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House File 725 - 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, which shall be in addition to the
10annual registration fee imposed for the vehicle under section
11321.109, subsection 1, paragraph “a”. For purposes of this
12subsection, “battery electric motor vehicle” means a motor
13vehicle equipped with electrical drivetrain components and not
14equipped with an internal combustion engine, that is propelled
15exclusively by one or more electrical motors using electrical
16energy stored in a battery or other energy storage device that
17can be recharged by plugging into an electrical outlet or
18electric vehicle charging station. The amount of the fee shall
19be as follows:
20a. For the period beginning January 1, 2020, and ending
21December 31, 2020, sixty-five dollars.
22b. For the period beginning January 1, 2021, and ending
23December 31, 2021, ninety-seven dollars and fifty cents.
24c. On or after January 1, 2022, one hundred thirty dollars.
252. For each plug-in hybrid electric motor vehicle subject to
26an annual registration fee under section 321.109, subsection
271, paragraph “a”, and operated on the public highways of this
28state, the owner shall pay an annual plug-in hybrid electric
29motor vehicle registration fee, which shall be in addition
30to the annual registration fee imposed for the vehicle under
31section 321.109, subsection 1, paragraph “a”. For purposes of
32this subsection, “plug-in hybrid electric motor vehicle” means a
33motor vehicle equipped with electrical drivetrain components,
34an internal combustion engine, and a battery or other energy
35storage device that can be recharged by plugging into an
-1-1electrical outlet or electric vehicle charging station. The
2amount of the fee shall be as follows:
3a. For the period beginning January 1, 2020, and ending
4December 31, 2020, thirty-two dollars and fifty cents.
5b. For the period beginning January 1, 2021, and ending
6December 31, 2021, forty-eight dollars and seventy-five cents.
7c. On or after January 1, 2022, sixty-five dollars.
8 Sec. 2. Section 321.117, Code 2019, is amended to read as
9follows:
10321.117 Motorcycle, autocycle, ambulance, and hearse fees.
111. For all motorcycles and autocycles the annual
12registration fee shall be twenty dollars. For all motorized
13bicycles the annual registration fee shall be seven dollars.
14When the motorcycle or autocycle is more than five model
15years old, the annual registration fee shall be ten dollars.
16The annual registration fee for ambulances and hearses shall
17be fifty dollars. Passenger car plates shall be issued for
18ambulances and hearses.
192. In addition to the fee required for a motorcycle under
20subsection 1, the owner of a motorcycle that is a battery
21electric motor vehicle or plug-in hybrid electric motor
22vehicle, as those terms are defined in section 321.116, shall
23pay an annual electric motorcycle registration fee. The amount
24of the fee shall be as follows:
25a. For the period beginning January 1, 2020, and ending
26December 31, 2020, four dollars and fifty cents.
27b. For the period beginning January 1, 2021, and ending
28December 31, 2021, six dollars and seventy-five cents.
29c. On or after January 1, 2022, nine dollars.
30 Sec. 3. EFFECTIVE DATE. This division of this Act takes
31effect January 1, 2020.
32DIVISION II
33hydrogen fuel excise tax
34 Sec. 4. Section 452A.2, Code 2019, is amended by adding the
35following new subsection:
-2-1 NEW SUBSECTION. 20A. “Fuel supply tank”, with respect to
2motor vehicles that use hydrogen as a special fuel, means a
3motor vehicle’s hydrogen fuel cells.
4 Sec. 5. Section 452A.2, subsection 21, Code 2019, is amended
5by adding the following new paragraph:
6 NEW PARAGRAPH. c. “Gallon”, with respect to hydrogen, means
7a diesel gallon equivalent. A diesel gallon equivalent of
8hydrogen is two and forty-nine hundredths pounds.
9 Sec. 6. Section 452A.2, subsections 25, 26, 39, and 45, Code
102019, are amended to read as follows:
1125. “Licensed compressed natural gas, liquefied natural gas,
12and liquefied petroleum gas, and hydrogen dealer” means a person
13in the business of handling untaxed compressed natural gas,
14liquefied natural gas, or liquefied petroleum gas, or hydrogen
15 who delivers any part of the fuel into a fuel supply tank of any
16motor vehicle.
1726. “Licensed compressed natural gas, liquefied natural
18gas, and liquefied petroleum gas, and hydrogen user” means a
19person licensed by the department who dispenses compressed
20natural gas, liquefied natural gas, or liquefied petroleum
21gas, or hydrogen, upon which the special fuel tax has not been
22previously paid, for highway use from fuel sources owned and
23controlled by the person into the fuel supply tank of a motor
24vehicle, or commercial vehicle owned or controlled by the
25person.
2639. “Special fuel” means fuel oils and all combustible gases
27and liquids suitable for the generation of power for propulsion
28of motor vehicles or turbine-powered aircraft, and includes
29any substance used for that purpose, except that it does not
30include motor fuel. Kerosene shall not be considered to be a
31special fuel, unless blended with other special fuels for use
32in a motor vehicle with a diesel engine. Methanol shall not
33be considered to be a special fuel unless blended with other
34special fuels for use in a motor vehicle with a diesel engine.
35Hydrogen shall be considered to be a special fuel when used
-3-1or intended for use in combination with oxygen to generate
2electricity for propulsion of a motor vehicle.
345. “Use”, with respect to liquefied petroleum gas, means
4the receipt, delivery, or placing of liquefied petroleum gas by
5a licensed liquefied petroleum gas user into a fuel supply tank
6of a motor vehicle while the vehicle is in the state, except
7that with. With respect to natural gas used as a special fuel,
8“use” means the receipt, delivery, or placing of the natural gas
9into equipment for compressing the gas for subsequent delivery
10into the fuel supply tank of a motor vehicle while the vehicle
11is in the state. With respect to hydrogen used as a special
12fuel, “use” means the receipt, delivery, or placing of hydrogen
13by a licensed hydrogen user into a fuel supply tank of a motor
14vehicle while the vehicle is in the state.
15 Sec. 7. Section 452A.3, Code 2019, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 9A. For hydrogen used as a special fuel,
18the rate of tax is sixty-five cents per gallon.
19 Sec. 8. Section 452A.4, subsection 1, paragraph d, Code
202019, is amended to read as follows:
21d. A dealer’s or user’s license shall be required for each
22separate place of business or location where compressed natural
23gas, liquefied natural gas, or liquefied petroleum gas, or
24hydrogen is delivered or placed into the fuel supply tank of a
25motor vehicle.
26 Sec. 9. Section 452A.8, subsection 2, paragraph e,
27subparagraphs (1), (2), and (3), Code 2019, are amended to read
28as follows:
29(1) For purposes of this paragraph “e”, “dealer” or “user”
30means a licensed compressed natural gas, liquefied natural gas,
31and liquefied petroleum gas, and hydrogen dealer or user and
32“fuel” means compressed natural gas, liquefied natural gas, or
33 liquefied petroleum gas, or hydrogen.
34(2) The tax for compressed natural gas, liquefied natural
35gas, and liquefied petroleum gas, and hydrogen delivered by
-4-1a licensed dealer for use in this state shall attach at the
2time of the delivery and shall be collected by the dealer
3from the purchaser and paid to the department as provided in
4this chapter. The tax, with respect to compressed natural
5gas, liquefied natural gas, and liquefied petroleum gas, and
6hydrogen acquired by a purchaser in any manner other than by
7delivery by a licensed dealer into a fuel supply tank of a
8motor vehicle, attaches at the time of the use of the fuel
9and shall be paid over to the department by the purchaser as
10provided in this chapter.
11(3) The department shall adopt rules governing the
12dispensing of compressed natural gas, liquefied natural gas,
13and liquefied petroleum gas, and hydrogen by licensed dealers
14and licensed users. The director may require by rule that
15reports and returns be filed by electronic transmission. The
16department shall require that all pumps located at dealer
17locations and user locations through which liquefied petroleum
18gas can be dispensed shall be metered, inspected, tested
19for accuracy, and sealed and licensed by the department of
20agriculture and land stewardship, and that fuel delivered
21into the fuel supply tank of any motor vehicle shall be
22dispensed only through tested metered pumps and may be sold
23without temperature correction or corrected to a temperature
24of 60 degrees Fahrenheit. If the metered gallonage is to be
25temperature-corrected, only a temperature-compensated meter
26shall be used. Natural gas used as fuel shall be delivered
27into compressing equipment through sealed meters certified for
28accuracy by the department of agriculture and land stewardship.
29Hydrogen used as fuel shall be delivered into the fuel supply
30tank of any motor vehicle through sealed meters certified for
31accuracy by the department of agriculture and land stewardship.
32The department of agriculture and land stewardship may adopt
33rules pursuant to chapter 17A relating to the certification and
34accuracy of meters used to deliver hydrogen.
35 Sec. 10. Section 452A.60, subsection 1, Code 2019, is
-5-1amended 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
9gas, liquefied natural gas, and liquefied petroleum gas, and
10hydrogen dealers and users, terminal operators, nonterminal
11storage facility operations, and interstate commercial motor
12vehicle operators.
13 Sec. 11. Section 452A.62, subsection 1, paragraph a,
14subparagraph (2), Code 2019, is amended to read as follows:
15(2) A licensed compressed natural gas, liquefied natural
16gas, or liquefied petroleum gas, or hydrogen dealer, user, or
17person supplying compressed natural gas, liquefied natural
18gas, or liquefied petroleum gas, or hydrogen to a licensed
19compressed natural gas, liquefied natural gas, or liquefied
20petroleum gas, or hydrogen dealer or user.
21 Sec. 12. Section 452A.62, subsection 1, paragraph b, Code
222019, is amended to read as follows:
23b. To examine the records, books, papers, receipts, and
24invoices of any distributor, supplier, restrictive supplier,
25importer, blender, exporter, terminal operator, nonterminal
26storage facility, licensed compressed natural gas, liquefied
27natural gas, or liquefied petroleum gas, or hydrogen dealer or
28user, or any other person who possesses fuel upon which the tax
29has not been paid to determine financial responsibility for the
30payment of the taxes imposed by this chapter.
31 Sec. 13. Section 452A.74, subsection 1, paragraphs e and g,
32Code 2019, are amended to read as follows:
33e. For any person to act as a supplier, restrictive
34supplier, importer, exporter, blender, or compressed natural
35gas, liquefied natural gas, or liquefied petroleum gas, or
-6-1hydrogen dealer or user without the required license.
2g. For any licensed compressed natural gas, liquefied
3natural gas, or liquefied petroleum gas, or hydrogen dealer or
4user to dispense compressed natural gas, liquefied natural gas,
5or liquefied petroleum gas, or hydrogen into the fuel supply
6tank of any motor vehicle without collecting the fuel tax.
7 Sec. 14. Section 452A.74, subsection 2, Code 2019, is
8amended to read as follows:
92. Any delivery of compressed natural gas, liquefied
10natural gas, or liquefied petroleum gas, or hydrogen to a
11compressed natural gas, liquefied natural gas, or liquefied
12petroleum gas, or hydrogen dealer or user for the purpose of
13evading the state tax on compressed natural gas, liquefied
14natural gas, or liquefied petroleum gas, or hydrogen, into
15facilities other than those licensed under this chapter knowing
16that the fuel will be used for highway use shall constitute
17a violation of this section. Any compressed natural gas,
18liquefied natural gas, or liquefied petroleum gas, or hydrogen
19 dealer or user for purposes of evading the state tax on
20compressed natural gas, liquefied natural gas, or liquefied
21petroleum gas, or hydrogen, who allows a distributor to place
22compressed natural gas, liquefied natural gas, or liquefied
23petroleum gas, or hydrogen for highway use in facilities other
24than those licensed under this chapter, shall also be deemed
25in violation of this section.
26 Sec. 15. Section 452A.85, subsection 1, Code 2019, is
27amended to read as follows:
281. Persons having title to motor fuel, ethanol blended
29gasoline, undyed special fuel, compressed natural gas,
30liquefied natural gas, or liquefied petroleum gas, or hydrogen
31 in storage and held for sale on the effective date of an
32increase in the excise tax rate imposed on motor fuel, ethanol
33blended gasoline, undyed special fuel, compressed natural
34gas, liquefied natural gas, or liquefied petroleum gas, or
35hydrogen under this chapter shall be subject to an inventory
-7-1tax based upon the gallonage in storage as of the close of the
2business day preceding the effective date of the increased
3excise tax rate of motor fuel, ethanol blended gasoline, undyed
4special fuel, compressed natural gas, liquefied natural gas, or
5 liquefied petroleum gas, or hydrogen which will be subject to
6the increased excise tax rate.
7 Sec. 16. Section 452A.86, Code 2019, is amended to read as
8follows:
9452A.86 Method of determining gallonage.
