House File 725 - Introduced HOUSE FILE 725 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO HSB 197) A BILL FOR An Act relating to motor vehicle taxes and fees, including 1 registration fees for certain electric vehicles, an excise 2 tax on hydrogen used as special fuel, and an excise tax on 3 electricity used as electric fuel, providing penalties, 4 making penalties applicable, and including effective date 5 provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1803HV (4) 88 ns/jh
H.F. 725 DIVISION I 1 REGISTRATION FEES FOR ELECTRIC VEHICLES 2 Section 1. NEW SECTION . 321.116 Battery electric and 3 plug-in hybrid electric motor vehicle fees. 4 1. For each battery electric motor vehicle subject to an 5 annual registration fee under section 321.109, subsection 1, 6 paragraph “a” , and operated on the public highways of this 7 state, the owner shall pay an annual battery electric motor 8 vehicle registration fee, which shall be in addition to the 9 annual registration fee imposed for the vehicle under section 10 321.109, subsection 1, paragraph “a” . For purposes of this 11 subsection, “battery electric motor vehicle” means a motor 12 vehicle equipped with electrical drivetrain components and not 13 equipped with an internal combustion engine, that is propelled 14 exclusively by one or more electrical motors using electrical 15 energy stored in a battery or other energy storage device that 16 can be recharged by plugging into an electrical outlet or 17 electric vehicle charging station. The amount of the fee shall 18 be as follows: 19 a. For the period beginning January 1, 2020, and ending 20 December 31, 2020, sixty-five dollars. 21 b. For the period beginning January 1, 2021, and ending 22 December 31, 2021, ninety-seven dollars and fifty cents. 23 c. On or after January 1, 2022, one hundred thirty dollars. 24 2. For each plug-in hybrid electric motor vehicle subject to 25 an annual registration fee under section 321.109, subsection 26 1, paragraph “a” , and operated on the public highways of this 27 state, the owner shall pay an annual plug-in hybrid electric 28 motor vehicle registration fee, which shall be in addition 29 to the annual registration fee imposed for the vehicle under 30 section 321.109, subsection 1, paragraph “a” . For purposes of 31 this subsection, “plug-in hybrid electric motor vehicle” means a 32 motor vehicle equipped with electrical drivetrain components, 33 an internal combustion engine, and a battery or other energy 34 storage device that can be recharged by plugging into an 35 -1- LSB 1803HV (4) 88 ns/jh 1/ 31
H.F. 725 electrical outlet or electric vehicle charging station. The 1 amount of the fee shall be as follows: 2 a. For the period beginning January 1, 2020, and ending 3 December 31, 2020, thirty-two dollars and fifty cents. 4 b. For the period beginning January 1, 2021, and ending 5 December 31, 2021, forty-eight dollars and seventy-five cents. 6 c. On or after January 1, 2022, sixty-five dollars. 7 Sec. 2. Section 321.117, Code 2019, is amended to read as 8 follows: 9 321.117 Motorcycle, autocycle, ambulance, and hearse fees. 10 1. For all motorcycles and autocycles the annual 11 registration fee shall be twenty dollars. For all motorized 12 bicycles the annual registration fee shall be seven dollars. 13 When the motorcycle or autocycle is more than five model 14 years old, the annual registration fee shall be ten dollars. 15 The annual registration fee for ambulances and hearses shall 16 be fifty dollars. Passenger car plates shall be issued for 17 ambulances and hearses. 18 2. In addition to the fee required for a motorcycle under 19 subsection 1, the owner of a motorcycle that is a battery 20 electric motor vehicle or plug-in hybrid electric motor 21 vehicle, as those terms are defined in section 321.116, shall 22 pay an annual electric motorcycle registration fee. The amount 23 of the fee shall be as follows: 24 a. For the period beginning January 1, 2020, and ending 25 December 31, 2020, four dollars and fifty cents. 26 b. For the period beginning January 1, 2021, and ending 27 December 31, 2021, six dollars and seventy-five cents. 28 c. On or after January 1, 2022, nine dollars. 29 Sec. 3. EFFECTIVE DATE. This division of this Act takes 30 effect January 1, 2020. 31 DIVISION II 32 HYDROGEN FUEL EXCISE TAX 33 Sec. 4. Section 452A.2, Code 2019, is amended by adding the 34 following new subsection: 35 -2- LSB 1803HV (4) 88 ns/jh 2/ 31
H.F. 725 NEW SUBSECTION . 20A. “Fuel supply tank” , with respect to 1 motor vehicles that use hydrogen as a special fuel, means a 2 motor vehicle’s hydrogen fuel cells. 3 Sec. 5. Section 452A.2, subsection 21, Code 2019, is amended 4 by adding the following new paragraph: 5 NEW PARAGRAPH . c. “Gallon” , with respect to hydrogen, means 6 a diesel gallon equivalent. A diesel gallon equivalent of 7 hydrogen is two and forty-nine hundredths pounds. 8 Sec. 6. Section 452A.2, subsections 25, 26, 39, and 45, Code 9 2019, are amended to read as follows: 10 25. “Licensed compressed natural gas, liquefied natural gas, 11 and liquefied petroleum gas , and hydrogen dealer” means a person 12 in the business of handling untaxed compressed natural gas, 13 liquefied natural gas, or liquefied petroleum gas , or hydrogen 14 who delivers any part of the fuel into a fuel supply tank of any 15 motor vehicle. 16 26. “Licensed compressed natural gas, liquefied natural 17 gas, and liquefied petroleum gas , and hydrogen user” means a 18 person licensed by the department who dispenses compressed 19 natural gas, liquefied natural gas, or liquefied petroleum 20 gas, or hydrogen, upon which the special fuel tax has not been 21 previously paid, for highway use from fuel sources owned and 22 controlled by the person into the fuel supply tank of a motor 23 vehicle, or commercial vehicle owned or controlled by the 24 person. 25 39. “Special fuel” means fuel oils and all combustible gases 26 and liquids suitable for the generation of power for propulsion 27 of motor vehicles or turbine-powered aircraft, and includes 28 any substance used for that purpose, except that it does not 29 include motor fuel. Kerosene shall not be considered to be a 30 special fuel, unless blended with other special fuels for use 31 in a motor vehicle with a diesel engine. Methanol shall not 32 be considered to be a special fuel unless blended with other 33 special fuels for use in a motor vehicle with a diesel engine. 34 Hydrogen shall be considered to be a special fuel when used 35 -3- LSB 1803HV (4) 88 ns/jh 3/ 31
H.F. 725 or intended for use in combination with oxygen to generate 1 electricity for propulsion of a motor vehicle. 2 45. “Use” , with respect to liquefied petroleum gas, means 3 the receipt, delivery, or placing of liquefied petroleum gas by 4 a licensed liquefied petroleum gas user into a fuel supply tank 5 of a motor vehicle while the vehicle is in the state , except 6 that with . With respect to natural gas used as a special fuel, 7 “use” means the receipt, delivery, or placing of the natural gas 8 into equipment for compressing the gas for subsequent delivery 9 into the fuel supply tank of a motor vehicle while the vehicle 10 is in the state . With respect to hydrogen used as a special 11 fuel, “use” means the receipt, delivery, or placing of hydrogen 12 by a licensed hydrogen user into a fuel supply tank of a motor 13 vehicle while the vehicle is in the state. 14 Sec. 7. Section 452A.3, Code 2019, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 9A. For hydrogen used as a special fuel, 17 the rate of tax is sixty-five cents per gallon. 18 Sec. 8. Section 452A.4, subsection 1, paragraph d, Code 19 2019, is amended to read as follows: 20 d. A dealer’s or user’s license shall be required for each 21 separate place of business or location where compressed natural 22 gas, liquefied natural gas, or liquefied petroleum gas , or 23 hydrogen is delivered or placed into the fuel supply tank of a 24 motor vehicle. 25 Sec. 9. Section 452A.8, subsection 2, paragraph e, 26 subparagraphs (1), (2), and (3), Code 2019, are amended to read 27 as follows: 28 (1) For purposes of this paragraph “e” , “dealer” or “user” 29 means a licensed compressed natural gas, liquefied natural gas, 30 and liquefied petroleum gas , and hydrogen dealer or user and 31 “fuel” means compressed natural gas, liquefied natural gas, or 32 liquefied petroleum gas , or hydrogen . 33 (2) The tax for compressed natural gas, liquefied natural 34 gas, and liquefied petroleum gas , and hydrogen delivered by 35 -4- LSB 1803HV (4) 88 ns/jh 4/ 31
