HSB 237 (LSB 2531YC (2) 85)

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 motor fuel tax based on calculating the distribution of ethanol blended gasoline and other motor fuel, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 452A.3, subsection 1, unnumbered paragraph 1, Code 2013, is amended to read as follows:
   Except as otherwise provided in this section and in this division, until June 30, 2013
 
2014, this subsection shall apply to the excise tax imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state.
    Sec. 2.  Section 452A.3, subsection 1A, Code 2013, is amended to read as follows:
   1A.  Except as otherwise provided in this section and in this division, after June 30, 2013
 
2014, an excise tax of twenty cents is imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in this state.
    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   Currently, an excise tax is imposed on each gallon of motor fuel (generally gasoline) sold in the state (Code section 452A.3). The general tax rate is 20 cents per gallon, but subject to adjustment each 12-month period, based on a formula which produces a paired rate system for ethanol blended gasoline and other motor fuel. The last date of the paired rate system is June 30, 2013. After that date, the tax rate is uniformly imposed at 20 cents for each gallon of motor fuel.
   This bill extends the paired rate system for another year with its last date being June 30, 2014.
   The bill takes effect upon enactment.