House File 345 - Introduced HOUSE FILE 345 BY GASKILL A BILL FOR An Act relating to state tax revenues by modifying the rate 1 of the excise taxes on motor fuel and certain special 2 fuel, modifying the amount of the earned income credit, and 3 including retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2213YH (2) 86 ns/sc
H.F. 345 Section 1. Section 422.12B, subsection 1, paragraph a, Code 1 2015, is amended to read as follows: 2 a. The taxes imposed under this division less the credits 3 allowed under section 422.12 shall be reduced by an earned 4 income credit equal to the following percentage of the federal 5 earned income credit provided in section 32 of the Internal 6 Revenue Code: 7 (1) For the tax year beginning in the 2013 calendar year, 8 fourteen percent. 9 (2) For tax years beginning on or after January 1, 2014, but 10 before January 1, 2015, fifteen percent. 11 (3) For tax years beginning on or after January 1, 2015, 12 eighteen percent. 13 Sec. 2. Section 452A.3, subsection 1, unnumbered paragraph 14 1, Code 2015, is amended to read as follows: 15 Except as otherwise provided in this section and in this 16 division , until June 30, 2015 2025 , this subsection shall apply 17 to the excise tax imposed on each gallon of motor fuel used for 18 any purpose for the privilege of operating motor vehicles in 19 this state. 20 Sec. 3. Section 452A.3, subsection 1, paragraph b, Code 21 2015, is amended to read as follows: 22 b. The rate for the excise tax shall be as follows: 23 (1) If the distribution percentage is not greater than 24 fifty percent, the rate shall be nineteen twenty-nine cents for 25 ethanol blended gasoline and twenty thirty cents for motor fuel 26 other than ethanol blended gasoline. 27 (2) If the distribution percentage is greater than fifty 28 percent but not greater than fifty-five percent, the rate shall 29 be nineteen twenty-nine cents for ethanol blended gasoline and 30 twenty thirty and one-tenth cents for motor fuel other than 31 ethanol blended gasoline. 32 (3) If the distribution percentage is greater than 33 fifty-five percent but not greater than sixty percent, the 34 rate shall be nineteen twenty-nine cents for ethanol blended 35 -1- LSB 2213YH (2) 86 ns/sc 1/ 4
H.F. 345 gasoline and twenty thirty and three-tenths cents for motor 1 fuel other than ethanol blended gasoline. 2 (4) If the distribution percentage is greater than sixty 3 percent but not greater than sixty-five percent, the rate shall 4 be nineteen twenty-nine cents for ethanol blended gasoline and 5 twenty thirty and five-tenths cents for motor fuel other than 6 ethanol blended gasoline. 7 (5) If the distribution percentage is greater than 8 sixty-five percent but not greater than seventy percent, the 9 rate shall be nineteen twenty-nine cents for ethanol blended 10 gasoline and twenty thirty and seven-tenths cents for motor 11 fuel other than ethanol blended gasoline. 12 (6) If the distribution percentage is greater than seventy 13 percent but not greater than seventy-five percent, the rate 14 shall be nineteen twenty-nine cents for ethanol blended 15 gasoline and twenty-one thirty-one cents for motor fuel other 16 than ethanol blended gasoline. 17 (7) If the distribution percentage is greater than 18 seventy-five percent but not greater than eighty percent, the 19 rate shall be nineteen twenty-nine and three-tenths cents for 20 ethanol blended gasoline and twenty thirty and eight-tenths 21 cents for motor fuel other than ethanol blended gasoline. 22 (8) If the distribution percentage is greater than eighty 23 percent but not greater than eighty-five percent, the rate 24 shall be nineteen twenty-nine and five-tenths cents for ethanol 25 blended gasoline and twenty thirty and seven-tenths cents for 26 motor fuel other than ethanol blended gasoline. 27 (9) If the distribution percentage is greater than 28 eighty-five percent but not greater than ninety percent, the 29 rate shall be nineteen twenty-nine and seven-tenths cents for 30 ethanol blended gasoline and twenty thirty and four-tenths 31 cents for motor fuel other than ethanol blended gasoline. 32 (10) If the distribution percentage is greater than ninety 33 percent but not greater than ninety-five percent, the rate 34 shall be nineteen twenty-nine and nine-tenths cents for ethanol 35 -2- LSB 2213YH (2) 86 ns/sc 2/ 4
H.F. 345 blended gasoline and twenty thirty and one-tenth cents for 1 motor fuel other than ethanol blended gasoline. 2 (11) If the distribution percentage is greater than 3 ninety-five percent, the rate shall be twenty thirty cents for 4 ethanol blended gasoline and twenty thirty cents for motor fuel 5 other than ethanol blended gasoline. 6 Sec. 4. Section 452A.3, subsections 2 and 6, Code 2015, are 7 amended to read as follows: 8 2. Except as otherwise provided in this section and in this 9 division , after June 30, 2015 2025 , 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 6. a. For the privilege of operating motor vehicles or 14 aircraft in this state, there is imposed an excise tax on the 15 use of special fuel in a motor vehicle or aircraft. 16 (1) The tax rate on special fuel for diesel engines of 17 motor vehicles is twenty-two thirty-two and one-half cents per 18 gallon. 19 (2) The rate of tax on special fuel for aircraft is three 20 cents per gallon. 21 (3) On all other special fuel, unless otherwise specified in 22 this section , the per gallon rate is the same as the motor fuel 23 tax. 24 b. Indelible dye meeting United States environmental 25 protection agency and internal revenue service regulations must 26 be added to fuel before or upon withdrawal at a terminal or 27 refinery rack for that fuel to be exempt from tax and the dyed 28 fuel may be used only for an exempt purpose. 29 Sec. 5. RETROACTIVE APPLICABILITY. The section of this Act 30 amending section 422.12B applies retroactively to January 1, 31 2015, for tax years beginning on or after that date. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -3- LSB 2213YH (2) 86 ns/sc 3/ 4
H.F. 345 This bill relates to state tax revenues by modifying the rate 1 of the excise taxes on motor fuel and certain special fuel and 2 by modifying the amount of the earned income credit. 3 The bill increases by 10 cents the amount of the excise tax 4 on ethanol blended gasoline, motor fuel other than ethanol 5 blended gasoline, and special fuel for diesel engines of motor 6 vehicles. The bill provides that the distribution percentage 7 formula for ethanol blended gasoline and motor fuel other than 8 ethanol blended gasoline will expire on June 30, 2025. 9 The bill increases the amount of the earned income credit 10 to 18 percent from 15 percent of the federal earned income 11 credit provided in section 32 of the Internal Revenue Code. 12 This section of the bill applies retroactively to tax years 13 beginning on or after January 1, 2015. 14 -4- LSB 2213YH (2) 86 ns/sc 4/ 4