House Study Bill 561 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON JONES) A BILL FOR An Act relating to the excise tax on certain ethanol blended 1 gasoline purchased exclusively for use in an implement used 2 in agricultural production. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5210YC (1) 91 th/ns

H.F. _____ Section 1. NEW SECTION . 452A.16 Exempt fuel —— agricultural 1 implements. 2 The excise tax under section 452A.3 shall not be imposed or 3 collected on ethanol blended gasoline formulated with more than 4 eighty-five percent by volume of ethanol when purchased at a 5 terminal or refinery rack exclusively for use in an implement 6 used in agricultural production. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 Under current law, the excise tax on each gallon of ethanol 11 blended gasoline classified as E-15 or higher is based on 12 the distribution percentage of those fuels compared to the 13 distribution of all nonaviation gasoline motor fuel, and 14 ranges from 24 cents to 30 cents. For motor fuel and undyed 15 special fuel used for a variety of exempt purposes under Code 16 section 452A.17, including in implements used in agricultural 17 production, a person who pays the excise tax may claim a refund 18 from the Iowa department of revenue. 19 This bill exempts ethanol blended gasoline formulated with 20 more than 85 percent by volume of ethanol from imposition and 21 collection of the excise tax when purchased at a terminal or 22 refinery rack exclusively for use in an implement used in 23 agricultural production. 24 -1- LSB 5210YC (1) 91 th/ns 1/ 1