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House File 767 - 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 owns an electric vehicle charging station
27that dispenses electric fuel, upon which the electric fuel tax
28has not been previously paid, for highway use into the battery
29or other energy storage device of an electric motor vehicle in
30this state at a location other than a residence.
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 paid to the department by
19the licensed electric fuel dealer in a manner prescribed by
20the department. The tax for electric fuel used by a licensed
21electric fuel user shall attach at the time of the use of
22the fuel and shall be paid to the department by the licensed
23electric fuel user in a manner prescribed by the department.
243. The department shall adopt rules governing the
25dispensing of electric fuel by licensed dealers and users. The
26director may require by rule that reports and returns be filed
27by electronic transmission. The department may require by rule
28that all charging stations located at dealer and user locations
29through which electric fuel can be dispensed be tested for
30accuracy.
314. a. For the purpose of determining the amount of
32liability for the electric fuel tax, each dealer and user shall
33file with the department not later than July 31 for the period
34beginning January 1 and ending June 30, and not later than
35January 30 for the period beginning July 1 and ending December
-12-130, a biannual tax return certified under penalties for false
2certification. The return shall show, with reference to each
3location at which fuel is delivered or placed by the dealer or
4user into the battery or other energy storage device of any
5electric motor vehicle during the next preceding six calendar
6months, information as required by the department. On and
7after January 1, 2026, the department may require by rule that
8such tax returns be filed quarterly.
9b. The amount of tax due shall be computed by multiplying
10the appropriate tax rate per kilowatt hour by the number of
11kilowatt hours of electric fuel delivered or placed by the
12dealer or user into the batteries or other energy storage
13devices of electric motor vehicles.
14c. The return shall be accompanied by remittance in the
15amount of the tax due for the determination period in which
16the fuel was placed into the batteries or other energy storage
17devices of electric motor vehicles.
185. Moneys collected under this subchapter by a licensed
19electric fuel dealer or user are deemed to be held in trust for
20the state of Iowa.
216. This subchapter shall not be construed to require a
22public utility, as defined in section 476.1, to collect the
23excise tax on electric fuel or to install a separate electric
24utility meter or otherwise use utility equipment for purposes
25related to the excise tax on electric fuel, unless the public
26utility is a licensed electric fuel dealer or licensed electric
27fuel user.
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.
34The holder of an electric fuel dealer’s license is authorized
35to sell and dispense electric fuel, measured in kilowatt hours,
-13-1to consumers. The holder of an electric fuel user’s license
2is authorized to dispense electric fuel, measured in kilowatt
3hours, into the batteries or other energy storage devices of
4electric motor vehicles owned or controlled by the holder.
5Notwithstanding chapter 476 or any other provision of law to
6the contrary, a licensed electric fuel dealer or a licensed
7electric fuel user is not subject to control, oversight, or
8regulation by the Iowa utilities board for actions performed by
9the dealer or user in its capacity as a licensed electric fuel
10dealer or licensed electric fuel user.
112. To procure a license, a person shall file with the
12department an application signed under penalty for false
13certificate setting forth all of the following:
14a. The name under which the licensee will transact business
15in this state.
16b. The location, with street number address, of the
17principal office or place of business of the licensee within
18this state.
19c. The name and complete residence address of the owner
20or the names and addresses of the partners, if the licensee
21is a partnership, or the names and addresses of the principal
22officers, if the licensee is a corporation or association.
233. A dealer’s or user’s license shall be required for each
24separate place of business or location, other than a residence,
25where electric fuel is delivered or placed into the battery or
26other energy storage device of an electric motor vehicle.
274. a. The department may deny the issuance of a license to
28an applicant who is substantially delinquent in the payment of
29a tax due, or the interest or penalty on the tax, administered
30by the department. If the applicant is a partnership, a
31license may be denied if a partner owes any delinquent tax,
32interest, or penalty. If the applicant is a corporation, a
33license may be denied if any officer having a substantial legal
34or equitable interest in the ownership of the corporation owes
35any delinquent tax, interest, or penalty of the applicant
-14-1corporation.
2b. The department may deny the issuance of a license if
3an application for a license to transact business as a dealer
4or user in this state is filed by a person whose license or
5registration has been canceled for cause at any time under the
6provisions of this chapter or any prior motor fuel tax law, if
7the department has reason to believe that the application is
8not filed in good faith, or if the application is filed by some
9person as a subterfuge for the real person in interest whose
10license or registration has been canceled for cause under the
11provisions of this chapter or any prior motor fuel tax law.
12The applicant shall be given fifteen days’ notice in writing of
13the date of the hearing and shall have the right to appear in
14person or by counsel and present testimony.
155. a. The application in proper form having been accepted
16for filing, and the other conditions and requirements of this
17section and subchapter IV having been complied with, the
18department shall issue to the applicant a license to transact
19business as an electric fuel dealer or user in this state. The
20license shall remain in full force and effect until canceled as
21provided in this chapter.
22b. The license shall not be assignable and shall be valid
23only for the licensee in whose name it is issued.
24c. The department shall keep and file all applications and
25bonds and a record of all licensees.
26 Sec. 26. NEW SECTION. 452A.43 Records.
271. A licensed electric fuel dealer or user shall maintain,
28for a period of three years, records of all transactions by
29which the dealer or user dispenses electric fuel into the
30batteries or other energy storage devices of electric motor
31vehicles, including pertinent records and papers as required
32by the department.
332. If in the normal conduct of a dealer’s or user’s business
34the records are maintained and kept at an office outside this
35state, the records shall be made available for audit and
-15-1examination by the department at the office outside this state,
2but the audit and examination shall be without expense to this
3state.
43. The department, after an audit and examination of records
5required to be maintained under this section, may authorize
6their disposal upon the written request of the dealer or user.
7 Sec. 27. NEW SECTION. 452A.44 Refunds.
81. A person who uses electric fuel for any of the nontaxable
9purposes set forth in section 452A.17, subsection 1, paragraph
10“a”, for motor fuel and undyed special fuel, and who has paid
11the electric fuel tax either directly to the department or by
12having the tax added to the price of the fuel, and who has
13a refund permit, upon presentation to and approval by the
14department of a claim for refund, subject to the conditions set
15forth in section 452A.17, subsection 1, paragraph “b”, shall be
16reimbursed and repaid the amount of the tax which the claimant
17has paid on the kilowatt hours so used, except that the amount
18of a refund payable may be applied by the department against
19any tax liability outstanding on the books of the department
20against the claimant. Refunds under this section are subject
21to the limitations and requirements set forth in section
22452A.17, subsection 3, for motor fuel and undyed special fuel
23refunds.
242. A person shall not claim a refund under this section
25until the person has obtained a refund permit meeting the
26requirements of section 452A.18 from the department. The
27department may revoke a refund permit pursuant to section
28452A.19.
293. Tax collected on electric fuel that is not taxable, or
30tax collected in excess of the actual amount of tax due, is
31subject to section 452A.22.
32 Sec. 28. Section 452A.52, Code 2019, is amended to read as
33follows:
34452A.52 Fuels imported in supply tanks of motor vehicles —
35 applicability.
-16- 11. a. No A person shall not bring into this state in
2the fuel supply tanks of a commercial motor vehicle, or any
3other container, regardless of whether or not the supply tanks
4are connected to the motor of the vehicle, any motor fuel or
5special fuel to be used in the operation of the vehicle in
6this state unless that person has paid or made arrangements in
7advance with the state department of transportation for payment
8of Iowa fuel taxes on the gallonage consumed in operating the
9vehicle in this state; except that this subchapter shall not
10apply to a private passenger automobile.
11b. A person shall not bring into this state in the batteries
12or other energy storage devices of a commercial motor vehicle,
13or any other energy storage device, regardless of whether the
14batteries or storage devices are connected to the motor of
15the vehicle, any electric fuel to be used in the operation
16of the vehicle in this state unless that person has paid or
17made arrangements in advance with the state department of
18transportation for payment of Iowa fuel taxes on the kilowatt
19hours consumed in operating the vehicle in this state.
