House
Study
Bill
514

Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
TRANSPORTATION
BILL
BY
CHAIRPERSON
BYRNES)
A
BILL
FOR
An
Act
increasing
the
rate
of
the
excise
taxes
on
motor
1
fuel
and
certain
special
fuel
used
in
motor
vehicles
2
and
providing
for
the
use
of
revenues
resulting
from
the
3
increase.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5606YC
(4)
85
dea/sc
H.F.
_____
Section
1.
Section
312.2,
Code
2014,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
18.
a.
The
treasurer
of
state,
before
3
making
the
allotments
provided
for
in
this
section,
shall
4
credit
monthly
from
the
road
use
tax
fund
to
the
TIME21
fund
5
created
in
section
312A.2
the
revenue
accruing
to
the
road
use
6
tax
fund
from
the
excise
tax
on
motor
fuel
and
special
fuel
for
7
diesel
engines
of
motor
vehicles
in
the
amount
equal
to
the
8
revenues
collected
as
follows:
9
(1)
For
the
period
beginning
July
1,
2014,
and
ending
June
10
30,
2015,
the
following
amounts:
11
(a)
The
amount
of
excise
tax
collected
under
section
452A.3,
12
subsection
1,
paragraph
“b”
,
from
three
cents
per
gallon.
13
(b)
The
amount
of
excise
tax
collected
under
section
452A.3,
14
subsection
3,
paragraph
“b”
,
subparagraph
(1),
from
three
cents
15
per
gallon.
16
(2)
For
the
period
beginning
July
1,
2015,
and
ending
June
17
30,
2016,
the
following
amounts:
18
(a)
The
amount
of
excise
tax
collected
under
section
452A.3,
19
subsection
1,
paragraph
“c”
,
from
six
cents
per
gallon.
20
(b)
The
amount
of
excise
tax
collected
under
section
452A.3,
21
subsection
3,
paragraph
“b”
,
subparagraph
(2),
from
six
cents
22
per
gallon.
23
(3)
Beginning
July
1,
2016,
the
following
amounts:
24
(a)
The
amount
of
excise
tax
collected
under
section
452A.3,
25
subsection
1,
paragraph
“d”
,
or,
after
June
30,
2024,
under
26
section
452A.3,
subsection
1A,
from
ten
cents
per
gallon.
27
(b)
The
amount
of
excise
tax
collected
under
section
452A.3,
28
subsection
3,
paragraph
“b”
,
subparagraph
(3),
from
ten
cents
29
per
gallon.
30
b.
This
subsection
is
repealed
June
30,
2028.
31
Sec.
2.
Section
452A.3,
subsections
1
and
1A,
Code
2014,
are
32
amended
to
read
as
follows:
33
1.
Except
as
otherwise
provided
in
this
section
and
in
this
34
division
,
until
June
30,
2014
2024
,
this
subsection
shall
apply
35
1
LSB
5606YC
(4)
85
dea/sc
1/
9
H.F.
_____
to
the
excise
tax
imposed
on
each
gallon
of
motor
fuel
used
for
1
any
purpose
for
the
privilege
of
operating
motor
vehicles
in
2
this
state.
3
a.
The
rate
of
the
excise
tax
shall
be
based
on
the
number
4
of
gallons
of
ethanol
blended
gasoline
that
is
distributed
5
in
this
state
as
expressed
as
a
percentage
of
the
number
of
6
gallons
of
motor
fuel
distributed
in
this
state,
which
is
7
referred
to
as
the
distribution
percentage.
For
purposes
of
8
this
subsection
,
only
ethanol
blended
gasoline
and
nonblended
9
gasoline,
not
including
aviation
gasoline,
shall
be
used
in
10
determining
the
percentage
basis
for
the
excise
tax.
The
11
department
shall
determine
the
percentage
basis
for
each
12
determination
period
beginning
January
1
and
ending
December
13
31.
The
rate
for
the
excise
tax
shall
apply
for
the
period
14
beginning
July
1
and
ending
June
30
following
the
end
of
the
15
determination
period.
16
b.
The
For
the
period
beginning
July
1,
2014,
and
ending
17
June
30,
2015,
the
rate
for
the
excise
tax
shall
be
as
follows:
18
(1)
If
the
distribution
percentage
is
not
greater
than
19
fifty
percent,
the
rate
shall
be
nineteen
twentytwo
cents
for
20
ethanol
blended
gasoline
and
twenty
twentythree
cents
for
21
motor
fuel
other
than
ethanol
blended
gasoline.
