House File 767 - Reprinted HOUSE FILE 767 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 725) (SUCCESSOR TO HSB 197) (As Amended and Passed by the House April 17, 2019 ) 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 HF 767 (5) 88 ns/jh/md

H.F. 767 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- HF 767 (5) 88 ns/jh/md 1/ 26

H.F. 767 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- HF 767 (5) 88 ns/jh/md 2/ 26

H.F. 767 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- HF 767 (5) 88 ns/jh/md 3/ 26

H.F. 767 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- HF 767 (5) 88 ns/jh/md 4/ 26

H.F. 767 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- HF 767 (5) 88 ns/jh/md 5/ 26

H.F. 767 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- HF 767 (5) 88 ns/jh/md 6/ 26

H.F. 767 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- HF 767 (5) 88 ns/jh/md 7/ 26

H.F. 767 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- HF 767 (5) 88 ns/jh/md 8/ 26

H.F. 767 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- HF 767 (5) 88 ns/jh/md 9/ 26

H.F. 767 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- HF 767 (5) 88 ns/jh/md 10/ 26

H.F. 767 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 owns an electric vehicle charging station 26 that dispenses electric fuel, upon which the electric fuel tax 27 has not been previously paid, for highway use into the battery 28 or other energy storage device of an electric motor vehicle in 29 this state at a location other than a 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- HF 767 (5) 88 ns/jh/md 11/ 26

H.F. 767 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 paid to the department by 18 the licensed electric fuel dealer in a manner prescribed by 19 the department. The tax for electric fuel used by a licensed 20 electric fuel user shall attach at the time of the use of 21 the fuel and shall be paid to the department by the licensed 22 electric fuel user in a manner prescribed by the department. 23 3. The department shall adopt rules governing the 24 dispensing of electric fuel by licensed dealers and users. The 25 director may require by rule that reports and returns be filed 26 by electronic transmission. The department may require by rule 27 that all charging stations located at dealer and user locations 28 through which electric fuel can be dispensed be tested for 29 accuracy. 30 4. a. For the purpose of determining the amount of 31 liability for the electric fuel tax, each dealer and user shall 32 file with the department not later than July 31 for the period 33 beginning January 1 and ending June 30, and not later than 34 January 30 for the period beginning July 1 and ending December 35 -12- HF 767 (5) 88 ns/jh/md 12/ 26

H.F. 767 30, a biannual tax return certified under penalties for false 1 certification. The return shall show, with reference to each 2 location at which fuel is delivered or placed by the dealer or 3 user into the battery or other energy storage device of any 4 electric motor vehicle during the next preceding six calendar 5 months, information as required by the department. On and 6 after January 1, 2026, the department may require by rule that 7 such tax returns be filed quarterly. 8 b. The amount of tax due shall be computed by multiplying 9 the appropriate tax rate per kilowatt hour by the number of 10 kilowatt hours of electric fuel delivered or placed by the 11 dealer or user into the batteries or other energy storage 12 devices of electric motor vehicles. 13 c. The return shall be accompanied by remittance in the 14 amount of the tax due for the determination period in which 15 the fuel was placed into the batteries or other energy storage 16 devices of electric motor vehicles. 17 5. Moneys collected under this subchapter by a licensed 18 electric fuel dealer or user are deemed to be held in trust for 19 the state of Iowa. 20 6. This subchapter shall not be construed to require a 21 public utility, as defined in section 476.1, to collect the 22 excise tax on electric fuel or to install a separate electric 23 utility meter or otherwise use utility equipment for purposes 24 related to the excise tax on electric fuel, unless the public 25 utility is a licensed electric fuel dealer or licensed electric 26 fuel user. 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 The holder of an electric fuel dealer’s license is authorized 34 to sell and dispense electric fuel, measured in kilowatt hours, 35 -13- HF 767 (5) 88 ns/jh/md 13/ 26

H.F. 767 to consumers. The holder of an electric fuel user’s license 1 is authorized to dispense electric fuel, measured in kilowatt 2 hours, into the batteries or other energy storage devices of 3 electric motor vehicles owned or controlled by the holder. 4 2. To procure a license, a person shall file with the 5 department an application signed under penalty for false 6 certificate setting forth all of the following: 7 a. The name under which the licensee will transact business 8 in this state. 9 b. The location, with street number address, of the 10 principal office or place of business of the licensee within 11 this state. 12 c. The name and complete residence address of the owner 13 or the names and addresses of the partners, if the licensee 14 is a partnership, or the names and addresses of the principal 15 officers, if the licensee is a corporation or association. 16 3. A dealer’s or user’s license shall be required for each 17 separate place of business or location, other than a residence, 18 where electric fuel is delivered or placed into the battery or 19 other energy storage device of an electric motor vehicle. 20 4. a. The department may deny the issuance of a license to 21 an applicant who is substantially delinquent in the payment of 22 a tax due, or the interest or penalty on the tax, administered 23 by the department. If the applicant is a partnership, a 24 license may be denied if a partner owes any delinquent tax, 25 interest, or penalty. If the applicant is a corporation, a 26 license may be denied if any officer having a substantial legal 27 or equitable interest in the ownership of the corporation owes 28 any delinquent tax, interest, or penalty of the applicant 29 corporation. 30 b. The department may deny the issuance of a license if 31 an application for a license to transact business as a dealer 32 or user in this state is filed by a person whose license or 33 registration has been canceled for cause at any time under the 34 provisions of this chapter or any prior motor fuel tax law, if 35 -14- HF 767 (5) 88 ns/jh/md 14/ 26