202. Any person who is unable to display either of the
21permits or the license provided in section 452A.53 and brings
22into the state in the fuel supply tanks of a commercial motor
23vehicle more than thirty gallons of motor fuel or special fuel,
24or brings into the state in the batteries or other energy
25storage devices of a commercial motor vehicle more than three
26hundred fifty kilowatt hours of electric fuel, in violation
27of subsection 1 commits a simple misdemeanor punishable as
28a scheduled violation under section 805.8A, subsection 13,
29paragraph “c”.
303. This subchapter shall not apply to a private passenger
31automobile.
32 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code
332019, are amended to read as follows:
342. Persons choosing not to make advance arrangements with
35the state department of transportation by procuring a permit or
-17-1license are not relieved of their responsibility to purchase
2motor fuel, and special fuel, and electric fuel commensurate
3with their use of the state’s highway system. When there
4is reasonable cause to believe that there is evasion of the
5fuel tax on commercial motor vehicles, the state department
6of transportation may audit persons not holding a permit
7or license. Audits shall be conducted pursuant to section
8452A.55 and in accordance with international fuel tax agreement
9guidelines. The state department of transportation shall
10collect all taxes due and refund any overpayment.
113. A permanent international fuel tax agreement permit
12or license may be obtained upon application to the state
13department of transportation. A fee of ten dollars shall be
14charged for each permit or license issued. The holder of
15a permanent permit or license shall have the privilege of
16bringing into this state in the fuel supply tanks of commercial
17motor vehicles any amount of motor fuel or special fuel, or in
18the batteries or other energy storage devices of commercial
19motor vehicles any amount of electric fuel, to be used in the
20operation of the vehicles and for that privilege shall pay
21Iowa motor fuel or special fuel taxes as provided in section
22452A.54.
235. Each vehicle operated into or through Iowa in interstate
24operations using motor fuel, or special fuel, or electric fuel
25 acquired in any other state shall carry in or on the vehicle a
26duplicate or evidence of the permit or license required in this
27section. A fee not to exceed fifty cents shall be charged for
28each duplicate or other evidence of a permit or license issued.
29 Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code
302019, are amended to read as follows:
311. Fuel tax liability under this subchapter shall be
32computed on the total number of gallons of each kind of
33motor fuel and special fuel, and the total number of kilowatt
34hours of electric fuel, consumed in the operation in Iowa by
35commercial motor vehicles subject to this subchapter at the
-18-1same rate for each kind of fuel as would be applicable if taxed
2under subchapter I of this chapter and section 452A.41. A
3refund against the fuel tax liability so computed shall be
4allowed, on excess Iowa motor fuel purchased, in the amount
5of fuel tax paid at the prevailing rate per gallon set out
6under subchapter I of this chapter on motor fuel and special
7fuel, and rate per kilowatt hour set out under section 452A.41
8on electric fuel, consumed by commercial motor vehicles, the
9operation of which is subject to this subchapter.
102. Notwithstanding any provision of this chapter to the
11contrary, except as provided in this section, the holder of a
12permanent international fuel tax agreement permit or license
13may make application to the state department of transportation
14for a refund, not later than the last day of the third month
15following the quarter in which the overpayment of Iowa fuel
16tax paid on excess purchases of motor fuel or special fuel
17was reported as provided in section 452A.8, or electric
18fuel was reported as provided in section 452A.41, and which
19application is supported by such proof as the state department
20of transportation may require. The state department of
21transportation shall refund Iowa fuel tax paid on motor fuel,
22 or special fuel, or electric fuel purchased in excess of the
23amount consumed by such commercial motor vehicles in their
24operation on the highways of this state.
254. To determine the amount of fuel taxes due under this
26subchapter and to prevent the evasion thereof, the state
27department of transportation shall require a quarterly report
28on forms prescribed by the state department of transportation.
29It shall be filed not later than the last day of the month
30following the quarter reported, and each quarter thereafter.
31These reports shall be required of all persons who have been
32issued a permit or license under this subchapter and shall
33cover actual operation and fuel consumption in Iowa on the
34basis of the permit or license holder’s average consumption
35of fuel in Iowa, determined by the total miles traveled and
-19-1the total fuel purchased and consumed for highway use by the
2permittee’s or licensee’s commercial motor vehicles in the
3permittee’s or licensee’s entire operation in all states to
4establish an overall miles per gallon ratio or miles per
5kilowatt hour ratio, which ratio shall be used to compute the
6gallons or kilowatt hours used for the miles traveled in Iowa.
7Failure to receive a quarterly report or fuel credentials by
8mail, facsimile transmission, or any other means of delivery
9does not relieve a person from the person’s fuel tax liability
10or from the requirement to display current fuel credentials.
11 Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code
122019, are amended to read as follows:
133. “Commercial motor vehicle” means a passenger vehicle
14that has seats for more than nine passengers in addition to
15the driver, any road tractor, any truck tractor, or any truck
16having two or more axles which passenger vehicle, road tractor,
17truck tractor, or truck is propelled on the public highways
18by either motor fuel, or special fuel, or electric fuel.
19“Commercial motor vehicle” does not include a motor truck with a
20combined gross weight of less than twenty-six thousand pounds,
21operated as a part of an identifiable one-way fleet and which
22is leased for less than thirty days to a lessee for the purpose
23of moving property which is not owned by the lessor.
245. “Fuel taxes” means the per gallon and per kilowatt excise
25taxes imposed under subchapters I and III of this chapter, and
26section 452A.41, with respect to motor fuel, and undyed special
27fuel, and electric fuel.
288. “Motor vehicle” shall mean and include all vehicles,
29except those operated on rails, which are propelled by internal
30combustion engines or electric motors and are of such design as
31to permit their mobile use on public highways for transporting
32persons or property. A farm tractor while operated on a farm
33or for the purpose of hauling farm machinery, equipment, or
34produce shall not be deemed to be a motor vehicle. “Motor
35vehicle” shall not include “mobile machinery and equipment” as
-20-1defined in this section.
2 Sec. 32. Section 452A.58, subsection 2, Code 2019, is
3amended to read as follows:
42. A lessor of a commercial motor vehicle shall be deemed
5a carrier with respect to such vehicles leased to others by
6the lessor and motor fuel, or special fuel, or electric fuel
7 consumed thereby if the lessor supplies or pays for the motor
8fuel, or special fuel, or electric fuel consumed by such
9vehicle or makes rental or other charges calculated to include
10the cost of such fuel.
11 Sec. 33. Section 452A.59, Code 2019, is amended to read as
12follows:
13452A.59 Administrative rules.
14The department of revenue and the state department
15of transportation are authorized and empowered to adopt
16rules under chapter 17A, relating to the administration
17and enforcement of this chapter as deemed necessary by the
18departments. However, when in the opinion of the director
19it is necessary for the efficient administration of this
20chapter, the director may regard persons in possession of motor
21fuel, special fuel, biofuel, alcohol, or alcohol derivative
22substances as blenders, dealers, eligible purchasers,
23exporters, importers, restrictive suppliers, suppliers,
24terminal operators, or nonterminal storage facility operators,
25or persons in possession of electric fuel as electric fuel
26dealers or users.
27 Sec. 34. Section 452A.60, subsection 1, Code 2019, is
28amended to read as follows:
291. The department of revenue or the state department of
30transportation shall prescribe and furnish all forms, as
31applicable, upon which reports, returns, and applications shall
32be made and claims for refund presented under this chapter
33and may prescribe forms of record to be kept by suppliers,
34restrictive suppliers, importers, exporters, blenders, common
35carriers, contract carriers, licensed compressed natural gas,
-21-1liquefied natural gas, and liquefied petroleum gas dealers
2and users, licensed electric fuel dealers and users, terminal
3operators, nonterminal storage facility operations, and
4interstate commercial motor vehicle operators.
5 Sec. 35. Section 452A.62, subsection 1, paragraph a, Code
62019, is amended by adding the following new subparagraph:
7 NEW SUBPARAGRAPH. (5) A licensed electric fuel dealer or
8user or person supplying electric fuel to a licensed electric
9fuel dealer or user.