22
(2)
If
the
distribution
percentage
is
greater
than
fifty
23
percent
but
not
greater
than
fiftyfive
percent,
the
rate
shall
24
be
nineteen
twentytwo
cents
for
ethanol
blended
gasoline
and
25
twenty
twentythree
and
onetenth
cents
for
motor
fuel
other
26
than
ethanol
blended
gasoline.
27
(3)
If
the
distribution
percentage
is
greater
than
28
fiftyfive
percent
but
not
greater
than
sixty
percent,
the
rate
29
shall
be
nineteen
twentytwo
cents
for
ethanol
blended
gasoline
30
and
twenty
twentythree
and
threetenths
cents
for
motor
fuel
31
other
than
ethanol
blended
gasoline.
32
(4)
If
the
distribution
percentage
is
greater
than
sixty
33
percent
but
not
greater
than
sixtyfive
percent,
the
rate
shall
34
be
nineteen
twentytwo
cents
for
ethanol
blended
gasoline
and
35
2
LSB
5606YC
(4)
85
dea/sc
2/
9
H.F.
_____
twenty
twentythree
and
fivetenths
cents
for
motor
fuel
other
1
than
ethanol
blended
gasoline.
2
(5)
If
the
distribution
percentage
is
greater
than
3
sixtyfive
percent
but
not
greater
than
seventy
percent,
the
4
rate
shall
be
nineteen
twentytwo
cents
for
ethanol
blended
5
gasoline
and
twenty
twentythree
and
seventenths
cents
for
6
motor
fuel
other
than
ethanol
blended
gasoline.
7
(6)
If
the
distribution
percentage
is
greater
than
seventy
8
percent
but
not
greater
than
seventyfive
percent,
the
rate
9
shall
be
nineteen
twentytwo
cents
for
ethanol
blended
gasoline
10
and
twentyone
twentyfour
cents
for
motor
fuel
other
than
11
ethanol
blended
gasoline.
12
(7)
If
the
distribution
percentage
is
greater
than
13
seventyfive
percent
but
not
greater
than
eighty
percent,
14
the
rate
shall
be
nineteen
twentytwo
and
threetenths
cents
15
for
ethanol
blended
gasoline
and
twenty
twentythree
and
16
eighttenths
cents
for
motor
fuel
other
than
ethanol
blended
17
gasoline.
18
(8)
If
the
distribution
percentage
is
greater
than
eighty
19
percent
but
not
greater
than
eightyfive
percent,
the
rate
20
shall
be
nineteen
twentytwo
and
fivetenths
cents
for
ethanol
21
blended
gasoline
and
twenty
twentythree
and
seventenths
cents
22
for
motor
fuel
other
than
ethanol
blended
gasoline.
23
(9)
If
the
distribution
percentage
is
greater
than
24
eightyfive
percent
but
not
greater
than
ninety
percent,
the
25
rate
shall
be
nineteen
twentytwo
and
seventenths
cents
26
for
ethanol
blended
gasoline
and
twenty
twentythree
and
27
fourtenths
cents
for
motor
fuel
other
than
ethanol
blended
28
gasoline.
29
(10)
If
the
distribution
percentage
is
greater
than
ninety
30
percent
but
not
greater
than
ninetyfive
percent,
the
rate
31
shall
be
nineteen
twentytwo
and
ninetenths
cents
for
ethanol
32
blended
gasoline
and
twenty
twentythree
and
onetenth
cents
33
for
motor
fuel
other
than
ethanol
blended
gasoline.
34
(11)
If
the
distribution
percentage
is
greater
than
35
3
LSB
5606YC
(4)
85
dea/sc
3/
9
H.F.
_____
ninetyfive
percent,
the
rate
shall
be
twenty
twentythree
1
cents
for
ethanol
blended
gasoline
and
twenty
twentythree
2
cents
for
motor
fuel
other
than
ethanol
blended
gasoline.
3
c.
For
the
period
beginning
July
1,
2015,
and
ending
June
4
30,
2016,
the
rate
for
the
excise
tax
shall
be
as
follows:
5
(1)
If
the
distribution
percentage
is
not
greater
than
6
fifty
percent,
the
rate
shall
be
twentyfive
cents
for
ethanol
7
blended
gasoline
and
twentysix
cents
for
motor
fuel
other
than
8
ethanol
blended
gasoline.
