S.F. 2107 Section 1. MOTOR VEHICLE MILEAGE TAX PILOT PROGRAM. 1 1. The department of transportation, in coordination with 2 the department of revenue, shall establish a motor vehicle 3 mileage tax pilot program for purposes of evaluating the 4 feasibility of imposing and collecting a tax on the miles 5 traveled annually by motor vehicles on the highways of this 6 state as an alternative to the motor fuel and special fuel 7 taxes imposed under chapter 452A. 8 2. a. The department of transportation, in coordination 9 with the department of revenue, shall develop, implement, 10 and administer the pilot program. Under the program, the 11 department of revenue shall assess participating owners of 12 motor vehicles a mileage tax that is based on the number 13 of miles traveled on highways of this state by those motor 14 vehicles. 15 b. The pilot program shall include at least one 16 thousand volunteers who are residents of this state and are 17 representative of the drivers of motor vehicles operated on 18 the highways of this state, including but not limited to 19 motor vehicles which operate on alternative fuels such as 20 ethanol blended gasoline, biodiesel blended fuel, compressed 21 natural gas, electricity, or hydrogen. The department of 22 transportation or a volunteer may terminate the volunteer’s 23 participation in the program at any time. 24 c. The department of transportation shall be responsible 25 for selecting and installing equipment capable of measuring 26 and reporting vehicle mileage in the motor vehicles owned by 27 the participating volunteers. The equipment selected by the 28 department shall have global positioning capabilities. 29 3. The pilot program shall test the reliability, ease 30 of use, cost, public acceptance, and potential for evasion 31 of the technologies and methods used by the department of 32 transportation and department of revenue in implementing the 33 pilot program, including for all of the following: 34 a. Counting the number of miles traveled by the volunteers’ 35 -1- LSB 5531XS (4) 88 mo/ns 1/ 4

S.F. 2107 vehicles. 1 b. Reporting the number of miles traveled by the volunteers’ 2 vehicles. 3 c. Collecting or receiving payments from the volunteers. 4 4. The department of transportation, in coordination with 5 the department of revenue, shall analyze and evaluate the 6 technologies and methods, as described in subsection 3, to do 7 all of the following: 8 a. Protect the integrity of data collected and reported. 9 b. Ensure participating volunteers’ privacy. 10 c. Increase or decrease the amount of the tax based on the 11 time of driving, type of road, proximity to transit, vehicle 12 fuel efficiency, participation in vehicle sharing, and income 13 of the participating volunteer. 14 5. The pilot program shall last at least one year but not 15 more than three years. The pilot program shall commence on or 16 before January 1, 2021. 17 6. The department of transportation, in coordination with 18 the department of revenue, shall refund applicable motor fuel 19 and special fuel taxes paid by the volunteers pursuant to 20 chapter 452A or otherwise compensate volunteers to ensure that 21 volunteers are not required to pay more under the program than 22 they would have by not participating in the program. This 23 subsection applies to all volunteers of the pilot program, 24 including those volunteers whose participation ended prior to 25 the termination of the program. 26 7. The department of transportation, in coordination 27 with the department of revenue, shall adopt rules pursuant 28 to chapter 17A necessary for the implementation of the pilot 29 program, including but not limited to rules establishing the 30 process for selecting volunteers, the methods for collecting 31 the mileage tax from the volunteers, mileage reporting 32 requirements for the volunteers, and the process for refunding 33 motor fuel and special fuel taxes paid by the volunteers 34 pursuant to chapter 452A. 35 -2- LSB 5531XS (4) 88 mo/ns 2/ 4

S.F. 2107 8. The department of transportation, in coordination 1 with the department of revenue, shall report to the general 2 assembly the results of the pilot program, including the 3 feasibility of permanently assessing a motor vehicle mileage 4 tax; an evaluation of the impacts of such a tax on the economy, 5 the environment, and traffic congestion; a comparison to 6 other potential alternatives or supplements to the fuel taxes 7 assessed pursuant to chapter 452A; and any recommendations. 8 The report required by this subsection shall be submitted 9 to the general assembly no later than six months after the 10 completion of the pilot program. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill requires the department of transportation (DOT), 15 in coordination with the department of revenue (DOR), to 16 establish a motor vehicle mileage tax pilot program for 17 purposes of evaluating the feasibility of imposing and 18 collecting a tax on the miles traveled annually by motor 19 vehicles on the highways of this state as a potential 20 alternative to the motor fuel and special fuel taxes imposed 21 under Code chapter 452A. The DOT, in coordination with the 22 DOR, is required to develop, implement, and administer the 23 pilot program. Under the pilot program, the DOR is required 24 to assess participating owners of motor vehicles a mileage tax 25 that is based on the number of miles traveled on highways of 26 this state by those motor vehicles. The pilot program shall 27 include at least 1,000 volunteers. The DOT or a volunteer may 28 terminate the volunteer’s participation in the program at any 29 time. The DOT is responsible for selecting and installing 30 equipment capable of measuring and reporting vehicle mileage in 31 the motor vehicles owned by the participating volunteers. 32 The pilot program is required to test the reliability, ease 33 of use, cost, public acceptance, and potential for evasion of 34 the technology and the methods used by the DOT and the DOR. The 35 -3- LSB 5531XS (4) 88 mo/ns 3/ 4

S.F. 2107 DOT, in coordination with the DOR, is required to analyze and 1 evaluate the technologies and methods used in the pilot program 2 to protect the integrity of the data collected and reported, 3 ensure the participating volunteers’ privacy, and increase or 4 decrease the amount of the tax based on certain factors. 5 The pilot program is required to last at least one year, 6 but not more than three years, and must commence on or before 7 January 1, 2021. 8 The DOT, in coordination with the DOR, is required to refund 9 motor fuel and special fuel taxes paid by the volunteers 10 pursuant to Code chapter 452A or otherwise compensate 11 volunteers to ensure that they are not required to pay more 12 under the program than they would have by not participating in 13 the program. 14 The DOT, in coordination with the DOR, is required to report 15 to the general assembly the results of the pilot program 16 no later than six months after the completion of the pilot 17 program. 18 -4- LSB 5531XS (4) 88 mo/ns 4/ 4