10 Sec. 36. Section 452A.62, subsection 1, paragraph b, Code
112019, is amended to read as follows:
12b. To examine the records, books, papers, receipts, and
13invoices of any distributor, supplier, restrictive supplier,
14importer, blender, exporter, terminal operator, nonterminal
15storage facility, licensed compressed natural gas, liquefied
16natural gas, or liquefied petroleum gas dealer or user,
17licensed electric fuel dealer or user, or any other person
18who possesses fuel upon which the tax has not been paid to
19determine financial responsibility for the payment of the taxes
20imposed by this chapter.
21 Sec. 37. Section 452A.63, subsection 1, Code 2019, is
22amended to read as follows:
231. All information obtained by the department of revenue or
24the state department of transportation from the examining of
25reports, returns, or records required to be filed or kept under
26this chapter shall be treated as confidential and shall not be
27divulged except to other state officers, a member or members of
28the general assembly, or any duly appointed committee of either
29or both houses of the general assembly, or to a representative
30of the state having some responsibility in connection with the
31collection of the taxes imposed or in proceedings brought under
32this chapter. The appropriate state agency may make available
33to the public on or before forty-five days following the last
34day of the month in which the tax is required to be paid, the
35names of suppliers, restrictive suppliers, and importers and as
-22-1to each of them the total gallons of motor fuel, undyed special
2fuel, and ethanol blended gasoline withdrawn from terminals
3or imported into the state during that month. The department
4of revenue or the state department of transportation, upon
5request of officials entrusted with enforcement of the motor
6fuel tax laws of the federal government or any other state, may
7forward to these officials any pertinent information which the
8appropriate state agency may have relative to motor fuel, and
9 special fuel, and electric fuel, provided the officials of the
10other state furnish like information.
11 Sec. 38. Section 452A.73, Code 2019, is amended to read as
12follows:
13452A.73 Embezzlement of fuel tax money — penalty.
14Every sale of motor fuel in this state, and every sale
15of undyed special fuel dispensed by the seller into a fuel
16supply tank of a motor vehicle, and every sale of electric
17fuel dispensed by the seller into the battery or other energy
18storage device of an electric motor vehicle shall, unless
19otherwise provided, be presumed to include as a part of the
20purchase price the fuel tax due the state of Iowa under the
21provisions of this chapter. Every person collecting fuel tax
22money as part of the selling price of motor fuel, or undyed
23special fuel, or electric fuel shall hold the tax money in
24trust for the state of Iowa unless the fuel tax on the fuel
25has been previously paid to the state of Iowa. Any person
26receiving fuel tax money in trust and failing to remit it to
27the department of revenue on or before time required shall be
28guilty of theft.
29 Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and
30f, Code 2019, are amended to read as follows:
31c. For any seller to issue or any purchaser to receive
32and retain any incorrect or false invoice or sales ticket in
33connection with the sale or purchase of motor fuel, or undyed
34special fuel, or electric fuel.
35e. For any person to act as a supplier, restrictive
-23-1supplier, importer, exporter, blender, or compressed natural
2gas, liquefied natural gas, or liquefied petroleum gas dealer
3or user, or electric fuel dealer or user without the required
4license.
5f. For any person to use motor fuel, undyed special fuel,
6or dyed special fuel in the fuel supply tank of a vehicle, or
7electric fuel in the battery or other energy storage device of
8an electric vehicle, with respect to which the person knowingly
9has not paid or had charged to the person’s account with a
10distributor or dealer, or with respect to which the person does
11not, within the time required in this chapter, report and pay
12the applicable fuel tax.
13 Sec. 40. Section 452A.74, subsection 1, Code 2019, is
14amended by adding the following new paragraph:
15 NEW PARAGRAPH. h. For any licensed electric fuel dealer or
16user to dispense electric fuel into the battery or other energy
17storage device of any electric motor vehicle without collecting
18the fuel tax.
19 Sec. 41. Section 452A.76, subsection 2, Code 2019, is
20amended to read as follows:
212. Authority is given to the department of revenue,
22the state department of transportation, the department of
23public safety, and any peace officer as requested by such
24departments to enforce the provisions of subchapter I, sections
25452A.40 through 452A.44, and this subchapter of this chapter.
26The department of revenue shall adopt rules providing for
27enforcement under subchapter I and this subchapter of this
28chapter regarding the use of motor fuel or special fuel in
29implements of husbandry. Enforcement personnel or requested
30peace officers are authorized to stop a conveyance suspected
31to be illegally transporting motor fuel or special fuel on
32the highways, to investigate the cargo, and also have the
33authority to inspect or test the fuel in the supply tank of a
34conveyance to determine if legal fuel is being used to power
35the conveyance. The operator of any vehicle transporting
-24-1motor fuel or special fuel shall, upon request, produce and
2offer for inspection the manifest or loading and delivery
3invoices pertaining to the load and trip in question and shall
4permit the authority to inspect and measure the contents of
5the vehicle. If the vehicle operator fails to produce the
6evidence or if, when produced, the evidence fails to contain
7the required information and it appears that there is an
8attempt to evade payment of the fuel tax, the vehicle operator
9will be subject to the penalty provisions contained in section
10452A.74A.
11 Sec. 42. Section 452A.78, Code 2019, is amended to read as
12follows:
13452A.78 Other remedies available.
14The special remedies provided under the provisions of this
15chapter to enable the state to collect motor a fuel excise tax
16imposed by this chapter shall not be construed as depriving the
17state of any other remedy it might have either at law or in
18equity independent of this chapter. The state shall have the
19right to maintain an action at law for the collection of said
20taxes required to be paid herein and in connection therewith
21shall be entitled to a writ of attachment without bond.
22 Sec. 43. Section 452A.79, Code 2019, is amended to read as
23follows:
24452A.79 Use of revenue.
25Except as provided in sections 452A.79A, 452A.82, and
26452A.84, the net proceeds of the excise tax on the diesel
27special fuel, and the excise tax on motor fuel and other
28special fuel, the excise tax on electric fuel, and penalties
29collected under the provision of this chapter, shall be
30credited to the road use tax fund.
31 Sec. 44. Section 452A.80, Code 2019, is amended to read as
32follows:
33452A.80 Microfilm or photographic copies — originals
34destroyed.
35The appropriate state agency shall have the power and
-25-1authority to record, copy, or reproduce by any photographic,
2photostatic, microfilm, microcard, miniature photographic,
3or other process which accurately reproduces or forms a
4durable medium for so reproducing the original of any forms
5or records pertaining to motor a fuel tax or undyed special
6fuel tax imposed by this chapter, or any paper or document with
7respect to refund of the tax. If the forms and records have
8been reproduced in accordance with this section, the state
9agency may destroy the originals and the reproductions shall
10be competent evidence in any court in accordance with the
11provision of section 622.30.
12 Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall
13designate sections 452A.40 through 452A.44, as enacted by
14this division of this Act, as a new subchapter within chapter
15452A, and may redesignate the new and preexisting subchapters,
16replace references to sections 452A.40 through 452A.44
17with references to the new subchapter, and correct internal
18references as necessary, including references in subchapter
19headnotes.
20 Sec. 46. EFFECTIVE DATE. This division of this Act takes
21effect July 1, 2023.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill relates to motor vehicle taxes and fees.
26DIVISION I — REGISTRATION FEES FOR ELECTRIC VEHICLES.
27 Under current law, Code section 321.109(1)(a) provides that all
28motor vehicles including vehicles designated by manufacturers
29as station wagons, 1993 and subsequent model year multipurpose
30vehicles, and 2010 and subsequent model year motor trucks
31with an unladen weight of 10,000 pounds or less, except motor
32trucks registered under Code section 321.122, business-trade
33trucks, special trucks, motor homes, motorsports recreational
34vehicles, ambulances, hearses, autocycles, motorcycles,
35motorized bicycles, and 1992 and older model year multipurpose
-26-1vehicles, are subject to an annual registration fee equal to 1
2percent of the value of the vehicle as fixed by the department
3of transportation (DOT) plus 40 cents for each 100 pounds of
4weight of the vehicle as fixed by the DOT.
