Print
Senate File 473 - IntroducedA Bill ForAn Act 1relating to motor vehicle taxes and fees, including
2registration fees for certain electric vehicles, an excise
3tax on hydrogen used as special fuel, and an excise tax on
4electricity used as electric fuel, providing penalties,
5making penalties applicable, and including effective date
6provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2REGISTRATION FEES FOR ELECTRIC VEHICLES
3 Section 1. NEW SECTION. 321.116 Battery electric and
4plug-in hybrid electric motor vehicle fees.
51. For each battery electric motor vehicle subject to an
6annual registration fee under section 321.109, subsection 1,
7paragraph “a”, and operated on the public highways of this
8state, the owner shall pay an annual battery electric motor
9vehicle registration fee of one hundred thirty dollars, which
10shall be in addition to the annual registration fee imposed
11for the vehicle under section 321.109, subsection 1, paragraph
12“a”. For purposes of this subsection, “battery electric
13motor vehicle” means a motor vehicle equipped with electrical
14drivetrain components and not equipped with an internal
15combustion engine, that is propelled exclusively by one or
16more electrical motors using electrical energy stored in a
17battery or other energy storage device that can be recharged by
18plugging into an electrical outlet or electric vehicle charging
19station.
202. For each plug-in hybrid electric motor vehicle subject to
21an annual registration fee under section 321.109, subsection
221, paragraph “a”, and operated on the public highways of this
23state, the owner shall pay an annual plug-in hybrid electric
24motor vehicle registration fee of sixty-five dollars, which
25shall be in addition to the annual registration fee imposed
26for the vehicle under section 321.109, subsection 1, paragraph
27“a”. For purposes of this subsection, “plug-in hybrid electric
28motor vehicle” means a motor vehicle equipped with electrical
29drivetrain components, an internal combustion engine, and a
30battery or other energy storage device that can be recharged by
31plugging into an electrical outlet or electric vehicle charging
32station.
33 Sec. 2. Section 321.117, Code 2019, is amended to read as
34follows:
35321.117 Motorcycle, autocycle, ambulance, and hearse fees.
-1- 11. For all motorcycles and autocycles the annual
2registration fee shall be twenty dollars. For all motorized
3bicycles the annual registration fee shall be seven dollars.
4When the motorcycle or autocycle is more than five model
5years old, the annual registration fee shall be ten dollars.
6The annual registration fee for ambulances and hearses shall
7be fifty dollars. Passenger car plates shall be issued for
8ambulances and hearses.
92. In addition to the fee required for a motorcycle under
10subsection 1, the owner of a motorcycle that is a battery
11electric motor vehicle or plug-in hybrid electric motor
12vehicle, as those terms are defined in section 321.116, shall
13pay an annual electric motorcycle registration fee of nine
14dollars.
15 Sec. 3. EFFECTIVE DATE. This division of this Act takes
16effect January 1, 2020.
17DIVISION II
18hydrogen fuel excise tax
19 Sec. 4. Section 452A.2, Code 2019, is amended by adding the
20following new subsection:
21 NEW SUBSECTION. 20A. “Fuel supply tank”, with respect to
22motor vehicles that use hydrogen as a special fuel, means a
23motor vehicle’s hydrogen fuel cells.
24 Sec. 5. Section 452A.2, subsection 21, Code 2019, is amended
25by adding the following new paragraph:
26 NEW PARAGRAPH. c. “Gallon”, with respect to hydrogen, means
27a diesel gallon equivalent. A diesel gallon equivalent of
28hydrogen is two and forty-nine hundredths pounds.
29 Sec. 6. Section 452A.2, subsections 25, 26, 39, and 45, Code
302019, are amended to read as follows:
3125. “Licensed compressed natural gas, liquefied natural gas,
32and liquefied petroleum gas, and hydrogen dealer” means a person
33in the business of handling untaxed compressed natural gas,
34liquefied natural gas, or liquefied petroleum gas, or hydrogen
35 who delivers any part of the fuel into a fuel supply tank of any
-2-1motor vehicle.
226. “Licensed compressed natural gas, liquefied natural
3gas, and liquefied petroleum gas, and hydrogen user” means a
4person licensed by the department who dispenses compressed
5natural gas, liquefied natural gas, or liquefied petroleum
6gas, or hydrogen, upon which the special fuel tax has not been
7previously paid, for highway use from fuel sources owned and
8controlled by the person into the fuel supply tank of a motor
9vehicle, or commercial vehicle owned or controlled by the
10person.
1139. “Special fuel” means fuel oils and all combustible gases
12and liquids suitable for the generation of power for propulsion
13of motor vehicles or turbine-powered aircraft, and includes
14any substance used for that purpose, except that it does not
15include motor fuel. Kerosene shall not be considered to be a
16special fuel, unless blended with other special fuels for use
17in a motor vehicle with a diesel engine. Methanol shall not
18be considered to be a special fuel unless blended with other
19special fuels for use in a motor vehicle with a diesel engine.
20Hydrogen shall be considered to be a special fuel when used
21or intended for use in combination with oxygen to generate
22electricity for propulsion of a motor vehicle.
2345. “Use”, with respect to liquefied petroleum gas, means
24the receipt, delivery, or placing of liquefied petroleum gas by
25a licensed liquefied petroleum gas user into a fuel supply tank
26of a motor vehicle while the vehicle is in the state, except
27that with. With respect to natural gas used as a special fuel,
28“use” means the receipt, delivery, or placing of the natural gas
29into equipment for compressing the gas for subsequent delivery
30into the fuel supply tank of a motor vehicle while the vehicle
31is in the state. With respect to hydrogen used as a special
32fuel, “use” means the receipt, delivery, or placing of hydrogen
33by a licensed hydrogen user into a fuel supply tank of a motor
34vehicle while the vehicle is in the state.
35 Sec. 7. Section 452A.3, Code 2019, is amended by adding the
-3-1following new subsection:
2 NEW SUBSECTION. 9A. For hydrogen used as a special fuel,
3the rate of tax is sixty-five cents per gallon.
4 Sec. 8. Section 452A.4, subsection 1, paragraph d, Code
52019, is amended to read as follows:
6d. A dealer’s or user’s license shall be required for each
7separate place of business or location where compressed natural
8gas, liquefied natural gas, or liquefied petroleum gas, or
9hydrogen is delivered or placed into the fuel supply tank of a
10motor vehicle.
11 Sec. 9. Section 452A.8, subsection 2, paragraph e,
12subparagraphs (1), (2), and (3), Code 2019, are amended to read
13as follows:
14(1) For purposes of this paragraph “e”, “dealer” or “user”
15means a licensed compressed natural gas, liquefied natural gas,
16and liquefied petroleum gas, and hydrogen dealer or user and
17“fuel” means compressed natural gas, liquefied natural gas, or
18 liquefied petroleum gas, or hydrogen.
19(2) The tax for compressed natural gas, liquefied natural
20gas, and liquefied petroleum gas, and hydrogen delivered by
21a licensed dealer for use in this state shall attach at the
22time of the delivery and shall be collected by the dealer
23from the purchaser and paid to the department as provided in
24this chapter. The tax, with respect to compressed natural
25gas, liquefied natural gas, and liquefied petroleum gas, and
26hydrogen acquired by a purchaser in any manner other than by
27delivery by a licensed dealer into a fuel supply tank of a
28motor vehicle, attaches at the time of the use of the fuel
29and shall be paid over to the department by the purchaser as
30provided in this chapter.
31(3) The department shall adopt rules governing the
32dispensing of compressed natural gas, liquefied natural gas,
33and liquefied petroleum gas, and hydrogen by licensed dealers
34and licensed users. The director may require by rule that
35reports and returns be filed by electronic transmission. The
-4-1department shall require that all pumps located at dealer
2locations and user locations through which liquefied petroleum
3gas can be dispensed shall be metered, inspected, tested
4for accuracy, and sealed and licensed by the department of
5agriculture and land stewardship, and that fuel delivered
6into the fuel supply tank of any motor vehicle shall be
7dispensed only through tested metered pumps and may be sold
8without temperature correction or corrected to a temperature
9of 60 degrees Fahrenheit. If the metered gallonage is to be
10temperature-corrected, only a temperature-compensated meter
11shall be used. Natural gas used as fuel shall be delivered
12into compressing equipment through sealed meters certified for
13accuracy by the department of agriculture and land stewardship.
14Hydrogen used as fuel shall be delivered into the fuel supply
15tank of any motor vehicle through sealed meters certified for
16accuracy by the department of agriculture and land stewardship.
17The department of agriculture and land stewardship may adopt
18rules pursuant to chapter 17A relating to the certification and
19accuracy of meters used to deliver hydrogen.
20 Sec. 10. Section 452A.60, subsection 1, Code 2019, is
21amended to read as follows:
221. The department of revenue or the state department of
23transportation shall prescribe and furnish all forms, as
24applicable, upon which reports, returns, and applications shall
25be made and claims for refund presented under this chapter
26and may prescribe forms of record to be kept by suppliers,
27restrictive suppliers, importers, exporters, blenders, common
28carriers, contract carriers, licensed compressed natural
29gas, liquefied natural gas, and liquefied petroleum gas, and
30hydrogen dealers and users, terminal operators, nonterminal
31storage facility operations, and interstate commercial motor
32vehicle operators.
33 Sec. 11. Section 452A.62, subsection 1, paragraph a,
34subparagraph (2), Code 2019, is amended to read as follows:
35(2) A licensed compressed natural gas, liquefied natural
-5-1gas, or liquefied petroleum gas, or hydrogen dealer, user, or
2person supplying compressed natural gas, liquefied natural
3gas, or liquefied petroleum gas, or hydrogen to a licensed
4compressed natural gas, liquefied natural gas, or liquefied
5petroleum gas, or hydrogen dealer or user.
6 Sec. 12. Section 452A.62, subsection 1, paragraph b, Code
72019, is amended to read as follows:
8b. To examine the records, books, papers, receipts, and
9invoices of any distributor, supplier, restrictive supplier,
10importer, blender, exporter, terminal operator, nonterminal
11storage facility, licensed compressed natural gas, liquefied
12natural gas, or liquefied petroleum gas, or hydrogen dealer or
13user, or any other person who possesses fuel upon which the tax
14has not been paid to determine financial responsibility for the
15payment of the taxes imposed by this chapter.
16 Sec. 13. Section 452A.74, subsection 1, paragraphs e and g,
17Code 2019, are amended to read as follows:
18e. For any person to act as a supplier, restrictive
19supplier, importer, exporter, blender, or compressed natural
20gas, liquefied natural gas, or liquefied petroleum gas, or
21hydrogen dealer or user without the required license.
22g. For any licensed compressed natural gas, liquefied
23natural gas, or liquefied petroleum gas, or hydrogen dealer or
24user to dispense compressed natural gas, liquefied natural gas,
25or liquefied petroleum gas, or hydrogen into the fuel supply
26tank of any motor vehicle without collecting the fuel tax.
27 Sec. 14. Section 452A.74, subsection 2, Code 2019, is
28amended to read as follows:
292. Any delivery of compressed natural gas, liquefied
30natural gas, or liquefied petroleum gas, or hydrogen to a
31compressed natural gas, liquefied natural gas, or liquefied
32petroleum gas, or hydrogen dealer or user for the purpose of
33evading the state tax on compressed natural gas, liquefied
34natural gas, or liquefied petroleum gas, or hydrogen, into
35facilities other than those licensed under this chapter knowing
-6-1that the fuel will be used for highway use shall constitute
2a violation of this section. Any compressed natural gas,
3liquefied natural gas, or liquefied petroleum gas, or hydrogen
4 dealer or user for purposes of evading the state tax on
5compressed natural gas, liquefied natural gas, or liquefied
6petroleum gas, or hydrogen, who allows a distributor to place
7compressed natural gas, liquefied natural gas, or liquefied
8petroleum gas, or hydrogen for highway use in facilities other
9than those licensed under this chapter, shall also be deemed
10in violation of this section.
11 Sec. 15. Section 452A.85, subsection 1, Code 2019, is
12amended to read as follows:
131. Persons having title to motor fuel, ethanol blended
14gasoline, undyed special fuel, compressed natural gas,
15liquefied natural gas, or liquefied petroleum gas, or hydrogen
16 in storage and held for sale on the effective date of an
17increase in the excise tax rate imposed on motor fuel, ethanol
18blended gasoline, undyed special fuel, compressed natural
19gas, liquefied natural gas, or liquefied petroleum gas, or
20hydrogen under this chapter shall be subject to an inventory
21tax based upon the gallonage in storage as of the close of the
22business day preceding the effective date of the increased
23excise tax rate of motor fuel, ethanol blended gasoline, undyed
24special fuel, compressed natural gas, liquefied natural gas, or
25 liquefied petroleum gas, or hydrogen which will be subject to
26the increased excise tax rate.
