Senate File 266
SENATE FILE
BY LARSON
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to ethanol blended gasoline tax credits, and
2 providing for its retroactive applicability, refunds, and an
3 effective date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. 2001 Iowa Acts, chapter 123, section 6,
1 2 subsection 2, is amended to read as follows:
1 3 2. The ethanol blended gasoline tax credits provided in
1 4 sections 422.11C and 422.33 apply to tax years beginning on or
1 5 after January 1, 2002. Notwithstanding the provisions in
1 6 those sections limiting the tax credits to taxpayers' tax
1 7 years, the amount of the initial tax credit under these
1 8 sections for each eligible service station shall be based on
1 9 the total number of gallons of ethanol blended gasoline sold
1 10 and dispensed through all metered pumps located at the
1 11 taxpayer's service station from January 1, 2002, until the
1 12 beginning of the taxpayer's next fiscal year. The department
1 13 of revenue and finance shall perform functions, prior to the
1 14 beginning of that tax year, necessary in order to implement
1 15 the tax credits.
1 16 Sec. 2. REFUNDS. Refunds of taxes, interest, or penalties
1 17 which arise from claims resulting from the enactment of 2001
1 18 Iowa Acts, chapter 123, section 6, subsection 2, as amended in
1 19 this Act, for sales of ethanol blended gasoline occurring
1 20 between January 1, 2002, and the effective date of this Act,
1 21 shall be limited to one hundred thousand dollars in the
1 22 aggregate and shall not be allowed unless refund claims are
1 23 filed prior to October 1, 2003, notwithstanding any other
1 24 provision of law. If the amount of claims totals more than
1 25 one hundred thousand dollars in the aggregate, the department
1 26 of revenue and finance shall prorate the one hundred thousand
1 27 dollars among all claimants in relation to the amounts of the
1 28 claimants' valid claims.
1 29 Sec. 3. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
1 30 PROVISION. This Act, being deemed of immediate importance,
1 31 takes effect upon enactment and applies retroactively to
1 32 January 1, 2002.
1 33 EXPLANATION
1 34 BACKGROUND. In 2001 the general assembly enacted House
1 35 File 716, which promoted the production and consumption of
2 1 ethanol. In part the bill provided a tax credit for retail
2 2 dealers of gasoline who sell ethanol blended gasoline (motor
2 3 fuel containing at least 10 percent alcohol). The tax credit
2 4 applies to both taxpayers filing as individuals under new Code
2 5 section 422.11C and businesses under Code section 422.33.
2 6 Specifically, it provides a tax credit for a retail dealer who
2 7 operates at least one service station at which more than 60
2 8 percent of the total gallons of gasoline sold by the retail
2 9 dealer is ethanol blended gasoline.
2 10 PROVISIONS OF THE BILL. The bill changes when a retail
2 11 dealer may claim the tax credit. Under House File 716, the
2 12 date is tied to the beginning of the retail dealer's tax year,
2 13 but it must begin on or after January 1, 2002. The bill
2 14 allows a retail dealer whose tax year began after January 1,
2 15 2002, to be eligible for a tax credit in the period beginning
2 16 January 1, 2002, and ending just before the retail dealer's
2 17 next tax year begins. It also provides a refund of taxes
2 18 which arise from claims resulting from the enactment of the
2 19 bill.
2 20 The bill takes effect upon enactment.
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