5For each battery electric motor vehicle, as defined in the
6bill, subject to an annual registration fee under Code section
7321.109(1)(a), the bill requires the owner to pay an annual
8battery electric motor vehicle registration fee, which is in
9addition to the regular annual registration fee imposed for the
10vehicle. For the period beginning January 1, 2020, and ending
11December 31, 2020, the fee is $65. For the period beginning
12January 1, 2021, and ending December 31, 2021, the fee is
13$97.50. On or after January 1, 2022, the fee is $130.
14For each plug-in hybrid electric motor vehicle, as defined
15in the bill, subject to an annual registration fee under Code
16section 321.109(1)(a), the bill requires the owner to pay an
17annual plug-in hybrid electric motor vehicle registration fee,
18which is in addition to the regular annual registration fee
19imposed for the vehicle. For the period beginning January 1,
202020, and ending December 31, 2020, the fee is $32.50. For the
21period beginning January 1, 2021, and ending December 31, 2021,
22the fee is $48.75. On or after January 1, 2022, the fee is $65.
23Under current law, motorcycles are subject to an annual
24registration fee of $20. However, if a motorcycle is more
25than five model years old, the annual registration fee is $10.
26The bill requires the owner of a motorcycle that is a battery
27electric motor vehicle or plug-in hybrid electric motor vehicle
28to pay an annual electric motorcycle registration fee, which
29is in addition to the regular annual registration fee imposed
30for the motorcycle. For the period beginning January 1, 2020,
31and ending December 31, 2020, the fee is $4.50. For the period
32beginning January 1, 2021, and ending December 31, 2021, the
33fee is $6.75. On or after January 1, 2022, the fee is $9.
34Under Code section 321.17, operating a motor vehicle of a
35type required to be registered which is not registered, or for
-27-1which the appropriate fees have not been paid, is punishable by
2a scheduled fine of $50.
3This division of the bill takes effect January 1, 2020.
4DIVISION II — HYDROGEN FUEL EXCISE TAX. The bill imposes
5an excise tax of 65 cents per gallon on hydrogen used as a
6special fuel in motor vehicles. The bill specifies that a
7diesel gallon equivalent of hydrogen is 2.49 pounds. The
8bill makes corresponding changes to Code chapter 452A (motor
9fuel and special fuel taxes) to ensure that the excise tax
10on hydrogen is collected in the same manner as the existing
11excise taxes on compressed natural gas, liquefied natural
12gas, and liquefied petroleum gas. The bill applies the
13provisions of Code chapter 452A to dealers and users of
14hydrogen, including but not limited to provisions relating to
15license requirements, reporting and filing requirements, record
16retention requirements and audits, refunds, the interstate fuel
17use tax, the inventory tax, and a variety of unlawful acts that
18may result in a conviction for theft or fraudulent practice,
19including but not limited to those listed in Code sections
20452A.73, 452A.74, 452A.74A, and 452A.75. In accordance with
21Article VII, section 8, of the Iowa Constitution and Code
22section 452A.79, revenues from the excise tax on hydrogen used
23as a special fuel in motor vehicles are credited to the road
24use tax fund.
25By operation of law, Code section 321.40(9) provides that
26a person who owns or controls a vehicle that uses hydrogen
27will be issued a special fuel user identification sticker by
28the county treasurer, and the person must place the sticker
29adjacent to the place where the special fuel is delivered into
30the vehicle fuel supply tank. Under Code section 312.2(9),
311.75 cents per gallon from the excise tax on hydrogen will be
32deposited in the revitalize Iowa’s sound economy fund. Under
33Code section 312.2(10), .25 cents per gallon from the excise
34tax on hydrogen will be deposited in the secondary road fund.
35The provisions of Code chapter 323 (dealer and distributor
-28-1franchises for motor fuel and special fuel) apply to dealers
2and distributors that sell hydrogen used as a special fuel.
3Hydrogen used as a special fuel is excluded from the sales and
4use tax under Code section 423.2(56) and the local sales and
5services tax under Code section 423B.5(1).
6The bill does not amend Code chapter 476C, which authorizes
7a renewable energy fuel tax credit for producers and purchasers
8of hydrogen fuel. The bill also does not amend Code section
9216B.3 (department for the blind), 260C.19A (community
10colleges), 262.25A (board of regents), 307.21 (department of
11transportation), or 904.312A (department of corrections), which
12require that 10 percent of motor vehicles purchased by such
13entities be equipped with engines which utilize alternative
14methods of propulsion, including electricity but not including
15hydrogen.
16This division of the bill takes effect January 1, 2020.
17DIVISION III — ELECTRIC FUEL EXCISE TAX. The bill provides
18that electric fuel means electrical energy delivered or placed
19into the battery or other energy storage device of an electric
20motor vehicle from a source outside the motor vehicle for
21purposes of propelling the motor vehicle. The bill imposes an
22excise tax of 2.6 cents on each kilowatt hour of electric fuel
23delivered or placed into the battery or other energy storage
24device of an electric motor vehicle at a location in this state
25other than a residence. The tax attaches at the time of the
26delivery by a dealer and must be paid by the dealer to the Iowa
27department of revenue (IDR). Alternatively, the tax attaches
28at the time of use by a licensed electric fuel user and must be
29paid by the user to IDR.
30All charging stations located at dealer and user locations
31through which electric fuel can be dispensed may be required to
32be tested for accuracy.
33For the purpose of determining the amount of liability
34for the electric fuel tax, each dealer and user must file
35with IDR a biannual tax return certified under penalties
-29-1for false certification. After January 1, 2026, IDR may
2require quarterly returns. The return must be accompanied by
3remittance in the amount of the tax due for the determination
4period in which the fuel was placed into the batteries or other
5energy storage devices of electric motor vehicles. The bill
6specifies that moneys collected by a licensed electric fuel
7dealer or user for the excise tax are deemed to be held in trust
8for the state of Iowa. A public utility is not required to
9collect the tax or install a separate meter unless the public
10utility is a licensed electric fuel dealer or user.
11The bill prohibits a person from selling or dispensing
12electric fuel within this state at a location other than a
13residence or from otherwise acting as a licensed electric fuel
14dealer or user unless the person holds an uncanceled license
15issued by IDR. The bill specifies the application requirements
16for a license, and provides for grounds under which IDR may
17deny the issuance of a license. Licensed electric fuel dealers
18and users are not subject to control, oversight, or regulation
19by the Iowa utilities board in their capacities as dealers and
20users.
21The bill requires a licensed electric fuel dealer or user
22to maintain, for a period of three years, records of all
23transactions by which the dealer or user dispenses electric
24fuel into the batteries or other energy storage devices of
25electric motor vehicles, including pertinent records and papers
26as required by IDR. After an audit and examination of such
27records, IDR may authorize their disposal upon the written
28request of the dealer or user.
29The bill provides that a person who uses electric fuel for
30any of the nontaxable purposes set forth under current law for
31motor fuel and undyed special fuel, who has paid the electric
32fuel tax and who has a refund permit, upon presentation to and
33approval by IDR of a claim for refund, must be reimbursed and
34repaid the amount of the tax which the claimant has paid on
35the kilowatt hours so used. Such refunds are subject to the
-30-1limitations and requirements set forth under current law for
2refunds of the tax on motor fuel and undyed special fuel. The
3bill prohibits a person from claiming a refund until the person
4has obtained a refund permit from IDR meeting the requirements
5set forth under current law.
6The bill makes corresponding changes to Code chapter
7452A, including provisions of the interstate fuel use tax
8law. In accordance with Article VII, section 8, of the Iowa
9Constitution and Code section 452A.79, revenues from the excise
10tax on electric fuel are credited to the road use tax fund. The
11bill provides that 0.15 cents per kilowatt hour of the excise
12tax must be credited to the revitalize Iowa’s sound economy
13fund, and 0.02 cents per kilowatt hour of the excise tax must
14be credited to the secondary road fund, in accordance with
15similar provisions for other types of fuel. In addition, the
16bill exempts electric fuel from the state sales and use tax and
17local option taxes.
18This division of the bill takes effect July 1, 2023.