H.F. 767 the department has reason to believe that the application is 1 not filed in good faith, or if the application is filed by some 2 person as a subterfuge for the real person in interest whose 3 license or registration has been canceled for cause under the 4 provisions of this chapter or any prior motor fuel tax law. 5 The applicant shall be given fifteen days’ notice in writing of 6 the date of the hearing and shall have the right to appear in 7 person or by counsel and present testimony. 8 5. a. The application in proper form having been accepted 9 for filing, and the other conditions and requirements of this 10 section and subchapter IV having been complied with, the 11 department shall issue to the applicant a license to transact 12 business as an electric fuel dealer or user in this state. The 13 license shall remain in full force and effect until canceled as 14 provided in this chapter. 15 b. The license shall not be assignable and shall be valid 16 only for the licensee in whose name it is issued. 17 c. The department shall keep and file all applications and 18 bonds and a record of all licensees. 19 Sec. 26. NEW SECTION . 452A.43 Records. 20 1. A licensed electric fuel dealer or user shall maintain, 21 for a period of three years, records of all transactions by 22 which the dealer or user dispenses electric fuel into the 23 batteries or other energy storage devices of electric motor 24 vehicles, including pertinent records and papers as required 25 by the department. 26 2. If in the normal conduct of a dealer’s or user’s business 27 the records are maintained and kept at an office outside this 28 state, the records shall be made available for audit and 29 examination by the department at the office outside this state, 30 but the audit and examination shall be without expense to this 31 state. 32 3. The department, after an audit and examination of records 33 required to be maintained under this section, may authorize 34 their disposal upon the written request of the dealer or user. 35 -15- HF 767 (5) 88 ns/jh/md 15/ 26

H.F. 767 Sec. 27. NEW SECTION . 452A.44 Refunds. 1 1. A person who uses electric fuel for any of the nontaxable 2 purposes set forth in section 452A.17, subsection 1, paragraph 3 “a” , for motor fuel and undyed special fuel, and who has paid 4 the electric fuel tax either directly to the department or by 5 having the tax added to the price of the fuel, and who has 6 a refund permit, upon presentation to and approval by the 7 department of a claim for refund, subject to the conditions set 8 forth in section 452A.17, subsection 1, paragraph “b” , shall be 9 reimbursed and repaid the amount of the tax which the claimant 10 has paid on the kilowatt hours so used, except that the amount 11 of a refund payable may be applied by the department against 12 any tax liability outstanding on the books of the department 13 against the claimant. Refunds under this section are subject 14 to the limitations and requirements set forth in section 15 452A.17, subsection 3, for motor fuel and undyed special fuel 16 refunds. 17 2. A person shall not claim a refund under this section 18 until the person has obtained a refund permit meeting the 19 requirements of section 452A.18 from the department. The 20 department may revoke a refund permit pursuant to section 21 452A.19. 22 3. Tax collected on electric fuel that is not taxable, or 23 tax collected in excess of the actual amount of tax due, is 24 subject to section 452A.22. 25 Sec. 28. Section 452A.52, Code 2019, is amended to read as 26 follows: 27 452A.52 Fuels imported in supply tanks of motor vehicles —— 28 applicability . 29 1. a. No A person shall not bring into this state in 30 the fuel supply tanks of a commercial motor vehicle, or any 31 other container, regardless of whether or not the supply tanks 32 are connected to the motor of the vehicle, any motor fuel or 33 special fuel to be used in the operation of the vehicle in 34 this state unless that person has paid or made arrangements in 35 -16- HF 767 (5) 88 ns/jh/md 16/ 26

H.F. 767 advance with the state department of transportation for payment 1 of Iowa fuel taxes on the gallonage consumed in operating the 2 vehicle in this state ; except that this subchapter shall not 3 apply to a private passenger automobile . 4 b. A person shall not bring into this state in the batteries 5 or other energy storage devices of a commercial motor vehicle, 6 or any other energy storage device, regardless of whether the 7 batteries or storage devices are connected to the motor of 8 the vehicle, any electric fuel to be used in the operation 9 of the vehicle in this state unless that person has paid or 10 made arrangements in advance with the state department of 11 transportation for payment of Iowa fuel taxes on the kilowatt 12 hours consumed in operating the vehicle in this state. 13 2. Any person who is unable to display either of the 14 permits or the license provided in section 452A.53 and brings 15 into the state in the fuel supply tanks of a commercial motor 16 vehicle more than thirty gallons of motor fuel or special fuel , 17 or brings into the state in the batteries or other energy 18 storage devices of a commercial motor vehicle more than three 19 hundred fifty kilowatt hours of electric fuel, in violation 20 of subsection 1 commits a simple misdemeanor punishable as 21 a scheduled violation under section 805.8A, subsection 13 , 22 paragraph “c” . 23 3. This subchapter shall not apply to a private passenger 24 automobile. 25 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code 26 2019, are amended to read as follows: 27 2. Persons choosing not to make advance arrangements with 28 the state department of transportation by procuring a permit or 29 license are not relieved of their responsibility to purchase 30 motor fuel , and special fuel , and electric fuel commensurate 31 with their use of the state’s highway system. When there 32 is reasonable cause to believe that there is evasion of the 33 fuel tax on commercial motor vehicles, the state department 34 of transportation may audit persons not holding a permit 35 -17- HF 767 (5) 88 ns/jh/md 17/ 26