House Study Bill 237 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) 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 2531YC (2) 85 da/rj

H.F. _____ Section 1. Section 452A.3, subsection 1, unnumbered 1 paragraph 1, Code 2013, is amended to read as follows: 2 Except as otherwise provided in this section and in this 3 division , until June 30, 2013 2014 , 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 2013, is amended 8 to read as follows: 9 1A. Except as otherwise provided in this section and in this 10 division , after June 30, 2013 2014 , 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 last date of the paired 23 rate system is June 30, 2013. 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 with its last date being June 30, 2014. 27 The bill takes effect upon enactment. 28 -1- LSB 2531YC (2) 85 da/rj 1/ 1