-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 owns an electric vehicle charging station
27that dispenses electric fuel, upon which the electric fuel tax
28has not been previously paid, for highway use into the battery
29or other energy storage device of an electric motor vehicle in
30this state at a location other than a residence.
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 paid to the department by
19the licensed electric fuel dealer in a manner prescribed by
20the department. The tax for electric fuel used by a licensed
21electric fuel user shall attach at the time of the use of
22the fuel and shall be paid to the department by the licensed
23electric fuel user in a manner prescribed by the department.
243. The department shall adopt rules governing the
25dispensing of electric fuel by licensed dealers and users. The
26director may require by rule that reports and returns be filed
27by electronic transmission. The department may require by rule
28that all charging stations located at dealer and user locations
29through which electric fuel can be dispensed be tested for
30accuracy.
314. a. For the purpose of determining the amount of
32liability for the electric fuel tax, each dealer and user shall
33file with the department not later than July 31 for the period
34beginning January 1 and ending June 30, and not later than
35January 30 for the period beginning July 1 and ending December
-12-130, a biannual tax return certified under penalties for false
2certification. The return shall show, with reference to each
3location at which fuel is delivered or placed by the dealer or
4user into the battery or other energy storage device of any
5electric motor vehicle during the next preceding six calendar
6months, information as required by the department. On and
7after January 1, 2026, the department may require by rule that
8such tax returns be filed quarterly.
9b. The amount of tax due shall be computed by multiplying
10the appropriate tax rate per kilowatt hour by the number of
11kilowatt hours of electric fuel delivered or placed by the
12dealer or user into the batteries or other energy storage
13devices of electric motor vehicles.
14c. The return shall be accompanied by remittance in the
15amount of the tax due for the determination period in which
16the fuel was placed into the batteries or other energy storage
17devices of electric motor vehicles.
185. Moneys collected under this subchapter by a licensed
19electric fuel dealer or user are deemed to be held in trust for
20the state of Iowa.
216. This subchapter shall not be construed to require a
22public utility, as defined in section 476.1, to collect the
23excise tax on electric fuel or to install a separate electric
24utility meter or otherwise use utility equipment for purposes
25related to the excise tax on electric fuel, unless the public
26utility is a licensed electric fuel dealer or licensed electric
27fuel user.
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.
34The holder of an electric fuel dealer’s license is authorized
35to sell and dispense electric fuel, measured in kilowatt hours,
-13-1to consumers. The holder of an electric fuel user’s license
2is authorized to dispense electric fuel, measured in kilowatt
3hours, into the batteries or other energy storage devices of
4electric motor vehicles owned or controlled by the holder.
5Notwithstanding chapter 476 or any other provision of law to
6the contrary, a licensed electric fuel dealer or a licensed
7electric fuel user is not subject to control, oversight, or
8regulation by the Iowa utilities board for actions performed by
9the dealer or user in its capacity as a licensed electric fuel
10dealer or licensed electric fuel user.
112. To procure a license, a person shall file with the
12department an application signed under penalty for false
13certificate setting forth all of the following:
14a. The name under which the licensee will transact business
15in this state.
16b. The location, with street number address, of the
17principal office or place of business of the licensee within
18this state.
19c. The name and complete residence address of the owner
20or the names and addresses of the partners, if the licensee
21is a partnership, or the names and addresses of the principal
22officers, if the licensee is a corporation or association.
233. A dealer’s or user’s license shall be required for each
24separate place of business or location, other than a residence,
25where electric fuel is delivered or placed into the battery or
26other energy storage device of an electric motor vehicle.
274. a. The department may deny the issuance of a license to
28an applicant who is substantially delinquent in the payment of
29a tax due, or the interest or penalty on the tax, administered
30by the department. If the applicant is a partnership, a
31license may be denied if a partner owes any delinquent tax,
32interest, or penalty. If the applicant is a corporation, a
33license may be denied if any officer having a substantial legal
34or equitable interest in the ownership of the corporation owes
35any delinquent tax, interest, or penalty of the applicant
-14-1corporation.
2b. The department may deny the issuance of a license if
3an application for a license to transact business as a dealer
4or user in this state is filed by a person whose license or
5registration has been canceled for cause at any time under the
6provisions of this chapter or any prior motor fuel tax law, if
7the department has reason to believe that the application is
8not filed in good faith, or if the application is filed by some
9person as a subterfuge for the real person in interest whose
10license or registration has been canceled for cause under the
11provisions of this chapter or any prior motor fuel tax law.
12The applicant shall be given fifteen days’ notice in writing of
13the date of the hearing and shall have the right to appear in
14person or by counsel and present testimony.
155. a. The application in proper form having been accepted
16for filing, and the other conditions and requirements of this
17section and subchapter IV having been complied with, the
18department shall issue to the applicant a license to transact
19business as an electric fuel dealer or user in this state. The
20license shall remain in full force and effect until canceled as
21provided in this chapter.
22b. The license shall not be assignable and shall be valid
23only for the licensee in whose name it is issued.
24c. The department shall keep and file all applications and
25bonds and a record of all licensees.
26 Sec. 26. NEW SECTION. 452A.43 Records.
271. A licensed electric fuel dealer or user shall maintain,
28for a period of three years, records of all transactions by
29which the dealer or user dispenses electric fuel into the
30batteries or other energy storage devices of electric motor
31vehicles, including pertinent records and papers as required
32by the department.
332. If in the normal conduct of a dealer’s or user’s business
34the records are maintained and kept at an office outside this
35state, the records shall be made available for audit and
-15-1examination by the department at the office outside this state,
2but the audit and examination shall be without expense to this
3state.
43. The department, after an audit and examination of records
5required to be maintained under this section, may authorize
6their disposal upon the written request of the dealer or user.
7 Sec. 27. NEW SECTION. 452A.44 Refunds.
81. A person who uses electric fuel for any of the nontaxable
9purposes set forth in section 452A.17, subsection 1, paragraph
10“a”, for motor fuel and undyed special fuel, and who has paid
11the electric fuel tax either directly to the department or by
12having the tax added to the price of the fuel, and who has
13a refund permit, upon presentation to and approval by the
14department of a claim for refund, subject to the conditions set
15forth in section 452A.17, subsection 1, paragraph “b”, shall be
16reimbursed and repaid the amount of the tax which the claimant
17has paid on the kilowatt hours so used, except that the amount
18of a refund payable may be applied by the department against
19any tax liability outstanding on the books of the department
20against the claimant. Refunds under this section are subject
21to the limitations and requirements set forth in section
22452A.17, subsection 3, for motor fuel and undyed special fuel
23refunds.
242. A person shall not claim a refund under this section
25until the person has obtained a refund permit meeting the
26requirements of section 452A.18 from the department. The
27department may revoke a refund permit pursuant to section
28452A.19.
293. Tax collected on electric fuel that is not taxable, or
30tax collected in excess of the actual amount of tax due, is
31subject to section 452A.22.
32 Sec. 28. Section 452A.52, Code 2019, is amended to read as
33follows:
34452A.52 Fuels imported in supply tanks of motor vehicles —
35 applicability.
-16- 11. a. No A person shall not bring into this state in
2the fuel supply tanks of a commercial motor vehicle, or any
3other container, regardless of whether or not the supply tanks
4are connected to the motor of the vehicle, any motor fuel or
5special fuel to be used in the operation of the vehicle in
6this state unless that person has paid or made arrangements in
7advance with the state department of transportation for payment
8of Iowa fuel taxes on the gallonage consumed in operating the
9vehicle in this state; except that this subchapter shall not
10apply to a private passenger automobile.
11b. A person shall not bring into this state in the batteries
12or other energy storage devices of a commercial motor vehicle,
13or any other energy storage device, regardless of whether the
14batteries or storage devices are connected to the motor of
15the vehicle, any electric fuel to be used in the operation
16of the vehicle in this state unless that person has paid or
17made arrangements in advance with the state department of
18transportation for payment of Iowa fuel taxes on the kilowatt
19hours consumed in operating the vehicle in this state.
