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House File 767 - ReprintedA 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.
52. To procure a license, a person shall file with the
6department an application signed under penalty for false
7certificate setting forth all of the following:
8a. The name under which the licensee will transact business
9in this state.
10b. The location, with street number address, of the
11principal office or place of business of the licensee within
12this state.
13c. The name and complete residence address of the owner
14or the names and addresses of the partners, if the licensee
15is a partnership, or the names and addresses of the principal
16officers, if the licensee is a corporation or association.
173. A dealer’s or user’s license shall be required for each
18separate place of business or location, other than a residence,
19where electric fuel is delivered or placed into the battery or
20other energy storage device of an electric motor vehicle.
214. a. The department may deny the issuance of a license to
22an applicant who is substantially delinquent in the payment of
23a tax due, or the interest or penalty on the tax, administered
24by the department. If the applicant is a partnership, a
25license may be denied if a partner owes any delinquent tax,
26interest, or penalty. If the applicant is a corporation, a
27license may be denied if any officer having a substantial legal
28or equitable interest in the ownership of the corporation owes
29any delinquent tax, interest, or penalty of the applicant
30corporation.
31b. The department may deny the issuance of a license if
32an application for a license to transact business as a dealer
33or user in this state is filed by a person whose license or
34registration has been canceled for cause at any time under the
35provisions of this chapter or any prior motor fuel tax law, if
-14-1the department has reason to believe that the application is
2not filed in good faith, or if the application is filed by some
3person as a subterfuge for the real person in interest whose
4license or registration has been canceled for cause under the
5provisions of this chapter or any prior motor fuel tax law.
6The applicant shall be given fifteen days’ notice in writing of
7the date of the hearing and shall have the right to appear in
8person or by counsel and present testimony.
95. a. The application in proper form having been accepted
10for filing, and the other conditions and requirements of this
11section and subchapter IV having been complied with, the
12department shall issue to the applicant a license to transact
13business as an electric fuel dealer or user in this state. The
14license shall remain in full force and effect until canceled as
15provided in this chapter.
16b. The license shall not be assignable and shall be valid
17only for the licensee in whose name it is issued.
18c. The department shall keep and file all applications and
19bonds and a record of all licensees.
20 Sec. 26. NEW SECTION. 452A.43 Records.
211. A licensed electric fuel dealer or user shall maintain,
22for a period of three years, records of all transactions by
23which the dealer or user dispenses electric fuel into the
24batteries or other energy storage devices of electric motor
25vehicles, including pertinent records and papers as required
26by the department.
272. If in the normal conduct of a dealer’s or user’s business
28the records are maintained and kept at an office outside this
29state, the records shall be made available for audit and
30examination by the department at the office outside this state,
31but the audit and examination shall be without expense to this
32state.
333. The department, after an audit and examination of records
34required to be maintained under this section, may authorize
35their disposal upon the written request of the dealer or user.
-15-1 Sec. 27. NEW SECTION. 452A.44 Refunds.
21. A person who uses electric fuel for any of the nontaxable
3purposes set forth in section 452A.17, subsection 1, paragraph
4“a”, for motor fuel and undyed special fuel, and who has paid
5the electric fuel tax either directly to the department or by
6having the tax added to the price of the fuel, and who has
7a refund permit, upon presentation to and approval by the
8department of a claim for refund, subject to the conditions set
9forth in section 452A.17, subsection 1, paragraph “b”, shall be
10reimbursed and repaid the amount of the tax which the claimant
11has paid on the kilowatt hours so used, except that the amount
12of a refund payable may be applied by the department against
13any tax liability outstanding on the books of the department
14against the claimant. Refunds under this section are subject
15to the limitations and requirements set forth in section
16452A.17, subsection 3, for motor fuel and undyed special fuel
17refunds.
182. A person shall not claim a refund under this section
19until the person has obtained a refund permit meeting the
20requirements of section 452A.18 from the department. The
21department may revoke a refund permit pursuant to section
22452A.19.
233. Tax collected on electric fuel that is not taxable, or
24tax collected in excess of the actual amount of tax due, is
25subject to section 452A.22.
26 Sec. 28. Section 452A.52, Code 2019, is amended to read as
27follows:
28452A.52 Fuels imported in supply tanks of motor vehicles —
29 applicability.