10The exclusive method of determining gallonage of any
11purchases or sales of motor fuel, undyed special fuel,
12or liquefied petroleum gas as defined in this chapter and
13distillate fuels shall be on a gross volume basis, except
14for compressed natural gas, and liquefied natural gas, and
15hydrogen. The exclusive method of determining gallonage of any
16purchases or sales of compressed natural gas is the gasoline
17gallon equivalent, as defined in section 452A.2, subsection
1821. The exclusive method of determining gallonage of any
19purchase or sale of liquefied natural gas is the diesel gallon
20equivalent, as defined in section 452A.2, subsection 21. The
21exclusive method of determining gallonage of any purchases or
22sales of hydrogen is the diesel gallon equivalent, as defined
23in section 452A.2, subsection 21. A temperature-adjusted
24or other method shall not be used, except as it applies to
25liquefied petroleum gas and the sale or exchange of petroleum
26products between petroleum refiners. All invoices, bills of
27lading, or other records of sale or purchase and all returns
28or records required to be made, kept, and maintained by a
29supplier, restrictive supplier, importer, exporter, blender,
30or compressed natural gas, liquefied natural gas, or liquefied
31petroleum gas, or hydrogen dealer or user shall be made, kept,
32and maintained on the gross volume basis. For purposes of
33this section, “distillate fuels” means any fuel oil, gas oil,
34topped crude oil, or other petroleum oils derived by refining
35or processing crude oil or unfinished oils which have a boiling
-8-1range at atmospheric pressure which falls completely or in part
2between 550 and 1,200 degrees Fahrenheit.
3 Sec. 17. EFFECTIVE DATE. This division of this Act takes
4effect January 1, 2020.
5DIVISION III
6electric fuel excise tax
7 Sec. 18. Section 312.2, subsection 9, Code 2019, is amended
8by adding the following new paragraph:
9 NEW PARAGRAPH. c. From the excise tax on electric fuel
10imposed under the tax rate of section 452A.41, the amount of
11excise tax collected from fifteen hundredths of one cent per
12kilowatt hour.
13 Sec. 19. Section 312.2, subsection 10, Code 2019, is amended
14by adding the following new paragraph:
15 NEW PARAGRAPH. c. From the excise tax on electric fuel
16imposed under the tax rate of section 452A.41, the amount
17of excise tax collected from two hundredths of one cent per
18kilowatt hour.
19 Sec. 20. Section 423.3, subsection 56, Code 2019, is amended
20to read as follows:
2156. The sales price from the sale of motor fuel, and
22 special fuel, and electric fuel consumed for highway use or in
23watercraft or aircraft where the fuel tax has been imposed and
24paid and no refund has been or will be allowed and the sales
25price from the sales of ethanol blended gasoline, as defined
26in section 214A.1.
27 Sec. 21. Section 423B.5, subsection 1, Code 2019, is amended
28to read as follows:
291. A local sales and services tax may be imposed by a
30county on the sales price taxed by the state under chapter
31423, subchapter II. A local sales and services tax shall be
32imposed on the same basis as the state sales and services tax
33or in the case of the use of natural gas, natural gas service,
34electricity, or electric service on the same basis as the
35state use tax and shall not be imposed on the sale of any
-9-1property or on any service not taxed by the state, except the
2tax shall not be imposed on the sales price from the sale of
3motor fuel, or special fuel, or electric fuel, as those terms
4are defined in chapter 452A, which is consumed for highway use
5or in watercraft or aircraft if the fuel tax is paid on the
6transaction and a refund has not or will not be allowed, on the
7sales price from the sale of equipment by the state department
8of transportation, or on the sales price from the sale or use
9of natural gas, natural gas service, electricity, or electric
10service in a city or county where the sales price from the sale
11of natural gas or electric energy is subject to a franchise
12fee or user fee during the period the franchise or user fee
13is imposed. A local sales and services tax is applicable to
14transactions within those cities and unincorporated areas of
15the county where it is imposed, which transactions include
16but are not limited to sales sourced pursuant to section
17423.15, 423.17, 423.19, or 423.20, to a location within that
18city or unincorporated area of the county. The tax shall be
19collected by all persons required to collect state sales taxes.
20However, a local sales and services tax is not applicable to
21transactions sourced under chapter 423 to a place of business,
22as defined in section 423.1, of a retailer if such place of
23business is located in part within a city or unincorporated
24area of the county where the tax is not imposed.
25 Sec. 22. Section 423E.3, subsection 1, Code 2019, is amended
26to read as follows:
271. The tax shall be imposed on the same basis as the state
28sales and services tax or in the case of the use of natural
29gas, natural gas service, electricity, or electric service on
30the same basis as the state use tax and shall not be imposed
31on the sale of any property or on any service not taxed by the
32state, except the tax shall not be imposed on the sales price
33from the sale of motor fuel, or special fuel, or electric fuel,
34 as those terms are defined in chapter 452A, which is consumed
35for highway use or in watercraft or aircraft if the fuel tax
-10-1is paid on the transaction and a refund has not or will not
2be allowed, on the sales price from the sale of equipment by
3the state department of transportation, or on the sales price
4from the sale or use of natural gas, natural gas service,
5electricity, or electric service in a city or county where the
6sales price from the sale of natural gas or electric energy is
7subject to a franchise fee or user fee during the period the
8franchise or user fee is imposed.
9 Sec. 23. NEW SECTION. 452A.40 Definitions.
10As used in this subchapter, unless the context otherwise
11requires:
121. “Department” means the department of revenue.
132. “Electric fuel” means electrical energy delivered or
14placed into the battery or other energy storage device of an
15electric motor vehicle from a source outside the motor vehicle
16for purposes of propelling the motor vehicle. “Electric fuel”
17shall be deemed motor vehicle fuel for purposes of Article VII,
18section 8, of the Constitution of the State of Iowa.
193. “Electric motor vehicle” means a motor vehicle equipped
20with electrical drivetrain components that has the ability to
21be propelled, fully or partially, by one or more electrical
22motors using electrical energy stored in a battery or other
23energy storage device that can be recharged by plugging into an
24electrical outlet or electric vehicle charging station.
254. “Licensed electric fuel dealer” means a person licensed
26by the department who dispenses electric fuel, upon which the
27electric fuel tax has not been previously paid, for highway
28use into the battery or other energy storage device of an
29electric motor vehicle in this state at a location other than a
30residence.
315. “Licensed electric fuel user” means a person licensed
32by the department who dispenses electric fuel, upon which the
33electric fuel tax has not been previously paid, for highway use
34from a charging station owned and controlled by the person into
35the battery or other energy storage device of an electric motor
-11-1vehicle owned or controlled by the person in this state at a
2location other than a residence.
36. “Residence” means the place where a person resides,
4permanently or temporarily.
57. “Use” means the receipt, delivery, or placing of electric
6fuel by a licensed electric fuel user into the battery or other
7energy storage device of an electric motor vehicle owned or
8controlled by the user in this state at a location other than a
9residence.
10 Sec. 24. NEW SECTION. 452A.41 Levy and collection of excise
11tax on electric fuel.
121. An excise tax of two and six-tenths cents is imposed on
13each kilowatt hour of electric fuel delivered or placed into
14the battery or other energy storage device of an electric motor
15vehicle at a location in this state other than a residence.
162. The tax for electric fuel delivered by a licensed
17electric fuel dealer for use in this state shall attach at the
18time of the delivery and shall be collected by the dealer from
19the purchaser and paid to the department in the same manner
20as the excise taxes on natural gas and liquefied petroleum
21gas are paid by dealers to the department as provided in this
22chapter. The tax for electric fuel used by a licensed electric
23fuel user shall attach at the time of the use of the fuel and
24shall be paid to the department by the licensed electric fuel
25user in the same manner as the excise taxes on natural gas and
26liquefied petroleum gas are paid by users to the department as
27provided in this chapter.
283. The department shall adopt rules governing the
29dispensing of electric fuel by licensed dealers and users. The
30director may require by rule that reports and returns be filed
31by electronic transmission. The department shall require that
32all charging stations located at dealer and user locations
33through which electric fuel can be dispensed shall be metered,
34inspected, tested for accuracy, and sealed and licensed by
35the department of agriculture and land stewardship, and that
-12-1electric fuel delivered into the battery or other energy
2storage device of any electric motor vehicle shall be dispensed
3only through tested, metered charging stations. The department
4of agriculture and land stewardship may adopt rules pursuant
5to chapter 17A to administer the department of agriculture and
6land stewardship’s duties under this subsection.
74. a. For the purpose of determining the amount of
8liability for the electric fuel tax, each dealer and user
9shall file with the department not later than the last day
10of each calendar month a monthly tax return certified under
11penalties for false certification. The return shall show, with
12reference to each location at which fuel is delivered or placed
13by the dealer or user into the battery or other energy storage
14device of any electric motor vehicle during the next preceding
15calendar month, information as required by the department.
16b. The amount of tax due shall be computed by multiplying
17the appropriate tax rate per kilowatt hour by the number of
18kilowatt hours of electric fuel delivered or placed by the
19dealer or user into the batteries or other energy storage
20devices of electric motor vehicles.
21c. The return shall be accompanied by remittance in the
22amount of the tax due for the month in which the fuel was placed
23into the batteries or other energy storage devices of electric
24motor vehicles.
255. Moneys collected under this subchapter by a licensed
26electric fuel dealer or user are deemed to be held in trust for
27the state of Iowa.
28 Sec. 25. NEW SECTION. 452A.42 Electric fuel dealer’s and
29user’s license.
301. A person shall not sell or dispense electric fuel within
31this state at a location other than a residence or otherwise
32act as a licensed electric fuel dealer or user unless the
33person holds an uncanceled license issued by the department.
342. To procure a license, a person shall file with the
35department an application signed under penalty for false
-13-1certificate setting forth all of the following:
2a. The name under which the licensee will transact business
3in this state.
4b. The location, with street number address, of the
5principal office or place of business of the licensee within
6this state.
7c. The name and complete residence address of the owner
8or the names and addresses of the partners, if the licensee
9is a partnership, or the names and addresses of the principal
10officers, if the licensee is a corporation or association.
113. A dealer’s or user’s license shall be required for each
12separate place of business or location, other than a residence,
13where electric fuel is delivered or placed into the battery or
14other energy storage device of an electric motor vehicle.
154. a. The department may deny the issuance of a license to
16an applicant who is substantially delinquent in the payment of
17a tax due, or the interest or penalty on the tax, administered
18by the department. If the applicant is a partnership, a
19license may be denied if a partner owes any delinquent tax,
20interest, or penalty. If the applicant is a corporation, a
21license may be denied if any officer having a substantial legal
22or equitable interest in the ownership of the corporation owes
23any delinquent tax, interest, or penalty of the applicant
24corporation.
25b. The department may deny the issuance of a license if
26an application for a license to transact business as a dealer
27or user in this state is filed by a person whose license or
28registration has been canceled for cause at any time under the
29provisions of this chapter or any prior motor fuel tax law, if
30the department has reason to believe that the application is
31not filed in good faith, or if the application is filed by some
32person as a subterfuge for the real person in interest whose
33license or registration has been canceled for cause under the
34provisions of this chapter or any prior motor fuel tax law.
35The applicant shall be given fifteen days’ notice in writing of
-14-1the date of the hearing and shall have the right to appear in
2person or by counsel and present testimony.
35. a. The application in proper form having been accepted
4for filing, and the other conditions and requirements of this
5section and subchapter IV having been complied with, the
6department shall issue to the applicant a license to transact
7business as an electric fuel dealer or user in this state. The
8license shall remain in full force and effect until canceled as
9provided in this chapter.
10b. The license shall not be assignable and shall be valid
11only for the licensee in whose name it is issued.
12c. The department shall keep and file all applications and
13bonds and a record of all licensees.
14 Sec. 26. NEW SECTION. 452A.43 Records.
151. A licensed electric fuel dealer or user shall maintain,
16for a period of three years, records of all transactions by
17which the dealer or user dispenses electric fuel into the
18batteries or other energy storage devices of electric motor
19vehicles, including pertinent records and papers as required
20by the department.
212. If in the normal conduct of a dealer’s or user’s business
22the records are maintained and kept at an office outside this
23state, the records shall be made available for audit and
24examination by the department at the office outside this state,
25but the audit and examination shall be without expense to this
26state.
273. The department, after an audit and examination of records
28required to be maintained under this section, may authorize
29their disposal upon the written request of the dealer or user.
30 Sec. 27. NEW SECTION. 452A.44 Refunds.
311. A person who uses electric fuel for any of the nontaxable
32purposes set forth in section 452A.17, subsection 1, paragraph
33“a”, for motor fuel and undyed special fuel, and who has paid
34the electric fuel tax either directly to the department or by
35having the tax added to the price of the fuel, and who has
-15-1a refund permit, upon presentation to and approval by the
2department of a claim for refund, subject to the conditions set
3forth in section 452A.17, subsection 1, paragraph “b”, shall be
4reimbursed and repaid the amount of the tax which the claimant
5has paid on the kilowatt hours so used, except that the amount
6of a refund payable may be applied by the department against
7any tax liability outstanding on the books of the department
8against the claimant. Refunds under this section are subject
9to the limitations and requirements set forth in section
10452A.17, subsection 3, for motor fuel and undyed special fuel
11refunds.