27 Sec. 16. Section 452A.86, Code 2019, is amended to read as
28follows:
29452A.86 Method of determining gallonage.
30The exclusive method of determining gallonage of any
31purchases or sales of motor fuel, undyed special fuel,
32or liquefied petroleum gas as defined in this chapter and
33distillate fuels shall be on a gross volume basis, except
34for compressed natural gas, and liquefied natural gas, and
35hydrogen. The exclusive method of determining gallonage of any
-7-1purchases or sales of compressed natural gas is the gasoline
2gallon equivalent, as defined in section 452A.2, subsection
321. The exclusive method of determining gallonage of any
4purchase or sale of liquefied natural gas is the diesel gallon
5equivalent, as defined in section 452A.2, subsection 21. The
6exclusive method of determining gallonage of any purchases or
7sales of hydrogen is the diesel gallon equivalent, as defined
8in section 452A.2, subsection 21. A temperature-adjusted
9or other method shall not be used, except as it applies to
10liquefied petroleum gas and the sale or exchange of petroleum
11products between petroleum refiners. All invoices, bills of
12lading, or other records of sale or purchase and all returns
13or records required to be made, kept, and maintained by a
14supplier, restrictive supplier, importer, exporter, blender,
15or compressed natural gas, liquefied natural gas, or liquefied
16petroleum gas, or hydrogen dealer or user shall be made, kept,
17and maintained on the gross volume basis. For purposes of
18this section, “distillate fuels” means any fuel oil, gas oil,
19topped crude oil, or other petroleum oils derived by refining
20or processing crude oil or unfinished oils which have a boiling
21range at atmospheric pressure which falls completely or in part
22between 550 and 1,200 degrees Fahrenheit.
23 Sec. 17. EFFECTIVE DATE. This division of this Act takes
24effect January 1, 2020.
25DIVISION III
26electric fuel excise tax
27 Sec. 18. Section 312.2, subsection 9, Code 2019, is amended
28by adding the following new paragraph:
29 NEW PARAGRAPH. c. From the excise tax on electric fuel
30imposed under the tax rate of section 452A.41, the amount of
31excise tax collected from fifteen hundredths of one cent per
32kilowatt hour.
33 Sec. 19. Section 312.2, subsection 10, Code 2019, is amended
34by adding the following new paragraph:
35 NEW PARAGRAPH. c. From the excise tax on electric fuel
-8-1imposed under the tax rate of section 452A.41, the amount
2of excise tax collected from two hundredths of one cent per
3kilowatt hour.
4 Sec. 20. Section 423.3, subsection 56, Code 2019, is amended
5to read as follows:
656. The sales price from the sale of motor fuel, and
7 special fuel, and electric fuel consumed for highway use or in
8watercraft or aircraft where the fuel tax has been imposed and
9paid and no refund has been or will be allowed and the sales
10price from the sales of ethanol blended gasoline, as defined
11in section 214A.1.
12 Sec. 21. Section 423B.5, subsection 1, Code 2019, is amended
13to read as follows:
141. A local sales and services tax may be imposed by a
15county on the sales price taxed by the state under chapter
16423, subchapter II. A local sales and services tax shall be
17imposed on the same basis as the state sales and services tax
18or in the case of the use of natural gas, natural gas service,
19electricity, or electric service on the same basis as the
20state use tax and shall not be imposed on the sale of any
21property or on any service not taxed by the state, except the
22tax shall not be imposed on the sales price from the sale of
23motor fuel, or special fuel, or electric fuel, as those terms
24are defined in chapter 452A, which is consumed for highway use
25or in watercraft or aircraft if the fuel tax is paid on the
26transaction and a refund has not or will not be allowed, on the
27sales price from the sale of equipment by the state department
28of transportation, or on the sales price from the sale or use
29of natural gas, natural gas service, electricity, or electric
30service in a city or county where the sales price from the sale
31of natural gas or electric energy is subject to a franchise
32fee or user fee during the period the franchise or user fee
33is imposed. A local sales and services tax is applicable to
34transactions within those cities and unincorporated areas of
35the county where it is imposed, which transactions include
-9-1but are not limited to sales sourced pursuant to section
2423.15, 423.17, 423.19, or 423.20, to a location within that
3city or unincorporated area of the county. The tax shall be
4collected by all persons required to collect state sales taxes.
5However, a local sales and services tax is not applicable to
6transactions sourced under chapter 423 to a place of business,
7as defined in section 423.1, of a retailer if such place of
8business is located in part within a city or unincorporated
9area of the county where the tax is not imposed.
10 Sec. 22. Section 423E.3, subsection 1, Code 2019, is amended
11to read as follows:
121. The tax shall be imposed on the same basis as the state
13sales and services tax or in the case of the use of natural
14gas, natural gas service, electricity, or electric service on
15the same basis as the state use tax and shall not be imposed
16on the sale of any property or on any service not taxed by the
17state, except the tax shall not be imposed on the sales price
18from the sale of motor fuel, or special fuel, or electric fuel,
19 as those terms are defined in chapter 452A, which is consumed
20for highway use or in watercraft or aircraft if the fuel tax
21is paid on the transaction and a refund has not or will not
22be allowed, on the sales price from the sale of equipment by
23the state department of transportation, or on the sales price
24from the sale or use of natural gas, natural gas service,
25electricity, or electric service in a city or county where the
26sales price from the sale of natural gas or electric energy is
27subject to a franchise fee or user fee during the period the
28franchise or user fee is imposed.
29 Sec. 23. NEW SECTION. 452A.40 Definitions.
30As used in this subchapter, unless the context otherwise
31requires:
321. “Department” means the department of revenue.
332. “Electric fuel” means electrical energy delivered or
34placed into the battery or other energy storage device of an
35electric motor vehicle from a source outside the motor vehicle
-10-1for purposes of propelling the motor vehicle. “Electric fuel”
2shall be deemed motor vehicle fuel for purposes of Article VII,
3section 8, of the Constitution of the State of Iowa.
43. “Electric motor vehicle” means a motor vehicle equipped
5with electrical drivetrain components that has the ability to
6be propelled, fully or partially, by one or more electrical
7motors using electrical energy stored in a battery or other
8energy storage device that can be recharged by plugging into an
9electrical outlet or electric vehicle charging station.
104. “Licensed electric fuel dealer” means a person licensed
11by the department who dispenses electric fuel, upon which the
12electric fuel tax has not been previously paid, for highway
13use into the battery or other energy storage device of an
14electric motor vehicle in this state at a location other than a
15residence.
165. “Licensed electric fuel user” means a person licensed
17by the department who dispenses electric fuel, upon which the
18electric fuel tax has not been previously paid, for highway use
19from a charging station owned and controlled by the person into
20the battery or other energy storage device of an electric motor
21vehicle owned or controlled by the person in this state at a
22location other than a residence.
236. “Residence” means the place where a person resides,
24permanently or temporarily.
257. “Use” means the receipt, delivery, or placing of electric
26fuel by a licensed electric fuel user into the battery or other
27energy storage device of an electric motor vehicle owned or
28controlled by the user in this state at a location other than a
29residence.
30 Sec. 24. NEW SECTION. 452A.41 Levy and collection of excise
31tax on electric fuel.
321. An excise tax of two and six-tenths cents is imposed on
33each kilowatt hour of electric fuel delivered or placed into
34the battery or other energy storage device of an electric motor
35vehicle at a location in this state other than a residence.
-11- 12. The tax for electric fuel delivered by a licensed
2electric fuel dealer for use in this state shall attach at the
3time of the delivery and shall be collected by the dealer from
4the purchaser and paid to the department in the same manner
5as the excise taxes on natural gas and liquefied petroleum
6gas are paid by dealers to the department as provided in this
7chapter. The tax for electric fuel used by a licensed electric
8fuel user shall attach at the time of the use of the fuel and
9shall be paid to the department by the licensed electric fuel
10user in the same manner as the excise taxes on natural gas and
11liquefied petroleum gas are paid by users to the department as
12provided in this chapter.
133. The department shall adopt rules governing the
14dispensing of electric fuel by licensed dealers and users. The
15director may require by rule that reports and returns be filed
16by electronic transmission. The department shall require that
17all charging stations located at dealer and user locations
18through which electric fuel can be dispensed shall be metered,
19inspected, tested for accuracy, and sealed and licensed by
20the department of agriculture and land stewardship, and that
21electric fuel delivered into the battery or other energy
22storage device of any electric motor vehicle shall be dispensed
23only through tested, metered charging stations. The department
24of agriculture and land stewardship may adopt rules pursuant
25to chapter 17A to administer the department of agriculture and
26land stewardship’s duties under this subsection.
274. a. For the purpose of determining the amount of
28liability for the electric fuel tax, each dealer and user
29shall file with the department not later than the last day
30of each calendar month a monthly tax return certified under
31penalties for false certification. The return shall show, with
32reference to each location at which fuel is delivered or placed
33by the dealer or user into the battery or other energy storage
34device of any electric motor vehicle during the next preceding
35calendar month, information as required by the department.
-12- 1b. The amount of tax due shall be computed by multiplying
2the appropriate tax rate per kilowatt hour by the number of
3kilowatt hours of electric fuel delivered or placed by the
4dealer or user into the batteries or other energy storage
5devices of electric motor vehicles.
6c. The return shall be accompanied by remittance in the
7amount of the tax due for the month in which the fuel was placed
8into the batteries or other energy storage devices of electric
9motor vehicles.
105. Moneys collected under this subchapter by a licensed
11electric fuel dealer or user are deemed to be held in trust for
12the state of Iowa.
13 Sec. 25. NEW SECTION. 452A.42 Electric fuel dealer’s and
14user’s license.
151. A person shall not sell or dispense electric fuel within
16this state at a location other than a residence or otherwise
17act as a licensed electric fuel dealer or user unless the
18person holds an uncanceled license issued by the department.
192. To procure a license, a person shall file with the
20department an application signed under penalty for false
21certificate setting forth all of the following:
22a. The name under which the licensee will transact business
23in this state.
24b. The location, with street number address, of the
25principal office or place of business of the licensee within
26this state.
27c. The name and complete residence address of the owner
28or the names and addresses of the partners, if the licensee
29is a partnership, or the names and addresses of the principal
30officers, if the licensee is a corporation or association.
313. A dealer’s or user’s license shall be required for each
32separate place of business or location, other than a residence,
33where electric fuel is delivered or placed into the battery or
34other energy storage device of an electric motor vehicle.
354. a. The department may deny the issuance of a license to
-13-1an applicant who is substantially delinquent in the payment of
2a tax due, or the interest or penalty on the tax, administered
3by the department. If the applicant is a partnership, a
4license may be denied if a partner owes any delinquent tax,
5interest, or penalty. If the applicant is a corporation, a
6license may be denied if any officer having a substantial legal
7or equitable interest in the ownership of the corporation owes
8any delinquent tax, interest, or penalty of the applicant
9corporation.
10b. The department may deny the issuance of a license if
11an application for a license to transact business as a dealer
12or user in this state is filed by a person whose license or
13registration has been canceled for cause at any time under the
14provisions of this chapter or any prior motor fuel tax law, if
15the department has reason to believe that the application is
16not filed in good faith, or if the application is filed by some
17person as a subterfuge for the real person in interest whose
18license or registration has been canceled for cause under the
19provisions of this chapter or any prior motor fuel tax law.
20The applicant shall be given fifteen days’ notice in writing of
21the date of the hearing and shall have the right to appear in
22person or by counsel and present testimony.
235. a. The application in proper form having been accepted
24for filing, and the other conditions and requirements of this
25section and subchapter IV having been complied with, the
26department shall issue to the applicant a license to transact
27business as an electric fuel dealer or user in this state. The
28license shall remain in full force and effect until canceled as
29provided in this chapter.
30b. The license shall not be assignable and shall be valid
31only for the licensee in whose name it is issued.
32c. The department shall keep and file all applications and
33bonds and a record of all licensees.
34 Sec. 26. NEW SECTION. 452A.43 Records.
351. A licensed electric fuel dealer or user shall maintain,
-14-1for a period of three years, records of all transactions by
2which the dealer or user dispenses electric fuel into the
3batteries or other energy storage devices of electric motor
4vehicles, including pertinent records and papers as required
5by the department.
62. If in the normal conduct of a dealer’s or user’s business
7the records are maintained and kept at an office outside this
8state, the records shall be made available for audit and
9examination by the department at the office outside this state,
10but the audit and examination shall be without expense to this
11state.
123. The department, after an audit and examination of records
13required to be maintained under this section, may authorize
14their disposal upon the written request of the dealer or user.