301. a. No A person shall not bring into this state in
31the fuel supply tanks of a commercial motor vehicle, or any
32other container, regardless of whether or not the supply tanks
33are connected to the motor of the vehicle, any motor fuel or
34special fuel to be used in the operation of the vehicle in
35this state unless that person has paid or made arrangements in
-16-1advance with the state department of transportation for payment
2of Iowa fuel taxes on the gallonage consumed in operating the
3vehicle in this state; except that this subchapter shall not
4apply to a private passenger automobile.
5b. A person shall not bring into this state in the batteries
6or other energy storage devices of a commercial motor vehicle,
7or any other energy storage device, regardless of whether the
8batteries or storage devices are connected to the motor of
9the vehicle, any electric fuel to be used in the operation
10of the vehicle in this state unless that person has paid or
11made arrangements in advance with the state department of
12transportation for payment of Iowa fuel taxes on the kilowatt
13hours consumed in operating the vehicle in this state.
142. Any person who is unable to display either of the
15permits or the license provided in section 452A.53 and brings
16into the state in the fuel supply tanks of a commercial motor
17vehicle more than thirty gallons of motor fuel or special fuel,
18or brings into the state in the batteries or other energy
19storage devices of a commercial motor vehicle more than three
20hundred fifty kilowatt hours of electric fuel, in violation
21of subsection 1 commits a simple misdemeanor punishable as
22a scheduled violation under section 805.8A, subsection 13,
23paragraph “c”.
243. This subchapter shall not apply to a private passenger
25automobile.
26 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code
272019, are amended to read as follows:
282. Persons choosing not to make advance arrangements with
29the state department of transportation by procuring a permit or
30license are not relieved of their responsibility to purchase
31motor fuel, and special fuel, and electric fuel commensurate
32with their use of the state’s highway system. When there
33is reasonable cause to believe that there is evasion of the
34fuel tax on commercial motor vehicles, the state department
35of transportation may audit persons not holding a permit
-17-1or license. Audits shall be conducted pursuant to section
2452A.55 and in accordance with international fuel tax agreement
3guidelines. The state department of transportation shall
4collect all taxes due and refund any overpayment.
53. A permanent international fuel tax agreement permit
6or license may be obtained upon application to the state
7department of transportation. A fee of ten dollars shall be
8charged for each permit or license issued. The holder of
9a permanent permit or license shall have the privilege of
10bringing into this state in the fuel supply tanks of commercial
11motor vehicles any amount of motor fuel or special fuel, or in
12the batteries or other energy storage devices of commercial
13motor vehicles any amount of electric fuel, to be used in the
14operation of the vehicles and for that privilege shall pay
15Iowa motor fuel or special fuel taxes as provided in section
16452A.54.
175. Each vehicle operated into or through Iowa in interstate
18operations using motor fuel, or special fuel, or electric fuel
19 acquired in any other state shall carry in or on the vehicle a
20duplicate or evidence of the permit or license required in this
21section. A fee not to exceed fifty cents shall be charged for
22each duplicate or other evidence of a permit or license issued.
23 Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code
242019, are amended to read as follows:
251. Fuel tax liability under this subchapter shall be
26computed on the total number of gallons of each kind of
27motor fuel and special fuel, and the total number of kilowatt
28hours of electric fuel, consumed in the operation in Iowa by
29commercial motor vehicles subject to this subchapter at the
30same rate for each kind of fuel as would be applicable if taxed
31under subchapter I of this chapter and section 452A.41. A
32refund against the fuel tax liability so computed shall be
33allowed, on excess Iowa motor fuel purchased, in the amount
34of fuel tax paid at the prevailing rate per gallon set out
35under subchapter I of this chapter on motor fuel and special
-18-1fuel, and rate per kilowatt hour set out under section 452A.41
2on electric fuel, consumed by commercial motor vehicles, the
3operation of which is subject to this subchapter.
42. Notwithstanding any provision of this chapter to the
5contrary, except as provided in this section, the holder of a
6permanent international fuel tax agreement permit or license
7may make application to the state department of transportation
8for a refund, not later than the last day of the third month
9following the quarter in which the overpayment of Iowa fuel
10tax paid on excess purchases of motor fuel or special fuel
11was reported as provided in section 452A.8, or electric
12fuel was reported as provided in section 452A.41, and which
13application is supported by such proof as the state department
14of transportation may require. The state department of
15transportation shall refund Iowa fuel tax paid on motor fuel,
16 or special fuel, or electric fuel purchased in excess of the
17amount consumed by such commercial motor vehicles in their
18operation on the highways of this state.
