elect to have the overpayment shown on the taxpayer's
7 4 final, completed return and credited to the tax liability for
7 5 the following tax year.
7 6 5. 4. An individual may claim the E=85 ethanol blended
7 7 gasoline tax credit allowed a partnership, limited liability
7 8 company, S corporation, estate, or trust electing to have the
7 9 income taxed directly to the individual. The amount of the
7 10 tax credit claimed by the individual shall be based upon the
7 11 pro rata share of the individual's earnings of a partnership,
7 12 limited liability company, S corporation, estate, or trust.
7 13 Sec. 8. Section 422.33, subsection 11, Code 2003, is
7 14 amended to read as follows:
7 15 11. a. As used in this subsection, unless the context
7 16 otherwise requires:
7 17 (1) "Ethanol blended gasoline", "gasoline", "metered
7 18 "Gasoline" and "E=85 ethanol blended gasoline" mean the same
7 19 as defined in section 422.11C.
7 20 (2) "Motor vehicle fuel pump", "retail dealer", "sell",
7 21 and "service station" mean the same as defined in section
7 22 422.11C 214A.1.
7 23 (2) (3) "Tax credit" means the designated E=85 ethanol
7 24 blended gasoline tax credit as provided in this subsection.
7 25 b. The taxes imposed under this division shall be reduced
7 26 by an E=85 ethanol blended gasoline tax credit for each tax
7 27 year that the taxpayer is eligible to claim the tax credit
7 28 under this subsection. In order to be eligible, all of the
7 29 following must apply:
7 30 (1) The taxpayer is a retail dealer.
7 31 (2) The taxpayer who operates at least one or more service
7 32 station stations at which more than sixty percent of the total
7 33 gallons of E=85 ethanol blended gasoline is sold and dispensed
7 34 through one or more metered motor vehicle fuel pumps by the
7 35 taxpayer is ethanol blended gasoline located at the service
8 1 stations in the tax year.
8 2 (3) (2) The taxpayer complies with requirements of the
8 3 department required to administer this subsection.
8 4 c. The tax credit shall be calculated separately for each
8 5 service station site operated by the taxpayer. The amount of
8 6 the tax credit for each eligible service station is two and
8 7 one=half ten cents multiplied by the total number of gallons
8 8 of ethanol blended E=85 ethanol blended gasoline sold and
8 9 dispensed through all metered motor vehicle fuel pumps located
8 10 operated at that each of the taxpayer's service station
8 11 stations during the tax year in excess of sixty percent of all
8 12 gasoline sold and dispensed through metered pumps at that
8 13 service station during the tax year.
8 14 d. Any credit in excess of the taxpayer's tax liability
8 15 shall be refunded. In lieu of claiming a refund, the taxpayer
8 16 may elect to have the overpayment shown on the taxpayer's
8 17 final, completed return and credited to the tax liability for
8 18 the following tax year.
8 19 Sec. 9. Section 452A.3, subsections 1 through 4, Code
8 20 2003, are amended to read as follows:
8 21 452A.3 LEVY OF EXCISE TAX.
8 22 1. Except as otherwise provided in this section and in
8 23 this division, until June 30, 2007, this subsection shall
8 24 apply to the excise tax imposed on each gallon of motor fuel
8 25 used for any purpose for the privilege of operating motor
8 26 vehicles in this state.
8 27 a. The rate of the excise tax shall be based on the number
8 28 of gallons of ethanol blended gasoline that is distributed in
8 29 this state as expressed as a percentage of the number of
8 30 gallons of motor fuel distributed in this state, which is
8 31 referred to as the distribution percentage. The department
8 32 shall determine the percentage basis for each determination
8 33 period beginning January 1 and ending December 31. The rate
8 34 for the excise tax shall apply for the period beginning July 1
8 35 and ending June 30 following the end of the determination
9 1 period.
9 2 b. The rate for the excise tax shall be as follows:
9 3 (1) If the distribution percentage is not greater than
9 4 fifty percent, the rate shall be nineteen cents for ethanol
9 5 blended gasoline and twenty cents for motor fuel other than
9 6 ethanol blended gasoline.
9 7 (2) If the distribution percentage is greater than fifty
9 8 percent but not greater than fifty=five percent, the rate
9 9 shall be nineteen cents for ethanol blended gasoline and
9 10 twenty and one=tenth cents for motor fuel other than ethanol
9 11 blended gasoline.
9 12 (3) If the distribution percentage is greater than fifty=
9 13 five percent but not greater than sixty percent, the rate
9 14 shall be nineteen cents for ethanol blended gasoline and
9 15 twenty and three=tenths cents for motor fuel other than
9 16 ethanol blended gasoline.