122. A person shall not claim a refund under this section
13until the person has obtained a refund permit meeting the
14requirements of section 452A.18 from the department. The
15department may revoke a refund permit pursuant to section
16452A.19.
173. Tax collected on electric fuel that is not taxable, or
18tax collected in excess of the actual amount of tax due, is
19subject to section 452A.22.
20 Sec. 28. Section 452A.52, Code 2019, is amended to read as
21follows:
22452A.52 Fuels imported in supply tanks of motor vehicles —
23 applicability.
241. a. No A person shall not bring into this state in
25the fuel supply tanks of a commercial motor vehicle, or any
26other container, regardless of whether or not the supply tanks
27are connected to the motor of the vehicle, any motor fuel or
28special fuel to be used in the operation of the vehicle in
29this state unless that person has paid or made arrangements in
30advance with the state department of transportation for payment
31of Iowa fuel taxes on the gallonage consumed in operating the
32vehicle in this state; except that this subchapter shall not
33apply to a private passenger automobile.
34b. A person shall not bring into this state in the batteries
35or other energy storage devices of a commercial motor vehicle,
-16-1or any other energy storage device, regardless of whether the
2batteries or storage devices are connected to the motor of
3the vehicle, any electric fuel to be used in the operation
4of the vehicle in this state unless that person has paid or
5made arrangements in advance with the state department of
6transportation for payment of Iowa fuel taxes on the kilowatt
7hours consumed in operating the vehicle in this state.
82. Any person who is unable to display either of the
9permits or the license provided in section 452A.53 and brings
10into the state in the fuel supply tanks of a commercial motor
11vehicle more than thirty gallons of motor fuel or special fuel,
12or brings into the state in the batteries or other energy
13storage devices of a commercial motor vehicle more than three
14hundred fifty kilowatt hours of electric fuel, in violation
15of subsection 1 commits a simple misdemeanor punishable as
16a scheduled violation under section 805.8A, subsection 13,
17paragraph “c”.
183. This subchapter shall not apply to a private passenger
19automobile.
20 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code
212019, are amended to read as follows:
222. Persons choosing not to make advance arrangements with
23the state department of transportation by procuring a permit or
24license are not relieved of their responsibility to purchase
25motor fuel, and special fuel, and electric fuel commensurate
26with their use of the state’s highway system. When there
27is reasonable cause to believe that there is evasion of the
28fuel tax on commercial motor vehicles, the state department
29of transportation may audit persons not holding a permit
30or license. Audits shall be conducted pursuant to section
31452A.55 and in accordance with international fuel tax agreement
32guidelines. The state department of transportation shall
33collect all taxes due and refund any overpayment.
343. A permanent international fuel tax agreement permit
35or license may be obtained upon application to the state
-17-1department of transportation. A fee of ten dollars shall be
2charged for each permit or license issued. The holder of
3a permanent permit or license shall have the privilege of
4bringing into this state in the fuel supply tanks of commercial
5motor vehicles any amount of motor fuel or special fuel, or in
6the batteries or other energy storage devices of commercial
7motor vehicles any amount of electric fuel, to be used in the
8operation of the vehicles and for that privilege shall pay
9Iowa motor fuel or special fuel taxes as provided in section
10452A.54.
115. Each vehicle operated into or through Iowa in interstate
12operations using motor fuel, or special fuel, or electric fuel
13 acquired in any other state shall carry in or on the vehicle a
14duplicate or evidence of the permit or license required in this
15section. A fee not to exceed fifty cents shall be charged for
16each duplicate or other evidence of a permit or license issued.
17 Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code
182019, are amended to read as follows:
191. Fuel tax liability under this subchapter shall be
20computed on the total number of gallons of each kind of
21motor fuel and special fuel, and the total number of kilowatt
22hours of electric fuel, consumed in the operation in Iowa by
23commercial motor vehicles subject to this subchapter at the
24same rate for each kind of fuel as would be applicable if taxed
25under subchapter I of this chapter and section 452A.41. A
26refund against the fuel tax liability so computed shall be
27allowed, on excess Iowa motor fuel purchased, in the amount
28of fuel tax paid at the prevailing rate per gallon set out
29under subchapter I of this chapter on motor fuel and special
30fuel, and rate per kilowatt hour set out under section 452A.41
31on electric fuel, consumed by commercial motor vehicles, the
32operation of which is subject to this subchapter.
332. Notwithstanding any provision of this chapter to the
34contrary, except as provided in this section, the holder of a
35permanent international fuel tax agreement permit or license
-18-1may make application to the state department of transportation
2for a refund, not later than the last day of the third month
3following the quarter in which the overpayment of Iowa fuel
4tax paid on excess purchases of motor fuel or special fuel
5was reported as provided in section 452A.8, or electric
6fuel was reported as provided in section 452A.41, and which
7application is supported by such proof as the state department
8of transportation may require. The state department of
9transportation shall refund Iowa fuel tax paid on motor fuel,
10 or special fuel, or electric fuel purchased in excess of the
11amount consumed by such commercial motor vehicles in their
12operation on the highways of this state.
134. To determine the amount of fuel taxes due under this
14subchapter and to prevent the evasion thereof, the state
15department of transportation shall require a quarterly report
16on forms prescribed by the state department of transportation.
17It shall be filed not later than the last day of the month
18following the quarter reported, and each quarter thereafter.
19These reports shall be required of all persons who have been
20issued a permit or license under this subchapter and shall
21cover actual operation and fuel consumption in Iowa on the
22basis of the permit or license holder’s average consumption
23of fuel in Iowa, determined by the total miles traveled and
24the total fuel purchased and consumed for highway use by the
25permittee’s or licensee’s commercial motor vehicles in the
26permittee’s or licensee’s entire operation in all states to
27establish an overall miles per gallon ratio or miles per
28kilowatt hour ratio, which ratio shall be used to compute the
29gallons or kilowatt hours used for the miles traveled in Iowa.
30Failure to receive a quarterly report or fuel credentials by
31mail, facsimile transmission, or any other means of delivery
32does not relieve a person from the person’s fuel tax liability
33or from the requirement to display current fuel credentials.
34 Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code
352019, are amended to read as follows:
-19- 13. “Commercial motor vehicle” means a passenger vehicle
2that has seats for more than nine passengers in addition to
3the driver, any road tractor, any truck tractor, or any truck
4having two or more axles which passenger vehicle, road tractor,
5truck tractor, or truck is propelled on the public highways
6by either motor fuel, or special fuel, or electric fuel.
7“Commercial motor vehicle” does not include a motor truck with a
8combined gross weight of less than twenty-six thousand pounds,
9operated as a part of an identifiable one-way fleet and which
10is leased for less than thirty days to a lessee for the purpose
11of moving property which is not owned by the lessor.
125. “Fuel taxes” means the per gallon and per kilowatt excise
13taxes imposed under subchapters I and III of this chapter, and
14section 452A.41, with respect to motor fuel, and undyed special
15fuel, and electric fuel.
168. “Motor vehicle” shall mean and include all vehicles,
17except those operated on rails, which are propelled by internal
18combustion engines or electric motors and are of such design as
19to permit their mobile use on public highways for transporting
20persons or property. A farm tractor while operated on a farm
21or for the purpose of hauling farm machinery, equipment, or
22produce shall not be deemed to be a motor vehicle. “Motor
23vehicle” shall not include “mobile machinery and equipment” as
24defined in this section.
25 Sec. 32. Section 452A.58, subsection 2, Code 2019, is
26amended to read as follows:
272. A lessor of a commercial motor vehicle shall be deemed
28a carrier with respect to such vehicles leased to others by
29the lessor and motor fuel, or special fuel, or electric fuel
30 consumed thereby if the lessor supplies or pays for the motor
31fuel, or special fuel, or electric fuel consumed by such
32vehicle or makes rental or other charges calculated to include
33the cost of such fuel.
34 Sec. 33. Section 452A.59, Code 2019, is amended to read as
35follows:
-20- 1452A.59 Administrative rules.
2The department of revenue and the state department
3of transportation are authorized and empowered to adopt
4rules under chapter 17A, relating to the administration
5and enforcement of this chapter as deemed necessary by the
6departments. However, when in the opinion of the director
7it is necessary for the efficient administration of this
8chapter, the director may regard persons in possession of motor
9fuel, special fuel, biofuel, alcohol, or alcohol derivative
10substances as blenders, dealers, eligible purchasers,
11exporters, importers, restrictive suppliers, suppliers,
12terminal operators, or nonterminal storage facility operators,
13or persons in possession of electric fuel as electric fuel
14dealers or users.
15 Sec. 34. Section 452A.60, subsection 1, Code 2019, is
16amended to read as follows:
171. The department of revenue or the state department of
18transportation shall prescribe and furnish all forms, as
19applicable, upon which reports, returns, and applications shall
20be made and claims for refund presented under this chapter
21and may prescribe forms of record to be kept by suppliers,
22restrictive suppliers, importers, exporters, blenders, common
23carriers, contract carriers, licensed compressed natural gas,
24liquefied natural gas, and liquefied petroleum gas dealers
25and users, licensed electric fuel dealers and users, terminal
26operators, nonterminal storage facility operations, and
27interstate commercial motor vehicle operators.
28 Sec. 35. Section 452A.62, subsection 1, paragraph a, Code
292019, is amended by adding the following new subparagraph:
30 NEW SUBPARAGRAPH. (5) A licensed electric fuel dealer or
31user or person supplying electric fuel to a licensed electric
32fuel dealer or user.
33 Sec. 36. Section 452A.62, subsection 1, paragraph b, Code
342019, is amended to read as follows:
35b. To examine the records, books, papers, receipts, and
-21-1invoices of any distributor, supplier, restrictive supplier,
2importer, blender, exporter, terminal operator, nonterminal
3storage facility, licensed compressed natural gas, liquefied
4natural gas, or liquefied petroleum gas dealer or user,
5licensed electric fuel dealer or user, or any other person
6who possesses fuel upon which the tax has not been paid to
7determine financial responsibility for the payment of the taxes
8imposed by this chapter.
9 Sec. 37. Section 452A.63, subsection 1, Code 2019, is
10amended to read as follows:
111. All information obtained by the department of revenue or
12the state department of transportation from the examining of
13reports, returns, or records required to be filed or kept under
14this chapter shall be treated as confidential and shall not be
15divulged except to other state officers, a member or members of
16the general assembly, or any duly appointed committee of either
17or both houses of the general assembly, or to a representative
18of the state having some responsibility in connection with the
19collection of the taxes imposed or in proceedings brought under
20this chapter. The appropriate state agency may make available
21to the public on or before forty-five days following the last
22day of the month in which the tax is required to be paid, the
23names of suppliers, restrictive suppliers, and importers and as
24to each of them the total gallons of motor fuel, undyed special
25fuel, and ethanol blended gasoline withdrawn from terminals
26or imported into the state during that month. The department
27of revenue or the state department of transportation, upon
28request of officials entrusted with enforcement of the motor
29fuel tax laws of the federal government or any other state, may
30forward to these officials any pertinent information which the
31appropriate state agency may have relative to motor fuel, and
32 special fuel, and electric fuel, provided the officials of the
33other state furnish like information.
34 Sec. 38. Section 452A.73, Code 2019, is amended to read as
35follows:
-22- 1452A.73 Embezzlement of fuel tax money — penalty.
2Every sale of motor fuel in this state, and every sale
3of undyed special fuel dispensed by the seller into a fuel
4supply tank of a motor vehicle, and every sale of electric
5fuel dispensed by the seller into the battery or other energy
6storage device of an electric motor vehicle shall, unless
7otherwise provided, be presumed to include as a part of the
8purchase price the fuel tax due the state of Iowa under the
9provisions of this chapter. Every person collecting fuel tax
10money as part of the selling price of motor fuel, or undyed
11special fuel, or electric fuel shall hold the tax money in
12trust for the state of Iowa unless the fuel tax on the fuel
13has been previously paid to the state of Iowa. Any person
14receiving fuel tax money in trust and failing to remit it to
15the department of revenue on or before time required shall be
16guilty of theft.
17 Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and
18f, Code 2019, are amended to read as follows:
19c. For any seller to issue or any purchaser to receive
20and retain any incorrect or false invoice or sales ticket in
21connection with the sale or purchase of motor fuel, or undyed
22special fuel, or electric fuel.
23e. For any person to act as a supplier, restrictive
24supplier, importer, exporter, blender, or compressed natural
25gas, liquefied natural gas, or liquefied petroleum gas dealer
26or user, or electric fuel dealer or user without the required
27license.