15 Sec. 27. NEW SECTION. 452A.44 Refunds.
161. A person who uses electric fuel for any of the nontaxable
17purposes set forth in section 452A.17, subsection 1, paragraph
18“a”, for motor fuel and undyed special fuel, and who has paid
19the electric fuel tax either directly to the department or by
20having the tax added to the price of the fuel, and who has
21a refund permit, upon presentation to and approval by the
22department of a claim for refund, subject to the conditions set
23forth in section 452A.17, subsection 1, paragraph “b”, shall be
24reimbursed and repaid the amount of the tax which the claimant
25has paid on the kilowatt hours so used, except that the amount
26of a refund payable may be applied by the department against
27any tax liability outstanding on the books of the department
28against the claimant. Refunds under this section are subject
29to the limitations and requirements set forth in section
30452A.17, subsection 3, for motor fuel and undyed special fuel
31refunds.
322. A person shall not claim a refund under this section
33until the person has obtained a refund permit meeting the
34requirements of section 452A.18 from the department. The
35department may revoke a refund permit pursuant to section
-15-1452A.19.
23. Tax collected on electric fuel that is not taxable, or
3tax collected in excess of the actual amount of tax due, is
4subject to section 452A.22.
5 Sec. 28. Section 452A.52, Code 2019, is amended to read as
6follows:
7452A.52 Fuels imported in supply tanks of motor vehicles —8 applicability.
91. a. No A person shall not bring into this state in
10the fuel supply tanks of a commercial motor vehicle, or any
11other container, regardless of whether or not the supply tanks
12are connected to the motor of the vehicle, any motor fuel or
13special fuel to be used in the operation of the vehicle in
14this state unless that person has paid or made arrangements in
15advance with the state department of transportation for payment
16of Iowa fuel taxes on the gallonage consumed in operating the
17vehicle in this state; except that this subchapter shall not
18apply to a private passenger automobile.
19b. A person shall not bring into this state in the batteries
20or other energy storage devices of a commercial motor vehicle,
21or any other energy storage device, regardless of whether the
22batteries or storage devices are connected to the motor of
23the vehicle, any electric fuel to be used in the operation
24of the vehicle in this state unless that person has paid or
25made arrangements in advance with the state department of
26transportation for payment of Iowa fuel taxes on the kilowatt
27hours consumed in operating the vehicle in this state.
282. Any person who is unable to display either of the
29permits or the license provided in section 452A.53 and brings
30into the state in the fuel supply tanks of a commercial motor
31vehicle more than thirty gallons of motor fuel or special fuel,
32or brings into the state in the batteries or other energy
33storage devices of a commercial motor vehicle more than three
34hundred fifty kilowatt hours of electric fuel, in violation
35of subsection 1 commits a simple misdemeanor punishable as
-16-1a scheduled violation under section 805.8A, subsection 13,
2paragraph “c”.
33. This subchapter shall not apply to a private passenger
4automobile.
5 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code
62019, are amended to read as follows:
72. Persons choosing not to make advance arrangements with
8the state department of transportation by procuring a permit or
9license are not relieved of their responsibility to purchase
10motor fuel, and special fuel, and electric fuel commensurate
11with their use of the state’s highway system. When there
12is reasonable cause to believe that there is evasion of the
13fuel tax on commercial motor vehicles, the state department
14of transportation may audit persons not holding a permit
15or license. Audits shall be conducted pursuant to section
16452A.55 and in accordance with international fuel tax agreement
17guidelines. The state department of transportation shall
18collect all taxes due and refund any overpayment.
193. A permanent international fuel tax agreement permit
20or license may be obtained upon application to the state
21department of transportation. A fee of ten dollars shall be
22charged for each permit or license issued. The holder of
23a permanent permit or license shall have the privilege of
24bringing into this state in the fuel supply tanks of commercial
25motor vehicles any amount of motor fuel or special fuel, or in
26the batteries or other energy storage devices of commercial
27motor vehicles any amount of electric fuel, to be used in the
28operation of the vehicles and for that privilege shall pay
29Iowa motor fuel or special fuel taxes as provided in section
30452A.54.
315. Each vehicle operated into or through Iowa in interstate
32operations using motor fuel, or special fuel, or electric fuel
33 acquired in any other state shall carry in or on the vehicle a
34duplicate or evidence of the permit or license required in this
35section. A fee not to exceed fifty cents shall be charged for
-17-1each duplicate or other evidence of a permit or license issued.
2 Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code
32019, are amended to read as follows:
41. Fuel tax liability under this subchapter shall be
5computed on the total number of gallons of each kind of
6motor fuel and special fuel, and the total number of kilowatt
7hours of electric fuel, consumed in the operation in Iowa by
8commercial motor vehicles subject to this subchapter at the
9same rate for each kind of fuel as would be applicable if taxed
10under subchapter I of this chapter and section 452A.41. A
11refund against the fuel tax liability so computed shall be
12allowed, on excess Iowa motor fuel purchased, in the amount
13of fuel tax paid at the prevailing rate per gallon set out
14under subchapter I of this chapter on motor fuel and special
15fuel, and rate per kilowatt hour set out under section 452A.41
16on electric fuel, consumed by commercial motor vehicles, the
17operation of which is subject to this subchapter.
182. Notwithstanding any provision of this chapter to the
19contrary, except as provided in this section, the holder of a
20permanent international fuel tax agreement permit or license
21may make application to the state department of transportation
22for a refund, not later than the last day of the third month
23following the quarter in which the overpayment of Iowa fuel
24tax paid on excess purchases of motor fuel or special fuel
25was reported as provided in section 452A.8, or electric
26fuel was reported as provided in section 452A.41, and which
27application is supported by such proof as the state department
28of transportation may require. The state department of
29transportation shall refund Iowa fuel tax paid on motor fuel,
30 or special fuel, or electric fuel purchased in excess of the
31amount consumed by such commercial motor vehicles in their
32operation on the highways of this state.
334. To determine the amount of fuel taxes due under this
34subchapter and to prevent the evasion thereof, the state
35department of transportation shall require a quarterly report
-18-1on forms prescribed by the state department of transportation.
2It shall be filed not later than the last day of the month
3following the quarter reported, and each quarter thereafter.
4These reports shall be required of all persons who have been
5issued a permit or license under this subchapter and shall
6cover actual operation and fuel consumption in Iowa on the
7basis of the permit or license holder’s average consumption
8of fuel in Iowa, determined by the total miles traveled and
9the total fuel purchased and consumed for highway use by the
10permittee’s or licensee’s commercial motor vehicles in the
11permittee’s or licensee’s entire operation in all states to
12establish an overall miles per gallon ratio or miles per
13kilowatt hour ratio, which ratio shall be used to compute the
14gallons or kilowatt hours used for the miles traveled in Iowa.
15Failure to receive a quarterly report or fuel credentials by
16mail, facsimile transmission, or any other means of delivery
17does not relieve a person from the person’s fuel tax liability
18or from the requirement to display current fuel credentials.
19 Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code
202019, are amended to read as follows:
213. “Commercial motor vehicle” means a passenger vehicle
22that has seats for more than nine passengers in addition to
23the driver, any road tractor, any truck tractor, or any truck
24having two or more axles which passenger vehicle, road tractor,
25truck tractor, or truck is propelled on the public highways
26by either motor fuel, or special fuel, or electric fuel.
27“Commercial motor vehicle” does not include a motor truck with a
28combined gross weight of less than twenty-six thousand pounds,
29operated as a part of an identifiable one-way fleet and which
30is leased for less than thirty days to a lessee for the purpose
31of moving property which is not owned by the lessor.
325. “Fuel taxes” means the per gallon and per kilowatt excise
33taxes imposed under subchapters I and III of this chapter, and
34section 452A.41, with respect to motor fuel, and undyed special
35fuel, and electric fuel.
-19- 18. “Motor vehicle” shall mean and include all vehicles,
2except those operated on rails, which are propelled by internal
3combustion engines or electric motors and are of such design as
4to permit their mobile use on public highways for transporting
5persons or property. A farm tractor while operated on a farm
6or for the purpose of hauling farm machinery, equipment, or
7produce shall not be deemed to be a motor vehicle. “Motor
8vehicle” shall not include “mobile machinery and equipment” as
9defined in this section.
10 Sec. 32. Section 452A.58, subsection 2, Code 2019, is
11amended to read as follows:
122. A lessor of a commercial motor vehicle shall be deemed
13a carrier with respect to such vehicles leased to others by
14the lessor and motor fuel, or special fuel, or electric fuel
15 consumed thereby if the lessor supplies or pays for the motor
16fuel, or special fuel, or electric fuel consumed by such
17vehicle or makes rental or other charges calculated to include
18the cost of such fuel.
19 Sec. 33. Section 452A.59, Code 2019, is amended to read as
20follows:
21452A.59 Administrative rules.
22The department of revenue and the state department
23of transportation are authorized and empowered to adopt
24rules under chapter 17A, relating to the administration
25and enforcement of this chapter as deemed necessary by the
26departments. However, when in the opinion of the director
27it is necessary for the efficient administration of this
28chapter, the director may regard persons in possession of motor
29fuel, special fuel, biofuel, alcohol, or alcohol derivative
30substances as blenders, dealers, eligible purchasers,
31exporters, importers, restrictive suppliers, suppliers,
32terminal operators, or nonterminal storage facility operators,
33or persons in possession of electric fuel as electric fuel
34dealers or users.
35 Sec. 34. Section 452A.60, subsection 1, Code 2019, is
-20-1amended to read as follows:
21. The department of revenue or the state department of
3transportation shall prescribe and furnish all forms, as
4applicable, upon which reports, returns, and applications shall
5be made and claims for refund presented under this chapter
6and may prescribe forms of record to be kept by suppliers,
7restrictive suppliers, importers, exporters, blenders, common
8carriers, contract carriers, licensed compressed natural gas,
9liquefied natural gas, and liquefied petroleum gas dealers
10and users, licensed electric fuel dealers and users, terminal
11operators, nonterminal storage facility operations, and
12interstate commercial motor vehicle operators.
13 Sec. 35. Section 452A.62, subsection 1, paragraph a, Code
142019, is amended by adding the following new subparagraph:
15 NEW SUBPARAGRAPH. (5) A licensed electric fuel dealer or
16user or person supplying electric fuel to a licensed electric
17fuel dealer or user.
18 Sec. 36. Section 452A.62, subsection 1, paragraph b, Code
192019, is amended to read as follows:
20b. To examine the records, books, papers, receipts, and
21invoices of any distributor, supplier, restrictive supplier,
22importer, blender, exporter, terminal operator, nonterminal
23storage facility, licensed compressed natural gas, liquefied
24natural gas, or liquefied petroleum gas dealer or user,
25licensed electric fuel dealer or user, or any other person
26who possesses fuel upon which the tax has not been paid to
27determine financial responsibility for the payment of the taxes
28imposed by this chapter.
29 Sec. 37. Section 452A.63, subsection 1, Code 2019, is
30amended to read as follows:
311. All information obtained by the department of revenue or
32the state department of transportation from the examining of
33reports, returns, or records required to be filed or kept under
34this chapter shall be treated as confidential and shall not be
35divulged except to other state officers, a member or members of
-21-1the general assembly, or any duly appointed committee of either
2or both houses of the general assembly, or to a representative
3of the state having some responsibility in connection with the
4collection of the taxes imposed or in proceedings brought under
5this chapter. The appropriate state agency may make available
6to the public on or before forty-five days following the last
7day of the month in which the tax is required to be paid, the
8names of suppliers, restrictive suppliers, and importers and as
9to each of them the total gallons of motor fuel, undyed special
10fuel, and ethanol blended gasoline withdrawn from terminals
11or imported into the state during that month. The department
12of revenue or the state department of transportation, upon
13request of officials entrusted with enforcement of the motor
14fuel tax laws of the federal government or any other state, may
15forward to these officials any pertinent information which the
16appropriate state agency may have relative to motor fuel, and
17 special fuel, and electric fuel, provided the officials of the
18other state furnish like information.
19 Sec. 38. Section 452A.73, Code 2019, is amended to read as
20follows:
21452A.73 Embezzlement of fuel tax money — penalty.
22Every sale of motor fuel in this state, and every sale
23of undyed special fuel dispensed by the seller into a fuel
24supply tank of a motor vehicle, and every sale of electric
25fuel dispensed by the seller into the battery or other energy
26storage device of an electric motor vehicle shall, unless
27otherwise provided, be presumed to include as a part of the
28purchase price the fuel tax due the state of Iowa under the
29provisions of this chapter. Every person collecting fuel tax
30money as part of the selling price of motor fuel, or undyed
31special fuel, or electric fuel shall hold the tax money in
32trust for the state of Iowa unless the fuel tax on the fuel
33has been previously paid to the state of Iowa. Any person
34receiving fuel tax money in trust and failing to remit it to
35the department of revenue on or before time required shall be
-22-1guilty of theft.