202. Any person who is unable to display either of the
21permits or the license provided in section 452A.53 and brings
22into the state in the fuel supply tanks of a commercial motor
23vehicle more than thirty gallons of motor fuel or special fuel,
24or brings into the state in the batteries or other energy
25storage devices of a commercial motor vehicle more than three
26hundred fifty kilowatt hours of electric fuel, in violation
27of subsection 1 commits a simple misdemeanor punishable as
28a scheduled violation under section 805.8A, subsection 13,
29paragraph “c”.
303. This subchapter shall not apply to a private passenger
31automobile.
32 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code
332019, are amended to read as follows:
342. Persons choosing not to make advance arrangements with
35the state department of transportation by procuring a permit or
-17-1license are not relieved of their responsibility to purchase
2motor fuel, and special fuel, and electric fuel commensurate
3with their use of the state’s highway system. When there
4is reasonable cause to believe that there is evasion of the
5fuel tax on commercial motor vehicles, the state department
6of transportation may audit persons not holding a permit
7or license. Audits shall be conducted pursuant to section
8452A.55 and in accordance with international fuel tax agreement
9guidelines. The state department of transportation shall
10collect all taxes due and refund any overpayment.
113. A permanent international fuel tax agreement permit
12or license may be obtained upon application to the state
13department of transportation. A fee of ten dollars shall be
14charged for each permit or license issued. The holder of
15a permanent permit or license shall have the privilege of
16bringing into this state in the fuel supply tanks of commercial
17motor vehicles any amount of motor fuel or special fuel, or in
18the batteries or other energy storage devices of commercial
19motor vehicles any amount of electric fuel, to be used in the
20operation of the vehicles and for that privilege shall pay
21Iowa motor fuel or special fuel taxes as provided in section
22452A.54.
235. Each vehicle operated into or through Iowa in interstate
24operations using motor fuel, or special fuel, or electric fuel
25 acquired in any other state shall carry in or on the vehicle a
26duplicate or evidence of the permit or license required in this
27section. A fee not to exceed fifty cents shall be charged for
28each duplicate or other evidence of a permit or license issued.
29 Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code
302019, are amended to read as follows:
311. Fuel tax liability under this subchapter shall be
32computed on the total number of gallons of each kind of
33motor fuel and special fuel, and the total number of kilowatt
34hours of electric fuel, consumed in the operation in Iowa by
35commercial motor vehicles subject to this subchapter at the
-18-1same rate for each kind of fuel as would be applicable if taxed
2under subchapter I of this chapter and section 452A.41. A
3refund against the fuel tax liability so computed shall be
4allowed, on excess Iowa motor fuel purchased, in the amount
5of fuel tax paid at the prevailing rate per gallon set out
6under subchapter I of this chapter on motor fuel and special
7fuel, and rate per kilowatt hour set out under section 452A.41
8on electric fuel, consumed by commercial motor vehicles, the
9operation of which is subject to this subchapter.
102. Notwithstanding any provision of this chapter to the
11contrary, except as provided in this section, the holder of a
12permanent international fuel tax agreement permit or license
13may make application to the state department of transportation
14for a refund, not later than the last day of the third month
15following the quarter in which the overpayment of Iowa fuel
16tax paid on excess purchases of motor fuel or special fuel
17was reported as provided in section 452A.8, or electric
18fuel was reported as provided in section 452A.41, and which
19application is supported by such proof as the state department
20of transportation may require. The state department of
21transportation shall refund Iowa fuel tax paid on motor fuel,
22 or special fuel, or electric fuel purchased in excess of the
23amount consumed by such commercial motor vehicles in their
24operation on the highways of this state.
254. To determine the amount of fuel taxes due under this
26subchapter and to prevent the evasion thereof, the state
27department of transportation shall require a quarterly report
28on forms prescribed by the state department of transportation.
29It shall be filed not later than the last day of the month
30following the quarter reported, and each quarter thereafter.
31These reports shall be required of all persons who have been
32issued a permit or license under this subchapter and shall
33cover actual operation and fuel consumption in Iowa on the
34basis of the permit or license holder’s average consumption
35of fuel in Iowa, determined by the total miles traveled and
-19-1the total fuel purchased and consumed for highway use by the
2permittee’s or licensee’s commercial motor vehicles in the
3permittee’s or licensee’s entire operation in all states to
4establish an overall miles per gallon ratio or miles per
5kilowatt hour ratio, which ratio shall be used to compute the
6gallons or kilowatt hours used for the miles traveled in Iowa.
7Failure to receive a quarterly report or fuel credentials by
8mail, facsimile transmission, or any other means of delivery
9does not relieve a person from the person’s fuel tax liability
10or from the requirement to display current fuel credentials.
11 Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code
122019, are amended to read as follows:
133. “Commercial motor vehicle” means a passenger vehicle
14that has seats for more than nine passengers in addition to
15the driver, any road tractor, any truck tractor, or any truck
16having two or more axles which passenger vehicle, road tractor,
17truck tractor, or truck is propelled on the public highways
18by either motor fuel, or special fuel, or electric fuel.
19“Commercial motor vehicle” does not include a motor truck with a
20combined gross weight of less than twenty-six thousand pounds,
21operated as a part of an identifiable one-way fleet and which
22is leased for less than thirty days to a lessee for the purpose
23of moving property which is not owned by the lessor.
245. “Fuel taxes” means the per gallon and per kilowatt excise
25taxes imposed under subchapters I and III of this chapter, and
26section 452A.41, with respect to motor fuel, and undyed special
27fuel, and electric fuel.
288. “Motor vehicle” shall mean and include all vehicles,
29except those operated on rails, which are propelled by internal
30combustion engines or electric motors and are of such design as
31to permit their mobile use on public highways for transporting
32persons or property. A farm tractor while operated on a farm
33or for the purpose of hauling farm machinery, equipment, or
34produce shall not be deemed to be a motor vehicle. “Motor
35vehicle” shall not include “mobile machinery and equipment” as
-20-1defined in this section.
2 Sec. 32. Section 452A.58, subsection 2, Code 2019, is
3amended to read as follows:
42. A lessor of a commercial motor vehicle shall be deemed
5a carrier with respect to such vehicles leased to others by
6the lessor and motor fuel, or special fuel, or electric fuel
7 consumed thereby if the lessor supplies or pays for the motor
8fuel, or special fuel, or electric fuel consumed by such
9vehicle or makes rental or other charges calculated to include
10the cost of such fuel.
11 Sec. 33. Section 452A.59, Code 2019, is amended to read as
12follows:
13452A.59 Administrative rules.
14The department of revenue and the state department
15of transportation are authorized and empowered to adopt
16rules under chapter 17A, relating to the administration
17and enforcement of this chapter as deemed necessary by the
18departments. However, when in the opinion of the director
19it is necessary for the efficient administration of this
20chapter, the director may regard persons in possession of motor
21fuel, special fuel, biofuel, alcohol, or alcohol derivative
22substances as blenders, dealers, eligible purchasers,
23exporters, importers, restrictive suppliers, suppliers,
24terminal operators, or nonterminal storage facility operators,
25or persons in possession of electric fuel as electric fuel
26dealers or users.
27 Sec. 34. Section 452A.60, subsection 1, Code 2019, is
28amended to read as follows:
291. The department of revenue or the state department of
30transportation shall prescribe and furnish all forms, as
31applicable, upon which reports, returns, and applications shall
32be made and claims for refund presented under this chapter
33and may prescribe forms of record to be kept by suppliers,
34restrictive suppliers, importers, exporters, blenders, common
35carriers, contract carriers, licensed compressed natural gas,
-21-1liquefied natural gas, and liquefied petroleum gas dealers
2and users, licensed electric fuel dealers and users, terminal
3operators, nonterminal storage facility operations, and
4interstate commercial motor vehicle operators.
5 Sec. 35. Section 452A.62, subsection 1, paragraph a, Code
62019, is amended by adding the following new subparagraph:
7 NEW SUBPARAGRAPH. (5) A licensed electric fuel dealer or
8user or person supplying electric fuel to a licensed electric
9fuel dealer or user.