28f. For any person to use motor fuel, undyed special fuel,
29or dyed special fuel in the fuel supply tank of a vehicle, or
30electric fuel in the battery or other energy storage device of
31an electric vehicle, with respect to which the person knowingly
32has not paid or had charged to the person’s account with a
33distributor or dealer, or with respect to which the person does
34not, within the time required in this chapter, report and pay
35the applicable fuel tax.
-23-1 Sec. 40. Section 452A.74, subsection 1, Code 2019, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. h. For any licensed electric fuel dealer or
4user to dispense electric fuel into the battery or other energy
5storage device of any electric motor vehicle without collecting
6the fuel tax.
7 Sec. 41. Section 452A.76, subsection 2, Code 2019, is
8amended to read as follows:
92. Authority is given to the department of revenue,
10the state department of transportation, the department of
11public safety, and any peace officer as requested by such
12departments to enforce the provisions of subchapter I, sections
13452A.40 through 452A.44, and this subchapter of this chapter.
14The department of revenue shall adopt rules providing for
15enforcement under subchapter I and this subchapter of this
16chapter regarding the use of motor fuel or special fuel in
17implements of husbandry. Enforcement personnel or requested
18peace officers are authorized to stop a conveyance suspected
19to be illegally transporting motor fuel or special fuel on
20the highways, to investigate the cargo, and also have the
21authority to inspect or test the fuel in the supply tank of a
22conveyance to determine if legal fuel is being used to power
23the conveyance. The operator of any vehicle transporting
24motor fuel or special fuel shall, upon request, produce and
25offer for inspection the manifest or loading and delivery
26invoices pertaining to the load and trip in question and shall
27permit the authority to inspect and measure the contents of
28the vehicle. If the vehicle operator fails to produce the
29evidence or if, when produced, the evidence fails to contain
30the required information and it appears that there is an
31attempt to evade payment of the fuel tax, the vehicle operator
32will be subject to the penalty provisions contained in section
33452A.74A.
34 Sec. 42. Section 452A.78, Code 2019, is amended to read as
35follows:
-24- 1452A.78 Other remedies available.
2The special remedies provided under the provisions of this
3chapter to enable the state to collect motor a fuel excise tax
4imposed by this chapter shall not be construed as depriving the
5state of any other remedy it might have either at law or in
6equity independent of this chapter. The state shall have the
7right to maintain an action at law for the collection of said
8taxes required to be paid herein and in connection therewith
9shall be entitled to a writ of attachment without bond.
10 Sec. 43. Section 452A.79, Code 2019, is amended to read as
11follows:
12452A.79 Use of revenue.
13Except as provided in sections 452A.79A, 452A.82, and
14452A.84, the net proceeds of the excise tax on the diesel
15special fuel, and the excise tax on motor fuel and other
16special fuel, the excise tax on electric fuel, and penalties
17collected under the provision of this chapter, shall be
18credited to the road use tax fund.
19 Sec. 44. Section 452A.80, Code 2019, is amended to read as
20follows:
21452A.80 Microfilm or photographic copies — originals
22destroyed.
23The appropriate state agency shall have the power and
24authority to record, copy, or reproduce by any photographic,
25photostatic, microfilm, microcard, miniature photographic,
26or other process which accurately reproduces or forms a
27durable medium for so reproducing the original of any forms
28or records pertaining to motor a fuel tax or undyed special
29fuel tax imposed by this chapter, or any paper or document with
30respect to refund of the tax. If the forms and records have
31been reproduced in accordance with this section, the state
32agency may destroy the originals and the reproductions shall
33be competent evidence in any court in accordance with the
34provision of section 622.30.
35 Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall
-25-1designate sections 452A.40 through 452A.44, as enacted by
2this division of this Act, as a new subchapter within chapter
3452A, and may redesignate the new and preexisting subchapters,
4replace references to sections 452A.40 through 452A.44
5with references to the new subchapter, and correct internal
6references as necessary, including references in subchapter
7headnotes.
8 Sec. 46. EFFECTIVE DATE. This division of this Act takes
9effect July 1, 2020.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to motor vehicle taxes and fees.
14DIVISION I — REGISTRATION FEES FOR ELECTRIC VEHICLES.
15 Under current law, Code section 321.109(1)(a) provides that all
16motor vehicles including vehicles designated by manufacturers
17as station wagons, 1993 and subsequent model year multipurpose
18vehicles, and 2010 and subsequent model year motor trucks
19with an unladen weight of 10,000 pounds or less, except motor
20trucks registered under Code section 321.122, business-trade
21trucks, special trucks, motor homes, motorsports recreational
22vehicles, ambulances, hearses, autocycles, motorcycles,
23motorized bicycles, and 1992 and older model year multipurpose
24vehicles, are subject to an annual registration fee equal to 1
25percent of the value of the vehicle as fixed by the department
26of transportation (DOT) plus 40 cents for each 100 pounds of
27weight of the vehicle as fixed by the DOT.
28For each battery electric motor vehicle, as defined in the
29bill, subject to an annual registration fee under Code section
30321.109(1)(a), the bill requires the owner to pay an annual
31battery electric motor vehicle registration fee, which is in
32addition to the regular annual registration fee imposed for the
33vehicle. For the period beginning January 1, 2020, and ending
34December 31, 2020, the fee is $65. For the period beginning
35January 1, 2021, and ending December 31, 2021, the fee is
-26-1$97.50. On or after January 1, 2022, the fee is $130.
2For each plug-in hybrid electric motor vehicle, as defined
3in the bill, subject to an annual registration fee under Code
4section 321.109(1)(a), the bill requires the owner to pay an
5annual plug-in hybrid electric motor vehicle registration fee,
6which is in addition to the regular annual registration fee
7imposed for the vehicle. For the period beginning January 1,
82020, and ending December 31, 2020, the fee is $32.50. For the
9period beginning January 1, 2021, and ending December 31, 2021,
10the fee is $48.75. On or after January 1, 2022, the fee is $65.
11Under current law, motorcycles are subject to an annual
12registration fee of $20. However, if a motorcycle is more
13than five model years old, the annual registration fee is $10.
14The bill requires the owner of a motorcycle that is a battery
15electric motor vehicle or plug-in hybrid electric motor vehicle
16to pay an annual electric motorcycle registration fee, which
17is in addition to the regular annual registration fee imposed
18for the motorcycle. For the period beginning January 1, 2020,
19and ending December 31, 2020, the fee is $4.50. For the period
20beginning January 1, 2021, and ending December 31, 2021, the
21fee is $6.75. On or after January 1, 2022, the fee is $9.
22Under Code section 321.17, operating a motor vehicle of a
23type required to be registered which is not registered, or for
24which the appropriate fees have not been paid, is punishable by
25a scheduled fine of $50.
26This division of the bill takes effect January 1, 2020.
27DIVISION II — HYDROGEN FUEL EXCISE TAX. The bill imposes
28an excise tax of 65 cents per gallon on hydrogen used as a
29special fuel in motor vehicles. The bill specifies that a
30diesel gallon equivalent of hydrogen is 2.49 pounds. The
31bill makes corresponding changes to Code chapter 452A (motor
32fuel and special fuel taxes) to ensure that the excise tax
33on hydrogen is collected in the same manner as the existing
34excise taxes on compressed natural gas, liquefied natural
35gas, and liquefied petroleum gas. The bill applies the
-27-1provisions of Code chapter 452A to dealers and users of
2hydrogen, including but not limited to provisions relating to
3license requirements, reporting and filing requirements, record
4retention requirements and audits, refunds, the interstate fuel
5use tax, the inventory tax, and a variety of unlawful acts that
6may result in a conviction for theft or fraudulent practice,
7including but not limited to those listed in Code sections
8452A.73, 452A.74, 452A.74A, and 452A.75. In accordance with
9Article VII, section 8, of the Iowa Constitution and Code
10section 452A.79, revenues from the excise tax on hydrogen used
11as a special fuel in motor vehicles are credited to the road
12use tax fund.
13By operation of law, Code section 321.40(9) provides that
14a person who owns or controls a vehicle that uses hydrogen
15will be issued a special fuel user identification sticker by
16the county treasurer, and the person must place the sticker
17adjacent to the place where the special fuel is delivered into
18the vehicle fuel supply tank. Under Code section 312.2(9),
191.75 cents per gallon from the excise tax on hydrogen will be
20deposited in the revitalize Iowa’s sound economy fund. Under
21Code section 312.2(10), .25 cents per gallon from the excise
22tax on hydrogen will be deposited in the secondary road fund.
23The provisions of Code chapter 323 (dealer and distributor
24franchises for motor fuel and special fuel) apply to dealers
25and distributors that sell hydrogen used as a special fuel.
26Hydrogen used as a special fuel is excluded from the sales and
27use tax under Code section 423.2(56) and the local sales and
28services tax under Code section 423B.5(1).
29The bill does not amend Code chapter 476C, which authorizes
30a renewable energy fuel tax credit for producers and purchasers
31of hydrogen fuel. The bill also does not amend Code section
32216B.3 (department for the blind), 260C.19A (community
33colleges), 262.25A (board of regents), 307.21 (department of
34transportation), or 904.312A (department of corrections), which
35require that 10 percent of motor vehicles purchased by such
-28-1entities be equipped with engines which utilize alternative
2methods of propulsion, including electricity but not including
3hydrogen.
4This division of the bill takes effect January 1, 2020.
5DIVISION III — ELECTRIC FUEL EXCISE TAX. The bill provides
6that electric fuel means electrical energy delivered or placed
7into the battery or other energy storage device of an electric
8motor vehicle from a source outside the motor vehicle for
9purposes of propelling the motor vehicle. The bill imposes an
10excise tax of 2.6 cents on each kilowatt hour of electric fuel
11delivered or placed into the battery or other energy storage
12device of an electric motor vehicle at a location in this
13state other than a residence. The tax attaches at the time of
14the delivery by a dealer and must be collected by the dealer
15from the purchaser and paid to the Iowa department of revenue
16(IDR) in the same manner as the excise taxes on natural gas
17and liquefied petroleum gas are paid by dealers under current
18law. Alternatively, the tax attaches at the time of use by
19a licensed electric fuel user and must be paid to IDR in the
20same manner as the excise taxes on natural gas and liquefied
21petroleum gas are paid by users under current law.
22All charging stations located at dealer and user locations
23through which electric fuel can be dispensed must be metered,
24inspected, tested for accuracy, and sealed and licensed by the
25department of agriculture and land stewardship.
26For the purpose of determining the amount of liability for
27the electric fuel tax, each dealer and user must file with IDR
28not later than the last day of each calendar month a monthly
29tax return certified under penalties for false certification.
30The return must be accompanied by remittance in the amount of
31the tax due for the month in which the fuel was placed into
32the batteries or other energy storage devices of electric
33motor vehicles. The bill specifies that moneys collected by a
34licensed electric fuel dealer or user for the excise tax are
35deemed to be held in trust for the state of Iowa.
-29- 1The bill prohibits a person from selling or dispensing
2electric fuel within this state at a location other than a
3residence or from otherwise acting as a licensed electric fuel
4dealer or user unless the person holds an uncanceled license
5issued by IDR. The bill specifies the application requirements
6for a license, and provides for grounds under which IDR may
7deny the issuance of a license.
8The bill requires a licensed electric fuel dealer or user
9to maintain, for a period of three years, records of all
10transactions by which the dealer or user dispenses electric
11fuel into the batteries or other energy storage devices of
12electric motor vehicles, including pertinent records and papers
13as required by IDR. After an audit and examination of such
14records, IDR may authorize their disposal upon the written
15request of the dealer or user.
16The bill provides that a person who uses electric fuel for
17any of the nontaxable purposes set forth under current law for
18motor fuel and undyed special fuel, who has paid the electric
19fuel tax and who has a refund permit, upon presentation to and
20approval by IDR of a claim for refund, must be reimbursed and
21repaid the amount of the tax which the claimant has paid on
22the kilowatt hours so used. Such refunds are subject to the
23limitations and requirements set forth under current law for
24refunds of the tax on motor fuel and undyed special fuel. The
25bill prohibits a person from claiming a refund until the person
26has obtained a refund permit from IDR meeting the requirements
27set forth under current law.
28The bill makes corresponding changes to Code chapter
29452A, including provisions of the interstate fuel use tax
30law. In accordance with Article VII, section 8, of the Iowa
31Constitution and Code section 452A.79, revenues from the excise
32tax on electric fuel are credited to the road use tax fund. The
33bill provides that 0.15 cents per kilowatt hour of the excise
34tax must be credited to the revitalize Iowa’s sound economy
35fund, and 0.02 cents per kilowatt hour of the excise tax must
-30-1be credited to the secondary road fund, in accordance with
2similar provisions for other types of fuel. In addition, the
3bill exempts electric fuel from the state sales and use tax and
4local option taxes.
5This division of the bill takes effect July 1, 2020.