2 Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and
3f, Code 2019, are amended to read as follows:
4c. For any seller to issue or any purchaser to receive
5and retain any incorrect or false invoice or sales ticket in
6connection with the sale or purchase of motor fuel, or undyed
7special fuel, or electric fuel.
8e. For any person to act as a supplier, restrictive
9supplier, importer, exporter, blender, or compressed natural
10gas, liquefied natural gas, or liquefied petroleum gas dealer
11or user, or electric fuel dealer or user without the required
12license.
13f. For any person to use motor fuel, undyed special fuel,
14or dyed special fuel in the fuel supply tank of a vehicle, or
15electric fuel in the battery or other energy storage device of
16an electric vehicle, with respect to which the person knowingly
17has not paid or had charged to the person’s account with a
18distributor or dealer, or with respect to which the person does
19not, within the time required in this chapter, report and pay
20the applicable fuel tax.
21 Sec. 40. Section 452A.74, subsection 1, Code 2019, is
22amended by adding the following new paragraph:
23 NEW PARAGRAPH. h. For any licensed electric fuel dealer or
24user to dispense electric fuel into the battery or other energy
25storage device of any electric motor vehicle without collecting
26the fuel tax.
27 Sec. 41. Section 452A.76, subsection 2, Code 2019, is
28amended to read as follows:
292. Authority is given to the department of revenue,
30the state department of transportation, the department of
31public safety, and any peace officer as requested by such
32departments to enforce the provisions of subchapter I, sections
33452A.40 through 452A.44, and this subchapter of this chapter.
34The department of revenue shall adopt rules providing for
35enforcement under subchapter I and this subchapter of this
-23-1chapter regarding the use of motor fuel or special fuel in
2implements of husbandry. Enforcement personnel or requested
3peace officers are authorized to stop a conveyance suspected
4to be illegally transporting motor fuel or special fuel on
5the highways, to investigate the cargo, and also have the
6authority to inspect or test the fuel in the supply tank of a
7conveyance to determine if legal fuel is being used to power
8the conveyance. The operator of any vehicle transporting
9motor fuel or special fuel shall, upon request, produce and
10offer for inspection the manifest or loading and delivery
11invoices pertaining to the load and trip in question and shall
12permit the authority to inspect and measure the contents of
13the vehicle. If the vehicle operator fails to produce the
14evidence or if, when produced, the evidence fails to contain
15the required information and it appears that there is an
16attempt to evade payment of the fuel tax, the vehicle operator
17will be subject to the penalty provisions contained in section
18452A.74A.
19 Sec. 42. Section 452A.78, Code 2019, is amended to read as
20follows:
21452A.78 Other remedies available.
22The special remedies provided under the provisions of this
23chapter to enable the state to collect motor a fuel excise tax
24imposed by this chapter shall not be construed as depriving the
25state of any other remedy it might have either at law or in
26equity independent of this chapter. The state shall have the
27right to maintain an action at law for the collection of said
28taxes required to be paid herein and in connection therewith
29shall be entitled to a writ of attachment without bond.
30 Sec. 43. Section 452A.79, Code 2019, is amended to read as
31follows:
32452A.79 Use of revenue.
33Except as provided in sections 452A.79A, 452A.82, and
34452A.84, the net proceeds of the excise tax on the diesel
35special fuel, and the excise tax on motor fuel and other
-24-1special fuel, the excise tax on electric fuel, and penalties
2collected under the provision of this chapter, shall be
3credited to the road use tax fund.
4 Sec. 44. Section 452A.80, Code 2019, is amended to read as
5follows:
6452A.80 Microfilm or photographic copies — originals
7destroyed.
8The appropriate state agency shall have the power and
9authority to record, copy, or reproduce by any photographic,
10photostatic, microfilm, microcard, miniature photographic,
11or other process which accurately reproduces or forms a
12durable medium for so reproducing the original of any forms
13or records pertaining to motor a fuel tax or undyed special
14fuel tax imposed by this chapter, or any paper or document with
15respect to refund of the tax. If the forms and records have
16been reproduced in accordance with this section, the state
17agency may destroy the originals and the reproductions shall
18be competent evidence in any court in accordance with the
19provision of section 622.30.
20 Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall
21designate sections 452A.40 through 452A.44, as enacted by
22this division of this Act, as a new subchapter within chapter
23452A, and may redesignate the new and preexisting subchapters,
24replace references to sections 452A.40 through 452A.44
25with references to the new subchapter, and correct internal
26references as necessary, including references in subchapter
27headnotes.
28 Sec. 46. EFFECTIVE DATE. This division of this Act takes
29effect July 1, 2020.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill relates to motor vehicle taxes and fees.
34DIVISION I — REGISTRATION FEES FOR ELECTRIC VEHICLES.
35 Under current law, Code section 321.109(1)(a) provides that all
-25-1motor vehicles including vehicles designated by manufacturers
2as station wagons, 1993 and subsequent model year multipurpose
3vehicles, and 2010 and subsequent model year motor trucks
4with an unladen weight of 10,000 pounds or less, except motor
5trucks registered under Code section 321.122, business-trade
6trucks, special trucks, motor homes, motorsports recreational
7vehicles, ambulances, hearses, autocycles, motorcycles,
8motorized bicycles, and 1992 and older model year multipurpose
9vehicles, are subject to an annual registration fee equal to 1
10percent of the value of the vehicle as fixed by the department
11of transportation (DOT) plus 40 cents for each 100 pounds of
12weight of the vehicle as fixed by the DOT.
13For each battery electric motor vehicle subject to an annual
14registration fee under Code section 321.109(1)(a), the bill
15requires the owner to pay an annual battery electric motor
16vehicle registration fee of $130, which is in addition to the
17regular annual registration fee imposed for the vehicle. For
18each plug-in hybrid electric motor vehicle subject to an annual
19registration fee under Code section 321.109(1)(a), the bill
20requires the owner to pay an annual plug-in hybrid electric
21motor vehicle registration fee of $65, which is in addition to
22the regular annual registration fee imposed for the vehicle.
23Under current law, motorcycles are subject to an annual
24registration fee of $20. However, if a motorcycle is more
25than five model years old, the annual registration fee is $10.
26The bill requires the owner of a motorcycle that is a battery
27electric motor vehicle or plug-in hybrid electric motor vehicle
28to pay an annual electric motorcycle registration fee of $9,
29which is in addition to the regular annual registration fee
30imposed for the motorcycle.
31Under Code section 321.17, operating a motor vehicle of a
32type required to be registered which is not registered, or for
33which the appropriate fees have not been paid, is punishable by
34a scheduled fine of $50.
35This division of the bill takes effect January 1, 2020.
-26- 1DIVISION II — HYDROGEN FUEL EXCISE TAX. The bill imposes
2an excise tax of 65 cents per gallon on hydrogen used as a
3special fuel in motor vehicles. The bill specifies that a
4diesel gallon equivalent of hydrogen is 2.49 pounds. The
5bill makes corresponding changes to Code chapter 452A (motor
6fuel and special fuel taxes) to ensure that the excise tax
7on hydrogen is collected in the same manner as the existing
8excise taxes on compressed natural gas, liquefied natural
9gas, and liquefied petroleum gas. The bill applies the
10provisions of Code chapter 452A to dealers and users of
11hydrogen, including but not limited to provisions relating to
12license requirements, reporting and filing requirements, record
13retention requirements and audits, refunds, the interstate fuel
14use tax, the inventory tax, and a variety of unlawful acts that
15may result in a conviction for theft or fraudulent practice,
16including but not limited to those listed in Code sections
17452A.73, 452A.74, 452A.74A, and 452A.75. In accordance with
18article VII, section 8, of the Iowa Constitution and Code
19section 452A.79, revenues from the excise tax on hydrogen used
20as a special fuel in motor vehicles are credited to the road
21use tax fund.
22By operation of law, Code section 321.40(9) provides that
23a person who owns or controls a vehicle that uses hydrogen
24will be issued a special fuel user identification sticker by
25the county treasurer, and the person must place the sticker
26adjacent to the place where the special fuel is delivered into
27the vehicle fuel supply tank. Under Code section 312.2(9),
281.75 cents per gallon from the excise tax on hydrogen will be
29deposited in the revitalize Iowa’s sound economy fund. Under
30Code section 312.2(10), .25 cents per gallon from the excise
31tax on hydrogen will be deposited in the secondary road fund.
32The provisions of Code chapter 323 (dealer and distributor
33franchises for motor fuel and special fuel) apply to dealers
34and distributors that sell hydrogen used as a special fuel.
35Hydrogen used as a special fuel is excluded from the sales and
-27-1use tax under Code section 423.2(56) and the local sales and
2services tax under Code section 423B.5(1).
3The bill does not amend Code chapter 476C, which authorizes
4a renewable energy fuel tax credit for producers and purchasers
5of hydrogen fuel. The bill also does not amend Code section
6216B.3 (department for the blind), 260C.19A (community
7colleges), 262.25A (board of regents), 307.21 (department of
8transportation), or 904.312A (department of corrections), which
9require that 10 percent of motor vehicles purchased by such
10entities be equipped with engines which utilize alternative
11methods of propulsion, including electricity but not including
12hydrogen.
13This division of the bill takes effect January 1, 2020.
14DIVISION III — ELECTRIC FUEL EXCISE TAX. The bill provides
15that electric fuel means electrical energy delivered or placed
16into the battery or other energy storage device of an electric
17motor vehicle from a source outside the motor vehicle for
18purposes of propelling the motor vehicle. The bill imposes an
19excise tax of 2.6 cents on each kilowatt hour of electric fuel
20delivered or placed into the battery or other energy storage
21device of an electric motor vehicle at a location in this
22state other than a residence. The tax attaches at the time of
23the delivery by a dealer and must be collected by the dealer
24from the purchaser and paid to the Iowa department of revenue
25(IDR) in the same manner as the excise taxes on natural gas
26and liquefied petroleum gas are paid by dealers under current
27law. Alternatively, the tax attaches at the time of use by
28a licensed electric fuel user and must be paid to IDR in the
29same manner as the excise taxes on natural gas and liquefied
30petroleum gas are paid by users under current law.
31All charging stations located at dealer and user locations
32through which electric fuel can be dispensed must be metered,
33inspected, tested for accuracy, and sealed and licensed by the
34department of agriculture and land stewardship.
35For the purpose of determining the amount of liability for
-28-1the electric fuel tax, each dealer and user must file with IDR
2not later than the last day of each calendar month a monthly
3tax return certified under penalties for false certification.
4The return must be accompanied by remittance in the amount of
5the tax due for the month in which the fuel was placed into
6the batteries or other energy storage devices of electric
7motor vehicles. The bill specifies that moneys collected by a
8licensed electric fuel dealer or user for the excise tax are
9deemed to be held in trust for the state of Iowa.
10The bill prohibits a person from selling or dispensing
11electric fuel within this state at a location other than a
12residence or from otherwise acting as a licensed electric fuel
13dealer or user unless the person holds an uncanceled license
14issued by IDR. The bill specifies the application requirements
15for a license, and provides for grounds under which IDR may
16deny the issuance of a license.
17The bill requires a licensed electric fuel dealer or user
18to maintain, for a period of three years, records of all
19transactions by which the dealer or user dispenses electric
20fuel into the batteries or other energy storage devices of
21electric motor vehicles, including pertinent records and papers
22as required by IDR. After an audit and examination of such
23records, IDR may authorize their disposal upon the written
24request of the dealer or user.
25The bill provides that a person who uses electric fuel for
26any of the nontaxable purposes set forth under current law for
27motor fuel and undyed special fuel, who has paid the electric
28fuel tax and who has a refund permit, upon presentation to and
29approval by IDR of a claim for refund, must be reimbursed and
30repaid the amount of the tax which the claimant has paid on
31the kilowatt hours so used. Such refunds are subject to the
32limitations and requirements set forth under current law for
33refunds of the tax on motor fuel and undyed special fuel. The
34bill prohibits a person from claiming a refund until the person
35has obtained a refund permit from IDR meeting the requirements
-29-1set forth under current law.
2The bill makes corresponding changes to Code chapter
3452A, including provisions of the interstate fuel use tax
4law. In accordance with article VII, section 8, of the Iowa
5Constitution and Code section 452A.79, revenues from the excise
6tax on electric fuel are credited to the road use tax fund. The
7bill provides that 0.15 cents per kilowatt hour of the excise
8tax must be credited to the revitalize Iowa’s sound economy
9fund, and 0.02 cents per kilowatt hour of the excise tax must
10be credited to the secondary road fund, in accordance with
11similar provisions for other types of fuel. In addition, the
12bill exempts electric fuel from the state sales and use tax and
13local option taxes.