10 Sec. 36. Section 452A.62, subsection 1, paragraph b, Code
112019, is amended to read as follows:
12b. To examine the records, books, papers, receipts, and
13invoices of any distributor, supplier, restrictive supplier,
14importer, blender, exporter, terminal operator, nonterminal
15storage facility, licensed compressed natural gas, liquefied
16natural gas, or liquefied petroleum gas dealer or user,
17licensed electric fuel dealer or user, or any other person
18who possesses fuel upon which the tax has not been paid to
19determine financial responsibility for the payment of the taxes
20imposed by this chapter.
21 Sec. 37. Section 452A.63, subsection 1, Code 2019, is
22amended to read as follows:
231. All information obtained by the department of revenue or
24the state department of transportation from the examining of
25reports, returns, or records required to be filed or kept under
26this chapter shall be treated as confidential and shall not be
27divulged except to other state officers, a member or members of
28the general assembly, or any duly appointed committee of either
29or both houses of the general assembly, or to a representative
30of the state having some responsibility in connection with the
31collection of the taxes imposed or in proceedings brought under
32this chapter. The appropriate state agency may make available
33to the public on or before forty-five days following the last
34day of the month in which the tax is required to be paid, the
35names of suppliers, restrictive suppliers, and importers and as
-22-1to each of them the total gallons of motor fuel, undyed special
2fuel, and ethanol blended gasoline withdrawn from terminals
3or imported into the state during that month. The department
4of revenue or the state department of transportation, upon
5request of officials entrusted with enforcement of the motor
6fuel tax laws of the federal government or any other state, may
7forward to these officials any pertinent information which the
8appropriate state agency may have relative to motor fuel, and
9 special fuel, and electric fuel, provided the officials of the
10other state furnish like information.
11 Sec. 38. Section 452A.73, Code 2019, is amended to read as
12follows:
13452A.73 Embezzlement of fuel tax money — penalty.
14Every sale of motor fuel in this state, and every sale
15of undyed special fuel dispensed by the seller into a fuel
16supply tank of a motor vehicle, and every sale of electric
17fuel dispensed by the seller into the battery or other energy
18storage device of an electric motor vehicle shall, unless
19otherwise provided, be presumed to include as a part of the
20purchase price the fuel tax due the state of Iowa under the
21provisions of this chapter. Every person collecting fuel tax
22money as part of the selling price of motor fuel, or undyed
23special fuel, or electric fuel shall hold the tax money in
24trust for the state of Iowa unless the fuel tax on the fuel
25has been previously paid to the state of Iowa. Any person
26receiving fuel tax money in trust and failing to remit it to
27the department of revenue on or before time required shall be
28guilty of theft.
29 Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and
30f, Code 2019, are amended to read as follows:
31c. For any seller to issue or any purchaser to receive
32and retain any incorrect or false invoice or sales ticket in
33connection with the sale or purchase of motor fuel, or undyed
34special fuel, or electric fuel.
35e. For any person to act as a supplier, restrictive
-23-1supplier, importer, exporter, blender, or compressed natural
2gas, liquefied natural gas, or liquefied petroleum gas dealer
3or user, or electric fuel dealer or user without the required
4license.
5f. For any person to use motor fuel, undyed special fuel,
6or dyed special fuel in the fuel supply tank of a vehicle, or
7electric fuel in the battery or other energy storage device of
8an electric vehicle, with respect to which the person knowingly
9has not paid or had charged to the person’s account with a
10distributor or dealer, or with respect to which the person does
11not, within the time required in this chapter, report and pay
12the applicable fuel tax.
13 Sec. 40. Section 452A.74, subsection 1, Code 2019, is
14amended by adding the following new paragraph:
15 NEW PARAGRAPH. h. For any licensed electric fuel dealer or
16user to dispense electric fuel into the battery or other energy
17storage device of any electric motor vehicle without collecting
18the fuel tax.
19 Sec. 41. Section 452A.76, subsection 2, Code 2019, is
20amended to read as follows:
212. Authority is given to the department of revenue,
22the state department of transportation, the department of
23public safety, and any peace officer as requested by such
24departments to enforce the provisions of subchapter I, sections
25452A.40 through 452A.44, and this subchapter of this chapter.
26The department of revenue shall adopt rules providing for
27enforcement under subchapter I and this subchapter of this
28chapter regarding the use of motor fuel or special fuel in
29implements of husbandry. Enforcement personnel or requested
30peace officers are authorized to stop a conveyance suspected
31to be illegally transporting motor fuel or special fuel on
32the highways, to investigate the cargo, and also have the
33authority to inspect or test the fuel in the supply tank of a
34conveyance to determine if legal fuel is being used to power
35the conveyance. The operator of any vehicle transporting
-24-1motor fuel or special fuel shall, upon request, produce and
2offer for inspection the manifest or loading and delivery
3invoices pertaining to the load and trip in question and shall
4permit the authority to inspect and measure the contents of
5the vehicle. If the vehicle operator fails to produce the
6evidence or if, when produced, the evidence fails to contain
7the required information and it appears that there is an
8attempt to evade payment of the fuel tax, the vehicle operator
9will be subject to the penalty provisions contained in section
10452A.74A.
11 Sec. 42. Section 452A.78, Code 2019, is amended to read as
12follows:
13452A.78 Other remedies available.
14The special remedies provided under the provisions of this
15chapter to enable the state to collect motor a fuel excise tax
16imposed by this chapter shall not be construed as depriving the
17state of any other remedy it might have either at law or in
18equity independent of this chapter. The state shall have the
19right to maintain an action at law for the collection of said
20taxes required to be paid herein and in connection therewith
21shall be entitled to a writ of attachment without bond.
22 Sec. 43. Section 452A.79, Code 2019, is amended to read as
23follows:
24452A.79 Use of revenue.
25Except as provided in sections 452A.79A, 452A.82, and
26452A.84, the net proceeds of the excise tax on the diesel
27special fuel, and the excise tax on motor fuel and other
28special fuel, the excise tax on electric fuel, and penalties
29collected under the provision of this chapter, shall be
30credited to the road use tax fund.
31 Sec. 44. Section 452A.80, Code 2019, is amended to read as
32follows:
33452A.80 Microfilm or photographic copies — originals
34destroyed.
35The appropriate state agency shall have the power and
-25-1authority to record, copy, or reproduce by any photographic,
2photostatic, microfilm, microcard, miniature photographic,
3or other process which accurately reproduces or forms a
4durable medium for so reproducing the original of any forms
5or records pertaining to motor a fuel tax or undyed special
6fuel tax imposed by this chapter, or any paper or document with
7respect to refund of the tax. If the forms and records have
8been reproduced in accordance with this section, the state
9agency may destroy the originals and the reproductions shall
10be competent evidence in any court in accordance with the
11provision of section 622.30.
12 Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall
13designate sections 452A.40 through 452A.44, as enacted by
14this division of this Act, as a new subchapter within chapter
15452A, and may redesignate the new and preexisting subchapters,
16replace references to sections 452A.40 through 452A.44
17with references to the new subchapter, and correct internal
18references as necessary, including references in subchapter
19headnotes.
20 Sec. 46. EFFECTIVE DATE. This division of this Act takes
21effect July 1, 2023.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill relates to motor vehicle taxes and fees.
26DIVISION I — REGISTRATION FEES FOR ELECTRIC VEHICLES.
27 Under current law, Code section 321.109(1)(a) provides that all
28motor vehicles including vehicles designated by manufacturers
29as station wagons, 1993 and subsequent model year multipurpose
30vehicles, and 2010 and subsequent model year motor trucks
31with an unladen weight of 10,000 pounds or less, except motor
32trucks registered under Code section 321.122, business-trade
33trucks, special trucks, motor homes, motorsports recreational
34vehicles, ambulances, hearses, autocycles, motorcycles,
35motorized bicycles, and 1992 and older model year multipurpose
-26-1vehicles, are subject to an annual registration fee equal to 1
2percent of the value of the vehicle as fixed by the department
3of transportation (DOT) plus 40 cents for each 100 pounds of
4weight of the vehicle as fixed by the DOT.
