SSB 3025 (LSB 5210XC (5) 91)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON ZUMBACH)

A BILL FOR

An Act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement used in agricultural production.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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