H.F. 725 a licensed dealer for use in this state shall attach at the 1 time of the delivery and shall be collected by the dealer 2 from the purchaser and paid to the department as provided in 3 this chapter . The tax, with respect to compressed natural 4 gas, liquefied natural gas, and liquefied petroleum gas , and 5 hydrogen acquired by a purchaser in any manner other than by 6 delivery by a licensed dealer into a fuel supply tank of a 7 motor vehicle, attaches at the time of the use of the fuel 8 and shall be paid over to the department by the purchaser as 9 provided in this chapter . 10 (3) The department shall adopt rules governing the 11 dispensing of compressed natural gas, liquefied natural gas, 12 and liquefied petroleum gas , and hydrogen by licensed dealers 13 and licensed users. The director may require by rule that 14 reports and returns be filed by electronic transmission. The 15 department shall require that all pumps located at dealer 16 locations and user locations through which liquefied petroleum 17 gas can be dispensed shall be metered, inspected, tested 18 for accuracy, and sealed and licensed by the department of 19 agriculture and land stewardship, and that fuel delivered 20 into the fuel supply tank of any motor vehicle shall be 21 dispensed only through tested metered pumps and may be sold 22 without temperature correction or corrected to a temperature 23 of 60 degrees Fahrenheit. If the metered gallonage is to be 24 temperature-corrected, only a temperature-compensated meter 25 shall be used. Natural gas used as fuel shall be delivered 26 into compressing equipment through sealed meters certified for 27 accuracy by the department of agriculture and land stewardship. 28 Hydrogen used as fuel shall be delivered into the fuel supply 29 tank of any motor vehicle through sealed meters certified for 30 accuracy by the department of agriculture and land stewardship. 31 The department of agriculture and land stewardship may adopt 32 rules pursuant to chapter 17A relating to the certification and 33 accuracy of meters used to deliver hydrogen. 34 Sec. 10. Section 452A.60, subsection 1, Code 2019, is 35 -5- LSB 1803HV (4) 88 ns/jh 5/ 31
H.F. 725 amended to read as follows: 1 1. The department of revenue or the state department of 2 transportation shall prescribe and furnish all forms, as 3 applicable, upon which reports, returns, and applications shall 4 be made and claims for refund presented under this chapter 5 and may prescribe forms of record to be kept by suppliers, 6 restrictive suppliers, importers, exporters, blenders, common 7 carriers, contract carriers, licensed compressed natural 8 gas, liquefied natural gas, and liquefied petroleum gas , and 9 hydrogen dealers and users, terminal operators, nonterminal 10 storage facility operations, and interstate commercial motor 11 vehicle operators. 12 Sec. 11. Section 452A.62, subsection 1, paragraph a, 13 subparagraph (2), Code 2019, is amended to read as follows: 14 (2) A licensed compressed natural gas, liquefied natural 15 gas, or liquefied petroleum gas , or hydrogen dealer, user, or 16 person supplying compressed natural gas, liquefied natural 17 gas, or liquefied petroleum gas , or hydrogen to a licensed 18 compressed natural gas, liquefied natural gas, or liquefied 19 petroleum gas , or hydrogen dealer or user. 20 Sec. 12. Section 452A.62, subsection 1, paragraph b, Code 21 2019, is amended to read as follows: 22 b. To examine the records, books, papers, receipts, and 23 invoices of any distributor, supplier, restrictive supplier, 24 importer, blender, exporter, terminal operator, nonterminal 25 storage facility, licensed compressed natural gas, liquefied 26 natural gas, or liquefied petroleum gas , or hydrogen dealer or 27 user, or any other person who possesses fuel upon which the tax 28 has not been paid to determine financial responsibility for the 29 payment of the taxes imposed by this chapter . 30 Sec. 13. Section 452A.74, subsection 1, paragraphs e and g, 31 Code 2019, are amended to read as follows: 32 e. For any person to act as a supplier, restrictive 33 supplier, importer, exporter, blender, or compressed natural 34 gas, liquefied natural gas, or liquefied petroleum gas , or 35 -6- LSB 1803HV (4) 88 ns/jh 6/ 31
H.F. 725 hydrogen dealer or user without the required license. 1 g. For any licensed compressed natural gas, liquefied 2 natural gas, or liquefied petroleum gas , or hydrogen dealer or 3 user to dispense compressed natural gas, liquefied natural gas, 4 or liquefied petroleum gas , or hydrogen into the fuel supply 5 tank of any motor vehicle without collecting the fuel tax. 6 Sec. 14. Section 452A.74, subsection 2, Code 2019, is 7 amended to read as follows: 8 2. Any delivery of compressed natural gas, liquefied 9 natural gas, or liquefied petroleum gas , or hydrogen to a 10 compressed natural gas, liquefied natural gas, or liquefied 11 petroleum gas , or hydrogen dealer or user for the purpose of 12 evading the state tax on compressed natural gas, liquefied 13 natural gas, or liquefied petroleum gas, or hydrogen, into 14 facilities other than those licensed under this chapter knowing 15 that the fuel will be used for highway use shall constitute 16 a violation of this section . Any compressed natural gas, 17 liquefied natural gas, or liquefied petroleum gas , or hydrogen 18 dealer or user for purposes of evading the state tax on 19 compressed natural gas, liquefied natural gas, or liquefied 20 petroleum gas, or hydrogen, who allows a distributor to place 21 compressed natural gas, liquefied natural gas, or liquefied 22 petroleum gas , or hydrogen for highway use in facilities other 23 than those licensed under this chapter , shall also be deemed 24 in violation of this section . 25 Sec. 15. Section 452A.85, subsection 1, Code 2019, is 26 amended to read as follows: 27 1. Persons having title to motor fuel, ethanol blended 28 gasoline, undyed special fuel, compressed natural gas, 29 liquefied natural gas, or liquefied petroleum gas , or hydrogen 30 in storage and held for sale on the effective date of an 31 increase in the excise tax rate imposed on motor fuel, ethanol 32 blended gasoline, undyed special fuel, compressed natural 33 gas, liquefied natural gas, or liquefied petroleum gas , or 34 hydrogen under this chapter shall be subject to an inventory 35 -7- LSB 1803HV (4) 88 ns/jh 7/ 31