14This division of the bill takes effect July 1, 2020.
-30-ns/jh
2registration fees for certain electric vehicles, an excise
3tax on hydrogen used as special fuel, and an excise tax on
4electricity used as electric fuel, providing penalties,
5making penalties applicable, and including effective date
6provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2REGISTRATION FEES FOR ELECTRIC VEHICLES
3 Section 1. NEW SECTION. 321.116 Battery electric and
4plug-in hybrid electric motor vehicle fees.
51. For each battery electric motor vehicle subject to an
6annual registration fee under section 321.109, subsection 1,
7paragraph “a”, and operated on the public highways of this
8state, the owner shall pay an annual battery electric motor
9vehicle registration fee of one hundred thirty dollars, which
10shall be in addition to the annual registration fee imposed
11for the vehicle under section 321.109, subsection 1, paragraph
12“a”. For purposes of this subsection, “battery electric
13motor vehicle” means a motor vehicle equipped with electrical
14drivetrain components and not equipped with an internal
15combustion engine, that is propelled exclusively by one or
16more electrical motors using electrical energy stored in a
17battery or other energy storage device that can be recharged by
18plugging into an electrical outlet or electric vehicle charging
19station.
202. For each plug-in hybrid electric motor vehicle subject to
21an annual registration fee under section 321.109, subsection
221, paragraph “a”, and operated on the public highways of this
23state, the owner shall pay an annual plug-in hybrid electric
24motor vehicle registration fee of sixty-five dollars, which
25shall be in addition to the annual registration fee imposed
26for the vehicle under section 321.109, subsection 1, paragraph
27“a”. For purposes of this subsection, “plug-in hybrid electric
28motor vehicle” means a motor vehicle equipped with electrical
29drivetrain components, an internal combustion engine, and a
30battery or other energy storage device that can be recharged by
31plugging into an electrical outlet or electric vehicle charging
32station.
33 Sec. 2. Section 321.117, Code 2019, is amended to read as
34follows:
35321.117 Motorcycle, autocycle, ambulance, and hearse fees.
-1- 11. For all motorcycles and autocycles the annual
2registration fee shall be twenty dollars. For all motorized
3bicycles the annual registration fee shall be seven dollars.
4When the motorcycle or autocycle is more than five model
5years old, the annual registration fee shall be ten dollars.
6The annual registration fee for ambulances and hearses shall
7be fifty dollars. Passenger car plates shall be issued for
8ambulances and hearses.
92. In addition to the fee required for a motorcycle under
10subsection 1, the owner of a motorcycle that is a battery
11electric motor vehicle or plug-in hybrid electric motor
12vehicle, as those terms are defined in section 321.116, shall
13pay an annual electric motorcycle registration fee of nine
14dollars.
15 Sec. 3. EFFECTIVE DATE. This division of this Act takes
16effect January 1, 2020.
17DIVISION II
18hydrogen fuel excise tax
19 Sec. 4. Section 452A.2, Code 2019, is amended by adding the
20following new subsection:
21 NEW SUBSECTION. 20A. “Fuel supply tank”, with respect to
22motor vehicles that use hydrogen as a special fuel, means a
23motor vehicle’s hydrogen fuel cells.
24 Sec. 5. Section 452A.2, subsection 21, Code 2019, is amended
25by adding the following new paragraph:
26 NEW PARAGRAPH. c. “Gallon”, with respect to hydrogen, means
27a diesel gallon equivalent. A diesel gallon equivalent of
28hydrogen is two and forty-nine hundredths pounds.
29 Sec. 6. Section 452A.2, subsections 25, 26, 39, and 45, Code
302019, are amended to read as follows:
3125. “Licensed compressed natural gas, liquefied natural gas,
32and liquefied petroleum gas, and hydrogen dealer” means a person
33in the business of handling untaxed compressed natural gas,
34liquefied natural gas, or liquefied petroleum gas, or hydrogen
35 who delivers any part of the fuel into a fuel supply tank of any
-2-1motor vehicle.
226. “Licensed compressed natural gas, liquefied natural
3gas, and liquefied petroleum gas, and hydrogen user” means a
4person licensed by the department who dispenses compressed
5natural gas, liquefied natural gas, or liquefied petroleum
6gas, or hydrogen, upon which the special fuel tax has not been
7previously paid, for highway use from fuel sources owned and
8controlled by the person into the fuel supply tank of a motor
9vehicle, or commercial vehicle owned or controlled by the
10person.
1139. “Special fuel” means fuel oils and all combustible gases
12and liquids suitable for the generation of power for propulsion
13of motor vehicles or turbine-powered aircraft, and includes
14any substance used for that purpose, except that it does not
15include motor fuel. Kerosene shall not be considered to be a
16special fuel, unless blended with other special fuels for use
17in a motor vehicle with a diesel engine. Methanol shall not
18be considered to be a special fuel unless blended with other
19special fuels for use in a motor vehicle with a diesel engine.
20Hydrogen shall be considered to be a special fuel when used
21or intended for use in combination with oxygen to generate
22electricity for propulsion of a motor vehicle.
2345. “Use”, with respect to liquefied petroleum gas, means
24the receipt, delivery, or placing of liquefied petroleum gas by
25a licensed liquefied petroleum gas user into a fuel supply tank
26of a motor vehicle while the vehicle is in the state, except
27that with. With respect to natural gas used as a special fuel,
28“use” means the receipt, delivery, or placing of the natural gas
29into equipment for compressing the gas for subsequent delivery
30into the fuel supply tank of a motor vehicle while the vehicle
31is in the state. With respect to hydrogen used as a special
32fuel, “use” means the receipt, delivery, or placing of hydrogen
33by a licensed hydrogen user into a fuel supply tank of a motor
34vehicle while the vehicle is in the state.
35 Sec. 7. Section 452A.3, Code 2019, is amended by adding the
-3-1following new subsection:
2 NEW SUBSECTION. 9A. For hydrogen used as a special fuel,
3the rate of tax is sixty-five cents per gallon.
4 Sec. 8. Section 452A.4, subsection 1, paragraph d, Code
52019, is amended to read as follows:
6d. A dealer’s or user’s license shall be required for each
7separate place of business or location where compressed natural
8gas, liquefied natural gas, or liquefied petroleum gas, or
9hydrogen is delivered or placed into the fuel supply tank of a
10motor vehicle.
11 Sec. 9. Section 452A.8, subsection 2, paragraph e,
12subparagraphs (1), (2), and (3), Code 2019, are amended to read
13as follows:
14(1) For purposes of this paragraph “e”, “dealer” or “user”
15means a licensed compressed natural gas, liquefied natural gas,
16and liquefied petroleum gas, and hydrogen dealer or user and
17“fuel” means compressed natural gas, liquefied natural gas, or
18 liquefied petroleum gas, or hydrogen.
19(2) The tax for compressed natural gas, liquefied natural
20gas, and liquefied petroleum gas, and hydrogen delivered by
21a licensed dealer for use in this state shall attach at the
22time of the delivery and shall be collected by the dealer
23from the purchaser and paid to the department as provided in
24this chapter. The tax, with respect to compressed natural
25gas, liquefied natural gas, and liquefied petroleum gas, and
26hydrogen acquired by a purchaser in any manner other than by
27delivery by a licensed dealer into a fuel supply tank of a
28motor vehicle, attaches at the time of the use of the fuel
29and shall be paid over to the department by the purchaser as
30provided in this chapter.
31(3) The department shall adopt rules governing the
32dispensing of compressed natural gas, liquefied natural gas,
33and liquefied petroleum gas, and hydrogen by licensed dealers
34and licensed users. The director may require by rule that
35reports and returns be filed by electronic transmission. The
-4-1department shall require that all pumps located at dealer
2locations and user locations through which liquefied petroleum
3gas can be dispensed shall be metered, inspected, tested
4for accuracy, and sealed and licensed by the department of
5agriculture and land stewardship, and that fuel delivered
6into the fuel supply tank of any motor vehicle shall be
7dispensed only through tested metered pumps and may be sold
8without temperature correction or corrected to a temperature
9of 60 degrees Fahrenheit. If the metered gallonage is to be
10temperature-corrected, only a temperature-compensated meter
11shall be used. Natural gas used as fuel shall be delivered
12into compressing equipment through sealed meters certified for
13accuracy by the department of agriculture and land stewardship.
14Hydrogen used as fuel shall be delivered into the fuel supply
15tank of any motor vehicle through sealed meters certified for
16accuracy by the department of agriculture and land stewardship.
17The department of agriculture and land stewardship may adopt
18rules pursuant to chapter 17A relating to the certification and
19accuracy of meters used to deliver hydrogen.
20 Sec. 10. Section 452A.60, subsection 1, Code 2019, is
21amended to read as follows:
221. The department of revenue or the state department of
23transportation shall prescribe and furnish all forms, as
24applicable, upon which reports, returns, and applications shall
25be made and claims for refund presented under this chapter
26and may prescribe forms of record to be kept by suppliers,
27restrictive suppliers, importers, exporters, blenders, common
28carriers, contract carriers, licensed compressed natural
29gas, liquefied natural gas, and liquefied petroleum gas, and
30hydrogen dealers and users, terminal operators, nonterminal
31storage facility operations, and interstate commercial motor
32vehicle operators.
33 Sec. 11. Section 452A.62, subsection 1, paragraph a,
34subparagraph (2), Code 2019, is amended to read as follows:
35(2) A licensed compressed natural gas, liquefied natural
-5-1gas, or liquefied petroleum gas, or hydrogen dealer, user, or
2person supplying compressed natural gas, liquefied natural
3gas, or liquefied petroleum gas, or hydrogen to a licensed
4compressed natural gas, liquefied natural gas, or liquefied
5petroleum gas, or hydrogen dealer or user.
6 Sec. 12. Section 452A.62, subsection 1, paragraph b, Code
72019, is amended to read as follows:
8b. To examine the records, books, papers, receipts, and
9invoices of any distributor, supplier, restrictive supplier,
10importer, blender, exporter, terminal operator, nonterminal
11storage facility, licensed compressed natural gas, liquefied
12natural gas, or liquefied petroleum gas, or hydrogen dealer or
13user, or any other person who possesses fuel upon which the tax
14has not been paid to determine financial responsibility for the
15payment of the taxes imposed by this chapter.
16 Sec. 13. Section 452A.74, subsection 1, paragraphs e and g,
17Code 2019, are amended to read as follows:
18e. For any person to act as a supplier, restrictive
19supplier, importer, exporter, blender, or compressed natural
20gas, liquefied natural gas, or liquefied petroleum gas, or
21hydrogen dealer or user without the required license.
22g. For any licensed compressed natural gas, liquefied
23natural gas, or liquefied petroleum gas, or hydrogen dealer or
24user to dispense compressed natural gas, liquefied natural gas,
25or liquefied petroleum gas, or hydrogen into the fuel supply
26tank of any motor vehicle without collecting the fuel tax.
27 Sec. 14. Section 452A.74, subsection 2, Code 2019, is
28amended to read as follows:
292. Any delivery of compressed natural gas, liquefied
30natural gas, or liquefied petroleum gas, or hydrogen to a
31compressed natural gas, liquefied natural gas, or liquefied
32petroleum gas, or hydrogen dealer or user for the purpose of
33evading the state tax on compressed natural gas, liquefied
34natural gas, or liquefied petroleum gas, or hydrogen, into
35facilities other than those licensed under this chapter knowing
-6-1that the fuel will be used for highway use shall constitute
2a violation of this section. Any compressed natural gas,
3liquefied natural gas, or liquefied petroleum gas, or hydrogen
4 dealer or user for purposes of evading the state tax on
5compressed natural gas, liquefied natural gas, or liquefied
6petroleum gas, or hydrogen, who allows a distributor to place
7compressed natural gas, liquefied natural gas, or liquefied
8petroleum gas, or hydrogen for highway use in facilities other
9than those licensed under this chapter, shall also be deemed
10in violation of this section.
11 Sec. 15. Section 452A.85, subsection 1, Code 2019, is
12amended to read as follows:
131. Persons having title to motor fuel, ethanol blended
14gasoline, undyed special fuel, compressed natural gas,
15liquefied natural gas, or liquefied petroleum gas, or hydrogen
16 in storage and held for sale on the effective date of an
17increase in the excise tax rate imposed on motor fuel, ethanol
18blended gasoline, undyed special fuel, compressed natural
19gas, liquefied natural gas, or liquefied petroleum gas, or
20hydrogen under this chapter shall be subject to an inventory
21tax based upon the gallonage in storage as of the close of the
22business day preceding the effective date of the increased
23excise tax rate of motor fuel, ethanol blended gasoline, undyed
24special fuel, compressed natural gas, liquefied natural gas, or
25 liquefied petroleum gas, or hydrogen which will be subject to
26the increased excise tax rate.