9 17 (4) If the distribution percentage is greater than sixty
9 18 percent but not greater than sixty=five percent, the rate
9 19 shall be nineteen cents for ethanol blended gasoline and
9 20 twenty and five=tenths cents for motor fuel other than ethanol
9 21 blended gasoline.
9 22 (5) If the distribution percentage is greater than sixty=
9 23 five percent but not greater than seventy percent, the rate
9 24 shall be nineteen cents for ethanol blended gasoline and
9 25 twenty and seven=tenths cents for motor fuel other than
9 26 ethanol blended gasoline.
9 27 (6) If the distribution percentage is greater than seventy
9 28 percent but not greater than seventy=five percent, the rate
9 29 shall be nineteen cents for ethanol blended gasoline and
9 30 twenty=one cents for motor fuel other than ethanol blended
9 31 gasoline.
9 32 (7) If the distribution percentage is greater than
9 33 seventy=five percent but not greater than eighty percent, the
9 34 rate shall be nineteen and three=tenths cents for ethanol
9 35 blended gasoline and twenty and eight=tenths cents for motor
10 1 fuel other than ethanol blended gasoline.
10 2 (8) If the distribution percentage is greater than eighty
10 3 percent but not greater than eighty=five percent, the rate
10 4 shall be nineteen and five=tenths cents for ethanol blended
10 5 gasoline and twenty and seven=tenths cents for motor fuel
10 6 other than ethanol blended gasoline.
10 7 (9) If the distribution percentage is greater than eighty=
10 8 five percent but not greater than ninety percent, the rate
10 9 shall be nineteen and seven=tenths cents for ethanol blended
10 10 gasoline and twenty and four=tenths cents for motor fuel other
10 11 than ethanol blended gasoline.
10 12 (10) If the distribution percentage is greater than ninety
10 13 percent but not greater than ninety=five percent, the rate
10 14 shall be nineteen and nine=tenths cents for ethanol blended
10 15 gasoline and twenty and one=tenth cents for motor fuel other
10 16 than ethanol blended gasoline.
10 17 (11) If the distribution percentage is greater than
10 18 ninety=five percent, the rate shall be twenty cents for
10 19 ethanol blended gasoline and twenty cents for motor fuel other
10 20 than ethanol blended gasoline.
10 21 1A. 1. Except as otherwise provided in this section and in
10 22 this division, after June 30, 2007, an excise tax of twenty
10 23 cents is imposed on each gallon of motor fuel used for any
10 24 purpose for the privilege of operating motor vehicles in this
10 25 state. However, special rates shall be imposed as follows:
10 26 a. Until June 30, 2010, for the operation of motor
10 27 vehicles in this state, no excise tax is imposed on the use of
10 28 E=85 ethanol blended gasoline.
10 29 b. For the operation of motor vehicles in this state, an
10 30 excise tax of thirty cents per gallon is imposed on the use of
10 31 high=emission gasoline as provided in section 214A.2.
10 32 2. c. For the privilege of operating operation of aircraft
10 33 in this state an excise tax of eight cents per gallon is
10 34 imposed on the use of all aviation gasoline.
10 35 3. d. For the privilege of operating operation of motor
11 1 vehicles or aircraft in this state, there is imposed an excise
11 2 tax on the use of special fuel in a motor vehicle or aircraft.
11 3 The tax rate on special fuel for diesel engines of motor
11 4 vehicles is twenty=two and one=half cents per gallon. The
11 5 rate of tax on special fuel for aircraft is three cents per
11 6 gallon. On all other special fuel, unless otherwise specified
11 7 in this section, the per gallon rate is the same as the motor
11 8 fuel tax. Indelible dye meeting United States environmental
11 9 protection agency and internal revenue service regulations
11 10 must be added to fuel before or upon withdrawal at a terminal
11 11 or refinery rack for that fuel to be exempt from tax and the
11 12 dyed fuel may be used only for an exempt purpose.
11 13 3A. e. For liquefied petroleum gas used as a special fuel,
11 14 the rate of tax shall be twenty cents per gallon.
11 15 4. f. For compressed natural gas used as a special fuel,
11 16 the rate of tax that is equivalent to the motor fuel tax shall
11 17 be sixteen cents per hundred cubic feet adjusted to a base
11 18 temperature of sixty degrees Fahrenheit and a pressure of
11 19 fourteen and seventy=three hundredths pounds per square inch
11 20 absolute.
11 21 Sec. 10. EFFECTIVE AND APPLICABILITY DATES.
11 22 1. a. Except as provided in subsection 2, this Act takes
11 23 effect on January 1, 2004.
