House File 168 - IntroducedA Bill ForAn Act 1reducing the excise tax on motor fuel and certain

2special fuel, and including applicability provisions.

3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

1 Section 1. Section 452A.3, subsection 1, paragraph b, Code

22019, is amended to read as follows:

3b. The rate for the excise tax shall be as follows:

4(1) If the distribution percentage is not greater than

5fifty percent, the rate shall be twenty-nine twenty-six cents

6for ethanol blended gasoline and thirty twenty-seven cents for

7motor fuel other than ethanol blended gasoline.

8(2) If the distribution percentage is greater than fifty

9percent but not greater than fifty-five percent, the rate shall

10be twenty-nine twenty-six cents for ethanol blended gasoline

11and thirty twenty-seven and one-tenth cents for motor fuel

12other than ethanol blended gasoline.

13(3) If the distribution percentage is greater than

14fifty-five percent but not greater than sixty percent, the

15rate shall be twenty-nine twenty-six cents for ethanol blended

16gasoline and thirty twenty-seven and three-tenths cents for

17motor fuel other than ethanol blended gasoline.

18(4) If the distribution percentage is greater than sixty

19percent but not greater than sixty-five percent, the rate shall

20be twenty-nine twenty-six cents for ethanol blended gasoline

21and thirty twenty-seven and five-tenths cents for motor fuel

22other than ethanol blended gasoline.

23(5) If the distribution percentage is greater than

24sixty-five percent but not greater than seventy percent, the

25rate shall be twenty-nine twenty-six cents for ethanol blended

26gasoline and thirty twenty-seven and seven-tenths cents for

27motor fuel other than ethanol blended gasoline.

28(6) If the distribution percentage is greater than seventy

29percent but not greater than seventy-five percent, the rate

30shall be twenty-nine twenty-six cents for ethanol blended

31gasoline and thirty-one twenty-eight cents for motor fuel other

32than ethanol blended gasoline.

33(7) If the distribution percentage is greater than

34seventy-five percent but not greater than eighty percent,

35the rate shall be twenty-nine twenty-six and three-tenths

-1-1cents for ethanol blended gasoline and thirty twenty-seven and

2eight-tenths cents for motor fuel other than ethanol blended

3gasoline.

4(8) If the distribution percentage is greater than

5eighty percent but not greater than eighty-five percent, the

6rate shall be twenty-nine twenty-six and five-tenths cents

7for ethanol blended gasoline and thirty twenty-seven and

8seven-tenths cents for motor fuel other than ethanol blended

9gasoline.

10(9) If the distribution percentage is greater than

11eighty-five percent but not greater than ninety percent, the

12rate shall be twenty-nine twenty-six and seven-tenths cents

13for ethanol blended gasoline and thirty twenty-seven and

14four-tenths cents for motor fuel other than ethanol blended

15gasoline.

16(10) If the distribution percentage is greater than ninety

17percent but not greater than ninety-five percent, the rate

18shall be twenty-nine twenty-six and nine-tenths cents for

19ethanol blended gasoline and thirty twenty-seven and one-tenth

20cents for motor fuel other than ethanol blended gasoline.

21(11) If the distribution percentage is greater than

22ninety-five percent, the rate shall be thirty twenty-seven

23 cents for ethanol blended gasoline and thirty twenty-seven

24 cents for motor fuel other than ethanol blended gasoline.

25 Sec. 2. Section 452A.3, subsections 2 and 3, Code 2019, are

26amended to read as follows:

272. Except as otherwise provided in this section and in this

28subchapter, after June 30, 2020, an excise tax of thirty cents

29 is imposed on each gallon of motor fuel used for any purpose

30for the privilege of operating motor vehicles in this state.

31 as follows:

32a. For the period beginning July 1, 2020, and ending June

3330, 2021, the excise tax is twenty-four cents per gallon.

34b. For the period beginning July 1, 2021, and ending June

3530, 2022, the excise tax is twenty-one cents per gallon.

-2- 1c. For the period beginning July 1, 2022, and ending June

230, 2023, the excise tax is eighteen cents per gallon.

3d. For the period beginning July 1, 2023, and thereafter,

4the excise tax is fifteen cents per gallon.