-31-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, which shall be in addition to the
10annual registration fee imposed for the vehicle under section
11321.109, subsection 1, paragraph “a”. For purposes of this
12subsection, “battery electric motor vehicle” means a motor
13vehicle equipped with electrical drivetrain components and not
14equipped with an internal combustion engine, that is propelled
15exclusively by one or more electrical motors using electrical
16energy stored in a battery or other energy storage device that
17can be recharged by plugging into an electrical outlet or
18electric vehicle charging station. The amount of the fee shall
19be as follows:
20a. For the period beginning January 1, 2020, and ending
21December 31, 2020, sixty-five dollars.
22b. For the period beginning January 1, 2021, and ending
23December 31, 2021, ninety-seven dollars and fifty cents.
24c. On or after January 1, 2022, one hundred thirty dollars.
252. For each plug-in hybrid electric motor vehicle subject to
26an annual registration fee under section 321.109, subsection
271, paragraph “a”, and operated on the public highways of this
28state, the owner shall pay an annual plug-in hybrid electric
29motor vehicle registration fee, which shall be in addition
30to the annual registration fee imposed for the vehicle under
31section 321.109, subsection 1, paragraph “a”. For purposes of
32this subsection, “plug-in hybrid electric motor vehicle” means a
33motor vehicle equipped with electrical drivetrain components,
34an internal combustion engine, and a battery or other energy
35storage device that can be recharged by plugging into an
-1-1electrical outlet or electric vehicle charging station. The
2amount of the fee shall be as follows:
3a. For the period beginning January 1, 2020, and ending
4December 31, 2020, thirty-two dollars and fifty cents.
5b. For the period beginning January 1, 2021, and ending
6December 31, 2021, forty-eight dollars and seventy-five cents.
7c. On or after January 1, 2022, sixty-five dollars.
8 Sec. 2. Section 321.117, Code 2019, is amended to read as
9follows:
10321.117 Motorcycle, autocycle, ambulance, and hearse fees.
111. For all motorcycles and autocycles the annual
12registration fee shall be twenty dollars. For all motorized
13bicycles the annual registration fee shall be seven dollars.
14When the motorcycle or autocycle is more than five model
15years old, the annual registration fee shall be ten dollars.
16The annual registration fee for ambulances and hearses shall
17be fifty dollars. Passenger car plates shall be issued for
18ambulances and hearses.
192. In addition to the fee required for a motorcycle under
20subsection 1, the owner of a motorcycle that is a battery
21electric motor vehicle or plug-in hybrid electric motor
22vehicle, as those terms are defined in section 321.116, shall
23pay an annual electric motorcycle registration fee. The amount
24of the fee shall be as follows:
25a. For the period beginning January 1, 2020, and ending
26December 31, 2020, four dollars and fifty cents.
27b. For the period beginning January 1, 2021, and ending
28December 31, 2021, six dollars and seventy-five cents.
29c. On or after January 1, 2022, nine dollars.
30 Sec. 3. EFFECTIVE DATE. This division of this Act takes
31effect January 1, 2020.
32DIVISION II
33hydrogen fuel excise tax
34 Sec. 4. Section 452A.2, Code 2019, is amended by adding the
35following new subsection:
-2-1 NEW SUBSECTION. 20A. “Fuel supply tank”, with respect to
2motor vehicles that use hydrogen as a special fuel, means a
3motor vehicle’s hydrogen fuel cells.
4 Sec. 5. Section 452A.2, subsection 21, Code 2019, is amended
5by adding the following new paragraph:
6 NEW PARAGRAPH. c. “Gallon”, with respect to hydrogen, means
7a diesel gallon equivalent. A diesel gallon equivalent of
8hydrogen is two and forty-nine hundredths pounds.
9 Sec. 6. Section 452A.2, subsections 25, 26, 39, and 45, Code
102019, are amended to read as follows:
1125. “Licensed compressed natural gas, liquefied natural gas,
12and liquefied petroleum gas, and hydrogen dealer” means a person
13in the business of handling untaxed compressed natural gas,
14liquefied natural gas, or liquefied petroleum gas, or hydrogen
15 who delivers any part of the fuel into a fuel supply tank of any
16motor vehicle.
1726. “Licensed compressed natural gas, liquefied natural
18gas, and liquefied petroleum gas, and hydrogen user” means a
19person licensed by the department who dispenses compressed
20natural gas, liquefied natural gas, or liquefied petroleum
21gas, or hydrogen, upon which the special fuel tax has not been
22previously paid, for highway use from fuel sources owned and
23controlled by the person into the fuel supply tank of a motor
24vehicle, or commercial vehicle owned or controlled by the
25person.
2639. “Special fuel” means fuel oils and all combustible gases
27and liquids suitable for the generation of power for propulsion
28of motor vehicles or turbine-powered aircraft, and includes
29any substance used for that purpose, except that it does not
30include motor fuel. Kerosene shall not be considered to be a
31special fuel, unless blended with other special fuels for use
32in a motor vehicle with a diesel engine. Methanol shall not
33be considered to be a special fuel unless blended with other
34special fuels for use in a motor vehicle with a diesel engine.
35Hydrogen shall be considered to be a special fuel when used
-3-1or intended for use in combination with oxygen to generate
2electricity for propulsion of a motor vehicle.
345. “Use”, with respect to liquefied petroleum gas, means
4the receipt, delivery, or placing of liquefied petroleum gas by
5a licensed liquefied petroleum gas user into a fuel supply tank
6of a motor vehicle while the vehicle is in the state, except
7that with. With respect to natural gas used as a special fuel,
8“use” means the receipt, delivery, or placing of the natural gas
9into equipment for compressing the gas for subsequent delivery
10into the fuel supply tank of a motor vehicle while the vehicle
11is in the state. With respect to hydrogen used as a special
12fuel, “use” means the receipt, delivery, or placing of hydrogen
13by a licensed hydrogen user into a fuel supply tank of a motor
14vehicle while the vehicle is in the state.
15 Sec. 7. Section 452A.3, Code 2019, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 9A. For hydrogen used as a special fuel,
18the rate of tax is sixty-five cents per gallon.
19 Sec. 8. Section 452A.4, subsection 1, paragraph d, Code
202019, is amended to read as follows:
21d. A dealer’s or user’s license shall be required for each
22separate place of business or location where compressed natural
23gas, liquefied natural gas, or liquefied petroleum gas, or
24hydrogen is delivered or placed into the fuel supply tank of a
25motor vehicle.
26 Sec. 9. Section 452A.8, subsection 2, paragraph e,
27subparagraphs (1), (2), and (3), Code 2019, are amended to read
28as follows:
29(1) For purposes of this paragraph “e”, “dealer” or “user”
30means a licensed compressed natural gas, liquefied natural gas,
31and liquefied petroleum gas, and hydrogen dealer or user and
32“fuel” means compressed natural gas, liquefied natural gas, or
33 liquefied petroleum gas, or hydrogen.
34(2) The tax for compressed natural gas, liquefied natural
35gas, and liquefied petroleum gas, and hydrogen delivered by
-4-1a licensed dealer for use in this state shall attach at the
2time of the delivery and shall be collected by the dealer
3from the purchaser and paid to the department as provided in
4this chapter. The tax, with respect to compressed natural
5gas, liquefied natural gas, and liquefied petroleum gas, and
6hydrogen acquired by a purchaser in any manner other than by
7delivery by a licensed dealer into a fuel supply tank of a
8motor vehicle, attaches at the time of the use of the fuel
9and shall be paid over to the department by the purchaser as
10provided in this chapter.
11(3) The department shall adopt rules governing the
12dispensing of compressed natural gas, liquefied natural gas,
13and liquefied petroleum gas, and hydrogen by licensed dealers
14and licensed users. The director may require by rule that
15reports and returns be filed by electronic transmission. The
16department shall require that all pumps located at dealer
17locations and user locations through which liquefied petroleum
18gas can be dispensed shall be metered, inspected, tested
19for accuracy, and sealed and licensed by the department of
20agriculture and land stewardship, and that fuel delivered
21into the fuel supply tank of any motor vehicle shall be
22dispensed only through tested metered pumps and may be sold
23without temperature correction or corrected to a temperature
24of 60 degrees Fahrenheit. If the metered gallonage is to be
25temperature-corrected, only a temperature-compensated meter
26shall be used. Natural gas used as fuel shall be delivered
27into compressing equipment through sealed meters certified for
28accuracy by the department of agriculture and land stewardship.
29Hydrogen used as fuel shall be delivered into the fuel supply
30tank of any motor vehicle through sealed meters certified for
31accuracy by the department of agriculture and land stewardship.
32The department of agriculture and land stewardship may adopt
33rules pursuant to chapter 17A relating to the certification and
34accuracy of meters used to deliver hydrogen.
35 Sec. 10. Section 452A.60, subsection 1, Code 2019, is
-5-1amended 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
9gas, liquefied natural gas, and liquefied petroleum gas, and
10hydrogen dealers and users, terminal operators, nonterminal
11storage facility operations, and interstate commercial motor
12vehicle operators.
13 Sec. 11. Section 452A.62, subsection 1, paragraph a,
14subparagraph (2), Code 2019, is amended to read as follows:
15(2) A licensed compressed natural gas, liquefied natural
16gas, or liquefied petroleum gas, or hydrogen dealer, user, or
17person supplying compressed natural gas, liquefied natural
18gas, or liquefied petroleum gas, or hydrogen to a licensed
19compressed natural gas, liquefied natural gas, or liquefied
20petroleum gas, or hydrogen dealer or user.
21 Sec. 12. Section 452A.62, subsection 1, paragraph b, Code
222019, is amended to read as follows:
23b. To examine the records, books, papers, receipts, and
24invoices of any distributor, supplier, restrictive supplier,
25importer, blender, exporter, terminal operator, nonterminal
26storage facility, licensed compressed natural gas, liquefied
27natural gas, or liquefied petroleum gas, or hydrogen dealer or
28user, or any other person who possesses fuel upon which the tax
29has not been paid to determine financial responsibility for the
30payment of the taxes imposed by this chapter.
31 Sec. 13. Section 452A.74, subsection 1, paragraphs e and g,
32Code 2019, are amended to read as follows:
33e. For any person to act as a supplier, restrictive
34supplier, importer, exporter, blender, or compressed natural
35gas, liquefied natural gas, or liquefied petroleum gas, or
-6-1hydrogen dealer or user without the required license.
2g. For any licensed compressed natural gas, liquefied
3natural gas, or liquefied petroleum gas, or hydrogen dealer or
4user to dispense compressed natural gas, liquefied natural gas,
5or liquefied petroleum gas, or hydrogen into the fuel supply
6tank of any motor vehicle without collecting the fuel tax.
7 Sec. 14. Section 452A.74, subsection 2, Code 2019, is
8amended to read as follows:
92. Any delivery of compressed natural gas, liquefied
10natural gas, or liquefied petroleum gas, or hydrogen to a
11compressed natural gas, liquefied natural gas, or liquefied
12petroleum gas, or hydrogen dealer or user for the purpose of
13evading the state tax on compressed natural gas, liquefied
14natural gas, or liquefied petroleum gas, or hydrogen, into
15facilities other than those licensed under this chapter knowing
16that the fuel will be used for highway use shall constitute
17a violation of this section. Any compressed natural gas,
18liquefied natural gas, or liquefied petroleum gas, or hydrogen
19 dealer or user for purposes of evading the state tax on
20compressed natural gas, liquefied natural gas, or liquefied
21petroleum gas, or hydrogen, who allows a distributor to place
22compressed natural gas, liquefied natural gas, or liquefied
23petroleum gas, or hydrogen for highway use in facilities other
24than those licensed under this chapter, shall also be deemed
25in violation of this section.
26 Sec. 15. Section 452A.85, subsection 1, Code 2019, is
27amended to read as follows:
281. Persons having title to motor fuel, ethanol blended
29gasoline, undyed special fuel, compressed natural gas,
30liquefied natural gas, or liquefied petroleum gas, or hydrogen
31 in storage and held for sale on the effective date of an
32increase in the excise tax rate imposed on motor fuel, ethanol
33blended gasoline, undyed special fuel, compressed natural
34gas, liquefied natural gas, or liquefied petroleum gas, or
35hydrogen under this chapter shall be subject to an inventory
-7-1tax based upon the gallonage in storage as of the close of the
2business day preceding the effective date of the increased
3excise tax rate of motor fuel, ethanol blended gasoline, undyed
4special fuel, compressed natural gas, liquefied natural gas, or
5 liquefied petroleum gas, or hydrogen which will be subject to
6the increased excise tax rate.
7 Sec. 16. Section 452A.86, Code 2019, is amended to read as
8follows:
9452A.86 Method of determining gallonage.