27 Sec. 16. Section 452A.86, Code 2019, is amended to read as
28follows:
29452A.86 Method of determining gallonage.
30The exclusive method of determining gallonage of any
31purchases or sales of motor fuel, undyed special fuel,
32or liquefied petroleum gas as defined in this chapter and
33distillate fuels shall be on a gross volume basis, except
34for compressed natural gas, and liquefied natural gas, and
35hydrogen. The exclusive method of determining gallonage of any
-7-1purchases or sales of compressed natural gas is the gasoline
2gallon equivalent, as defined in section 452A.2, subsection
321. The exclusive method of determining gallonage of any
4purchase or sale of liquefied natural gas is the diesel gallon
5equivalent, as defined in section 452A.2, subsection 21. The
6exclusive method of determining gallonage of any purchases or
7sales of hydrogen is the diesel gallon equivalent, as defined
8in section 452A.2, subsection 21. A temperature-adjusted
9or other method shall not be used, except as it applies to
10liquefied petroleum gas and the sale or exchange of petroleum
11products between petroleum refiners. All invoices, bills of
12lading, or other records of sale or purchase and all returns
13or records required to be made, kept, and maintained by a
14supplier, restrictive supplier, importer, exporter, blender,
15or compressed natural gas, liquefied natural gas, or liquefied
16petroleum gas, or hydrogen dealer or user shall be made, kept,
17and maintained on the gross volume basis. For purposes of
18this section, “distillate fuels” means any fuel oil, gas oil,
19topped crude oil, or other petroleum oils derived by refining
20or processing crude oil or unfinished oils which have a boiling
21range at atmospheric pressure which falls completely or in part
22between 550 and 1,200 degrees Fahrenheit.
23 Sec. 17. EFFECTIVE DATE. This division of this Act takes
24effect January 1, 2020.
25DIVISION III
26electric fuel excise tax
27 Sec. 18. Section 312.2, subsection 9, Code 2019, is amended
28by adding the following new paragraph:
29 NEW PARAGRAPH. c. From the excise tax on electric fuel
30imposed under the tax rate of section 452A.41, the amount of
31excise tax collected from fifteen hundredths of one cent per
32kilowatt hour.
33 Sec. 19. Section 312.2, subsection 10, Code 2019, is amended
34by adding the following new paragraph:
35 NEW PARAGRAPH. c. From the excise tax on electric fuel
-8-1imposed under the tax rate of section 452A.41, the amount
2of excise tax collected from two hundredths of one cent per
3kilowatt hour.
4 Sec. 20. Section 423.3, subsection 56, Code 2019, is amended
5to read as follows:
656. The sales price from the sale of motor fuel, and
7 special fuel, and electric fuel consumed for highway use or in
8watercraft or aircraft where the fuel tax has been imposed and
9paid and no refund has been or will be allowed and the sales
10price from the sales of ethanol blended gasoline, as defined
11in section 214A.1.
12 Sec. 21. Section 423B.5, subsection 1, Code 2019, is amended
13to read as follows:
141. A local sales and services tax may be imposed by a
15county on the sales price taxed by the state under chapter
16423, subchapter II. A local sales and services tax shall be
17imposed on the same basis as the state sales and services tax
18or in the case of the use of natural gas, natural gas service,
19electricity, or electric service on the same basis as the
20state use tax and shall not be imposed on the sale of any
21property or on any service not taxed by the state, except the
22tax shall not be imposed on the sales price from the sale of
23motor fuel, or special fuel, or electric fuel, as those terms
24are defined in chapter 452A, which is consumed for highway use
25or in watercraft or aircraft if the fuel tax is paid on the
26transaction and a refund has not or will not be allowed, on the
27sales price from the sale of equipment by the state department
28of transportation, or on the sales price from the sale or use
29of natural gas, natural gas service, electricity, or electric
30service in a city or county where the sales price from the sale
31of natural gas or electric energy is subject to a franchise
32fee or user fee during the period the franchise or user fee
33is imposed. A local sales and services tax is applicable to
34transactions within those cities and unincorporated areas of
35the county where it is imposed, which transactions include
-9-1but are not limited to sales sourced pursuant to section
2423.15, 423.17, 423.19, or 423.20, to a location within that
3city or unincorporated area of the county. The tax shall be
4collected by all persons required to collect state sales taxes.
5However, a local sales and services tax is not applicable to
6transactions sourced under chapter 423 to a place of business,
7as defined in section 423.1, of a retailer if such place of
8business is located in part within a city or unincorporated
9area of the county where the tax is not imposed.
10 Sec. 22. Section 423E.3, subsection 1, Code 2019, is amended
11to read as follows:
121. The tax shall be imposed on the same basis as the state
13sales and services tax or in the case of the use of natural
14gas, natural gas service, electricity, or electric service on
15the same basis as the state use tax and shall not be imposed
16on the sale of any property or on any service not taxed by the
17state, except the tax shall not be imposed on the sales price
18from the sale of motor fuel, or special fuel, or electric fuel,
19 as those terms are defined in chapter 452A, which is consumed
20for highway use or in watercraft or aircraft if the fuel tax
21is paid on the transaction and a refund has not or will not
22be allowed, on the sales price from the sale of equipment by
23the state department of transportation, or on the sales price
24from the sale or use of natural gas, natural gas service,
25electricity, or electric service in a city or county where the
26sales price from the sale of natural gas or electric energy is
27subject to a franchise fee or user fee during the period the
28franchise or user fee is imposed.
29 Sec. 23. NEW SECTION. 452A.40 Definitions.
30As used in this subchapter, unless the context otherwise
31requires:
321. “Department” means the department of revenue.
332. “Electric fuel” means electrical energy delivered or
34placed into the battery or other energy storage device of an
35electric motor vehicle from a source outside the motor vehicle
-10-1for purposes of propelling the motor vehicle. “Electric fuel”
2shall be deemed motor vehicle fuel for purposes of Article VII,
3section 8, of the Constitution of the State of Iowa.
43. “Electric motor vehicle” means a motor vehicle equipped
5with electrical drivetrain components that has the ability to
6be propelled, fully or partially, by one or more electrical
7motors using electrical energy stored in a battery or other
8energy storage device that can be recharged by plugging into an
9electrical outlet or electric vehicle charging station.
104. “Licensed electric fuel dealer” means a person licensed
11by the department who dispenses electric fuel, upon which the
12electric fuel tax has not been previously paid, for highway
13use into the battery or other energy storage device of an
14electric motor vehicle in this state at a location other than a
15residence.
165. “Licensed electric fuel user” means a person licensed
17by the department who dispenses electric fuel, upon which the
18electric fuel tax has not been previously paid, for highway use
19from a charging station owned and controlled by the person into
20the battery or other energy storage device of an electric motor
21vehicle owned or controlled by the person in this state at a
22location other than a residence.
236. “Residence” means the place where a person resides,
24permanently or temporarily.
257. “Use” means the receipt, delivery, or placing of electric
26fuel by a licensed electric fuel user into the battery or other
27energy storage device of an electric motor vehicle owned or
28controlled by the user in this state at a location other than a
29residence.
30 Sec. 24. NEW SECTION. 452A.41 Levy and collection of excise
31tax on electric fuel.
321. An excise tax of two and six-tenths cents is imposed on
33each kilowatt hour of electric fuel delivered or placed into
34the battery or other energy storage device of an electric motor
35vehicle at a location in this state other than a residence.
-11- 12. The tax for electric fuel delivered by a licensed
2electric fuel dealer for use in this state shall attach at the
3time of the delivery and shall be collected by the dealer from
4the purchaser and paid to the department in the same manner
5as the excise taxes on natural gas and liquefied petroleum
6gas are paid by dealers to the department as provided in this
7chapter. The tax for electric fuel used by a licensed electric
8fuel user shall attach at the time of the use of the fuel and
9shall be paid to the department by the licensed electric fuel
10user in the same manner as the excise taxes on natural gas and
11liquefied petroleum gas are paid by users to the department as
12provided in this chapter.
133. The department shall adopt rules governing the
14dispensing of electric fuel by licensed dealers and users. The
15director may require by rule that reports and returns be filed
16by electronic transmission. The department shall require that
17all charging stations located at dealer and user locations
18through which electric fuel can be dispensed shall be metered,
19inspected, tested for accuracy, and sealed and licensed by
20the department of agriculture and land stewardship, and that
21electric fuel delivered into the battery or other energy
22storage device of any electric motor vehicle shall be dispensed
23only through tested, metered charging stations. The department
24of agriculture and land stewardship may adopt rules pursuant
25to chapter 17A to administer the department of agriculture and
26land stewardship’s duties under this subsection.
274. a. For the purpose of determining the amount of
28liability for the electric fuel tax, each dealer and user
29shall file with the department not later than the last day
30of each calendar month a monthly tax return certified under
31penalties for false certification. The return shall show, with
32reference to each location at which fuel is delivered or placed
33by the dealer or user into the battery or other energy storage
34device of any electric motor vehicle during the next preceding
35calendar month, information as required by the department.
-12- 1b. The amount of tax due shall be computed by multiplying
2the appropriate tax rate per kilowatt hour by the number of
3kilowatt hours of electric fuel delivered or placed by the
4dealer or user into the batteries or other energy storage
5devices of electric motor vehicles.
6c. The return shall be accompanied by remittance in the
7amount of the tax due for the month in which the fuel was placed
8into the batteries or other energy storage devices of electric
9motor vehicles.
105. Moneys collected under this subchapter by a licensed
11electric fuel dealer or user are deemed to be held in trust for
12the state of Iowa.
13 Sec. 25. NEW SECTION. 452A.42 Electric fuel dealer’s and
14user’s license.
151. A person shall not sell or dispense electric fuel within
16this state at a location other than a residence or otherwise
17act as a licensed electric fuel dealer or user unless the
18person holds an uncanceled license issued by the department.
192. To procure a license, a person shall file with the
20department an application signed under penalty for false
21certificate setting forth all of the following:
22a. The name under which the licensee will transact business
23in this state.
24b. The location, with street number address, of the
25principal office or place of business of the licensee within
26this state.
27c. The name and complete residence address of the owner
28or the names and addresses of the partners, if the licensee
29is a partnership, or the names and addresses of the principal
30officers, if the licensee is a corporation or association.
313. A dealer’s or user’s license shall be required for each
32separate place of business or location, other than a residence,
33where electric fuel is delivered or placed into the battery or
34other energy storage device of an electric motor vehicle.
354. a. The department may deny the issuance of a license to
-13-1an applicant who is substantially delinquent in the payment of
2a tax due, or the interest or penalty on the tax, administered
3by the department. If the applicant is a partnership, a
4license may be denied if a partner owes any delinquent tax,
5interest, or penalty. If the applicant is a corporation, a
6license may be denied if any officer having a substantial legal
7or equitable interest in the ownership of the corporation owes
8any delinquent tax, interest, or penalty of the applicant
9corporation.
10b. The department may deny the issuance of a license if
11an application for a license to transact business as a dealer
12or user in this state is filed by a person whose license or
13registration has been canceled for cause at any time under the
14provisions of this chapter or any prior motor fuel tax law, if
15the department has reason to believe that the application is
16not filed in good faith, or if the application is filed by some
17person as a subterfuge for the real person in interest whose
18license or registration has been canceled for cause under the
19provisions of this chapter or any prior motor fuel tax law.
20The applicant shall be given fifteen days’ notice in writing of
21the date of the hearing and shall have the right to appear in
22person or by counsel and present testimony.
235. a. The application in proper form having been accepted
24for filing, and the other conditions and requirements of this
25section and subchapter IV having been complied with, the
26department shall issue to the applicant a license to transact
27business as an electric fuel dealer or user in this state. The
28license shall remain in full force and effect until canceled as
29provided in this chapter.
30b. The license shall not be assignable and shall be valid
31only for the licensee in whose name it is issued.
32c. The department shall keep and file all applications and
33bonds and a record of all licensees.
34 Sec. 26. NEW SECTION. 452A.43 Records.
351. A licensed electric fuel dealer or user shall maintain,
-14-1for a period of three years, records of all transactions by
2which the dealer or user dispenses electric fuel into the
3batteries or other energy storage devices of electric motor
4vehicles, including pertinent records and papers as required
5by the department.
62. If in the normal conduct of a dealer’s or user’s business
7the records are maintained and kept at an office outside this
8state, the records shall be made available for audit and
9examination by the department at the office outside this state,
10but the audit and examination shall be without expense to this
11state.
123. The department, after an audit and examination of records
13required to be maintained under this section, may authorize
14their disposal upon the written request of the dealer or user.