H.F. 725 tax based upon the gallonage in storage as of the close of the 1 business day preceding the effective date of the increased 2 excise tax rate of motor fuel, ethanol blended gasoline, undyed 3 special fuel, compressed natural gas, liquefied natural gas, or 4 liquefied petroleum gas , or hydrogen which will be subject to 5 the increased excise tax rate. 6 Sec. 16. Section 452A.86, Code 2019, is amended to read as 7 follows: 8 452A.86 Method of determining gallonage. 9 The exclusive method of determining gallonage of any 10 purchases or sales of motor fuel, undyed special fuel, 11 or liquefied petroleum gas as defined in this chapter and 12 distillate fuels shall be on a gross volume basis, except 13 for compressed natural gas , and liquefied natural gas , and 14 hydrogen . The exclusive method of determining gallonage of any 15 purchases or sales of compressed natural gas is the gasoline 16 gallon equivalent, as defined in section 452A.2, subsection 17 21 . The exclusive method of determining gallonage of any 18 purchase or sale of liquefied natural gas is the diesel gallon 19 equivalent, as defined in section 452A.2, subsection 21 . The 20 exclusive method of determining gallonage of any purchases or 21 sales of hydrogen is the diesel gallon equivalent, as defined 22 in section 452A.2, subsection 21. A temperature-adjusted 23 or other method shall not be used, except as it applies to 24 liquefied petroleum gas and the sale or exchange of petroleum 25 products between petroleum refiners. All invoices, bills of 26 lading, or other records of sale or purchase and all returns 27 or records required to be made, kept, and maintained by a 28 supplier, restrictive supplier, importer, exporter, blender, 29 or compressed natural gas, liquefied natural gas, or liquefied 30 petroleum gas , or hydrogen dealer or user shall be made, kept, 31 and maintained on the gross volume basis. For purposes of 32 this section , “distillate fuels” means any fuel oil, gas oil, 33 topped crude oil, or other petroleum oils derived by refining 34 or processing crude oil or unfinished oils which have a boiling 35 -8- LSB 1803HV (4) 88 ns/jh 8/ 31
H.F. 725 range at atmospheric pressure which falls completely or in part 1 between 550 and 1,200 degrees Fahrenheit. 2 Sec. 17. EFFECTIVE DATE. This division of this Act takes 3 effect January 1, 2020. 4 DIVISION III 5 ELECTRIC FUEL EXCISE TAX 6 Sec. 18. Section 312.2, subsection 9, Code 2019, is amended 7 by adding the following new paragraph: 8 NEW PARAGRAPH . c. From the excise tax on electric fuel 9 imposed under the tax rate of section 452A.41, the amount of 10 excise tax collected from fifteen hundredths of one cent per 11 kilowatt hour. 12 Sec. 19. Section 312.2, subsection 10, Code 2019, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . c. From the excise tax on electric fuel 15 imposed under the tax rate of section 452A.41, the amount 16 of excise tax collected from two hundredths of one cent per 17 kilowatt hour. 18 Sec. 20. Section 423.3, subsection 56, Code 2019, is amended 19 to read as follows: 20 56. The sales price from the sale of motor fuel , and 21 special fuel , and electric fuel consumed for highway use or in 22 watercraft or aircraft where the fuel tax has been imposed and 23 paid and no refund has been or will be allowed and the sales 24 price from the sales of ethanol blended gasoline, as defined 25 in section 214A.1 . 26 Sec. 21. Section 423B.5, subsection 1, Code 2019, is amended 27 to read as follows: 28 1. A local sales and services tax may be imposed by a 29 county on the sales price taxed by the state under chapter 30 423, subchapter II . A local sales and services tax shall be 31 imposed on the same basis as the state sales and services tax 32 or in the case of the use of natural gas, natural gas service, 33 electricity, or electric service on the same basis as the 34 state use tax and shall not be imposed on the sale of any 35 -9- LSB 1803HV (4) 88 ns/jh 9/ 31
H.F. 725 property or on any service not taxed by the state, except the 1 tax shall not be imposed on the sales price from the sale of 2 motor fuel , or special fuel , or electric fuel, as those terms 3 are defined in chapter 452A , which is consumed for highway use 4 or in watercraft or aircraft if the fuel tax is paid on the 5 transaction and a refund has not or will not be allowed, on the 6 sales price from the sale of equipment by the state department 7 of transportation, or on the sales price from the sale or use 8 of natural gas, natural gas service, electricity, or electric 9 service in a city or county where the sales price from the sale 10 of natural gas or electric energy is subject to a franchise 11 fee or user fee during the period the franchise or user fee 12 is imposed. A local sales and services tax is applicable to 13 transactions within those cities and unincorporated areas of 14 the county where it is imposed, which transactions include 15 but are not limited to sales sourced pursuant to section 16 423.15 , 423.17 , 423.19 , or 423.20 , to a location within that 17 city or unincorporated area of the county. The tax shall be 18 collected by all persons required to collect state sales taxes. 19 However, a local sales and services tax is not applicable to 20 transactions sourced under chapter 423 to a place of business, 21 as defined in section 423.1 , of a retailer if such place of 22 business is located in part within a city or unincorporated 23 area of the county where the tax is not imposed. 24 Sec. 22. Section 423E.3, subsection 1, Code 2019, is amended 25 to read as follows: 26 1. The tax shall be imposed on the same basis as the state 27 sales and services tax or in the case of the use of natural 28 gas, natural gas service, electricity, or electric service on 29 the same basis as the state use tax and shall not be imposed 30 on the sale of any property or on any service not taxed by the 31 state, except the tax shall not be imposed on the sales price 32 from the sale of motor fuel , or special fuel , or electric fuel, 33 as those terms are defined in chapter 452A , which is consumed 34 for highway use or in watercraft or aircraft if the fuel tax 35 -10- LSB 1803HV (4) 88 ns/jh 10/ 31
H.F. 725 is paid on the transaction and a refund has not or will not 1 be allowed, on the sales price from the sale of equipment by 2 the state department of transportation, or on the sales price 3 from the sale or use of natural gas, natural gas service, 4 electricity, or electric service in a city or county where the 5 sales price from the sale of natural gas or electric energy is 6 subject to a franchise fee or user fee during the period the 7 franchise or user fee is imposed. 8 Sec. 23. NEW SECTION . 452A.40 Definitions. 9 As used in this subchapter, unless the context otherwise 10 requires: 11 1. “Department” means the department of revenue. 12 2. “Electric fuel” means electrical energy delivered or 13 placed into the battery or other energy storage device of an 14 electric motor vehicle from a source outside the motor vehicle 15 for purposes of propelling the motor vehicle. “Electric fuel” 16 shall be deemed motor vehicle fuel for purposes of Article VII, 17 section 8, of the Constitution of the State of Iowa. 18 3. “Electric motor vehicle” means a motor vehicle equipped 19 with electrical drivetrain components that has the ability to 20 be propelled, fully or partially, by one or more electrical 21 motors using electrical energy stored in a battery or other 22 energy storage device that can be recharged by plugging into an 23 electrical outlet or electric vehicle charging station. 24 4. “Licensed electric fuel dealer” means a person licensed 25 by the department who dispenses electric fuel, upon which the 26 electric fuel tax has not been previously paid, for highway 27 use into the battery or other energy storage device of an 28 electric motor vehicle in this state at a location other than a 29 residence. 30 5. “Licensed electric fuel user” means a person licensed 31 by the department who dispenses electric fuel, upon which the 32 electric fuel tax has not been previously paid, for highway use 33 from a charging station owned and controlled by the person into 34 the battery or other energy storage device of an electric motor 35 -11- LSB 1803HV (4) 88 ns/jh 11/ 31