53. An excise tax of seventeen cents is imposed on each

6gallon of E-85 gasoline, subject to the determination provided

7in subsection 4., as follows:

8a. For the period beginning July 1, 2019, and ending June

930, 2020, the excise tax is fifteen cents per gallon.

10b. For the period beginning July 1, 2020, and ending June

1130, 2021, the excise tax is thirteen cents per gallon.

12c. For the period beginning July 1, 2021, and ending June

1330, 2022, the excise tax is eleven cents per gallon.

14d. For the period beginning July 1, 2022, and ending June

1530, 2023, the excise tax is ten cents per gallon.

16e. For the period beginning July 1, 2023, and thereafter,

17the excise tax is nine cents per gallon.

18 Sec. 3. Section 452A.3, subsection 6, paragraph a,

19subparagraphs (1) and (2), Code 2019, are amended to read as

20follows:

21(1) Except as otherwise provided in this section and in this

22subchapter, for the period ending June 30, 2015, and for the

23period beginning July 1, 2020, and thereafter, the tax rate

24on special fuel for diesel engines of motor vehicles used for

25any purpose for the privilege of operating motor vehicles in

26this state is thirty-two and five-tenths cents per gallon. as

27follows:

28(a) For the period beginning July 1, 2020, and ending June

2930, 2021, the excise tax is twenty-six and five-tenths cents

30per gallon.

31(b) For the period beginning July 1, 2021, and ending June

3230, 2022, the excise tax is twenty-three and five-tenths cents

33per gallon.

34(c) For the period beginning July 1, 2022, and ending June

3530, 2023, the excise tax is twenty and five-tenths cents per

-3-1gallon.

2(d) For the period beginning July 1, 2023, and thereafter,

3the excise tax is seventeen and five-tenths cents per gallon.

4(2) Except as provided in this section and in this

5subchapter, for the period beginning July 1, 2015, and ending

6June 30, 2020, this subparagraph shall apply to the excise

7tax imposed on each gallon of special fuel for diesel engines

8of motor vehicles used for any purpose for the privilege

9of operating motor vehicles in this state. The rate of

10the excise tax shall be based on the number of gallons of

11biodiesel blended fuel classified as B-11 or higher that is

12distributed in this state as expressed as a percentage of the

13number of gallons of special fuel for diesel engines of motor

14vehicles distributed in this state, which is referred to as

15the distribution percentage. The department shall determine

16the percentage basis for each determination period beginning

17January 1 and ending December 31. The rate for the excise tax

18shall apply for the period beginning July 1 and ending June 30

19following the end of the determination period. The rate for

20the excise tax shall be as follows:

21(a) If the distribution percentage is not greater than

22fifty percent, the rate shall be twenty-nine twenty-six and

23five-tenths cents for biodiesel blended fuel classified as B-11

24or higher and thirty-two twenty-nine and five-tenths cents for

25special fuel for diesel engines of motor vehicles other than

26biodiesel blended fuel classified as B-11 or higher.

27(b) If the distribution percentage is greater than fifty

28percent but not greater than fifty-five percent, the rate shall

29be twenty-nine twenty-six and eight-tenths cents for biodiesel

30blended fuel classified as B-11 or higher and thirty-two

31 twenty-nine and five-tenths cents for special fuel for diesel

32engines of motor vehicles other than biodiesel blended fuel

33classified as B-11 or higher.

34(c) If the distribution percentage is greater than

35fifty-five percent but not greater than sixty percent, the rate

-4-1shall be thirty twenty-seven and one-tenth cents for biodiesel

2blended fuel classified as B-11 or higher and thirty-two

3 twenty-nine and five-tenths cents for special fuel for diesel

4engines of motor vehicles other than biodiesel blended fuel

5classified as B-11 or higher.

6(d) If the distribution percentage is greater than sixty

7percent but not greater than sixty-five percent, the rate shall

8be thirty twenty-seven and four-tenths cents for biodiesel

9blended fuel classified as B-11 or higher and thirty-two

10 twenty-nine and five-tenths cents for special fuel for diesel

11engines of motor vehicles other than biodiesel blended fuel

12classified as B-11 or higher.