9
(2)
If
the
distribution
percentage
is
greater
than
fifty
10
percent
but
not
greater
than
fiftyfive
percent,
the
rate
11
shall
be
twentyfive
cents
for
ethanol
blended
gasoline
and
12
twentysix
and
onetenth
cents
for
motor
fuel
other
than
13
ethanol
blended
gasoline.
14
(3)
If
the
distribution
percentage
is
greater
than
15
fiftyfive
percent
but
not
greater
than
sixty
percent,
the
rate
16
shall
be
twentyfive
cents
for
ethanol
blended
gasoline
and
17
twentysix
and
threetenths
cents
for
motor
fuel
other
than
18
ethanol
blended
gasoline.
19
(4)
If
the
distribution
percentage
is
greater
than
sixty
20
percent
but
not
greater
than
sixtyfive
percent,
the
rate
21
shall
be
twentyfive
cents
for
ethanol
blended
gasoline
and
22
twentysix
and
fivetenths
cents
for
motor
fuel
other
than
23
ethanol
blended
gasoline.
24
(5)
If
the
distribution
percentage
is
greater
than
25
sixtyfive
percent
but
not
greater
than
seventy
percent,
the
26
rate
shall
be
twentyfive
cents
for
ethanol
blended
gasoline
27
and
twentysix
and
seventenths
cents
for
motor
fuel
other
than
28
ethanol
blended
gasoline.
29
(6)
If
the
distribution
percentage
is
greater
than
seventy
30
percent
but
not
greater
than
seventyfive
percent,
the
rate
31
shall
be
twentyfive
cents
for
ethanol
blended
gasoline
and
32
twentyseven
cents
for
motor
fuel
other
than
ethanol
blended
33
gasoline.
34
(7)
If
the
distribution
percentage
is
greater
than
35
4
LSB
5606YC
(4)
85
dea/sc
4/
9
H.F.
_____
seventyfive
percent
but
not
greater
than
eighty
percent,
the
1
rate
shall
be
twentyfive
and
threetenths
cents
for
ethanol
2
blended
gasoline
and
twentysix
and
eighttenths
cents
for
3
motor
fuel
other
than
ethanol
blended
gasoline.
4
(8)
If
the
distribution
percentage
is
greater
than
eighty
5
percent
but
not
greater
than
eightyfive
percent,
the
rate
6
shall
be
twentyfive
and
fivetenths
cents
for
ethanol
blended
7
gasoline
and
twentysix
and
seventenths
cents
for
motor
fuel
8
other
than
ethanol
blended
gasoline.
9
(9)
If
the
distribution
percentage
is
greater
than
10
eightyfive
percent
but
not
greater
than
ninety
percent,
the
11
rate
shall
be
twentyfive
and
seventenths
cents
for
ethanol
12
blended
gasoline
and
twentysix
and
fourtenths
cents
for
motor
13
fuel
other
than
ethanol
blended
gasoline.
14
(10)
If
the
distribution
percentage
is
greater
than
ninety
15
percent
but
not
greater
than
ninetyfive
percent,
the
rate
16
shall
be
twentyfive
and
ninetenths
cents
for
ethanol
blended
17
gasoline
and
twentysix
and
onetenth
cents
for
motor
fuel
18
other
than
ethanol
blended
gasoline.
19
(11)
If
the
distribution
percentage
is
greater
than
20
ninetyfive
percent,
the
rate
shall
be
twentysix
cents
for
21
ethanol
blended
gasoline
and
twentysix
cents
for
motor
fuel
22
other
than
ethanol
blended
gasoline.
23
d.
For
the
period
beginning
July
1,
2016,
and
ending
June
24
30,
2024,
the
rate
for
the
excise
tax
shall
be
as
follows:
25
(1)
If
the
distribution
percentage
is
not
greater
than
26
fifty
percent,
the
rate
shall
be
twentynine
cents
for
ethanol
27
blended
gasoline
and
thirty
cents
for
motor
fuel
other
than
28
ethanol
blended
gasoline.
29
(2)
If
the
distribution
percentage
is
greater
than
fifty
30
percent
but
not
greater
than
fiftyfive
percent,
the
rate
shall
31
be
twentynine
cents
for
ethanol
blended
gasoline
and
thirty
32
and
onetenth
cents
for
motor
fuel
other
than
ethanol
blended
33
gasoline.
34
(3)
If
the
distribution
percentage
is
greater
than
35
5
LSB
5606YC
(4)
85
dea/sc
5/
9
H.F.