H.F. 725 vehicle owned or controlled by the person in this state at a 1 location other than a residence. 2 6. “Residence” means the place where a person resides, 3 permanently or temporarily. 4 7. “Use” means the receipt, delivery, or placing of electric 5 fuel by a licensed electric fuel user into the battery or other 6 energy storage device of an electric motor vehicle owned or 7 controlled by the user in this state at a location other than a 8 residence. 9 Sec. 24. NEW SECTION . 452A.41 Levy and collection of excise 10 tax on electric fuel. 11 1. An excise tax of two and six-tenths cents is imposed on 12 each kilowatt hour of electric fuel delivered or placed into 13 the battery or other energy storage device of an electric motor 14 vehicle at a location in this state other than a residence. 15 2. The tax for electric fuel delivered by a licensed 16 electric fuel dealer for use in this state shall attach at the 17 time of the delivery and shall be collected by the dealer from 18 the purchaser and paid to the department in the same manner 19 as the excise taxes on natural gas and liquefied petroleum 20 gas are paid by dealers to the department as provided in this 21 chapter. The tax for electric fuel used by a licensed electric 22 fuel user shall attach at the time of the use of the fuel and 23 shall be paid to the department by the licensed electric fuel 24 user in the same manner as the excise taxes on natural gas and 25 liquefied petroleum gas are paid by users to the department as 26 provided in this chapter. 27 3. The department shall adopt rules governing the 28 dispensing of electric fuel by licensed dealers and users. The 29 director may require by rule that reports and returns be filed 30 by electronic transmission. The department shall require that 31 all charging stations located at dealer and user locations 32 through which electric fuel can be dispensed shall be metered, 33 inspected, tested for accuracy, and sealed and licensed by 34 the department of agriculture and land stewardship, and that 35 -12- LSB 1803HV (4) 88 ns/jh 12/ 31
H.F. 725 electric fuel delivered into the battery or other energy 1 storage device of any electric motor vehicle shall be dispensed 2 only through tested, metered charging stations. The department 3 of agriculture and land stewardship may adopt rules pursuant 4 to chapter 17A to administer the department of agriculture and 5 land stewardship’s duties under this subsection. 6 4. a. For the purpose of determining the amount of 7 liability for the electric fuel tax, each dealer and user 8 shall file with the department not later than the last day 9 of each calendar month a monthly tax return certified under 10 penalties for false certification. The return shall show, with 11 reference to each location at which fuel is delivered or placed 12 by the dealer or user into the battery or other energy storage 13 device of any electric motor vehicle during the next preceding 14 calendar month, information as required by the department. 15 b. The amount of tax due shall be computed by multiplying 16 the appropriate tax rate per kilowatt hour by the number of 17 kilowatt hours of electric fuel delivered or placed by the 18 dealer or user into the batteries or other energy storage 19 devices of electric motor vehicles. 20 c. The return shall be accompanied by remittance in the 21 amount of the tax due for the month in which the fuel was placed 22 into the batteries or other energy storage devices of electric 23 motor vehicles. 24 5. Moneys collected under this subchapter by a licensed 25 electric fuel dealer or user are deemed to be held in trust for 26 the state of Iowa. 27 Sec. 25. NEW SECTION . 452A.42 Electric fuel dealer’s and 28 user’s license. 29 1. A person shall not sell or dispense electric fuel within 30 this state at a location other than a residence or otherwise 31 act as a licensed electric fuel dealer or user unless the 32 person holds an uncanceled license issued by the department. 33 2. To procure a license, a person shall file with the 34 department an application signed under penalty for false 35 -13- LSB 1803HV (4) 88 ns/jh 13/ 31
H.F. 725 certificate setting forth all of the following: 1 a. The name under which the licensee will transact business 2 in this state. 3 b. The location, with street number address, of the 4 principal office or place of business of the licensee within 5 this state. 6 c. The name and complete residence address of the owner 7 or the names and addresses of the partners, if the licensee 8 is a partnership, or the names and addresses of the principal 9 officers, if the licensee is a corporation or association. 10 3. A dealer’s or user’s license shall be required for each 11 separate place of business or location, other than a residence, 12 where electric fuel is delivered or placed into the battery or 13 other energy storage device of an electric motor vehicle. 14 4. a. The department may deny the issuance of a license to 15 an applicant who is substantially delinquent in the payment of 16 a tax due, or the interest or penalty on the tax, administered 17 by the department. If the applicant is a partnership, a 18 license may be denied if a partner owes any delinquent tax, 19 interest, or penalty. If the applicant is a corporation, a 20 license may be denied if any officer having a substantial legal 21 or equitable interest in the ownership of the corporation owes 22 any delinquent tax, interest, or penalty of the applicant 23 corporation. 24 b. The department may deny the issuance of a license if 25 an application for a license to transact business as a dealer 26 or user in this state is filed by a person whose license or 27 registration has been canceled for cause at any time under the 28 provisions of this chapter or any prior motor fuel tax law, if 29 the department has reason to believe that the application is 30 not filed in good faith, or if the application is filed by some 31 person as a subterfuge for the real person in interest whose 32 license or registration has been canceled for cause under the 33 provisions of this chapter or any prior motor fuel tax law. 34 The applicant shall be given fifteen days’ notice in writing of 35 -14- LSB 1803HV (4) 88 ns/jh 14/ 31
H.F. 725 the date of the hearing and shall have the right to appear in 1 person or by counsel and present testimony. 2 5. a. The application in proper form having been accepted 3 for filing, and the other conditions and requirements of this 4 section and subchapter IV having been complied with, the 5 department shall issue to the applicant a license to transact 6 business as an electric fuel dealer or user in this state. The 7 license shall remain in full force and effect until canceled as 8 provided in this chapter. 9 b. The license shall not be assignable and shall be valid 10 only for the licensee in whose name it is issued. 11 c. The department shall keep and file all applications and 12 bonds and a record of all licensees. 13 Sec. 26. NEW SECTION . 452A.43 Records. 14 1. A licensed electric fuel dealer or user shall maintain, 15 for a period of three years, records of all transactions by 16 which the dealer or user dispenses electric fuel into the 17 batteries or other energy storage devices of electric motor 18 vehicles, including pertinent records and papers as required 19 by the department. 20 2. If in the normal conduct of a dealer’s or user’s business 21 the records are maintained and kept at an office outside this 22 state, the records shall be made available for audit and 23 examination by the department at the office outside this state, 24 but the audit and examination shall be without expense to this 25 state. 26 3. The department, after an audit and examination of records 27 required to be maintained under this section, may authorize 28 their disposal upon the written request of the dealer or user. 29 Sec. 27. NEW SECTION . 452A.44 Refunds. 30 1. A person who uses electric fuel for any of the nontaxable 31 purposes set forth in section 452A.17, subsection 1, paragraph 32 “a” , for motor fuel and undyed special fuel, and who has paid 33 the electric fuel tax either directly to the department or by 34 having the tax added to the price of the fuel, and who has 35 -15- LSB 1803HV (4) 88 ns/jh 15/ 31
