House File 855 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON AGRICULTURE

                                       (SUCCESSOR TO HSB 245)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for excise taxes imposed on the sale of motor
  2    fuel containing ethanol blended gasoline.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2805HV 82
  5 da/je/5

PAG LIN



  1  1    Section 1.  Section 452A.3, subsection 1, unnumbered
  1  2 paragraph 1, Code 2007, is amended to read as follows:
  1  3    Except as otherwise provided in this section and in this
  1  4 division, until June 30, 2007 2012, this subsection shall
  1  5 apply to the excise tax imposed on each gallon of motor fuel
  1  6 used for any purpose for the privilege of operating motor
  1  7 vehicles in this state.
  1  8    Sec. 2.  Section 452A.3, subsection 1A, Code 2007, is
  1  9 amended to read as follows:
  1 10    1A.  Except as otherwise provided in this section and in
  1 11 this division, after June 30, 2007 2012, an excise tax of
  1 12 twenty cents is imposed on each gallon of motor fuel used for
  1 13 any purpose for the privilege of operating motor vehicles in
  1 14 this state.
  1 15                           EXPLANATION
  1 16    This bill amends provisions in Code section 452A.3 that
  1 17 provide for an excise tax on each gallon of "motor fuel"
  1 18 (i.e., gasoline) sold in the state.  Until June 30, 2007, the
  1 19 rates for unblended and blended motor fuel are adjusted each
  1 20 year based on the number of gallons of ethanol blended
  1 21 gasoline that are distributed in this state expressed as a
  1 22 percentage of the total number of gallons of motor fuel
  1 23 distributed in this state.  The department of revenue must
  1 24 determine the percentage basis.  The rates are set based on
  1 25 that determination effective for 12 months beginning on the
  1 26 following July 1.  Under the formula, the general rate for
  1 27 nonblended motor fuel fluctuates between 20 and 21 cents and
  1 28 the special rate for ethanol blended gasoline fluctuates
  1 29 between 19 and 20 cents.  After June 30, 2007, the tax rate
  1 30 reverts to a flat 20 cents for motor fuel regardless of the
  1 31 ethanol blend.
  1 32    The bill extends the June 30, 2007, expiration date and
  1 33 flat rate of 20 cents that would have become effective after
  1 34 that date, making the formula effective until June 30, 2012.
  1 35 LSB 2805HV 82
  2  1 da:nh/je/5