_____
fiftyfive
percent
but
not
greater
than
sixty
percent,
the
rate
1
shall
be
twentynine
cents
for
ethanol
blended
gasoline
and
2
thirty
and
threetenths
cents
for
motor
fuel
other
than
ethanol
3
blended
gasoline.
4
(4)
If
the
distribution
percentage
is
greater
than
sixty
5
percent
but
not
greater
than
sixtyfive
percent,
the
rate
shall
6
be
twentynine
cents
for
ethanol
blended
gasoline
and
thirty
7
and
fivetenths
cents
for
motor
fuel
other
than
ethanol
blended
8
gasoline.
9
(5)
If
the
distribution
percentage
is
greater
than
10
sixtyfive
percent
but
not
greater
than
seventy
percent,
the
11
rate
shall
be
twentynine
cents
for
ethanol
blended
gasoline
12
and
thirty
and
seventenths
cents
for
motor
fuel
other
than
13
ethanol
blended
gasoline.
14
(6)
If
the
distribution
percentage
is
greater
than
seventy
15
percent
but
not
greater
than
seventyfive
percent,
the
rate
16
shall
be
twentynine
cents
for
ethanol
blended
gasoline
and
17
thirtyone
cents
for
motor
fuel
other
than
ethanol
blended
18
gasoline.
19
(7)
If
the
distribution
percentage
is
greater
than
20
seventyfive
percent
but
not
greater
than
eighty
percent,
the
21
rate
shall
be
twentynine
and
threetenths
cents
for
ethanol
22
blended
gasoline
and
thirty
and
eighttenths
cents
for
motor
23
fuel
other
than
ethanol
blended
gasoline.
24
(8)
If
the
distribution
percentage
is
greater
than
eighty
25
percent
but
not
greater
than
eightyfive
percent,
the
rate
26
shall
be
twentynine
and
fivetenths
cents
for
ethanol
blended
27
gasoline
and
thirty
and
seventenths
cents
for
motor
fuel
other
28
than
ethanol
blended
gasoline.
29
(9)
If
the
distribution
percentage
is
greater
than
30
eightyfive
percent
but
not
greater
than
ninety
percent,
the
31
rate
shall
be
twentynine
and
seventenths
cents
for
ethanol
32
blended
gasoline
and
thirty
and
fourtenths
cents
for
motor
33
fuel
other
than
ethanol
blended
gasoline.
34
(10)
If
the
distribution
percentage
is
greater
than
ninety
35
6
LSB
5606YC
(4)
85
dea/sc
6/
9
H.F.
_____
percent
but
not
greater
than
ninetyfive
percent,
the
rate
1
shall
be
twentynine
and
ninetenths
cents
for
ethanol
blended
2
gasoline
and
thirty
and
onetenth
cents
for
motor
fuel
other
3
than
ethanol
blended
gasoline.
4
(11)
If
the
distribution
percentage
is
greater
than
5
ninetyfive
percent,
the
rate
shall
be
thirty
cents
for
ethanol
6
blended
gasoline
and
thirty
cents
for
motor
fuel
other
than
7
ethanol
blended
gasoline.
8
1A.
Except
as
otherwise
provided
in
this
section
and
in
this
9
division
,
after
June
30,
2014
2024
,
an
excise
tax
of
twenty
10
thirty
cents
is
imposed
on
each
gallon
of
motor
fuel
used
for
11
any
purpose
for
the
privilege
of
operating
motor
vehicles
in
12
this
state.
13
Sec.
3.
Section
452A.3,
subsection
3,
Code
2013,
is
amended
14
to
read
as
follows:
15
3.
a.
For
the
privilege
of
operating
motor
vehicles
or
16
aircraft
in
this
state,
there
is
imposed
an
excise
tax
on
the
17
use
of
special
fuel
in
a
motor
vehicle
or
aircraft.
The
18
b.
(1)
For
the
period
beginning
July
1,
2014,
and
ending
19
June
30,
2015,
the
tax
rate
on
special
fuel
for
diesel
engines
20
of
motor
vehicles
other
than
biodiesel
blended
fuel
classified
21
as
B10
or
higher
is
twentytwo
twentyfive
and
onehalf
cents
22
per
gallon.