H.F. 725 a refund permit, upon presentation to and approval by the 1 department of a claim for refund, subject to the conditions set 2 forth in section 452A.17, subsection 1, paragraph “b” , shall be 3 reimbursed and repaid the amount of the tax which the claimant 4 has paid on the kilowatt hours so used, except that the amount 5 of a refund payable may be applied by the department against 6 any tax liability outstanding on the books of the department 7 against the claimant. Refunds under this section are subject 8 to the limitations and requirements set forth in section 9 452A.17, subsection 3, for motor fuel and undyed special fuel 10 refunds. 11 2. A person shall not claim a refund under this section 12 until the person has obtained a refund permit meeting the 13 requirements of section 452A.18 from the department. The 14 department may revoke a refund permit pursuant to section 15 452A.19. 16 3. Tax collected on electric fuel that is not taxable, or 17 tax collected in excess of the actual amount of tax due, is 18 subject to section 452A.22. 19 Sec. 28. Section 452A.52, Code 2019, is amended to read as 20 follows: 21 452A.52 Fuels imported in supply tanks of motor vehicles —— 22 applicability . 23 1. a. No A person shall not bring into this state in 24 the fuel supply tanks of a commercial motor vehicle, or any 25 other container, regardless of whether or not the supply tanks 26 are connected to the motor of the vehicle, any motor fuel or 27 special fuel to be used in the operation of the vehicle in 28 this state unless that person has paid or made arrangements in 29 advance with the state department of transportation for payment 30 of Iowa fuel taxes on the gallonage consumed in operating the 31 vehicle in this state ; except that this subchapter shall not 32 apply to a private passenger automobile . 33 b. A person shall not bring into this state in the batteries 34 or other energy storage devices of a commercial motor vehicle, 35 -16- LSB 1803HV (4) 88 ns/jh 16/ 31
H.F. 725 or any other energy storage device, regardless of whether the 1 batteries or storage devices are connected to the motor of 2 the vehicle, any electric fuel to be used in the operation 3 of the vehicle in this state unless that person has paid or 4 made arrangements in advance with the state department of 5 transportation for payment of Iowa fuel taxes on the kilowatt 6 hours consumed in operating the vehicle in this state. 7 2. Any person who is unable to display either of the 8 permits or the license provided in section 452A.53 and brings 9 into the state in the fuel supply tanks of a commercial motor 10 vehicle more than thirty gallons of motor fuel or special fuel , 11 or brings into the state in the batteries or other energy 12 storage devices of a commercial motor vehicle more than three 13 hundred fifty kilowatt hours of electric fuel, in violation 14 of subsection 1 commits a simple misdemeanor punishable as 15 a scheduled violation under section 805.8A, subsection 13 , 16 paragraph “c” . 17 3. This subchapter shall not apply to a private passenger 18 automobile. 19 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code 20 2019, are amended to read as follows: 21 2. Persons choosing not to make advance arrangements with 22 the state department of transportation by procuring a permit or 23 license are not relieved of their responsibility to purchase 24 motor fuel , and special fuel , and electric fuel commensurate 25 with their use of the state’s highway system. When there 26 is reasonable cause to believe that there is evasion of the 27 fuel tax on commercial motor vehicles, the state department 28 of transportation may audit persons not holding a permit 29 or license. Audits shall be conducted pursuant to section 30 452A.55 and in accordance with international fuel tax agreement 31 guidelines. The state department of transportation shall 32 collect all taxes due and refund any overpayment. 33 3. A permanent international fuel tax agreement permit 34 or license may be obtained upon application to the state 35 -17- LSB 1803HV (4) 88 ns/jh 17/ 31
H.F. 725 department of transportation. A fee of ten dollars shall be 1 charged for each permit or license issued. The holder of 2 a permanent permit or license shall have the privilege of 3 bringing into this state in the fuel supply tanks of commercial 4 motor vehicles any amount of motor fuel or special fuel , or in 5 the batteries or other energy storage devices of commercial 6 motor vehicles any amount of electric fuel, to be used in the 7 operation of the vehicles and for that privilege shall pay 8 Iowa motor fuel or special fuel taxes as provided in section 9 452A.54 . 10 5. Each vehicle operated into or through Iowa in interstate 11 operations using motor fuel , or special fuel , or electric fuel 12 acquired in any other state shall carry in or on the vehicle a 13 duplicate or evidence of the permit or license required in this 14 section . A fee not to exceed fifty cents shall be charged for 15 each duplicate or other evidence of a permit or license issued. 16 Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code 17 2019, are amended to read as follows: 18 1. Fuel tax liability under this subchapter shall be 19 computed on the total number of gallons of each kind of 20 motor fuel and special fuel , and the total number of kilowatt 21 hours of electric fuel, consumed in the operation in Iowa by 22 commercial motor vehicles subject to this subchapter at the 23 same rate for each kind of fuel as would be applicable if taxed 24 under subchapter I of this chapter and section 452A.41 . A 25 refund against the fuel tax liability so computed shall be 26 allowed, on excess Iowa motor fuel purchased, in the amount 27 of fuel tax paid at the prevailing rate per gallon set out 28 under subchapter I of this chapter on motor fuel and special 29 fuel , and rate per kilowatt hour set out under section 452A.41 30 on electric fuel, consumed by commercial motor vehicles, the 31 operation of which is subject to this subchapter . 32 2. Notwithstanding any provision of this chapter to the 33 contrary, except as provided in this section , the holder of a 34 permanent international fuel tax agreement permit or license 35 -18- LSB 1803HV (4) 88 ns/jh 18/ 31
H.F. 725 may make application to the state department of transportation 1 for a refund, not later than the last day of the third month 2 following the quarter in which the overpayment of Iowa fuel 3 tax paid on excess purchases of motor fuel or special fuel 4 was reported as provided in section 452A.8 , or electric 5 fuel was reported as provided in section 452A.41, and which 6 application is supported by such proof as the state department 7 of transportation may require. The state department of 8 transportation shall refund Iowa fuel tax paid on motor fuel , 9 or special fuel , or electric fuel purchased in excess of the 10 amount consumed by such commercial motor vehicles in their 11 operation on the highways of this state. 12 4. To determine the amount of fuel taxes due under this 13 subchapter and to prevent the evasion thereof, the state 14 department of transportation shall require a quarterly report 15 on forms prescribed by the state department of transportation. 16 It shall be filed not later than the last day of the month 17 following the quarter reported, and each quarter thereafter. 18 These reports shall be required of all persons who have been 19 issued a permit or license under this subchapter and shall 20 cover actual operation and fuel consumption in Iowa on the 21 basis of the permit or license holder’s average consumption 22 of fuel in Iowa, determined by the total miles traveled and 23 the total fuel purchased and consumed for highway use by the 24 permittee’s or licensee’s commercial motor vehicles in the 25 permittee’s or licensee’s entire operation in all states to 26 establish an overall miles per gallon ratio or miles per 27 kilowatt hour ratio , which ratio shall be used to compute the 28 gallons or kilowatt hours used for the miles traveled in Iowa. 29 Failure to receive a quarterly report or fuel credentials by 30 mail, facsimile transmission, or any other means of delivery 31 does not relieve a person from the person’s fuel tax liability 32 or from the requirement to display current fuel credentials. 33 Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code 34 2019, are amended to read as follows: 35 -19- LSB 1803HV (4) 88 ns/jh 19/ 31