10The exclusive method of determining gallonage of any
11purchases or sales of motor fuel, undyed special fuel,
12or liquefied petroleum gas as defined in this chapter and
13distillate fuels shall be on a gross volume basis, except
14for compressed natural gas, and liquefied natural gas, and
15hydrogen. The exclusive method of determining gallonage of any
16purchases or sales of compressed natural gas is the gasoline
17gallon equivalent, as defined in section 452A.2, subsection
1821. The exclusive method of determining gallonage of any
19purchase or sale of liquefied natural gas is the diesel gallon
20equivalent, as defined in section 452A.2, subsection 21. The
21exclusive method of determining gallonage of any purchases or
22sales of hydrogen is the diesel gallon equivalent, as defined
23in section 452A.2, subsection 21. A temperature-adjusted
24or other method shall not be used, except as it applies to
25liquefied petroleum gas and the sale or exchange of petroleum
26products between petroleum refiners. All invoices, bills of
27lading, or other records of sale or purchase and all returns
28or records required to be made, kept, and maintained by a
29supplier, restrictive supplier, importer, exporter, blender,
30or compressed natural gas, liquefied natural gas, or liquefied
31petroleum gas, or hydrogen dealer or user shall be made, kept,
32and maintained on the gross volume basis. For purposes of
33this section, “distillate fuels” means any fuel oil, gas oil,
34topped crude oil, or other petroleum oils derived by refining
35or processing crude oil or unfinished oils which have a boiling
-8-1range at atmospheric pressure which falls completely or in part
2between 550 and 1,200 degrees Fahrenheit.
3 Sec. 17. EFFECTIVE DATE. This division of this Act takes
4effect January 1, 2020.
5DIVISION III
6electric fuel excise tax
7 Sec. 18. Section 312.2, subsection 9, Code 2019, is amended
8by adding the following new paragraph:
9 NEW PARAGRAPH. c. From the excise tax on electric fuel
10imposed under the tax rate of section 452A.41, the amount of
11excise tax collected from fifteen hundredths of one cent per
12kilowatt hour.
13 Sec. 19. Section 312.2, subsection 10, Code 2019, is amended
14by adding the following new paragraph:
15 NEW PARAGRAPH. c. From the excise tax on electric fuel
16imposed under the tax rate of section 452A.41, the amount
17of excise tax collected from two hundredths of one cent per
18kilowatt hour.
19 Sec. 20. Section 423.3, subsection 56, Code 2019, is amended
20to read as follows:
2156. The sales price from the sale of motor fuel, and
22 special fuel, and electric fuel consumed for highway use or in
23watercraft or aircraft where the fuel tax has been imposed and
24paid and no refund has been or will be allowed and the sales
25price from the sales of ethanol blended gasoline, as defined
26in section 214A.1.
27 Sec. 21. Section 423B.5, subsection 1, Code 2019, is amended
28to read as follows:
291. A local sales and services tax may be imposed by a
30county on the sales price taxed by the state under chapter
31423, subchapter II. A local sales and services tax shall be
32imposed on the same basis as the state sales and services tax
33or in the case of the use of natural gas, natural gas service,
34electricity, or electric service on the same basis as the
35state use tax and shall not be imposed on the sale of any
-9-1property or on any service not taxed by the state, except the
2tax shall not be imposed on the sales price from the sale of
3motor fuel, or special fuel, or electric fuel, as those terms
4are defined in chapter 452A, which is consumed for highway use
5or in watercraft or aircraft if the fuel tax is paid on the
6transaction and a refund has not or will not be allowed, on the
7sales price from the sale of equipment by the state department
8of transportation, or on the sales price from the sale or use
9of natural gas, natural gas service, electricity, or electric
10service in a city or county where the sales price from the sale
11of natural gas or electric energy is subject to a franchise
12fee or user fee during the period the franchise or user fee
13is imposed. A local sales and services tax is applicable to
14transactions within those cities and unincorporated areas of
15the county where it is imposed, which transactions include
16but are not limited to sales sourced pursuant to section
17423.15, 423.17, 423.19, or 423.20, to a location within that
18city or unincorporated area of the county. The tax shall be
19collected by all persons required to collect state sales taxes.
20However, a local sales and services tax is not applicable to
21transactions sourced under chapter 423 to a place of business,
22as defined in section 423.1, of a retailer if such place of
23business is located in part within a city or unincorporated
24area of the county where the tax is not imposed.
25 Sec. 22. Section 423E.3, subsection 1, Code 2019, is amended
26to read as follows:
271. The tax shall be imposed on the same basis as the state
28sales and services tax or in the case of the use of natural
29gas, natural gas service, electricity, or electric service on
30the same basis as the state use tax and shall not be imposed
31on the sale of any property or on any service not taxed by the
32state, except the tax shall not be imposed on the sales price
33from the sale of motor fuel, or special fuel, or electric fuel,
34 as those terms are defined in chapter 452A, which is consumed
35for highway use or in watercraft or aircraft if the fuel tax
-10-1is paid on the transaction and a refund has not or will not
2be allowed, on the sales price from the sale of equipment by
3the state department of transportation, or on the sales price
4from the sale or use of natural gas, natural gas service,
5electricity, or electric service in a city or county where the
6sales price from the sale of natural gas or electric energy is
7subject to a franchise fee or user fee during the period the
8franchise or user fee is imposed.
9 Sec. 23. NEW SECTION. 452A.40 Definitions.
10As used in this subchapter, unless the context otherwise
11requires:
121. “Department” means the department of revenue.
132. “Electric fuel” means electrical energy delivered or
14placed into the battery or other energy storage device of an
15electric motor vehicle from a source outside the motor vehicle
16for purposes of propelling the motor vehicle. “Electric fuel”
17shall be deemed motor vehicle fuel for purposes of Article VII,
18section 8, of the Constitution of the State of Iowa.
193. “Electric motor vehicle” means a motor vehicle equipped
20with electrical drivetrain components that has the ability to
21be propelled, fully or partially, by one or more electrical
22motors using electrical energy stored in a battery or other
23energy storage device that can be recharged by plugging into an
24electrical outlet or electric vehicle charging station.
254. “Licensed electric fuel dealer” means a person licensed
26by the department who dispenses electric fuel, upon which the
27electric fuel tax has not been previously paid, for highway
28use into the battery or other energy storage device of an
29electric motor vehicle in this state at a location other than a
30residence.
315. “Licensed electric fuel user” means a person licensed
32by the department who dispenses electric fuel, upon which the
33electric fuel tax has not been previously paid, for highway use
34from a charging station owned and controlled by the person into
35the battery or other energy storage device of an electric motor
-11-1vehicle owned or controlled by the person in this state at a
2location other than a residence.
36. “Residence” means the place where a person resides,
4permanently or temporarily.
57. “Use” means the receipt, delivery, or placing of electric
6fuel by a licensed electric fuel user into the battery or other
7energy storage device of an electric motor vehicle owned or
8controlled by the user in this state at a location other than a
9residence.
10 Sec. 24. NEW SECTION. 452A.41 Levy and collection of excise
11tax on electric fuel.
121. An excise tax of two and six-tenths cents is imposed on
13each kilowatt hour of electric fuel delivered or placed into
14the battery or other energy storage device of an electric motor
15vehicle at a location in this state other than a residence.
162. The tax for electric fuel delivered by a licensed
17electric fuel dealer for use in this state shall attach at the
18time of the delivery and shall be collected by the dealer from
19the purchaser and paid to the department in the same manner
20as the excise taxes on natural gas and liquefied petroleum
21gas are paid by dealers to the department as provided in this
22chapter. The tax for electric fuel used by a licensed electric
23fuel user shall attach at the time of the use of the fuel and
24shall be paid to the department by the licensed electric fuel
25user in the same manner as the excise taxes on natural gas and
26liquefied petroleum gas are paid by users to the department as
27provided in this chapter.
283. The department shall adopt rules governing the
29dispensing of electric fuel by licensed dealers and users. The
30director may require by rule that reports and returns be filed
31by electronic transmission. The department shall require that
32all charging stations located at dealer and user locations
33through which electric fuel can be dispensed shall be metered,
34inspected, tested for accuracy, and sealed and licensed by
35the department of agriculture and land stewardship, and that
-12-1electric fuel delivered into the battery or other energy
2storage device of any electric motor vehicle shall be dispensed
3only through tested, metered charging stations. The department
4of agriculture and land stewardship may adopt rules pursuant
5to chapter 17A to administer the department of agriculture and
6land stewardship’s duties under this subsection.
74. a. For the purpose of determining the amount of
8liability for the electric fuel tax, each dealer and user
9shall file with the department not later than the last day
10of each calendar month a monthly tax return certified under
11penalties for false certification. The return shall show, with
12reference to each location at which fuel is delivered or placed
13by the dealer or user into the battery or other energy storage
14device of any electric motor vehicle during the next preceding
15calendar month, information as required by the department.
16b. The amount of tax due shall be computed by multiplying
17the appropriate tax rate per kilowatt hour by the number of
18kilowatt hours of electric fuel delivered or placed by the
19dealer or user into the batteries or other energy storage
20devices of electric motor vehicles.
21c. The return shall be accompanied by remittance in the
22amount of the tax due for the month in which the fuel was placed
23into the batteries or other energy storage devices of electric
24motor vehicles.
255. Moneys collected under this subchapter by a licensed
26electric fuel dealer or user are deemed to be held in trust for
27the state of Iowa.
28 Sec. 25. NEW SECTION. 452A.42 Electric fuel dealer’s and
29user’s license.
301. A person shall not sell or dispense electric fuel within
31this state at a location other than a residence or otherwise
32act as a licensed electric fuel dealer or user unless the
33person holds an uncanceled license issued by the department.
342. To procure a license, a person shall file with the
35department an application signed under penalty for false
-13-1certificate setting forth all of the following:
2a. The name under which the licensee will transact business
3in this state.
4b. The location, with street number address, of the
5principal office or place of business of the licensee within
6this state.
7c. The name and complete residence address of the owner
8or the names and addresses of the partners, if the licensee
9is a partnership, or the names and addresses of the principal
10officers, if the licensee is a corporation or association.
113. A dealer’s or user’s license shall be required for each
12separate place of business or location, other than a residence,
13where electric fuel is delivered or placed into the battery or
14other energy storage device of an electric motor vehicle.
154. a. The department may deny the issuance of a license to
16an applicant who is substantially delinquent in the payment of
17a tax due, or the interest or penalty on the tax, administered
18by the department. If the applicant is a partnership, a
19license may be denied if a partner owes any delinquent tax,
20interest, or penalty. If the applicant is a corporation, a
21license may be denied if any officer having a substantial legal
22or equitable interest in the ownership of the corporation owes
23any delinquent tax, interest, or penalty of the applicant
24corporation.
25b. The department may deny the issuance of a license if
26an application for a license to transact business as a dealer
27or user in this state is filed by a person whose license or
28registration has been canceled for cause at any time under the
29provisions of this chapter or any prior motor fuel tax law, if
30the department has reason to believe that the application is
31not filed in good faith, or if the application is filed by some
32person as a subterfuge for the real person in interest whose
33license or registration has been canceled for cause under the
34provisions of this chapter or any prior motor fuel tax law.
35The applicant shall be given fifteen days’ notice in writing of
-14-1the date of the hearing and shall have the right to appear in
2person or by counsel and present testimony.
35. a. The application in proper form having been accepted
4for filing, and the other conditions and requirements of this
5section and subchapter IV having been complied with, the
6department shall issue to the applicant a license to transact
7business as an electric fuel dealer or user in this state. The
8license shall remain in full force and effect until canceled as
9provided in this chapter.
10b. The license shall not be assignable and shall be valid
11only for the licensee in whose name it is issued.
12c. The department shall keep and file all applications and
13bonds and a record of all licensees.
14 Sec. 26. NEW SECTION. 452A.43 Records.
151. A licensed electric fuel dealer or user shall maintain,
16for a period of three years, records of all transactions by
17which the dealer or user dispenses electric fuel into the
18batteries or other energy storage devices of electric motor
19vehicles, including pertinent records and papers as required
20by the department.
212. If in the normal conduct of a dealer’s or user’s business
22the records are maintained and kept at an office outside this
23state, the records shall be made available for audit and
24examination by the department at the office outside this state,
25but the audit and examination shall be without expense to this
26state.
273. The department, after an audit and examination of records
28required to be maintained under this section, may authorize
29their disposal upon the written request of the dealer or user.
30 Sec. 27. NEW SECTION. 452A.44 Refunds.
311. A person who uses electric fuel for any of the nontaxable
32purposes set forth in section 452A.17, subsection 1, paragraph
33“a”, for motor fuel and undyed special fuel, and who has paid
34the electric fuel tax either directly to the department or by
35having the tax added to the price of the fuel, and who has
-15-1a refund permit, upon presentation to and approval by the
2department of a claim for refund, subject to the conditions set
3forth in section 452A.17, subsection 1, paragraph “b”, shall be
4reimbursed and repaid the amount of the tax which the claimant
5has paid on the kilowatt hours so used, except that the amount
6of a refund payable may be applied by the department against
7any tax liability outstanding on the books of the department
8against the claimant. Refunds under this section are subject
9to the limitations and requirements set forth in section
10452A.17, subsection 3, for motor fuel and undyed special fuel
11refunds.