13(e) If the distribution percentage is greater than

14sixty-five percent but not greater than seventy percent, the

15rate shall be thirty twenty-seven and seven-tenths cents

16for biodiesel blended fuel classified as B-11 or higher and

17thirty-two twenty-nine and five-tenths cents for special fuel

18for diesel engines of motor vehicles other than biodiesel

19blended fuel classified as B-11 or higher.

20(f) If the distribution percentage is greater than seventy

21percent but not greater than seventy-five percent, the rate

22shall be thirty-one twenty-eight cents for biodiesel blended

23fuel classified as B-11 or higher and thirty-two twenty-nine

24 and five-tenths cents for special fuel for diesel engines of

25motor vehicles other than biodiesel blended fuel classified as

26B-11 or higher.

27(g) If the distribution percentage is greater than

28seventy-five percent but not greater than eighty percent, the

29rate shall be thirty-one twenty-eight and three-tenths cents

30for biodiesel blended fuel classified as B-11 or higher and

31thirty-two twenty-nine and five-tenths cents for special fuel

32for diesel engines of motor vehicles other than biodiesel

33blended fuel classified as B-11 or higher.

34(h) If the distribution percentage is greater than eighty

35percent but not greater than eighty-five percent, the rate

-5-1shall be thirty-one twenty-eight and six-tenths cents for

2biodiesel blended fuel classified as B-11 or higher and

3thirty-two twenty-nine and five-tenths cents for special fuel

4for diesel engines of motor vehicles other than biodiesel

5blended fuel classified as B-11 or higher.

6(i) If the distribution percentage is greater than

7eighty-five percent but not greater than ninety percent, the

8rate shall be thirty-one twenty-eight and nine-tenths cents

9for biodiesel blended fuel classified as B-11 or higher and

10thirty-two twenty-nine and five-tenths cents for special fuel

11for diesel engines of motor vehicles other than biodiesel

12blended fuel classified as B-11 or higher.

13(j) If the distribution percentage is greater than ninety

14percent but not greater than ninety-five percent, the rate

15shall be thirty-two twenty-nine and two-tenths cents for

16biodiesel blended fuel classified as B-11 or higher and

17thirty-two twenty-nine and five-tenths cents for special fuel

18for diesel engines of motor vehicles other than biodiesel

19blended fuel classified as B-11 or higher.

20(k) If the distribution percentage is greater than

21ninety-five percent, the rate shall be thirty-two twenty-nine

22 and five-tenths cents for biodiesel blended fuel classified as

23B-11 or higher and thirty-two twenty-nine and five-tenths cents

24for special fuel for diesel engines of motor vehicles other

25than biodiesel blended fuel classified as B-11 or higher.

26 Sec. 4. Section 452A.3, subsections 7, 8, and 9, Code 2019,

27are amended to read as follows:

287. For liquefied petroleum gas used as a special fuel, the

29rate of tax shall be thirty cents per gallon. is as follows:

30a. For the period beginning July 1, 2019, and ending June

3130, 2020, the excise tax is twenty-seven cents per gallon.

32b. For the period beginning July 1, 2020, and ending June

3330, 2021, the excise tax is twenty-four cents per gallon.

34c. For the period beginning July 1, 2021, and ending June

3530, 2022, the excise tax is twenty-one cents per gallon.

-6- 1d. For the period beginning July 1, 2022, and ending June

230, 2023, the excise tax is eighteen cents per gallon.

3e. For the period beginning July 1, 2023, and thereafter,

4the excise tax is fifteen cents per gallon.

58. For compressed natural gas used as a special fuel, the

6rate of tax is thirty-one cents per gallon. as follows:

7a. For the period beginning July 1, 2019, and ending June

830, 2020, the excise tax is twenty-eight cents per gallon.

9b. For the period beginning July 1, 2020, and ending June

1030, 2021, the excise tax is twenty-five cents per gallon.

11c. For the period beginning July 1, 2021, and ending June

1230, 2022, the excise tax is twenty-two cents per gallon.

13d. For the period beginning July 1, 2022, and ending June

1430, 2023, the excise tax is nineteen cents per gallon.

15e. For the period beginning July 1, 2023, and thereafter,

16the excise tax is sixteen cents per gallon.