H.F. 725 3. “Commercial motor vehicle” means a passenger vehicle 1 that has seats for more than nine passengers in addition to 2 the driver, any road tractor, any truck tractor, or any truck 3 having two or more axles which passenger vehicle, road tractor, 4 truck tractor, or truck is propelled on the public highways 5 by either motor fuel , or special fuel , or electric fuel . 6 “Commercial motor vehicle” does not include a motor truck with a 7 combined gross weight of less than twenty-six thousand pounds, 8 operated as a part of an identifiable one-way fleet and which 9 is leased for less than thirty days to a lessee for the purpose 10 of moving property which is not owned by the lessor. 11 5. “Fuel taxes” means the per gallon and per kilowatt excise 12 taxes imposed under subchapters I and III of this chapter , and 13 section 452A.41, with respect to motor fuel , and undyed special 14 fuel , and electric fuel . 15 8. “Motor vehicle” shall mean and include all vehicles, 16 except those operated on rails, which are propelled by internal 17 combustion engines or electric motors and are of such design as 18 to permit their mobile use on public highways for transporting 19 persons or property. A farm tractor while operated on a farm 20 or for the purpose of hauling farm machinery, equipment, or 21 produce shall not be deemed to be a motor vehicle. “Motor 22 vehicle” shall not include “mobile machinery and equipment” as 23 defined in this section . 24 Sec. 32. Section 452A.58, subsection 2, Code 2019, is 25 amended to read as follows: 26 2. A lessor of a commercial motor vehicle shall be deemed 27 a carrier with respect to such vehicles leased to others by 28 the lessor and motor fuel , or special fuel , or electric fuel 29 consumed thereby if the lessor supplies or pays for the motor 30 fuel , or special fuel , or electric fuel consumed by such 31 vehicle or makes rental or other charges calculated to include 32 the cost of such fuel. 33 Sec. 33. Section 452A.59, Code 2019, is amended to read as 34 follows: 35 -20- LSB 1803HV (4) 88 ns/jh 20/ 31
H.F. 725 452A.59 Administrative rules. 1 The department of revenue and the state department 2 of transportation are authorized and empowered to adopt 3 rules under chapter 17A , relating to the administration 4 and enforcement of this chapter as deemed necessary by the 5 departments. However, when in the opinion of the director 6 it is necessary for the efficient administration of this 7 chapter , the director may regard persons in possession of motor 8 fuel, special fuel, biofuel, alcohol, or alcohol derivative 9 substances as blenders, dealers, eligible purchasers, 10 exporters, importers, restrictive suppliers, suppliers, 11 terminal operators, or nonterminal storage facility operators , 12 or persons in possession of electric fuel as electric fuel 13 dealers or users . 14 Sec. 34. Section 452A.60, subsection 1, Code 2019, is 15 amended to read as follows: 16 1. The department of revenue or the state department of 17 transportation shall prescribe and furnish all forms, as 18 applicable, upon which reports, returns, and applications shall 19 be made and claims for refund presented under this chapter 20 and may prescribe forms of record to be kept by suppliers, 21 restrictive suppliers, importers, exporters, blenders, common 22 carriers, contract carriers, licensed compressed natural gas, 23 liquefied natural gas, and liquefied petroleum gas dealers 24 and users, licensed electric fuel dealers and users, terminal 25 operators, nonterminal storage facility operations, and 26 interstate commercial motor vehicle operators. 27 Sec. 35. Section 452A.62, subsection 1, paragraph a, Code 28 2019, is amended by adding the following new subparagraph: 29 NEW SUBPARAGRAPH . (5) A licensed electric fuel dealer or 30 user or person supplying electric fuel to a licensed electric 31 fuel dealer or user. 32 Sec. 36. Section 452A.62, subsection 1, paragraph b, Code 33 2019, is amended to read as follows: 34 b. To examine the records, books, papers, receipts, and 35 -21- LSB 1803HV (4) 88 ns/jh 21/ 31
H.F. 725 invoices of any distributor, supplier, restrictive supplier, 1 importer, blender, exporter, terminal operator, nonterminal 2 storage facility, licensed compressed natural gas, liquefied 3 natural gas, or liquefied petroleum gas dealer or user, 4 licensed electric fuel dealer or user, or any other person 5 who possesses fuel upon which the tax has not been paid to 6 determine financial responsibility for the payment of the taxes 7 imposed by this chapter . 8 Sec. 37. Section 452A.63, subsection 1, Code 2019, is 9 amended to read as follows: 10 1. All information obtained by the department of revenue or 11 the state department of transportation from the examining of 12 reports, returns, or records required to be filed or kept under 13 this chapter shall be treated as confidential and shall not be 14 divulged except to other state officers, a member or members of 15 the general assembly, or any duly appointed committee of either 16 or both houses of the general assembly, or to a representative 17 of the state having some responsibility in connection with the 18 collection of the taxes imposed or in proceedings brought under 19 this chapter . The appropriate state agency may make available 20 to the public on or before forty-five days following the last 21 day of the month in which the tax is required to be paid, the 22 names of suppliers, restrictive suppliers, and importers and as 23 to each of them the total gallons of motor fuel, undyed special 24 fuel, and ethanol blended gasoline withdrawn from terminals 25 or imported into the state during that month. The department 26 of revenue or the state department of transportation, upon 27 request of officials entrusted with enforcement of the motor 28 fuel tax laws of the federal government or any other state, may 29 forward to these officials any pertinent information which the 30 appropriate state agency may have relative to motor fuel , and 31 special fuel, and electric fuel, provided the officials of the 32 other state furnish like information. 33 Sec. 38. Section 452A.73, Code 2019, is amended to read as 34 follows: 35 -22- LSB 1803HV (4) 88 ns/jh 22/ 31
H.F. 725 452A.73 Embezzlement of fuel tax money —— penalty. 1 Every sale of motor fuel in this state , and every sale 2 of undyed special fuel dispensed by the seller into a fuel 3 supply tank of a motor vehicle , and every sale of electric 4 fuel dispensed by the seller into the battery or other energy 5 storage device of an electric motor vehicle shall, unless 6 otherwise provided, be presumed to include as a part of the 7 purchase price the fuel tax due the state of Iowa under the 8 provisions of this chapter . Every person collecting fuel tax 9 money as part of the selling price of motor fuel , or undyed 10 special fuel, or electric fuel shall hold the tax money in 11 trust for the state of Iowa unless the fuel tax on the fuel 12 has been previously paid to the state of Iowa. Any person 13 receiving fuel tax money in trust and failing to remit it to 14 the department of revenue on or before time required shall be 15 guilty of theft. 16 Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and 17 f, Code 2019, are amended to read as follows: 18 c. For any seller to issue or any purchaser to receive 19 and retain any incorrect or false invoice or sales ticket in 20 connection with the sale or purchase of motor fuel , or undyed 21 special fuel , or electric fuel . 22 e. For any person to act as a supplier, restrictive 23 supplier, importer, exporter, blender, or compressed natural 24 gas, liquefied natural gas, or liquefied petroleum gas dealer 25 or user , or electric fuel dealer or user without the required 26 license. 27 f. For any person to use motor fuel, undyed special fuel, 28 or dyed special fuel in the fuel supply tank of a vehicle , or 29 electric fuel in the battery or other energy storage device of 30 an electric vehicle, with respect to which the person knowingly 31 has not paid or had charged to the person’s account with a 32 distributor or dealer, or with respect to which the person does 33 not, within the time required in this chapter , report and pay 34 the applicable fuel tax. 35 -23- LSB 1803HV (4) 88 ns/jh 23/ 31
