Senate File 128 - Introduced
SENATE FILE
BY KIBBIE
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to and increasing the excise tax on motor fuel
2 and certain special fuel and allocating a portion of the
3 increased revenues to the TIME=21 fund.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2019XS 83
6 dea/mg:sc/24
PAG LIN
1 1 Section 1. Section 312.2, Code 2009, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 21. a. The treasurer of state, before
1 4 making the allotments provided for in this section, shall
1 5 credit monthly from the road use tax fund to the TIME=21 fund
1 6 created in section 312A.2 the revenue accruing to the road use
1 7 tax fund from the excise tax on motor fuel and special fuel in
1 8 an amount equal to the revenues collected as follows:
1 9 (1) The amount of excise tax collected under section
1 10 452A.3, subsections 1, 1A, 1B, subsection 3, paragraphs "a",
1 11 "b", and "d", and subsection 3A, from five cents per gallon.
1 12 (2) The amount of excise tax collected under section
1 13 452A.3, subsection 4, from five cents per hundred cubic feet.
1 14 b. This subsection is repealed June 30, 2028.
1 15 Sec. 2. Section 452A.2, Code 2009, is amended by adding
1 16 the following new subsection:
1 17 NEW SUBSECTION. 3A. "Biodiesel fuel" means the same as
1 18 defined in section 214A.1.
1 19 Sec. 3. Section 452A.3, subsection 1, paragraph b, Code
1 20 2009, is amended to read as follows:
1 21 b. The rate for the excise tax shall be as follows:
1 22 (1) If the distribution percentage is not greater than
1 23 fifty percent, the rate shall be nineteen twenty=eight cents
1 24 for ethanol blended gasoline and twenty twenty=nine cents for
1 25 motor fuel other than ethanol blended gasoline.
1 26 (2) If the distribution percentage is greater than fifty
1 27 percent but not greater than fifty=five percent, the rate
1 28 shall be nineteen twenty=eight cents for ethanol blended
1 29 gasoline and twenty twenty=nine and one=tenth cents for motor
1 30 fuel other than ethanol blended gasoline.
1 31 (3) If the distribution percentage is greater than
1 32 fifty=five percent but not greater than sixty percent, the
1 33 rate shall be nineteen twenty=eight cents for ethanol blended
1 34 gasoline and twenty twenty=nine and three=tenths cents for
1 35 motor fuel other than ethanol blended gasoline.
2 1 (4) If the distribution percentage is greater than sixty
2 2 percent but not greater than sixty=five percent, the rate
2 3 shall be nineteen twenty=eight cents for ethanol blended
2 4 gasoline and twenty twenty=nine and five=tenths cents for
2 5 motor fuel other than ethanol blended gasoline.
2 6 (5) If the distribution percentage is greater than
2 7 sixty=five percent but not greater than seventy percent, the
2 8 rate shall be nineteen twenty=eight cents for ethanol blended
2 9 gasoline and twenty twenty=nine and seven=tenths cents for
2 10 motor fuel other than ethanol blended gasoline.
2 11 (6) If the distribution percentage is greater than seventy
2 12 percent but not greater than seventy=five percent, the rate
2 13 shall be nineteen twenty=eight cents for ethanol blended
2 14 gasoline and twenty=one thirty cents for motor fuel other than
2 15 ethanol blended gasoline.
2 16 (7) If the distribution percentage is greater than
2 17 seventy=five percent but not greater than eighty percent, the
2 18 rate shall be nineteen twenty=eight and three=tenths cents for
2 19 ethanol blended gasoline and twenty twenty=nine and
2 20 eight=tenths cents for motor fuel other than ethanol blended
2 21 gasoline.
2 22 (8) If the distribution percentage is greater than eighty
2 23 percent but not greater than eighty=five percent, the rate
2 24 shall be nineteen twenty=eight and five=tenths cents for
2 25 ethanol blended gasoline and twenty twenty=nine and
2 26 seven=tenths cents for motor fuel other than ethanol blended
2 27 gasoline.
2 28 (9) If the distribution percentage is greater than
2 29 eighty=five percent but not greater than ninety percent, the
2 30 rate shall be nineteen twenty=eight and seven=tenths cents for
2 31 ethanol blended gasoline and twenty twenty=nine and
2 32 four=tenths cents for motor fuel other than ethanol blended
2 33 gasoline.
2 34 (10) If the distribution percentage is greater than ninety
2 35 percent but not greater than ninety=five percent, the rate
3 1 shall be nineteen twenty=eight and nine=tenths cents for
3 2 ethanol blended gasoline and twenty twenty=nine and one=tenth
3 3 cents for motor fuel other than ethanol blended gasoline.
3 4 (11) If the distribution percentage is greater than
3 5 ninety=five percent, the rate shall be twenty twenty=nine
3 6 cents for ethanol blended gasoline and twenty twenty=nine
3 7 cents for motor fuel other than ethanol blended gasoline.