179. For liquefied natural gas used as a special fuel, the

18rate of tax is thirty-two and one-half cents per gallon. as

19follows:

20a. For the period beginning July 1, 2019, and ending June

2130, 2020, the excise tax is twenty-nine and five-tenths cents

22per gallon.

23b. For the period beginning July 1, 2020, and ending June

2430, 2021, the excise tax is twenty-six and five-tenths cents

25per gallon.

26c. For the period beginning July 1, 2021, and ending June

2730, 2022, the excise tax is twenty-three and five-tenths cents

28per gallon.

29d. For the period beginning July 1, 2022, and ending June

3030, 2023, the excise tax is twenty and five-tenths cents per

31gallon.

32e. For the period beginning July 1, 2023, and thereafter,

33the excise tax is seventeen and five-tenths cents per gallon.

34 Sec. 5. APPLICABILITY. This Act applies to fuel sold to

35consumers on and after July 1, 2019.

-7-1EXPLANATION

2The inclusion of this explanation does not constitute agreement with

3the explanationâ€™s substance by the members of the general assembly.

4This bill decreases the excise tax on motor fuel, ethanol

5blended gasoline, special fuel for diesel engines of motor

6vehicles, biodiesel blended fuel classified as B-11 or higher,

7liquefied petroleum gas, compressed natural gas, and liquefied

8natural gas 3 cents per year over the next five years. The bill

9decreases the excise tax on E-85 gasoline 2 cents per year over

10the next three years, and 1 cent per year over the following

11two years.

12For the period beginning July 1, 2023, and thereafter,

13the excise tax for motor fuel, including ethanol blended

14gasoline, is 15 cents; the excise tax for E-85 gasoline is 9

15cents; the excise tax for special fuel for diesel engines of

16motor vehicles, including biodiesel blended fuel classified as

17B-11 or higher, is 17.5 cents; the excise tax for liquefied

18petroleum gas is 15 cents; the excise tax for compressed

19natural gas is 16 cents; and the excise tax for liquefied

20natural gas is 17.5 cents.

21The bill applies to fuel sold to consumers on and after July

221, 2019.

-8-ns/jh

2special fuel, and including applicability provisions.

3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

1 Section 1. Section 452A.3, subsection 1, paragraph b, Code

22019, is amended to read as follows:

3b. The rate for the excise tax shall be as follows:

4(1) If the distribution percentage is not greater than

5fifty percent, the rate shall be twenty-nine twenty-six cents

6for ethanol blended gasoline and thirty twenty-seven cents for

7motor fuel other than ethanol blended gasoline.

8(2) If the distribution percentage is greater than fifty

9percent but not greater than fifty-five percent, the rate shall

10be twenty-nine twenty-six cents for ethanol blended gasoline

11and thirty twenty-seven and one-tenth cents for motor fuel

12other than ethanol blended gasoline.

13(3) If the distribution percentage is greater than

14fifty-five percent but not greater than sixty percent, the

15rate shall be twenty-nine twenty-six cents for ethanol blended

16gasoline and thirty twenty-seven and three-tenths cents for

17motor fuel other than ethanol blended gasoline.

18(4) If the distribution percentage is greater than sixty

19percent but not greater than sixty-five percent, the rate shall

20be twenty-nine twenty-six cents for ethanol blended gasoline

21and thirty twenty-seven and five-tenths cents for motor fuel

22other than ethanol blended gasoline.

23(5) If the distribution percentage is greater than

24sixty-five percent but not greater than seventy percent, the

25rate shall be twenty-nine twenty-six cents for ethanol blended

26gasoline and thirty twenty-seven and seven-tenths cents for

27motor fuel other than ethanol blended gasoline.

28(6) If the distribution percentage is greater than seventy

29percent but not greater than seventy-five percent, the rate

30shall be twenty-nine twenty-six cents for ethanol blended

31gasoline and thirty-one twenty-eight cents for motor fuel other

32than ethanol blended gasoline.

33(7) If the distribution percentage is greater than

34seventy-five percent but not greater than eighty percent,

35the rate shall be twenty-nine twenty-six and three-tenths

-1-1cents for ethanol blended gasoline and thirty twenty-seven and

2eight-tenths cents for motor fuel other than ethanol blended

3gasoline.