15 Sec. 27. NEW SECTION. 452A.44 Refunds.
161. A person who uses electric fuel for any of the nontaxable
17purposes set forth in section 452A.17, subsection 1, paragraph
18“a”, for motor fuel and undyed special fuel, and who has paid
19the electric fuel tax either directly to the department or by
20having the tax added to the price of the fuel, and who has
21a refund permit, upon presentation to and approval by the
22department of a claim for refund, subject to the conditions set
23forth in section 452A.17, subsection 1, paragraph “b”, shall be
24reimbursed and repaid the amount of the tax which the claimant
25has paid on the kilowatt hours so used, except that the amount
26of a refund payable may be applied by the department against
27any tax liability outstanding on the books of the department
28against the claimant. Refunds under this section are subject
29to the limitations and requirements set forth in section
30452A.17, subsection 3, for motor fuel and undyed special fuel
31refunds.
322. A person shall not claim a refund under this section
33until the person has obtained a refund permit meeting the
34requirements of section 452A.18 from the department. The
35department may revoke a refund permit pursuant to section
-15-1452A.19.
23. Tax collected on electric fuel that is not taxable, or
3tax collected in excess of the actual amount of tax due, is
4subject to section 452A.22.
5 Sec. 28. Section 452A.52, Code 2019, is amended to read as
6follows:
7452A.52 Fuels imported in supply tanks of motor vehicles —8 applicability.
91. a. No A person shall not bring into this state in
10the fuel supply tanks of a commercial motor vehicle, or any
11other container, regardless of whether or not the supply tanks
12are connected to the motor of the vehicle, any motor fuel or
13special fuel to be used in the operation of the vehicle in
14this state unless that person has paid or made arrangements in
15advance with the state department of transportation for payment
16of Iowa fuel taxes on the gallonage consumed in operating the
17vehicle in this state; except that this subchapter shall not
18apply to a private passenger automobile.
19b. A person shall not bring into this state in the batteries
20or other energy storage devices of a commercial motor vehicle,
21or any other energy storage device, regardless of whether the
22batteries or storage devices are connected to the motor of
23the vehicle, any electric fuel to be used in the operation
24of the vehicle in this state unless that person has paid or
25made arrangements in advance with the state department of
26transportation for payment of Iowa fuel taxes on the kilowatt
27hours consumed in operating the vehicle in this state.
282. Any person who is unable to display either of the
29permits or the license provided in section 452A.53 and brings
30into the state in the fuel supply tanks of a commercial motor
31vehicle more than thirty gallons of motor fuel or special fuel,
32or brings into the state in the batteries or other energy
33storage devices of a commercial motor vehicle more than three
34hundred fifty kilowatt hours of electric fuel, in violation
35of subsection 1 commits a simple misdemeanor punishable as
-16-1a scheduled violation under section 805.8A, subsection 13,
2paragraph “c”.
33. This subchapter shall not apply to a private passenger
4automobile.
5 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code
62019, are amended to read as follows:
72. Persons choosing not to make advance arrangements with
8the state department of transportation by procuring a permit or
9license are not relieved of their responsibility to purchase
10motor fuel, and special fuel, and electric fuel commensurate
11with their use of the state’s highway system. When there
12is reasonable cause to believe that there is evasion of the
13fuel tax on commercial motor vehicles, the state department
14of transportation may audit persons not holding a permit
15or license. Audits shall be conducted pursuant to section
16452A.55 and in accordance with international fuel tax agreement
17guidelines. The state department of transportation shall
18collect all taxes due and refund any overpayment.
193. A permanent international fuel tax agreement permit
20or license may be obtained upon application to the state
21department of transportation. A fee of ten dollars shall be
22charged for each permit or license issued. The holder of
23a permanent permit or license shall have the privilege of
24bringing into this state in the fuel supply tanks of commercial
25motor vehicles any amount of motor fuel or special fuel, or in
26the batteries or other energy storage devices of commercial
27motor vehicles any amount of electric fuel, to be used in the
28operation of the vehicles and for that privilege shall pay
29Iowa motor fuel or special fuel taxes as provided in section
30452A.54.
315. Each vehicle operated into or through Iowa in interstate
32operations using motor fuel, or special fuel, or electric fuel
33 acquired in any other state shall carry in or on the vehicle a
34duplicate or evidence of the permit or license required in this
35section. A fee not to exceed fifty cents shall be charged for
-17-1each duplicate or other evidence of a permit or license issued.
2 Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code
32019, are amended to read as follows:
41. Fuel tax liability under this subchapter shall be
5computed on the total number of gallons of each kind of
6motor fuel and special fuel, and the total number of kilowatt
7hours of electric fuel, consumed in the operation in Iowa by
8commercial motor vehicles subject to this subchapter at the
9same rate for each kind of fuel as would be applicable if taxed
10under subchapter I of this chapter and section 452A.41. A
11refund against the fuel tax liability so computed shall be
12allowed, on excess Iowa motor fuel purchased, in the amount
13of fuel tax paid at the prevailing rate per gallon set out
14under subchapter I of this chapter on motor fuel and special
15fuel, and rate per kilowatt hour set out under section 452A.41
16on electric fuel, consumed by commercial motor vehicles, the
17operation of which is subject to this subchapter.
182. Notwithstanding any provision of this chapter to the
19contrary, except as provided in this section, the holder of a
20permanent international fuel tax agreement permit or license
21may make application to the state department of transportation
22for a refund, not later than the last day of the third month
23following the quarter in which the overpayment of Iowa fuel
24tax paid on excess purchases of motor fuel or special fuel
25was reported as provided in section 452A.8, or electric
26fuel was reported as provided in section 452A.41, and which
27application is supported by such proof as the state department
28of transportation may require. The state department of
29transportation shall refund Iowa fuel tax paid on motor fuel,
30 or special fuel, or electric fuel purchased in excess of the
31amount consumed by such commercial motor vehicles in their
32operation on the highways of this state.
334. To determine the amount of fuel taxes due under this
34subchapter and to prevent the evasion thereof, the state
35department of transportation shall require a quarterly report
-18-1on forms prescribed by the state department of transportation.
2It shall be filed not later than the last day of the month
3following the quarter reported, and each quarter thereafter.
4These reports shall be required of all persons who have been
5issued a permit or license under this subchapter and shall
6cover actual operation and fuel consumption in Iowa on the
7basis of the permit or license holder’s average consumption
8of fuel in Iowa, determined by the total miles traveled and
9the total fuel purchased and consumed for highway use by the
10permittee’s or licensee’s commercial motor vehicles in the
11permittee’s or licensee’s entire operation in all states to
12establish an overall miles per gallon ratio or miles per
13kilowatt hour ratio, which ratio shall be used to compute the
14gallons or kilowatt hours used for the miles traveled in Iowa.
15Failure to receive a quarterly report or fuel credentials by
16mail, facsimile transmission, or any other means of delivery
17does not relieve a person from the person’s fuel tax liability
18or from the requirement to display current fuel credentials.
19 Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code
202019, are amended to read as follows:
213. “Commercial motor vehicle” means a passenger vehicle
22that has seats for more than nine passengers in addition to
23the driver, any road tractor, any truck tractor, or any truck
24having two or more axles which passenger vehicle, road tractor,
25truck tractor, or truck is propelled on the public highways
26by either motor fuel, or special fuel, or electric fuel.
27“Commercial motor vehicle” does not include a motor truck with a
28combined gross weight of less than twenty-six thousand pounds,
29operated as a part of an identifiable one-way fleet and which
30is leased for less than thirty days to a lessee for the purpose
31of moving property which is not owned by the lessor.
325. “Fuel taxes” means the per gallon and per kilowatt excise
33taxes imposed under subchapters I and III of this chapter, and
34section 452A.41, with respect to motor fuel, and undyed special
35fuel, and electric fuel.
-19- 18. “Motor vehicle” shall mean and include all vehicles,
2except those operated on rails, which are propelled by internal
3combustion engines or electric motors and are of such design as
4to permit their mobile use on public highways for transporting
5persons or property. A farm tractor while operated on a farm
6or for the purpose of hauling farm machinery, equipment, or
7produce shall not be deemed to be a motor vehicle. “Motor
8vehicle” shall not include “mobile machinery and equipment” as
9defined in this section.
10 Sec. 32. Section 452A.58, subsection 2, Code 2019, is
11amended to read as follows:
122. A lessor of a commercial motor vehicle shall be deemed
13a carrier with respect to such vehicles leased to others by
14the lessor and motor fuel, or special fuel, or electric fuel
15 consumed thereby if the lessor supplies or pays for the motor
16fuel, or special fuel, or electric fuel consumed by such
17vehicle or makes rental or other charges calculated to include
18the cost of such fuel.
19 Sec. 33. Section 452A.59, Code 2019, is amended to read as
20follows:
21452A.59 Administrative rules.
22The department of revenue and the state department
23of transportation are authorized and empowered to adopt
24rules under chapter 17A, relating to the administration
25and enforcement of this chapter as deemed necessary by the
26departments. However, when in the opinion of the director
27it is necessary for the efficient administration of this
28chapter, the director may regard persons in possession of motor
29fuel, special fuel, biofuel, alcohol, or alcohol derivative
30substances as blenders, dealers, eligible purchasers,
31exporters, importers, restrictive suppliers, suppliers,
32terminal operators, or nonterminal storage facility operators,
33or persons in possession of electric fuel as electric fuel
34dealers or users.
35 Sec. 34. Section 452A.60, subsection 1, Code 2019, is
-20-1amended to read as follows:
21. The department of revenue or the state department of
3transportation shall prescribe and furnish all forms, as
4applicable, upon which reports, returns, and applications shall
5be made and claims for refund presented under this chapter
6and may prescribe forms of record to be kept by suppliers,
7restrictive suppliers, importers, exporters, blenders, common
8carriers, contract carriers, licensed compressed natural gas,
9liquefied natural gas, and liquefied petroleum gas dealers
10and users, licensed electric fuel dealers and users, terminal
11operators, nonterminal storage facility operations, and
12interstate commercial motor vehicle operators.
13 Sec. 35. Section 452A.62, subsection 1, paragraph a, Code
142019, is amended by adding the following new subparagraph:
15 NEW SUBPARAGRAPH. (5) A licensed electric fuel dealer or
16user or person supplying electric fuel to a licensed electric
17fuel dealer or user.
18 Sec. 36. Section 452A.62, subsection 1, paragraph b, Code
192019, is amended to read as follows:
20b. To examine the records, books, papers, receipts, and
21invoices of any distributor, supplier, restrictive supplier,
22importer, blender, exporter, terminal operator, nonterminal
23storage facility, licensed compressed natural gas, liquefied
24natural gas, or liquefied petroleum gas dealer or user,
25licensed electric fuel dealer or user, or any other person
26who possesses fuel upon which the tax has not been paid to
27determine financial responsibility for the payment of the taxes
28imposed by this chapter.
29 Sec. 37. Section 452A.63, subsection 1, Code 2019, is
30amended to read as follows:
311. All information obtained by the department of revenue or
32the state department of transportation from the examining of
33reports, returns, or records required to be filed or kept under
34this chapter shall be treated as confidential and shall not be
35divulged except to other state officers, a member or members of
-21-1the general assembly, or any duly appointed committee of either
2or both houses of the general assembly, or to a representative
3of the state having some responsibility in connection with the
4collection of the taxes imposed or in proceedings brought under
5this chapter. The appropriate state agency may make available
6to the public on or before forty-five days following the last
7day of the month in which the tax is required to be paid, the
8names of suppliers, restrictive suppliers, and importers and as
9to each of them the total gallons of motor fuel, undyed special
10fuel, and ethanol blended gasoline withdrawn from terminals
11or imported into the state during that month. The department
12of revenue or the state department of transportation, upon
13request of officials entrusted with enforcement of the motor
14fuel tax laws of the federal government or any other state, may
15forward to these officials any pertinent information which the
16appropriate state agency may have relative to motor fuel, and
17 special fuel, and electric fuel, provided the officials of the
18other state furnish like information.
19 Sec. 38. Section 452A.73, Code 2019, is amended to read as
20follows:
21452A.73 Embezzlement of fuel tax money — penalty.
22Every sale of motor fuel in this state, and every sale
23of undyed special fuel dispensed by the seller into a fuel
24supply tank of a motor vehicle, and every sale of electric
25fuel dispensed by the seller into the battery or other energy
26storage device of an electric motor vehicle shall, unless
27otherwise provided, be presumed to include as a part of the
28purchase price the fuel tax due the state of Iowa under the
29provisions of this chapter. Every person collecting fuel tax
30money as part of the selling price of motor fuel, or undyed
31special fuel, or electric fuel shall hold the tax money in
32trust for the state of Iowa unless the fuel tax on the fuel
33has been previously paid to the state of Iowa. Any person
34receiving fuel tax money in trust and failing to remit it to
35the department of revenue on or before time required shall be
-22-1guilty of theft.