3 8 Sec. 4. Section 452A.3, subsections 1A, 1B, 1C, 3, 3A, and
3 9 4, Code 2009, are amended to read as follows:
3 10 1A. Except as otherwise provided in this section and in
3 11 this division, after June 30, 2012, an excise tax of twenty
3 12 twenty=nine cents is imposed on each gallon of motor fuel used
3 13 for any purpose for the privilege of operating motor vehicles
3 14 in this state.
3 15 1B. a. An excise tax of seventeen twenty=six cents is
3 16 imposed on each gallon of E=85 gasoline as defined in section
3 17 214A.1, subject to the determination provided in subsection 1C
3 18 paragraph "b".
3 19 1C. b. The rate of the excise tax on E=85 gasoline
3 20 imposed in subsection 1B paragraph "a" shall be determined
3 21 based on the number of gallons of E=85 gasoline that are
3 22 distributed in this state during the previous calendar year.
3 23 The department shall determine the actual tax paid for E=85
3 24 gasoline for each period beginning January 1 and ending
3 25 December 31. The amount of the tax paid on E=85 gasoline
3 26 during the past calendar year shall be compared to the amount
3 27 of tax on E=85 gasoline that would have been paid using the
3 28 tax rate for gasoline imposed in subsection 1 or 1A and a
3 29 difference shall be established. If this difference is equal
3 30 to or greater than twenty=five thousand dollars, the tax rate
3 31 for E=85 gasoline for the period beginning July 1 following
3 32 the end of the determination period shall be the rate in
3 33 effect as stated in subsection 1 or 1A.
3 34 3. For the privilege of operating motor vehicles or
3 35 aircraft in this state, there is imposed an excise tax on the
4 1 use of special fuel in a motor vehicle or aircraft. The tax
4 2 rate on special fuel for diesel engines of motor vehicles is
4 3 twenty=two and one=half cents per gallon.
4 4 a. Except as otherwise provided in this section and in
4 5 this division, until June 30, 2012, this paragraph shall apply
4 6 to the excise tax imposed on each gallon of special fuel for
4 7 diesel engines of motor vehicles used for any purpose for the
4 8 privilege of operating motor vehicles in this state. The rate
4 9 of the excise tax shall be based on the number of gallons of
4 10 biodiesel fuel that is distributed in this state as expressed
4 11 as a percentage of the number of gallons of special fuel for
4 12 diesel engines of motor vehicles distributed in this state,
4 13 which is referred to as the distribution percentage. The
4 14 department shall determine the percentage basis for each
4 15 determination period beginning January 1 and ending December
4 16 31. The rate for the excise tax shall apply for the period
4 17 beginning July 1 and ending June 30 following the end of the
4 18 determination period. The rate for the excise tax shall be as
4 19 follows:
4 20 (1) If the distribution percentage is not greater than
4 21 fifty percent, the rate shall be thirty and five=tenths cents
4 22 for biodiesel fuel and thirty=one and five=tenths cents for
4 23 diesel fuel other than biodiesel fuel.
4 24 (2) If the distribution percentage is greater than fifty
4 25 percent but not greater than fifty=five percent, the rate
4 26 shall be thirty and five=tenths cents for biodiesel fuel and
4 27 thirty=one and six=tenths cents for diesel fuel other than
4 28 biodiesel fuel.
4 29 (3) If the distribution percentage is greater than
4 30 fifty=five percent but not greater than sixty percent, the
4 31 rate shall be thirty and five=tenths cents for biodiesel fuel
4 32 and thirty=one and eight=tenths cents for diesel fuel other
4 33 than biodiesel fuel.
4 34 (4) If the distribution percentage is greater than sixty
4 35 percent but not greater than sixty=five percent, the rate
5 1 shall be thirty and five=tenths cents for biodiesel fuel and
5 2 thirty=two cents for diesel fuel other than biodiesel fuel.
5 3 (5) If the distribution percentage is greater than
5 4 sixty=five percent but not greater than seventy percent, the
5 5 rate shall be thirty and five=tenths cents for biodiesel fuel
5 6 and thirty=two and two=tenths cents for diesel fuel other than
5 7 biodiesel fuel.
5 8 (6) If the distribution percentage is greater than seventy
5 9 percent but not greater than seventy=five percent, the rate
5 10 shall be thirty and five=tenths cents for biodiesel fuel and
5 11 thirty=two and five=tenths cents for diesel fuel other than
5 12 biodiesel fuel.
5 13 (7) If the distribution percentage is greater than
5 14 seventy=five percent but not greater than eighty percent, the
5 15 rate shall be thirty and eight=tenths cents for biodiesel fuel
5 16 and thirty=two and three=tenths cents for diesel fuel other
5 17 than biodiesel fuel.
5 18 (8) If the distribution percentage is greater than eighty
5 19 percent but not greater than eighty=five percent, the rate
5 20 shall be thirty=one cents for biodiesel fuel and thirty=two
5 21 and two=tenths cents for diesel fuel other than biodiesel
5 22 fuel.
5 23 (9) If the distribution percentage is greater than
5 24 eighty=five percent but not greater than ninety percent, the
5 25 rate shall be thirty=one and two=tenths cents for biodiesel
5 26 fuel and thirty=one and nine=tenths cents for diesel fuel
5 27 other than biodiesel fuel.