23
(2)
For
the
period
beginning
July
1,
2015,
and
ending
June
24
30,
2016,
the
tax
rate
on
special
fuel
for
diesel
engines
of
25
motor
vehicles
other
than
biodiesel
blended
fuel
classified
as
26
B10
or
higher
is
twentyeight
and
onehalf
cents
per
gallon.
27
(3)
After
June
30,
2016,
the
tax
rate
on
special
fuel
for
28
diesel
engines
of
motor
vehicles
other
than
biodiesel
blended
29
fuel
classified
as
B10
or
higher
is
thirtytwo
and
onehalf
30
cents
per
gallon.
31
(4)
The
tax
rate
on
biodiesel
blended
fuel
classified
32
as
B10
or
higher
for
diesel
engines
of
motor
vehicles
is
33
twentytwo
and
onehalf
cents
per
gallon.
34
(5)
The
rate
of
tax
on
special
fuel
for
aircraft
is
three
35
7
LSB
5606YC
(4)
85
dea/sc
7/
9
H.F.
_____
cents
per
gallon.
1
(6)
On
all
other
special
fuel,
unless
otherwise
specified
in
2
this
section
,
the
per
gallon
rate
is
the
same
as
the
motor
fuel
3
tax.
4
c.
Indelible
dye
meeting
United
States
environmental
5
protection
agency
and
internal
revenue
service
regulations
must
6
be
added
to
fuel
before
or
upon
withdrawal
at
a
terminal
or
7
refinery
rack
for
that
fuel
to
be
exempt
from
tax
and
the
dyed
8
fuel
may
be
used
only
for
an
exempt
purpose.
9
Sec.
4.
APPLICABILITY
——
INVENTORY
TAX.
Notwithstanding
10
section
452A.85,
persons
who
have
title
to
motor
fuel,
ethanol
11
blended
gasoline,
undyed
special
fuel,
compressed
natural
gas,
12
or
liquefied
petroleum
gas
in
storage
and
held
for
sale
on
13
the
effective
date
of
an
increase
in
the
rate
of
excise
tax
14
imposed
on
motor
fuel,
ethanol
blended
gasoline,
or
special
15
fuel
pursuant
to
this
Act
shall
not
be
subject
to
an
inventory
16
tax
on
the
gallonage
in
storage
as
provided
in
section
452A.85
17
as
a
result
of
the
tax
increases
provided
in
this
Act.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
contains
provisions
relating
to
the
excise
taxes
22
on
motor
fuel
and
certain
special
fuel
used
in
motor
vehicles.
23
The
bill
increases
the
rate
of
the
excise
taxes
on
motor
24
fuel
and
special
fuel
for
diesel
engines
of
motor
vehicles,
25
other
than
biodiesel
blended
fuel
classified
as
B10
or
26
higher,
by
three
cents
beginning
July
1,
2014,
by
an
additional
27
three
cents
beginning
July
1,
2015,
and
by
an
additional
four
28
cents
beginning
July
1,
2016.
The
additional
revenues
shall
29
be
credited
to
the
TIME21
fund,
subject
to
the
statutory
30
limitation
on
annual
deposits
to
that
fund.
After
the
repeal
31
of
the
TIME21
fund
on
June
30,
2028,
the
revenues
will
accrue
32
to
the
road
use
tax
fund.
33
The
bill
provides
that
the
distribution
percentage
formula
34
for
determining
the
difference
in
the
excise
tax
imposed
on
35
8
LSB
5606YC
(4)
85
dea/sc
8/
9
H.F.
_____
ethanol
blended
gasoline
and
motor
fuel
other
than
ethanol
1
blended
gasoline,
which
is
due
to
expire
on
June
30,
2014,
is
2
extended
until
June
30,
2024.
3
Pursuant
to
current
law,
when
the
rate
of
excise
tax
on
4
motor
fuel,
ethanol
blended
gasoline,
undyed
special
fuel,
5
compressed
natural
gas,
or
liquefied
petroleum
gas
is
increased
6
by
more
than
onehalf
cent
per
gallon,
a
person
who
has
title
7
to
such
fuel
held
in
storage
for
eventual
sale
is
subject
to
an
8
inventory
tax
based
on
the
gallonage
in
storage
at
the
close
of
9
the
business
day
preceding
the
effective
date
of
the
increase.
10
The
bill
waives
that
requirement
by
stating
that
the
inventory
11
tax
shall
not
be
imposed
as
a
result
of
the
tax
increases
12
provided
in
the
bill.
13
9
LSB
5606YC
(4)
85
dea/sc
9/
9