122. A person shall not claim a refund under this section
13until the person has obtained a refund permit meeting the
14requirements of section 452A.18 from the department. The
15department may revoke a refund permit pursuant to section
16452A.19.
173. Tax collected on electric fuel that is not taxable, or
18tax collected in excess of the actual amount of tax due, is
19subject to section 452A.22.
20 Sec. 28. Section 452A.52, Code 2019, is amended to read as
21follows:
22452A.52 Fuels imported in supply tanks of motor vehicles —
23 applicability.
241. a. No A person shall not bring into this state in
25the fuel supply tanks of a commercial motor vehicle, or any
26other container, regardless of whether or not the supply tanks
27are connected to the motor of the vehicle, any motor fuel or
28special fuel to be used in the operation of the vehicle in
29this state unless that person has paid or made arrangements in
30advance with the state department of transportation for payment
31of Iowa fuel taxes on the gallonage consumed in operating the
32vehicle in this state; except that this subchapter shall not
33apply to a private passenger automobile.
34b. A person shall not bring into this state in the batteries
35or other energy storage devices of a commercial motor vehicle,
-16-1or any other energy storage device, regardless of whether the
2batteries or storage devices are connected to the motor of
3the vehicle, any electric fuel to be used in the operation
4of the vehicle in this state unless that person has paid or
5made arrangements in advance with the state department of
6transportation for payment of Iowa fuel taxes on the kilowatt
7hours consumed in operating the vehicle in this state.
82. Any person who is unable to display either of the
9permits or the license provided in section 452A.53 and brings
10into the state in the fuel supply tanks of a commercial motor
11vehicle more than thirty gallons of motor fuel or special fuel,
12or brings into the state in the batteries or other energy
13storage devices of a commercial motor vehicle more than three
14hundred fifty kilowatt hours of electric fuel, in violation
15of subsection 1 commits a simple misdemeanor punishable as
16a scheduled violation under section 805.8A, subsection 13,
17paragraph “c”.
183. This subchapter shall not apply to a private passenger
19automobile.
20 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code
212019, are amended to read as follows:
222. Persons choosing not to make advance arrangements with
23the state department of transportation by procuring a permit or
24license are not relieved of their responsibility to purchase
25motor fuel, and special fuel, and electric fuel commensurate
26with their use of the state’s highway system. When there
27is reasonable cause to believe that there is evasion of the
28fuel tax on commercial motor vehicles, the state department
29of transportation may audit persons not holding a permit
30or license. Audits shall be conducted pursuant to section
31452A.55 and in accordance with international fuel tax agreement
32guidelines. The state department of transportation shall
33collect all taxes due and refund any overpayment.
343. A permanent international fuel tax agreement permit
35or license may be obtained upon application to the state
-17-1department of transportation. A fee of ten dollars shall be
2charged for each permit or license issued. The holder of
3a permanent permit or license shall have the privilege of
4bringing into this state in the fuel supply tanks of commercial
5motor vehicles any amount of motor fuel or special fuel, or in
6the batteries or other energy storage devices of commercial
7motor vehicles any amount of electric fuel, to be used in the
8operation of the vehicles and for that privilege shall pay
9Iowa motor fuel or special fuel taxes as provided in section
10452A.54.
115. Each vehicle operated into or through Iowa in interstate
12operations using motor fuel, or special fuel, or electric fuel
13 acquired in any other state shall carry in or on the vehicle a
14duplicate or evidence of the permit or license required in this
15section. A fee not to exceed fifty cents shall be charged for
16each duplicate or other evidence of a permit or license issued.
17 Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code
182019, are amended to read as follows:
191. Fuel tax liability under this subchapter shall be
20computed on the total number of gallons of each kind of
21motor fuel and special fuel, and the total number of kilowatt
22hours of electric fuel, consumed in the operation in Iowa by
23commercial motor vehicles subject to this subchapter at the
24same rate for each kind of fuel as would be applicable if taxed
25under subchapter I of this chapter and section 452A.41. A
26refund against the fuel tax liability so computed shall be
27allowed, on excess Iowa motor fuel purchased, in the amount
28of fuel tax paid at the prevailing rate per gallon set out
29under subchapter I of this chapter on motor fuel and special
30fuel, and rate per kilowatt hour set out under section 452A.41
31on electric fuel, consumed by commercial motor vehicles, the
32operation of which is subject to this subchapter.
332. Notwithstanding any provision of this chapter to the
34contrary, except as provided in this section, the holder of a
35permanent international fuel tax agreement permit or license
-18-1may make application to the state department of transportation
2for a refund, not later than the last day of the third month
3following the quarter in which the overpayment of Iowa fuel
4tax paid on excess purchases of motor fuel or special fuel
5was reported as provided in section 452A.8, or electric
6fuel was reported as provided in section 452A.41, and which
7application is supported by such proof as the state department
8of transportation may require. The state department of
9transportation shall refund Iowa fuel tax paid on motor fuel,
10 or special fuel, or electric fuel purchased in excess of the
11amount consumed by such commercial motor vehicles in their
12operation on the highways of this state.
134. To determine the amount of fuel taxes due under this
14subchapter and to prevent the evasion thereof, the state
15department of transportation shall require a quarterly report
16on forms prescribed by the state department of transportation.
17It shall be filed not later than the last day of the month
18following the quarter reported, and each quarter thereafter.
19These reports shall be required of all persons who have been
20issued a permit or license under this subchapter and shall
21cover actual operation and fuel consumption in Iowa on the
22basis of the permit or license holder’s average consumption
23of fuel in Iowa, determined by the total miles traveled and
24the total fuel purchased and consumed for highway use by the
25permittee’s or licensee’s commercial motor vehicles in the
26permittee’s or licensee’s entire operation in all states to
27establish an overall miles per gallon ratio or miles per
28kilowatt hour ratio, which ratio shall be used to compute the
29gallons or kilowatt hours used for the miles traveled in Iowa.
30Failure to receive a quarterly report or fuel credentials by
31mail, facsimile transmission, or any other means of delivery
32does not relieve a person from the person’s fuel tax liability
33or from the requirement to display current fuel credentials.
34 Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code
352019, are amended to read as follows:
-19- 13. “Commercial motor vehicle” means a passenger vehicle
2that has seats for more than nine passengers in addition to
3the driver, any road tractor, any truck tractor, or any truck
4having two or more axles which passenger vehicle, road tractor,
5truck tractor, or truck is propelled on the public highways
6by either motor fuel, or special fuel, or electric fuel.
7“Commercial motor vehicle” does not include a motor truck with a
8combined gross weight of less than twenty-six thousand pounds,
9operated as a part of an identifiable one-way fleet and which
10is leased for less than thirty days to a lessee for the purpose
11of moving property which is not owned by the lessor.
125. “Fuel taxes” means the per gallon and per kilowatt excise
13taxes imposed under subchapters I and III of this chapter, and
14section 452A.41, with respect to motor fuel, and undyed special
15fuel, and electric fuel.
168. “Motor vehicle” shall mean and include all vehicles,
17except those operated on rails, which are propelled by internal
18combustion engines or electric motors and are of such design as
19to permit their mobile use on public highways for transporting
20persons or property. A farm tractor while operated on a farm
21or for the purpose of hauling farm machinery, equipment, or
22produce shall not be deemed to be a motor vehicle. “Motor
23vehicle” shall not include “mobile machinery and equipment” as
24defined in this section.
25 Sec. 32. Section 452A.58, subsection 2, Code 2019, is
26amended to read as follows:
272. A lessor of a commercial motor vehicle shall be deemed
28a carrier with respect to such vehicles leased to others by
29the lessor and motor fuel, or special fuel, or electric fuel
30 consumed thereby if the lessor supplies or pays for the motor
31fuel, or special fuel, or electric fuel consumed by such
32vehicle or makes rental or other charges calculated to include
33the cost of such fuel.
34 Sec. 33. Section 452A.59, Code 2019, is amended to read as
35follows:
-20- 1452A.59 Administrative rules.
2The department of revenue and the state department
3of transportation are authorized and empowered to adopt
4rules under chapter 17A, relating to the administration
5and enforcement of this chapter as deemed necessary by the
6departments. However, when in the opinion of the director
7it is necessary for the efficient administration of this
8chapter, the director may regard persons in possession of motor
9fuel, special fuel, biofuel, alcohol, or alcohol derivative
10substances as blenders, dealers, eligible purchasers,
11exporters, importers, restrictive suppliers, suppliers,
12terminal operators, or nonterminal storage facility operators,
13or persons in possession of electric fuel as electric fuel
14dealers or users.
15 Sec. 34. Section 452A.60, subsection 1, Code 2019, is
16amended to read as follows:
171. The department of revenue or the state department of
18transportation shall prescribe and furnish all forms, as
19applicable, upon which reports, returns, and applications shall
20be made and claims for refund presented under this chapter
21and may prescribe forms of record to be kept by suppliers,
22restrictive suppliers, importers, exporters, blenders, common
23carriers, contract carriers, licensed compressed natural gas,
24liquefied natural gas, and liquefied petroleum gas dealers
25and users, licensed electric fuel dealers and users, terminal
26operators, nonterminal storage facility operations, and
27interstate commercial motor vehicle operators.
28 Sec. 35. Section 452A.62, subsection 1, paragraph a, Code
292019, is amended by adding the following new subparagraph:
30 NEW SUBPARAGRAPH. (5) A licensed electric fuel dealer or
31user or person supplying electric fuel to a licensed electric
32fuel dealer or user.
33 Sec. 36. Section 452A.62, subsection 1, paragraph b, Code
342019, is amended to read as follows:
35b. To examine the records, books, papers, receipts, and
-21-1invoices of any distributor, supplier, restrictive supplier,
2importer, blender, exporter, terminal operator, nonterminal
3storage facility, licensed compressed natural gas, liquefied
4natural gas, or liquefied petroleum gas dealer or user,
5licensed electric fuel dealer or user, or any other person
6who possesses fuel upon which the tax has not been paid to
7determine financial responsibility for the payment of the taxes
8imposed by this chapter.
9 Sec. 37. Section 452A.63, subsection 1, Code 2019, is
10amended to read as follows:
111. All information obtained by the department of revenue or
12the state department of transportation from the examining of
13reports, returns, or records required to be filed or kept under
14this chapter shall be treated as confidential and shall not be
15divulged except to other state officers, a member or members of
16the general assembly, or any duly appointed committee of either
17or both houses of the general assembly, or to a representative
18of the state having some responsibility in connection with the
19collection of the taxes imposed or in proceedings brought under
20this chapter. The appropriate state agency may make available
21to the public on or before forty-five days following the last
22day of the month in which the tax is required to be paid, the
23names of suppliers, restrictive suppliers, and importers and as
24to each of them the total gallons of motor fuel, undyed special
25fuel, and ethanol blended gasoline withdrawn from terminals
26or imported into the state during that month. The department
27of revenue or the state department of transportation, upon
28request of officials entrusted with enforcement of the motor
29fuel tax laws of the federal government or any other state, may
30forward to these officials any pertinent information which the
31appropriate state agency may have relative to motor fuel, and
32 special fuel, and electric fuel, provided the officials of the
33other state furnish like information.
34 Sec. 38. Section 452A.73, Code 2019, is amended to read as
35follows:
-22- 1452A.73 Embezzlement of fuel tax money — penalty.
2Every sale of motor fuel in this state, and every sale
3of undyed special fuel dispensed by the seller into a fuel
4supply tank of a motor vehicle, and every sale of electric
5fuel dispensed by the seller into the battery or other energy
6storage device of an electric motor vehicle shall, unless
7otherwise provided, be presumed to include as a part of the
8purchase price the fuel tax due the state of Iowa under the
9provisions of this chapter. Every person collecting fuel tax
10money as part of the selling price of motor fuel, or undyed
11special fuel, or electric fuel shall hold the tax money in
12trust for the state of Iowa unless the fuel tax on the fuel
13has been previously paid to the state of Iowa. Any person
14receiving fuel tax money in trust and failing to remit it to
15the department of revenue on or before time required shall be
16guilty of theft.
17 Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and
18f, Code 2019, are amended to read as follows:
19c. For any seller to issue or any purchaser to receive
20and retain any incorrect or false invoice or sales ticket in
21connection with the sale or purchase of motor fuel, or undyed
22special fuel, or electric fuel.
23e. For any person to act as a supplier, restrictive
24supplier, importer, exporter, blender, or compressed natural
25gas, liquefied natural gas, or liquefied petroleum gas dealer
26or user, or electric fuel dealer or user without the required
27license.