5 28 (10) If the distribution percentage is greater than ninety
5 29 percent but not greater than ninety=five percent, the rate
5 30 shall be thirty=one and four=tenths cents for biodiesel fuel
5 31 and thirty=one and six=tenths cents for diesel fuel other than
5 32 biodiesel fuel.
5 33 (11) If the distribution percentage is greater than
5 34 ninety=five percent, the rate shall be thirty=one and
5 35 five=tenths cents for biodiesel fuel and thirty=one and
6 1 five=tenths cents for diesel fuel other than biodiesel fuel.
6 2 b. Except as otherwise provided in this section and in
6 3 this division, after June 30, 2012, an excise tax of
6 4 thirty=one and five=tenths cents is imposed on each gallon of
6 5 special fuel for diesel engines of motor vehicles used for any
6 6 purpose for the privilege of operating motor vehicles in this
6 7 state.
6 8 c. The rate of tax on special fuel for aircraft is three
6 9 cents per gallon.
6 10 d. On all other special fuel not covered under paragraph
6 11 "a", "b", or "c", unless otherwise specified in this section,
6 12 the per gallon rate is the same as the motor fuel tax.
6 13 e. Indelible dye meeting United States environmental
6 14 protection agency and internal revenue service regulations
6 15 must be added to fuel before or upon withdrawal at a terminal
6 16 or refinery rack for that fuel to be exempt from tax and the
6 17 dyed fuel may be used only for an exempt purpose.
6 18 3A. For liquefied petroleum gas used as a special fuel,
6 19 the rate of tax shall be twenty twenty-nine cents per gallon.
6 20 4. For compressed natural gas used as a special fuel, the
6 21 rate of tax that is equivalent to the motor fuel tax shall be
6 22 sixteen twenty=five cents per hundred cubic feet adjusted to a
6 23 base temperature of sixty degrees Fahrenheit and a pressure of
6 24 fourteen and seventy=three hundredths pounds per square inch
6 25 absolute.
6 26 EXPLANATION
6 27 This bill increases the excise tax on motor fuel by 9 cents
6 28 per gallon beginning July 1, 2009. The increase applies to
6 29 gasoline, ethanol blended gasoline, and E=85 gasoline. The
6 30 differential in the tax rate between ethanol and other motor
6 31 fuel is not affected under the bill.
6 32 The bill also increases the excise tax on special fuel for
6 33 diesel engines of motor vehicles and establishes a
6 34 differential between the tax rate on biodiesel fuel and diesel
6 35 fuel other than biodiesel fuel based on the distribution
7 1 percentage of biodiesel fuel. Under the distribution
7 2 percentage formula, which mirrors the formula for ethanol
7 3 blended gasoline and nonblended gasoline, the tax rates for
7 4 biodiesel fuel and diesel fuel other than biodiesel fuel are
7 5 as follows:
7 6 DISTRIBUTION BIODIESEL RATE NONBIODIESEL RATE
7 7 PERCENTAGE
7 8 50 percent or less 30.5 cents 31.5 cents
7 9 50-55 percent 30.5 cents 31.6 cents
7 10 55-60 percent 30.5 cents 31.8 cents
7 11 60-65 percent 30.5 cents 32.0 cents
7 12 65-70 percent 30.5 cents 32.2 cents
7 13 70-75 percent 30.5 cents 32.5 cents
7 14 75-80 percent 30.8 cents 32.3 cents
7 15 80-85 percent 31.0 cents 32.2 cents
7 16 85-90 percent 31.2 cents 31.9 cents
7 17 90-95 percent 31.4 cents 31.6 cents
7 18 greater than 95 31.5 cents 31.5 cents
7 19 percent
7 20 The distribution formula applies through June 30, 2012.
7 21 After that date, the tax rate for all special fuel for diesel
7 22 engines of motor vehicles is 31.5 cents.
7 23 The bill also raises the excise tax on liquefied petroleum
7 24 gas used as a special fuel by 9 cents per gallon and the tax
7 25 on compressed natural gas by 9 cents per cubic foot.
7 26 All excise taxes on motor vehicle fuel are to be used for
7 27 road purposes as required under the Iowa Constitution. The
7 28 bill directs the treasurer of state to credit monthly from the
7 29 road use tax fund to the TIME=21 fund an amount equal to 5
7 30 cents per gallon of the tax collected on motor fuel and
7 31 special fuel other than aviation gasoline and special fuel for
7 32 aircraft. The provision crediting that portion of increased
7 33 motor fuel tax revenues to the TIME=21 fund is repealed, and
7 34 the revenues will revert to the road use tax fund, on June 30,
7 35 2028. Pursuant to current law, the TIME=21 fund is scheduled
8 1 to be dissolved on that date.
8 2 The marine fuel tax fund, which receives a small percentage
8 3 of motor fuel tax revenues attributable to fuel used in
8 4 watercraft, is also impacted by the bill.
8 5 LSB 2019XS 83
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