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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 explanation’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 explanation’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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