28f. For any person to use motor fuel, undyed special fuel,
29or dyed special fuel in the fuel supply tank of a vehicle, or
30electric fuel in the battery or other energy storage device of
31an electric vehicle, with respect to which the person knowingly
32has not paid or had charged to the person’s account with a
33distributor or dealer, or with respect to which the person does
34not, within the time required in this chapter, report and pay
35the applicable fuel tax.
-23-1 Sec. 40. Section 452A.74, subsection 1, Code 2019, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. h. For any licensed electric fuel dealer or
4user to dispense electric fuel into the battery or other energy
5storage device of any electric motor vehicle without collecting
6the fuel tax.
7 Sec. 41. Section 452A.76, subsection 2, Code 2019, is
8amended to read as follows:
92. Authority is given to the department of revenue,
10the state department of transportation, the department of
11public safety, and any peace officer as requested by such
12departments to enforce the provisions of subchapter I, sections
13452A.40 through 452A.44, and this subchapter of this chapter.
14The department of revenue shall adopt rules providing for
15enforcement under subchapter I and this subchapter of this
16chapter regarding the use of motor fuel or special fuel in
17implements of husbandry. Enforcement personnel or requested
18peace officers are authorized to stop a conveyance suspected
19to be illegally transporting motor fuel or special fuel on
20the highways, to investigate the cargo, and also have the
21authority to inspect or test the fuel in the supply tank of a
22conveyance to determine if legal fuel is being used to power
23the conveyance. The operator of any vehicle transporting
24motor fuel or special fuel shall, upon request, produce and
25offer for inspection the manifest or loading and delivery
26invoices pertaining to the load and trip in question and shall
27permit the authority to inspect and measure the contents of
28the vehicle. If the vehicle operator fails to produce the
29evidence or if, when produced, the evidence fails to contain
30the required information and it appears that there is an
31attempt to evade payment of the fuel tax, the vehicle operator
32will be subject to the penalty provisions contained in section
33452A.74A.
34 Sec. 42. Section 452A.78, Code 2019, is amended to read as
35follows:
-24- 1452A.78 Other remedies available.
2The special remedies provided under the provisions of this
3chapter to enable the state to collect motor a fuel excise tax
4imposed by this chapter shall not be construed as depriving the
5state of any other remedy it might have either at law or in
6equity independent of this chapter. The state shall have the
7right to maintain an action at law for the collection of said
8taxes required to be paid herein and in connection therewith
9shall be entitled to a writ of attachment without bond.
10 Sec. 43. Section 452A.79, Code 2019, is amended to read as
11follows:
12452A.79 Use of revenue.
13Except as provided in sections 452A.79A, 452A.82, and
14452A.84, the net proceeds of the excise tax on the diesel
15special fuel, and the excise tax on motor fuel and other
16special fuel, the excise tax on electric fuel, and penalties
17collected under the provision of this chapter, shall be
18credited to the road use tax fund.
19 Sec. 44. Section 452A.80, Code 2019, is amended to read as
20follows:
21452A.80 Microfilm or photographic copies — originals
22destroyed.
23The appropriate state agency shall have the power and
24authority to record, copy, or reproduce by any photographic,
25photostatic, microfilm, microcard, miniature photographic,
26or other process which accurately reproduces or forms a
27durable medium for so reproducing the original of any forms
28or records pertaining to motor a fuel tax or undyed special
29fuel tax imposed by this chapter, or any paper or document with
30respect to refund of the tax. If the forms and records have
31been reproduced in accordance with this section, the state
32agency may destroy the originals and the reproductions shall
33be competent evidence in any court in accordance with the
34provision of section 622.30.
35 Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall
-25-1designate sections 452A.40 through 452A.44, as enacted by
2this division of this Act, as a new subchapter within chapter
3452A, and may redesignate the new and preexisting subchapters,
4replace references to sections 452A.40 through 452A.44
5with references to the new subchapter, and correct internal
6references as necessary, including references in subchapter
7headnotes.
8 Sec. 46. EFFECTIVE DATE. This division of this Act takes
9effect July 1, 2020.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to motor vehicle taxes and fees.
14DIVISION I — REGISTRATION FEES FOR ELECTRIC VEHICLES.
15 Under current law, Code section 321.109(1)(a) provides that all
16motor vehicles including vehicles designated by manufacturers
17as station wagons, 1993 and subsequent model year multipurpose
18vehicles, and 2010 and subsequent model year motor trucks
19with an unladen weight of 10,000 pounds or less, except motor
20trucks registered under Code section 321.122, business-trade
21trucks, special trucks, motor homes, motorsports recreational
22vehicles, ambulances, hearses, autocycles, motorcycles,
23motorized bicycles, and 1992 and older model year multipurpose
24vehicles, are subject to an annual registration fee equal to 1
25percent of the value of the vehicle as fixed by the department
26of transportation (DOT) plus 40 cents for each 100 pounds of
27weight of the vehicle as fixed by the DOT.
28For each battery electric motor vehicle, as defined in the
29bill, subject to an annual registration fee under Code section
30321.109(1)(a), the bill requires the owner to pay an annual
31battery electric motor vehicle registration fee, which is in
32addition to the regular annual registration fee imposed for the
33vehicle. For the period beginning January 1, 2020, and ending
34December 31, 2020, the fee is $65. For the period beginning
35January 1, 2021, and ending December 31, 2021, the fee is
-26-1$97.50. On or after January 1, 2022, the fee is $130.
2For each plug-in hybrid electric motor vehicle, as defined
3in the bill, subject to an annual registration fee under Code
4section 321.109(1)(a), the bill requires the owner to pay an
5annual plug-in hybrid electric motor vehicle registration fee,
6which is in addition to the regular annual registration fee
7imposed for the vehicle. For the period beginning January 1,
82020, and ending December 31, 2020, the fee is $32.50. For the
9period beginning January 1, 2021, and ending December 31, 2021,
10the fee is $48.75. On or after January 1, 2022, the fee is $65.
11Under current law, motorcycles are subject to an annual
12registration fee of $20. However, if a motorcycle is more
13than five model years old, the annual registration fee is $10.
14The bill requires the owner of a motorcycle that is a battery
15electric motor vehicle or plug-in hybrid electric motor vehicle
16to pay an annual electric motorcycle registration fee, which
17is in addition to the regular annual registration fee imposed
18for the motorcycle. For the period beginning January 1, 2020,
19and ending December 31, 2020, the fee is $4.50. For the period
20beginning January 1, 2021, and ending December 31, 2021, the
21fee is $6.75. On or after January 1, 2022, the fee is $9.
22Under Code section 321.17, operating a motor vehicle of a
23type required to be registered which is not registered, or for
24which the appropriate fees have not been paid, is punishable by
25a scheduled fine of $50.
26This division of the bill takes effect January 1, 2020.
27DIVISION II — HYDROGEN FUEL EXCISE TAX. The bill imposes
28an excise tax of 65 cents per gallon on hydrogen used as a
29special fuel in motor vehicles. The bill specifies that a
30diesel gallon equivalent of hydrogen is 2.49 pounds. The
31bill makes corresponding changes to Code chapter 452A (motor
32fuel and special fuel taxes) to ensure that the excise tax
33on hydrogen is collected in the same manner as the existing
34excise taxes on compressed natural gas, liquefied natural
35gas, and liquefied petroleum gas. The bill applies the
-27-1provisions of Code chapter 452A to dealers and users of
2hydrogen, including but not limited to provisions relating to
3license requirements, reporting and filing requirements, record
4retention requirements and audits, refunds, the interstate fuel
5use tax, the inventory tax, and a variety of unlawful acts that
6may result in a conviction for theft or fraudulent practice,
7including but not limited to those listed in Code sections
8452A.73, 452A.74, 452A.74A, and 452A.75. In accordance with
9Article VII, section 8, of the Iowa Constitution and Code
10section 452A.79, revenues from the excise tax on hydrogen used
11as a special fuel in motor vehicles are credited to the road
12use tax fund.
13By operation of law, Code section 321.40(9) provides that
14a person who owns or controls a vehicle that uses hydrogen
15will be issued a special fuel user identification sticker by
16the county treasurer, and the person must place the sticker
17adjacent to the place where the special fuel is delivered into
18the vehicle fuel supply tank. Under Code section 312.2(9),
191.75 cents per gallon from the excise tax on hydrogen will be
20deposited in the revitalize Iowa’s sound economy fund. Under
21Code section 312.2(10), .25 cents per gallon from the excise
22tax on hydrogen will be deposited in the secondary road fund.
23The provisions of Code chapter 323 (dealer and distributor
24franchises for motor fuel and special fuel) apply to dealers
25and distributors that sell hydrogen used as a special fuel.
26Hydrogen used as a special fuel is excluded from the sales and
27use tax under Code section 423.2(56) and the local sales and
28services tax under Code section 423B.5(1).
29The bill does not amend Code chapter 476C, which authorizes
30a renewable energy fuel tax credit for producers and purchasers
31of hydrogen fuel. The bill also does not amend Code section
32216B.3 (department for the blind), 260C.19A (community
33colleges), 262.25A (board of regents), 307.21 (department of
34transportation), or 904.312A (department of corrections), which
35require that 10 percent of motor vehicles purchased by such
-28-1entities be equipped with engines which utilize alternative
2methods of propulsion, including electricity but not including
3hydrogen.
4This division of the bill takes effect January 1, 2020.
5DIVISION III — ELECTRIC FUEL EXCISE TAX. The bill provides
6that electric fuel means electrical energy delivered or placed
7into the battery or other energy storage device of an electric
8motor vehicle from a source outside the motor vehicle for
9purposes of propelling the motor vehicle. The bill imposes an
10excise tax of 2.6 cents on each kilowatt hour of electric fuel
11delivered or placed into the battery or other energy storage
12device of an electric motor vehicle at a location in this
13state other than a residence. The tax attaches at the time of
14the delivery by a dealer and must be collected by the dealer
15from the purchaser and paid to the Iowa department of revenue
16(IDR) in the same manner as the excise taxes on natural gas
17and liquefied petroleum gas are paid by dealers under current
18law. Alternatively, the tax attaches at the time of use by
19a licensed electric fuel user and must be paid to IDR in the
20same manner as the excise taxes on natural gas and liquefied
21petroleum gas are paid by users under current law.
22All charging stations located at dealer and user locations
23through which electric fuel can be dispensed must be metered,
24inspected, tested for accuracy, and sealed and licensed by the
25department of agriculture and land stewardship.
26For the purpose of determining the amount of liability for
27the electric fuel tax, each dealer and user must file with IDR
28not later than the last day of each calendar month a monthly
29tax return certified under penalties for false certification.
30The return must be accompanied by remittance in the amount of
31the tax due for the month in which the fuel was placed into
32the batteries or other energy storage devices of electric
33motor vehicles. The bill specifies that moneys collected by a
34licensed electric fuel dealer or user for the excise tax are
35deemed to be held in trust for the state of Iowa.
-29- 1The bill prohibits a person from selling or dispensing
2electric fuel within this state at a location other than a
3residence or from otherwise acting as a licensed electric fuel
4dealer or user unless the person holds an uncanceled license
5issued by IDR. The bill specifies the application requirements
6for a license, and provides for grounds under which IDR may
7deny the issuance of a license.
8The bill requires a licensed electric fuel dealer or user
9to maintain, for a period of three years, records of all
10transactions by which the dealer or user dispenses electric
11fuel into the batteries or other energy storage devices of
12electric motor vehicles, including pertinent records and papers
13as required by IDR. After an audit and examination of such
14records, IDR may authorize their disposal upon the written
15request of the dealer or user.
16The bill provides that a person who uses electric fuel for
17any of the nontaxable purposes set forth under current law for
18motor fuel and undyed special fuel, who has paid the electric
19fuel tax and who has a refund permit, upon presentation to and
20approval by IDR of a claim for refund, must be reimbursed and
21repaid the amount of the tax which the claimant has paid on
22the kilowatt hours so used. Such refunds are subject to the
23limitations and requirements set forth under current law for
24refunds of the tax on motor fuel and undyed special fuel. The
25bill prohibits a person from claiming a refund until the person
26has obtained a refund permit from IDR meeting the requirements
27set forth under current law.
28The bill makes corresponding changes to Code chapter
29452A, including provisions of the interstate fuel use tax
30law. In accordance with Article VII, section 8, of the Iowa
31Constitution and Code section 452A.79, revenues from the excise
32tax on electric fuel are credited to the road use tax fund. The
33bill provides that 0.15 cents per kilowatt hour of the excise
34tax must be credited to the revitalize Iowa’s sound economy
35fund, and 0.02 cents per kilowatt hour of the excise tax must
-30-1be credited to the secondary road fund, in accordance with
2similar provisions for other types of fuel. In addition, the
3bill exempts electric fuel from the state sales and use tax and
4local option taxes.
5This division of the bill takes effect July 1, 2020.
-31-ns/jh