4(8) If the distribution percentage is greater than

5eighty percent but not greater than eighty-five percent, the

6rate shall be twenty-nine twenty-six and five-tenths cents

7for ethanol blended gasoline and thirty twenty-seven and

8seven-tenths cents for motor fuel other than ethanol blended

9gasoline.

10(9) If the distribution percentage is greater than

11eighty-five percent but not greater than ninety percent, the

12rate shall be twenty-nine twenty-six and seven-tenths cents

13for ethanol blended gasoline and thirty twenty-seven and

14four-tenths cents for motor fuel other than ethanol blended

15gasoline.

16(10) If the distribution percentage is greater than ninety

17percent but not greater than ninety-five percent, the rate

18shall be twenty-nine twenty-six and nine-tenths cents for

19ethanol blended gasoline and thirty twenty-seven and one-tenth

20cents for motor fuel other than ethanol blended gasoline.

21(11) If the distribution percentage is greater than

22ninety-five percent, the rate shall be thirty twenty-seven

23 cents for ethanol blended gasoline and thirty twenty-seven

24 cents for motor fuel other than ethanol blended gasoline.

25 Sec. 2. Section 452A.3, subsections 2 and 3, Code 2019, are

26amended to read as follows:

272. Except as otherwise provided in this section and in this

28subchapter, after June 30, 2020, an excise tax of thirty cents

29 is imposed on each gallon of motor fuel used for any purpose

30for the privilege of operating motor vehicles in this state.

31 as follows:

32a. For the period beginning July 1, 2020, and ending June

3330, 2021, the excise tax is twenty-four cents per gallon.

34b. For the period beginning July 1, 2021, and ending June

3530, 2022, the excise tax is twenty-one cents per gallon.

-2- 1c. For the period beginning July 1, 2022, and ending June

230, 2023, the excise tax is eighteen cents per gallon.

3d. For the period beginning July 1, 2023, and thereafter,

4the excise tax is fifteen cents per gallon.

53. An excise tax of seventeen cents is imposed on each

6gallon of E-85 gasoline, subject to the determination provided

7in subsection 4., as follows:

8a. For the period beginning July 1, 2019, and ending June

930, 2020, the excise tax is fifteen cents per gallon.

10b. For the period beginning July 1, 2020, and ending June

1130, 2021, the excise tax is thirteen cents per gallon.

12c. For the period beginning July 1, 2021, and ending June

1330, 2022, the excise tax is eleven cents per gallon.

14d. For the period beginning July 1, 2022, and ending June

1530, 2023, the excise tax is ten cents per gallon.

16e. For the period beginning July 1, 2023, and thereafter,

17the excise tax is nine cents per gallon.

18 Sec. 3. Section 452A.3, subsection 6, paragraph a,

19subparagraphs (1) and (2), Code 2019, are amended to read as

20follows:

21(1) Except as otherwise provided in this section and in this

22subchapter, for the period ending June 30, 2015, and for the

23period beginning July 1, 2020, and thereafter, the tax rate

24on special fuel for diesel engines of motor vehicles used for

25any purpose for the privilege of operating motor vehicles in

26this state is thirty-two and five-tenths cents per gallon. as

27follows:

28(a) For the period beginning July 1, 2020, and ending June

2930, 2021, the excise tax is twenty-six and five-tenths cents

30per gallon.

31(b) For the period beginning July 1, 2021, and ending June

3230, 2022, the excise tax is twenty-three and five-tenths cents

33per gallon.

34(c) For the period beginning July 1, 2022, and ending June

3530, 2023, the excise tax is twenty and five-tenths cents per

-3-1gallon.

2(d) For the period beginning July 1, 2023, and thereafter,

3the excise tax is seventeen and five-tenths cents per gallon.