H.F. 725 Sec. 40. Section 452A.74, subsection 1, Code 2019, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . h. For any licensed electric fuel dealer or 3 user to dispense electric fuel into the battery or other energy 4 storage device of any electric motor vehicle without collecting 5 the fuel tax. 6 Sec. 41. Section 452A.76, subsection 2, Code 2019, is 7 amended to read as follows: 8 2. Authority is given to the department of revenue, 9 the state department of transportation, the department of 10 public safety, and any peace officer as requested by such 11 departments to enforce the provisions of subchapter I , sections 12 452A.40 through 452A.44, and this subchapter of this chapter . 13 The department of revenue shall adopt rules providing for 14 enforcement under subchapter I and this subchapter of this 15 chapter regarding the use of motor fuel or special fuel in 16 implements of husbandry. Enforcement personnel or requested 17 peace officers are authorized to stop a conveyance suspected 18 to be illegally transporting motor fuel or special fuel on 19 the highways, to investigate the cargo, and also have the 20 authority to inspect or test the fuel in the supply tank of a 21 conveyance to determine if legal fuel is being used to power 22 the conveyance. The operator of any vehicle transporting 23 motor fuel or special fuel shall, upon request, produce and 24 offer for inspection the manifest or loading and delivery 25 invoices pertaining to the load and trip in question and shall 26 permit the authority to inspect and measure the contents of 27 the vehicle. If the vehicle operator fails to produce the 28 evidence or if, when produced, the evidence fails to contain 29 the required information and it appears that there is an 30 attempt to evade payment of the fuel tax, the vehicle operator 31 will be subject to the penalty provisions contained in section 32 452A.74A . 33 Sec. 42. Section 452A.78, Code 2019, is amended to read as 34 follows: 35 -24- LSB 1803HV (4) 88 ns/jh 24/ 31
H.F. 725 452A.78 Other remedies available. 1 The special remedies provided under the provisions of this 2 chapter to enable the state to collect motor a fuel excise tax 3 imposed by this chapter shall not be construed as depriving the 4 state of any other remedy it might have either at law or in 5 equity independent of this chapter . The state shall have the 6 right to maintain an action at law for the collection of said 7 taxes required to be paid herein and in connection therewith 8 shall be entitled to a writ of attachment without bond. 9 Sec. 43. Section 452A.79, Code 2019, is amended to read as 10 follows: 11 452A.79 Use of revenue. 12 Except as provided in sections 452A.79A , 452A.82 , and 13 452A.84 , the net proceeds of the excise tax on the diesel 14 special fuel , and the excise tax on motor fuel and other 15 special fuel, the excise tax on electric fuel, and penalties 16 collected under the provision of this chapter , shall be 17 credited to the road use tax fund. 18 Sec. 44. Section 452A.80, Code 2019, is amended to read as 19 follows: 20 452A.80 Microfilm or photographic copies —— originals 21 destroyed. 22 The appropriate state agency shall have the power and 23 authority to record, copy, or reproduce by any photographic, 24 photostatic, microfilm, microcard, miniature photographic, 25 or other process which accurately reproduces or forms a 26 durable medium for so reproducing the original of any forms 27 or records pertaining to motor a fuel tax or undyed special 28 fuel tax imposed by this chapter , or any paper or document with 29 respect to refund of the tax. If the forms and records have 30 been reproduced in accordance with this section , the state 31 agency may destroy the originals and the reproductions shall 32 be competent evidence in any court in accordance with the 33 provision of section 622.30 . 34 Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall 35 -25- LSB 1803HV (4) 88 ns/jh 25/ 31
H.F. 725 designate sections 452A.40 through 452A.44, as enacted by 1 this division of this Act, as a new subchapter within chapter 2 452A, and may redesignate the new and preexisting subchapters, 3 replace references to sections 452A.40 through 452A.44 4 with references to the new subchapter, and correct internal 5 references as necessary, including references in subchapter 6 headnotes. 7 Sec. 46. EFFECTIVE DATE. This division of this Act takes 8 effect July 1, 2020. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to motor vehicle taxes and fees. 13 DIVISION I —— REGISTRATION FEES FOR ELECTRIC VEHICLES. 14 Under current law, Code section 321.109(1)(a) provides that all 15 motor vehicles including vehicles designated by manufacturers 16 as station wagons, 1993 and subsequent model year multipurpose 17 vehicles, and 2010 and subsequent model year motor trucks 18 with an unladen weight of 10,000 pounds or less, except motor 19 trucks registered under Code section 321.122, business-trade 20 trucks, special trucks, motor homes, motorsports recreational 21 vehicles, ambulances, hearses, autocycles, motorcycles, 22 motorized bicycles, and 1992 and older model year multipurpose 23 vehicles, are subject to an annual registration fee equal to 1 24 percent of the value of the vehicle as fixed by the department 25 of transportation (DOT) plus 40 cents for each 100 pounds of 26 weight of the vehicle as fixed by the DOT. 27 For each battery electric motor vehicle, as defined in the 28 bill, subject to an annual registration fee under Code section 29 321.109(1)(a), the bill requires the owner to pay an annual 30 battery electric motor vehicle registration fee, which is in 31 addition to the regular annual registration fee imposed for the 32 vehicle. For the period beginning January 1, 2020, and ending 33 December 31, 2020, the fee is $65. For the period beginning 34 January 1, 2021, and ending December 31, 2021, the fee is 35 -26- LSB 1803HV (4) 88 ns/jh 26/ 31
H.F. 725 $97.50. On or after January 1, 2022, the fee is $130. 1 For each plug-in hybrid electric motor vehicle, as defined 2 in the bill, subject to an annual registration fee under Code 3 section 321.109(1)(a), the bill requires the owner to pay an 4 annual plug-in hybrid electric motor vehicle registration fee, 5 which is in addition to the regular annual registration fee 6 imposed for the vehicle. For the period beginning January 1, 7 2020, and ending December 31, 2020, the fee is $32.50. For the 8 period beginning January 1, 2021, and ending December 31, 2021, 9 the fee is $48.75. On or after January 1, 2022, the fee is $65. 10 Under current law, motorcycles are subject to an annual 11 registration fee of $20. However, if a motorcycle is more 12 than five model years old, the annual registration fee is $10. 13 The bill requires the owner of a motorcycle that is a battery 14 electric motor vehicle or plug-in hybrid electric motor vehicle 15 to pay an annual electric motorcycle registration fee, which 16 is in addition to the regular annual registration fee imposed 17 for the motorcycle. For the period beginning January 1, 2020, 18 and ending December 31, 2020, the fee is $4.50. For the period 19 beginning January 1, 2021, and ending December 31, 2021, the 20 fee is $6.75. On or after January 1, 2022, the fee is $9. 21 Under Code section 321.17, operating a motor vehicle of a 22 type required to be registered which is not registered, or for 23 which the appropriate fees have not been paid, is punishable by 24 a scheduled fine of $50. 25 This division of the bill takes effect January 1, 2020. 26 DIVISION II —— HYDROGEN FUEL EXCISE TAX. The bill imposes 27 an excise tax of 65 cents per gallon on hydrogen used as a 28 special fuel in motor vehicles. The bill specifies that a 29 diesel gallon equivalent of hydrogen is 2.49 pounds. The 30 bill makes corresponding changes to Code chapter 452A (motor 31 fuel and special fuel taxes) to ensure that the excise tax 32 on hydrogen is collected in the same manner as the existing 33 excise taxes on compressed natural gas, liquefied natural 34 gas, and liquefied petroleum gas. The bill applies the 35 -27- LSB 1803HV (4) 88 ns/jh 27/ 31