11 24 b. The provisions of this Act amending sections 422.11C
11 25 and 422.3, to the extent those provisions make changes in the
11 26 amounts and methods of assessing and administering the ethanol
11 27 blended or E=85 gasoline tax credits, take effect July 1,
11 28 2003, and apply to tax years beginning on or after January 1,
11 29 2003.
11 30 2. The department of agriculture and land stewardship and
11 31 the department of revenue and finance shall perform functions
11 32 prior to the effective date of this Act that are necessary in
11 33 order to implement this Act.
11 34 EXPLANATION
11 35 BACKGROUND. In 2001 the general assembly enacted House
12 1 File 716 (2001 Iowa Acts, chapter 123) which promoted the
12 2 production and consumption of ethanol. That Act created
12 3 provisions providing a tax credit for retail dealers of
12 4 gasoline who sell ethanol blended gasoline (motor fuel
12 5 containing at least 10 percent alcohol). The tax credit
12 6 applies to both taxpayers filing as individuals under Code
12 7 section 422.11C and businesses under Code section 422.33.
12 8 Specifically, the Act provided a tax credit for a retail
12 9 dealer who operates at least one service station at which more
12 10 than 60 percent of the total gallons of gasoline sold by the
12 11 retail dealer is ethanol blended gasoline. The Act also
12 12 amended provisions in Code section 452A.3 that provide for an
12 13 excise tax on each gallon of motor fuel sold in the state.
12 14 Under the Act, until June 30, 2007, the rates for unblended
12 15 and blended motor fuel are adjusted each year based on the
12 16 number of gallons of ethanol blended gasoline that are
12 17 distributed in this state as expressed as a percentage of the
12 18 total number of gallons of motor fuel distributed in this
12 19 state.
12 20 ETHANOL REQUIREMENTS. This bill amends Code chapter 214A
12 21 which provides authority to the department of agriculture and
12 22 land stewardship to regulate the sale of motor vehicle fuel.
12 23 The bill amends Code section 214A.2 which provides for
12 24 different types of gasoline by providing that gasoline with a
12 25 mixture of less than 10 percent ethanol is to be known as
12 26 high=emission gasoline. The bill eliminates a prohibition
12 27 against selling gasoline with a mixture of more than 85
12 28 percent ethanol and provides that gasoline with a mixture of
12 29 85 percent or more ethanol is known as E=85 ethanol blended
12 30 gasoline. The bill prohibits retail dealers of gasoline from
12 31 selling high=emission gasoline, and provides a number of
12 32 exceptions. The prohibition does not apply to gasoline used
12 33 to operate aircraft, motor vehicles involved exclusively in
12 34 motor sports events, or motor vehicles operating using diesel
12 35 fuel. The requirement also does not apply to selling gasoline
13 1 for use in certain vehicles such as antique vehicles,
13 2 snowmobiles, all=terrain vehicles, watercraft, and small motor
13 3 vehicles. The bill also provides that all high=emission
13 4 gasoline must be premium grade unleaded gasoline. The bill
13 5 prohibits a retail dealer from using more than one pump to
13 6 dispense such gasoline, and the pump must be labeled notifying
13 7 the public of its restricted use. Code section 214A.11
13 8 provides that any person violating the provisions of Code
13 9 chapter 214A is guilty of a simple misdemeanor. A simple
13 10 misdemeanor is punishable by confinement for no more than 30
13 11 days or a fine of at least $50, but not more than $500, or by
13 12 both.
13 13 TAXES. The bill amends the tax credit provisions in Code
13 14 sections 422.11C and 422.33 to provide that a retail dealer
13 15 who sells E=85 ethanol blended gasoline is eligible to receive
13 16 a tax credit. The amount of the tax credit is 10 cents
13 17 multiplied by the total number of gallons of E=85 ethanol
13 18 blended gasoline sold and dispensed through all motor vehicle
13 19 fuel pumps operated at each of the taxpayer's service stations
13 20 during the tax year.
13 21 The bill also amends provisions in Code section 452A.3 that
13 22 provide for an adjustable excise tax on gallons of gasoline
13 23 sold in the state based on ethanol blended gasoline purchased
13 24 in this state. The bill eliminates that formula and
13 25 establishes a general rate of 20 cents per gallon. The bill
13 26 creates two exceptions. Until June 30, 2010, no excise tax is
13 27 imposed on the use of E=85 ethanol blended gasoline. An
13 28 excise tax of 30 cents per gallon is imposed on the use of
13 29 high=emission gasoline.
13 30 EFFECTIVE DATE AND APPLICABILITY. The bill takes effect on
13 31 January 1, 2004, and the tax credit provisions apply to tax
13 32 years beginning on or after January 1, 2004.
13 33 LSB 1375XS 80
13 34 da/pj/5.1