4(2) Except as provided in this section and in this

5subchapter, for the period beginning July 1, 2015, and ending

6June 30, 2020, this subparagraph shall apply to the excise

7tax imposed on each gallon of special fuel for diesel engines

8of motor vehicles used for any purpose for the privilege

9of operating motor vehicles in this state. The rate of

10the excise tax shall be based on the number of gallons of

11biodiesel blended fuel classified as B-11 or higher that is

12distributed in this state as expressed as a percentage of the

13number of gallons of special fuel for diesel engines of motor

14vehicles distributed in this state, which is referred to as

15the distribution percentage. The department shall determine

16the percentage basis for each determination period beginning

17January 1 and ending December 31. The rate for the excise tax

18shall apply for the period beginning July 1 and ending June 30

19following the end of the determination period. The rate for

20the excise tax shall be as follows:

21(a) If the distribution percentage is not greater than

22fifty percent, the rate shall be twenty-nine twenty-six and

23five-tenths cents for biodiesel blended fuel classified as B-11

24or higher and thirty-two twenty-nine and five-tenths cents for

25special fuel for diesel engines of motor vehicles other than

26biodiesel blended fuel classified as B-11 or higher.

27(b) If the distribution percentage is greater than fifty

28percent but not greater than fifty-five percent, the rate shall

29be twenty-nine twenty-six and eight-tenths cents for biodiesel

30blended fuel classified as B-11 or higher and thirty-two

31 twenty-nine and five-tenths cents for special fuel for diesel

32engines of motor vehicles other than biodiesel blended fuel

33classified as B-11 or higher.

34(c) If the distribution percentage is greater than

35fifty-five percent but not greater than sixty percent, the rate

-4-1shall be thirty twenty-seven and one-tenth cents for biodiesel

2blended fuel classified as B-11 or higher and thirty-two

3 twenty-nine and five-tenths cents for special fuel for diesel

4engines of motor vehicles other than biodiesel blended fuel

5classified as B-11 or higher.

6(d) If the distribution percentage is greater than sixty

7percent but not greater than sixty-five percent, the rate shall

8be thirty twenty-seven and four-tenths cents for biodiesel

9blended fuel classified as B-11 or higher and thirty-two

10 twenty-nine and five-tenths cents for special fuel for diesel

11engines of motor vehicles other than biodiesel blended fuel

12classified as B-11 or higher.

13(e) If the distribution percentage is greater than

14sixty-five percent but not greater than seventy percent, the

15rate shall be thirty twenty-seven and seven-tenths cents

16for biodiesel blended fuel classified as B-11 or higher and

17thirty-two twenty-nine and five-tenths cents for special fuel

18for diesel engines of motor vehicles other than biodiesel

19blended fuel classified as B-11 or higher.

20(f) If the distribution percentage is greater than seventy

21percent but not greater than seventy-five percent, the rate

22shall be thirty-one twenty-eight cents for biodiesel blended

23fuel classified as B-11 or higher and thirty-two twenty-nine

24 and five-tenths cents for special fuel for diesel engines of

25motor vehicles other than biodiesel blended fuel classified as

26B-11 or higher.

27(g) If the distribution percentage is greater than

28seventy-five percent but not greater than eighty percent, the

29rate shall be thirty-one twenty-eight and three-tenths cents

30for biodiesel blended fuel classified as B-11 or higher and

31thirty-two twenty-nine and five-tenths cents for special fuel

32for diesel engines of motor vehicles other than biodiesel

33blended fuel classified as B-11 or higher.

34(h) If the distribution percentage is greater than eighty

35percent but not greater than eighty-five percent, the rate

-5-1shall be thirty-one twenty-eight and six-tenths cents for

2biodiesel blended fuel classified as B-11 or higher and

3thirty-two twenty-nine and five-tenths cents for special fuel

4for diesel engines of motor vehicles other than biodiesel

5blended fuel classified as B-11 or higher.

6(i) If the distribution percentage is greater than

7eighty-five percent but not greater than ninety percent, the

8rate shall be thirty-one twenty-eight and nine-tenths cents

9for biodiesel blended fuel classified as B-11 or higher and

10thirty-two twenty-nine and five-tenths cents for special fuel

11for diesel engines of motor vehicles other than biodiesel

12blended fuel classified as B-11 or higher.

13(j) If the distribution percentage is greater than ninety

14percent but not greater than ninety-five percent, the rate

15shall be thirty-two twenty-nine and two-tenths cents for

16biodiesel blended fuel classified as B-11 or higher and

17thirty-two twenty-nine and five-tenths cents for special fuel

18for diesel engines of motor vehicles other than biodiesel

19blended fuel classified as B-11 or higher.

