Senate File 2340 - Introduced SENATE FILE 2340 BY GRONSTAL (COMPANION TO LSB 6117HH BY UPMEYER) A BILL FOR An Act extending the period for determining the rates of the 1 motor fuel tax based on calculating the distribution of 2 ethanol blended gasoline and other motor fuel, and including 3 effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6117SS (1) 84 da/rj
S.F. 2340 Section 1. Section 452A.3, subsection 1, unnumbered 1 paragraph 1, Code 2011, is amended to read as follows: 2 Except as otherwise provided in this section and in this 3 division , until June 30, 2012 2013 , this subsection shall apply 4 to the excise tax imposed on each gallon of motor fuel used for 5 any purpose for the privilege of operating motor vehicles in 6 this state. 7 Sec. 2. Section 452A.3, subsection 1A, Code 2011, is amended 8 to read as follows: 9 1A. Except as otherwise provided in this section and in this 10 division , after June 30, 2012 2013 , an excise tax of twenty 11 cents is imposed on each gallon of motor fuel used for any 12 purpose for the privilege of operating motor vehicles in this 13 state. 14 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 15 immediate importance, takes effect upon enactment. 16 EXPLANATION 17 Currently, an excise tax is imposed on each gallon of motor 18 fuel (generally gasoline) sold in the state (Code section 19 452A.3). The general tax rate is 20 cents per gallon, but 20 subject to adjustment each 12-month period, based on a formula 21 which produces a paired rate system for ethanol blended 22 gasoline and other motor fuel. The paired rate system is 23 eliminated on July 1, 2012. After that date, the tax rate is 24 uniformly imposed at 20 cents for each gallon of motor fuel. 25 This bill extends the paired rate system for another year 26 (until July 1, 2013). The bill takes effect upon enactment. 27 -1- LSB 6117SS (1) 84 da/rj 1/ 1