2 Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and
3f, Code 2019, are amended to read as follows:
4c. For any seller to issue or any purchaser to receive
5and retain any incorrect or false invoice or sales ticket in
6connection with the sale or purchase of motor fuel, or undyed
7special fuel, or electric fuel.
8e. For any person to act as a supplier, restrictive
9supplier, importer, exporter, blender, or compressed natural
10gas, liquefied natural gas, or liquefied petroleum gas dealer
11or user, or electric fuel dealer or user without the required
12license.
13f. For any person to use motor fuel, undyed special fuel,
14or dyed special fuel in the fuel supply tank of a vehicle, or
15electric fuel in the battery or other energy storage device of
16an electric vehicle, with respect to which the person knowingly
17has not paid or had charged to the person’s account with a
18distributor or dealer, or with respect to which the person does
19not, within the time required in this chapter, report and pay
20the applicable fuel tax.
21 Sec. 40. Section 452A.74, subsection 1, Code 2019, is
22amended by adding the following new paragraph:
23 NEW PARAGRAPH. h. For any licensed electric fuel dealer or
24user to dispense electric fuel into the battery or other energy
25storage device of any electric motor vehicle without collecting
26the fuel tax.
27 Sec. 41. Section 452A.76, subsection 2, Code 2019, is
28amended to read as follows:
292. Authority is given to the department of revenue,
30the state department of transportation, the department of
31public safety, and any peace officer as requested by such
32departments to enforce the provisions of subchapter I, sections
33452A.40 through 452A.44, and this subchapter of this chapter.
34The department of revenue shall adopt rules providing for
35enforcement under subchapter I and this subchapter of this
-23-1chapter regarding the use of motor fuel or special fuel in
2implements of husbandry. Enforcement personnel or requested
3peace officers are authorized to stop a conveyance suspected
4to be illegally transporting motor fuel or special fuel on
5the highways, to investigate the cargo, and also have the
6authority to inspect or test the fuel in the supply tank of a
7conveyance to determine if legal fuel is being used to power
8the conveyance. The operator of any vehicle transporting
9motor fuel or special fuel shall, upon request, produce and
10offer for inspection the manifest or loading and delivery
11invoices pertaining to the load and trip in question and shall
12permit the authority to inspect and measure the contents of
13the vehicle. If the vehicle operator fails to produce the
14evidence or if, when produced, the evidence fails to contain
15the required information and it appears that there is an
16attempt to evade payment of the fuel tax, the vehicle operator
17will be subject to the penalty provisions contained in section
18452A.74A.
19 Sec. 42. Section 452A.78, Code 2019, is amended to read as
20follows:
21452A.78 Other remedies available.
22The special remedies provided under the provisions of this
23chapter to enable the state to collect motor a fuel excise tax
24imposed by this chapter shall not be construed as depriving the
25state of any other remedy it might have either at law or in
26equity independent of this chapter. The state shall have the
27right to maintain an action at law for the collection of said
28taxes required to be paid herein and in connection therewith
29shall be entitled to a writ of attachment without bond.
30 Sec. 43. Section 452A.79, Code 2019, is amended to read as
31follows:
32452A.79 Use of revenue.
33Except as provided in sections 452A.79A, 452A.82, and
34452A.84, the net proceeds of the excise tax on the diesel
35special fuel, and the excise tax on motor fuel and other
-24-1special fuel, the excise tax on electric fuel, and penalties
2collected under the provision of this chapter, shall be
3credited to the road use tax fund.
4 Sec. 44. Section 452A.80, Code 2019, is amended to read as
5follows:
6452A.80 Microfilm or photographic copies — originals
7destroyed.
8The appropriate state agency shall have the power and
9authority to record, copy, or reproduce by any photographic,
10photostatic, microfilm, microcard, miniature photographic,
11or other process which accurately reproduces or forms a
12durable medium for so reproducing the original of any forms
13or records pertaining to motor a fuel tax or undyed special
14fuel tax imposed by this chapter, or any paper or document with
15respect to refund of the tax. If the forms and records have
16been reproduced in accordance with this section, the state
17agency may destroy the originals and the reproductions shall
18be competent evidence in any court in accordance with the
19provision of section 622.30.
20 Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall
21designate sections 452A.40 through 452A.44, as enacted by
22this division of this Act, as a new subchapter within chapter
23452A, and may redesignate the new and preexisting subchapters,
24replace references to sections 452A.40 through 452A.44
25with references to the new subchapter, and correct internal
26references as necessary, including references in subchapter
27headnotes.
28 Sec. 46. EFFECTIVE DATE. This division of this Act takes
29effect July 1, 2020.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill relates to motor vehicle taxes and fees.
34DIVISION I — REGISTRATION FEES FOR ELECTRIC VEHICLES.
35 Under current law, Code section 321.109(1)(a) provides that all
-25-1motor vehicles including vehicles designated by manufacturers
2as station wagons, 1993 and subsequent model year multipurpose
3vehicles, and 2010 and subsequent model year motor trucks
4with an unladen weight of 10,000 pounds or less, except motor
5trucks registered under Code section 321.122, business-trade
6trucks, special trucks, motor homes, motorsports recreational
7vehicles, ambulances, hearses, autocycles, motorcycles,
8motorized bicycles, and 1992 and older model year multipurpose
9vehicles, are subject to an annual registration fee equal to 1
10percent of the value of the vehicle as fixed by the department
11of transportation (DOT) plus 40 cents for each 100 pounds of
12weight of the vehicle as fixed by the DOT.
13For each battery electric motor vehicle subject to an annual
14registration fee under Code section 321.109(1)(a), the bill
15requires the owner to pay an annual battery electric motor
16vehicle registration fee of $130, which is in addition to the
17regular annual registration fee imposed for the vehicle. For
18each plug-in hybrid electric motor vehicle subject to an annual
19registration fee under Code section 321.109(1)(a), the bill
20requires the owner to pay an annual plug-in hybrid electric
21motor vehicle registration fee of $65, which is in addition to
22the regular annual registration fee imposed for the vehicle.
23Under current law, motorcycles are subject to an annual
24registration fee of $20. However, if a motorcycle is more
25than five model years old, the annual registration fee is $10.
26The bill requires the owner of a motorcycle that is a battery
27electric motor vehicle or plug-in hybrid electric motor vehicle
28to pay an annual electric motorcycle registration fee of $9,
29which is in addition to the regular annual registration fee
30imposed for the motorcycle.
31Under Code section 321.17, operating a motor vehicle of a
32type required to be registered which is not registered, or for
33which the appropriate fees have not been paid, is punishable by
34a scheduled fine of $50.
35This division of the bill takes effect January 1, 2020.
-26- 1DIVISION II — HYDROGEN FUEL EXCISE TAX. The bill imposes
2an excise tax of 65 cents per gallon on hydrogen used as a
3special fuel in motor vehicles. The bill specifies that a
4diesel gallon equivalent of hydrogen is 2.49 pounds. The
5bill makes corresponding changes to Code chapter 452A (motor
6fuel and special fuel taxes) to ensure that the excise tax
7on hydrogen is collected in the same manner as the existing
8excise taxes on compressed natural gas, liquefied natural
9gas, and liquefied petroleum gas. The bill applies the
10provisions of Code chapter 452A to dealers and users of
11hydrogen, including but not limited to provisions relating to
12license requirements, reporting and filing requirements, record
13retention requirements and audits, refunds, the interstate fuel
14use tax, the inventory tax, and a variety of unlawful acts that
15may result in a conviction for theft or fraudulent practice,
16including but not limited to those listed in Code sections
17452A.73, 452A.74, 452A.74A, and 452A.75. In accordance with
18article VII, section 8, of the Iowa Constitution and Code
19section 452A.79, revenues from the excise tax on hydrogen used
20as a special fuel in motor vehicles are credited to the road
21use tax fund.
22By operation of law, Code section 321.40(9) provides that
23a person who owns or controls a vehicle that uses hydrogen
24will be issued a special fuel user identification sticker by
25the county treasurer, and the person must place the sticker
26adjacent to the place where the special fuel is delivered into
27the vehicle fuel supply tank. Under Code section 312.2(9),
281.75 cents per gallon from the excise tax on hydrogen will be
29deposited in the revitalize Iowa’s sound economy fund. Under
30Code section 312.2(10), .25 cents per gallon from the excise
31tax on hydrogen will be deposited in the secondary road fund.
32The provisions of Code chapter 323 (dealer and distributor
33franchises for motor fuel and special fuel) apply to dealers
34and distributors that sell hydrogen used as a special fuel.
35Hydrogen used as a special fuel is excluded from the sales and
-27-1use tax under Code section 423.2(56) and the local sales and
2services tax under Code section 423B.5(1).
3The bill does not amend Code chapter 476C, which authorizes
4a renewable energy fuel tax credit for producers and purchasers
5of hydrogen fuel. The bill also does not amend Code section
6216B.3 (department for the blind), 260C.19A (community
7colleges), 262.25A (board of regents), 307.21 (department of
8transportation), or 904.312A (department of corrections), which
9require that 10 percent of motor vehicles purchased by such
10entities be equipped with engines which utilize alternative
11methods of propulsion, including electricity but not including
12hydrogen.
13This division of the bill takes effect January 1, 2020.
14DIVISION III — ELECTRIC FUEL EXCISE TAX. The bill provides
15that electric fuel means electrical energy delivered or placed
16into the battery or other energy storage device of an electric
17motor vehicle from a source outside the motor vehicle for
18purposes of propelling the motor vehicle. The bill imposes an
19excise tax of 2.6 cents on each kilowatt hour of electric fuel
20delivered or placed into the battery or other energy storage
21device of an electric motor vehicle at a location in this
22state other than a residence. The tax attaches at the time of
23the delivery by a dealer and must be collected by the dealer
24from the purchaser and paid to the Iowa department of revenue
25(IDR) in the same manner as the excise taxes on natural gas
26and liquefied petroleum gas are paid by dealers under current
27law. Alternatively, the tax attaches at the time of use by
28a licensed electric fuel user and must be paid to IDR in the
29same manner as the excise taxes on natural gas and liquefied
30petroleum gas are paid by users under current law.
31All charging stations located at dealer and user locations
32through which electric fuel can be dispensed must be metered,
33inspected, tested for accuracy, and sealed and licensed by the
34department of agriculture and land stewardship.
35For the purpose of determining the amount of liability for
-28-1the electric fuel tax, each dealer and user must file with IDR
2not later than the last day of each calendar month a monthly
3tax return certified under penalties for false certification.
4The return must be accompanied by remittance in the amount of
5the tax due for the month in which the fuel was placed into
6the batteries or other energy storage devices of electric
7motor vehicles. The bill specifies that moneys collected by a
8licensed electric fuel dealer or user for the excise tax are
9deemed to be held in trust for the state of Iowa.
10The bill prohibits a person from selling or dispensing
11electric fuel within this state at a location other than a
12residence or from otherwise acting as a licensed electric fuel
13dealer or user unless the person holds an uncanceled license
14issued by IDR. The bill specifies the application requirements
15for a license, and provides for grounds under which IDR may
16deny the issuance of a license.
17The bill requires a licensed electric fuel dealer or user
18to maintain, for a period of three years, records of all
19transactions by which the dealer or user dispenses electric
20fuel into the batteries or other energy storage devices of
21electric motor vehicles, including pertinent records and papers
22as required by IDR. After an audit and examination of such
23records, IDR may authorize their disposal upon the written
24request of the dealer or user.
25The bill provides that a person who uses electric fuel for
26any of the nontaxable purposes set forth under current law for
27motor fuel and undyed special fuel, who has paid the electric
28fuel tax and who has a refund permit, upon presentation to and
29approval by IDR of a claim for refund, must be reimbursed and
30repaid the amount of the tax which the claimant has paid on
31the kilowatt hours so used. Such refunds are subject to the
32limitations and requirements set forth under current law for
33refunds of the tax on motor fuel and undyed special fuel. The
34bill prohibits a person from claiming a refund until the person
35has obtained a refund permit from IDR meeting the requirements
-29-1set forth under current law.
2The bill makes corresponding changes to Code chapter
3452A, including provisions of the interstate fuel use tax
4law. In accordance with article VII, section 8, of the Iowa
5Constitution and Code section 452A.79, revenues from the excise
6tax on electric fuel are credited to the road use tax fund. The
7bill provides that 0.15 cents per kilowatt hour of the excise
8tax must be credited to the revitalize Iowa’s sound economy
9fund, and 0.02 cents per kilowatt hour of the excise tax must
10be credited to the secondary road fund, in accordance with
11similar provisions for other types of fuel. In addition, the
12bill exempts electric fuel from the state sales and use tax and
13local option taxes.
14This division of the bill takes effect July 1, 2020.
-30-ns/jh