20(k) If the distribution percentage is greater than

21ninety-five percent, the rate shall be thirty-two twenty-nine

22 and five-tenths cents for biodiesel blended fuel classified as

23B-11 or higher and thirty-two twenty-nine and five-tenths cents

24for special fuel for diesel engines of motor vehicles other

25than biodiesel blended fuel classified as B-11 or higher.

26 Sec. 4. Section 452A.3, subsections 7, 8, and 9, Code 2019,

27are amended to read as follows:

287. For liquefied petroleum gas used as a special fuel, the

29rate of tax shall be thirty cents per gallon. is as follows:

30a. For the period beginning July 1, 2019, and ending June

3130, 2020, the excise tax is twenty-seven cents per gallon.

32b. For the period beginning July 1, 2020, and ending June

3330, 2021, the excise tax is twenty-four cents per gallon.

34c. For the period beginning July 1, 2021, and ending June

3530, 2022, the excise tax is twenty-one cents per gallon.

-6- 1d. For the period beginning July 1, 2022, and ending June

230, 2023, the excise tax is eighteen cents per gallon.

3e. For the period beginning July 1, 2023, and thereafter,

4the excise tax is fifteen cents per gallon.

58. For compressed natural gas used as a special fuel, the

6rate of tax is thirty-one cents per gallon. as follows:

7a. For the period beginning July 1, 2019, and ending June

830, 2020, the excise tax is twenty-eight cents per gallon.

9b. For the period beginning July 1, 2020, and ending June

1030, 2021, the excise tax is twenty-five cents per gallon.

11c. For the period beginning July 1, 2021, and ending June

1230, 2022, the excise tax is twenty-two cents per gallon.

13d. For the period beginning July 1, 2022, and ending June

1430, 2023, the excise tax is nineteen cents per gallon.

15e. For the period beginning July 1, 2023, and thereafter,

16the excise tax is sixteen cents per gallon.

179. For liquefied natural gas used as a special fuel, the

18rate of tax is thirty-two and one-half cents per gallon. as

19follows:

20a. For the period beginning July 1, 2019, and ending June

2130, 2020, the excise tax is twenty-nine and five-tenths cents

22per gallon.

23b. For the period beginning July 1, 2020, and ending June

2430, 2021, the excise tax is twenty-six and five-tenths cents

25per gallon.

26c. For the period beginning July 1, 2021, and ending June

2730, 2022, the excise tax is twenty-three and five-tenths cents

28per gallon.

29d. For the period beginning July 1, 2022, and ending June

3030, 2023, the excise tax is twenty and five-tenths cents per

31gallon.

32e. For the period beginning July 1, 2023, and thereafter,

33the excise tax is seventeen and five-tenths cents per gallon.

34 Sec. 5. APPLICABILITY. This Act applies to fuel sold to

35consumers on and after July 1, 2019.

-7-1EXPLANATION

2The inclusion of this explanation does not constitute agreement with

3the explanationâ€™s substance by the members of the general assembly.

4This bill decreases the excise tax on motor fuel, ethanol

5blended gasoline, special fuel for diesel engines of motor

6vehicles, biodiesel blended fuel classified as B-11 or higher,

7liquefied petroleum gas, compressed natural gas, and liquefied

8natural gas 3 cents per year over the next five years. The bill

9decreases the excise tax on E-85 gasoline 2 cents per year over

10the next three years, and 1 cent per year over the following

11two years.

12For the period beginning July 1, 2023, and thereafter,

13the excise tax for motor fuel, including ethanol blended

14gasoline, is 15 cents; the excise tax for E-85 gasoline is 9

15cents; the excise tax for special fuel for diesel engines of

16motor vehicles, including biodiesel blended fuel classified as

17B-11 or higher, is 17.5 cents; the excise tax for liquefied

18petroleum gas is 15 cents; the excise tax for compressed

19natural gas is 16 cents; and the excise tax for liquefied

20natural gas is 17.5 cents.

21The bill applies to fuel sold to consumers on and after July

221, 2019.

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