H.F. 725 provisions of Code chapter 452A to dealers and users of 1 hydrogen, including but not limited to provisions relating to 2 license requirements, reporting and filing requirements, record 3 retention requirements and audits, refunds, the interstate fuel 4 use tax, the inventory tax, and a variety of unlawful acts that 5 may result in a conviction for theft or fraudulent practice, 6 including but not limited to those listed in Code sections 7 452A.73, 452A.74, 452A.74A, and 452A.75. In accordance with 8 Article VII, section 8, of the Iowa Constitution and Code 9 section 452A.79, revenues from the excise tax on hydrogen used 10 as a special fuel in motor vehicles are credited to the road 11 use tax fund. 12 By operation of law, Code section 321.40(9) provides that 13 a person who owns or controls a vehicle that uses hydrogen 14 will be issued a special fuel user identification sticker by 15 the county treasurer, and the person must place the sticker 16 adjacent to the place where the special fuel is delivered into 17 the vehicle fuel supply tank. Under Code section 312.2(9), 18 1.75 cents per gallon from the excise tax on hydrogen will be 19 deposited in the revitalize Iowa’s sound economy fund. Under 20 Code section 312.2(10), .25 cents per gallon from the excise 21 tax on hydrogen will be deposited in the secondary road fund. 22 The provisions of Code chapter 323 (dealer and distributor 23 franchises for motor fuel and special fuel) apply to dealers 24 and distributors that sell hydrogen used as a special fuel. 25 Hydrogen used as a special fuel is excluded from the sales and 26 use tax under Code section 423.2(56) and the local sales and 27 services tax under Code section 423B.5(1). 28 The bill does not amend Code chapter 476C, which authorizes 29 a renewable energy fuel tax credit for producers and purchasers 30 of hydrogen fuel. The bill also does not amend Code section 31 216B.3 (department for the blind), 260C.19A (community 32 colleges), 262.25A (board of regents), 307.21 (department of 33 transportation), or 904.312A (department of corrections), which 34 require that 10 percent of motor vehicles purchased by such 35 -28- LSB 1803HV (4) 88 ns/jh 28/ 31
H.F. 725 entities be equipped with engines which utilize alternative 1 methods of propulsion, including electricity but not including 2 hydrogen. 3 This division of the bill takes effect January 1, 2020. 4 DIVISION III —— ELECTRIC FUEL EXCISE TAX. The bill provides 5 that electric fuel means electrical energy delivered or placed 6 into the battery or other energy storage device of an electric 7 motor vehicle from a source outside the motor vehicle for 8 purposes of propelling the motor vehicle. The bill imposes an 9 excise tax of 2.6 cents on each kilowatt hour of electric fuel 10 delivered or placed into the battery or other energy storage 11 device of an electric motor vehicle at a location in this 12 state other than a residence. The tax attaches at the time of 13 the delivery by a dealer and must be collected by the dealer 14 from the purchaser and paid to the Iowa department of revenue 15 (IDR) in the same manner as the excise taxes on natural gas 16 and liquefied petroleum gas are paid by dealers under current 17 law. Alternatively, the tax attaches at the time of use by 18 a licensed electric fuel user and must be paid to IDR in the 19 same manner as the excise taxes on natural gas and liquefied 20 petroleum gas are paid by users under current law. 21 All charging stations located at dealer and user locations 22 through which electric fuel can be dispensed must be metered, 23 inspected, tested for accuracy, and sealed and licensed by the 24 department of agriculture and land stewardship. 25 For the purpose of determining the amount of liability for 26 the electric fuel tax, each dealer and user must file with IDR 27 not later than the last day of each calendar month a monthly 28 tax return certified under penalties for false certification. 29 The return must be accompanied by remittance in the amount of 30 the tax due for the month in which the fuel was placed into 31 the batteries or other energy storage devices of electric 32 motor vehicles. The bill specifies that moneys collected by a 33 licensed electric fuel dealer or user for the excise tax are 34 deemed to be held in trust for the state of Iowa. 35 -29- LSB 1803HV (4) 88 ns/jh 29/ 31
H.F. 725 The bill prohibits a person from selling or dispensing 1 electric fuel within this state at a location other than a 2 residence or from otherwise acting as a licensed electric fuel 3 dealer or user unless the person holds an uncanceled license 4 issued by IDR. The bill specifies the application requirements 5 for a license, and provides for grounds under which IDR may 6 deny the issuance of a license. 7 The bill requires a licensed electric fuel dealer or user 8 to maintain, for a period of three years, records of all 9 transactions by which the dealer or user dispenses electric 10 fuel into the batteries or other energy storage devices of 11 electric motor vehicles, including pertinent records and papers 12 as required by IDR. After an audit and examination of such 13 records, IDR may authorize their disposal upon the written 14 request of the dealer or user. 15 The bill provides that a person who uses electric fuel for 16 any of the nontaxable purposes set forth under current law for 17 motor fuel and undyed special fuel, who has paid the electric 18 fuel tax and who has a refund permit, upon presentation to and 19 approval by IDR of a claim for refund, must be reimbursed and 20 repaid the amount of the tax which the claimant has paid on 21 the kilowatt hours so used. Such refunds are subject to the 22 limitations and requirements set forth under current law for 23 refunds of the tax on motor fuel and undyed special fuel. The 24 bill prohibits a person from claiming a refund until the person 25 has obtained a refund permit from IDR meeting the requirements 26 set forth under current law. 27 The bill makes corresponding changes to Code chapter 28 452A, including provisions of the interstate fuel use tax 29 law. In accordance with Article VII, section 8, of the Iowa 30 Constitution and Code section 452A.79, revenues from the excise 31 tax on electric fuel are credited to the road use tax fund. The 32 bill provides that 0.15 cents per kilowatt hour of the excise 33 tax must be credited to the revitalize Iowa’s sound economy 34 fund, and 0.02 cents per kilowatt hour of the excise tax must 35 -30- LSB 1803HV (4) 88 ns/jh 30/ 31
H.F. 725 be credited to the secondary road fund, in accordance with 1 similar provisions for other types of fuel. In addition, the 2 bill exempts electric fuel from the state sales and use tax and 3 local option taxes. 4 This division of the bill takes effect July 1, 2020. 5 -31- LSB 1803HV (4) 88 ns/jh 31/ 31