5For each battery electric motor vehicle, as defined in the
6bill, subject to an annual registration fee under Code section
7321.109(1)(a), the bill requires the owner to pay an annual
8battery electric motor vehicle registration fee, which is in
9addition to the regular annual registration fee imposed for the
10vehicle. For the period beginning January 1, 2020, and ending
11December 31, 2020, the fee is $65. For the period beginning
12January 1, 2021, and ending December 31, 2021, the fee is
13$97.50. On or after January 1, 2022, the fee is $130.
14For each plug-in hybrid electric motor vehicle, as defined
15in the bill, subject to an annual registration fee under Code
16section 321.109(1)(a), the bill requires the owner to pay an
17annual plug-in hybrid electric motor vehicle registration fee,
18which is in addition to the regular annual registration fee
19imposed for the vehicle. For the period beginning January 1,
202020, and ending December 31, 2020, the fee is $32.50. For the
21period beginning January 1, 2021, and ending December 31, 2021,
22the fee is $48.75. On or after January 1, 2022, the fee is $65.
23Under current law, motorcycles are subject to an annual
24registration fee of $20. However, if a motorcycle is more
25than five model years old, the annual registration fee is $10.
26The bill requires the owner of a motorcycle that is a battery
27electric motor vehicle or plug-in hybrid electric motor vehicle
28to pay an annual electric motorcycle registration fee, which
29is in addition to the regular annual registration fee imposed
30for the motorcycle. For the period beginning January 1, 2020,
31and ending December 31, 2020, the fee is $4.50. For the period
32beginning January 1, 2021, and ending December 31, 2021, the
33fee is $6.75. On or after January 1, 2022, the fee is $9.
34Under Code section 321.17, operating a motor vehicle of a
35type required to be registered which is not registered, or for
-27-1which the appropriate fees have not been paid, is punishable by
2a scheduled fine of $50.
3This division of the bill takes effect January 1, 2020.
4DIVISION II — HYDROGEN FUEL EXCISE TAX. The bill imposes
5an excise tax of 65 cents per gallon on hydrogen used as a
6special fuel in motor vehicles. The bill specifies that a
7diesel gallon equivalent of hydrogen is 2.49 pounds. The
8bill makes corresponding changes to Code chapter 452A (motor
9fuel and special fuel taxes) to ensure that the excise tax
10on hydrogen is collected in the same manner as the existing
11excise taxes on compressed natural gas, liquefied natural
12gas, and liquefied petroleum gas. The bill applies the
13provisions of Code chapter 452A to dealers and users of
14hydrogen, including but not limited to provisions relating to
15license requirements, reporting and filing requirements, record
16retention requirements and audits, refunds, the interstate fuel
17use tax, the inventory tax, and a variety of unlawful acts that
18may result in a conviction for theft or fraudulent practice,
19including but not limited to those listed in Code sections
20452A.73, 452A.74, 452A.74A, and 452A.75. In accordance with
21Article VII, section 8, of the Iowa Constitution and Code
22section 452A.79, revenues from the excise tax on hydrogen used
23as a special fuel in motor vehicles are credited to the road
24use tax fund.
25By operation of law, Code section 321.40(9) provides that
26a person who owns or controls a vehicle that uses hydrogen
27will be issued a special fuel user identification sticker by
28the county treasurer, and the person must place the sticker
29adjacent to the place where the special fuel is delivered into
30the vehicle fuel supply tank. Under Code section 312.2(9),
311.75 cents per gallon from the excise tax on hydrogen will be
32deposited in the revitalize Iowa’s sound economy fund. Under
33Code section 312.2(10), .25 cents per gallon from the excise
34tax on hydrogen will be deposited in the secondary road fund.
35The provisions of Code chapter 323 (dealer and distributor
-28-1franchises for motor fuel and special fuel) apply to dealers
2and distributors that sell hydrogen used as a special fuel.
3Hydrogen used as a special fuel is excluded from the sales and
4use tax under Code section 423.2(56) and the local sales and
5services tax under Code section 423B.5(1).
6The bill does not amend Code chapter 476C, which authorizes
7a renewable energy fuel tax credit for producers and purchasers
8of hydrogen fuel. The bill also does not amend Code section
9216B.3 (department for the blind), 260C.19A (community
10colleges), 262.25A (board of regents), 307.21 (department of
11transportation), or 904.312A (department of corrections), which
12require that 10 percent of motor vehicles purchased by such
13entities be equipped with engines which utilize alternative
14methods of propulsion, including electricity but not including
15hydrogen.
16This division of the bill takes effect January 1, 2020.
17DIVISION III — ELECTRIC FUEL EXCISE TAX. The bill provides
18that electric fuel means electrical energy delivered or placed
19into the battery or other energy storage device of an electric
20motor vehicle from a source outside the motor vehicle for
21purposes of propelling the motor vehicle. The bill imposes an
22excise tax of 2.6 cents on each kilowatt hour of electric fuel
23delivered or placed into the battery or other energy storage
24device of an electric motor vehicle at a location in this state
25other than a residence. The tax attaches at the time of the
26delivery by a dealer and must be paid by the dealer to the Iowa
27department of revenue (IDR). Alternatively, the tax attaches
28at the time of use by a licensed electric fuel user and must be
29paid by the user to IDR.
30All charging stations located at dealer and user locations
31through which electric fuel can be dispensed may be required to
32be tested for accuracy.
33For the purpose of determining the amount of liability
34for the electric fuel tax, each dealer and user must file
35with IDR a biannual tax return certified under penalties
-29-1for false certification. After January 1, 2026, IDR may
2require quarterly returns. The return must be accompanied by
3remittance in the amount of the tax due for the determination
4period in which the fuel was placed into the batteries or other
5energy storage devices of electric motor vehicles. The bill
6specifies that moneys collected by a licensed electric fuel
7dealer or user for the excise tax are deemed to be held in trust
8for the state of Iowa. A public utility is not required to
9collect the tax or install a separate meter unless the public
10utility is a licensed electric fuel dealer or user.
11The bill prohibits a person from selling or dispensing
12electric fuel within this state at a location other than a
13residence or from otherwise acting as a licensed electric fuel
14dealer or user unless the person holds an uncanceled license
15issued by IDR. The bill specifies the application requirements
16for a license, and provides for grounds under which IDR may
17deny the issuance of a license. Licensed electric fuel dealers
18and users are not subject to control, oversight, or regulation
19by the Iowa utilities board in their capacities as dealers and
20users.
21The bill requires a licensed electric fuel dealer or user
22to maintain, for a period of three years, records of all
23transactions by which the dealer or user dispenses electric
24fuel into the batteries or other energy storage devices of
25electric motor vehicles, including pertinent records and papers
26as required by IDR. After an audit and examination of such
27records, IDR may authorize their disposal upon the written
28request of the dealer or user.
29The bill provides that a person who uses electric fuel for
30any of the nontaxable purposes set forth under current law for
31motor fuel and undyed special fuel, who has paid the electric
32fuel tax and who has a refund permit, upon presentation to and
33approval by IDR of a claim for refund, must be reimbursed and
34repaid the amount of the tax which the claimant has paid on
35the kilowatt hours so used. Such refunds are subject to the
-30-1limitations and requirements set forth under current law for
2refunds of the tax on motor fuel and undyed special fuel. The
3bill prohibits a person from claiming a refund until the person
4has obtained a refund permit from IDR meeting the requirements
5set forth under current law.
6The bill makes corresponding changes to Code chapter
7452A, including provisions of the interstate fuel use tax
8law. In accordance with Article VII, section 8, of the Iowa
9Constitution and Code section 452A.79, revenues from the excise
10tax on electric fuel are credited to the road use tax fund. The
11bill provides that 0.15 cents per kilowatt hour of the excise
12tax must be credited to the revitalize Iowa’s sound economy
13fund, and 0.02 cents per kilowatt hour of the excise tax must
14be credited to the secondary road fund, in accordance with
15similar provisions for other types of fuel. In addition, the
16bill exempts electric fuel from the state sales and use tax and
17local option taxes.
18This division of the bill takes effect July 1, 2023.
-31-ns/jh