194. To determine the amount of fuel taxes due under this
20subchapter and to prevent the evasion thereof, the state
21department of transportation shall require a quarterly report
22on forms prescribed by the state department of transportation.
23It shall be filed not later than the last day of the month
24following the quarter reported, and each quarter thereafter.
25These reports shall be required of all persons who have been
26issued a permit or license under this subchapter and shall
27cover actual operation and fuel consumption in Iowa on the
28basis of the permit or license holder’s average consumption
29of fuel in Iowa, determined by the total miles traveled and
30the total fuel purchased and consumed for highway use by the
31permittee’s or licensee’s commercial motor vehicles in the
32permittee’s or licensee’s entire operation in all states to
33establish an overall miles per gallon ratio or miles per
34kilowatt hour ratio, which ratio shall be used to compute the
35gallons or kilowatt hours used for the miles traveled in Iowa.
-19-1Failure to receive a quarterly report or fuel credentials by
2mail, facsimile transmission, or any other means of delivery
3does not relieve a person from the person’s fuel tax liability
4or from the requirement to display current fuel credentials.
5 Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code
62019, are amended to read as follows:
73. “Commercial motor vehicle” means a passenger vehicle
8that has seats for more than nine passengers in addition to
9the driver, any road tractor, any truck tractor, or any truck
10having two or more axles which passenger vehicle, road tractor,
11truck tractor, or truck is propelled on the public highways
12by either motor fuel, or special fuel, or electric fuel.
13“Commercial motor vehicle” does not include a motor truck with a
14combined gross weight of less than twenty-six thousand pounds,
15operated as a part of an identifiable one-way fleet and which
16is leased for less than thirty days to a lessee for the purpose
17of moving property which is not owned by the lessor.
185. “Fuel taxes” means the per gallon and per kilowatt excise
19taxes imposed under subchapters I and III of this chapter, and
20section 452A.41, with respect to motor fuel, and undyed special
21fuel, and electric fuel.
228. “Motor vehicle” shall mean and include all vehicles,
23except those operated on rails, which are propelled by internal
24combustion engines or electric motors and are of such design as
25to permit their mobile use on public highways for transporting
26persons or property. A farm tractor while operated on a farm
27or for the purpose of hauling farm machinery, equipment, or
28produce shall not be deemed to be a motor vehicle. “Motor
29vehicle” shall not include “mobile machinery and equipment” as
30defined in this section.
31 Sec. 32. Section 452A.58, subsection 2, Code 2019, is
32amended to read as follows:
332. A lessor of a commercial motor vehicle shall be deemed
34a carrier with respect to such vehicles leased to others by
35the lessor and motor fuel, or special fuel, or electric fuel
-20-1 consumed thereby if the lessor supplies or pays for the motor
2fuel, or special fuel, or electric fuel consumed by such
3vehicle or makes rental or other charges calculated to include
4the cost of such fuel.
5 Sec. 33. Section 452A.59, Code 2019, is amended to read as
6follows:
7452A.59 Administrative rules.
8The department of revenue and the state department
9of transportation are authorized and empowered to adopt
10rules under chapter 17A, relating to the administration
11and enforcement of this chapter as deemed necessary by the
12departments. However, when in the opinion of the director
13it is necessary for the efficient administration of this
14chapter, the director may regard persons in possession of motor
15fuel, special fuel, biofuel, alcohol, or alcohol derivative
16substances as blenders, dealers, eligible purchasers,
17exporters, importers, restrictive suppliers, suppliers,
18terminal operators, or nonterminal storage facility operators,
19or persons in possession of electric fuel as electric fuel
20dealers or users.
21 Sec. 34. Section 452A.60, subsection 1, Code 2019, is
22amended to read as follows:
231. The department of revenue or the state department of
24transportation shall prescribe and furnish all forms, as
25applicable, upon which reports, returns, and applications shall
26be made and claims for refund presented under this chapter
27and may prescribe forms of record to be kept by suppliers,
28restrictive suppliers, importers, exporters, blenders, common
29carriers, contract carriers, licensed compressed natural gas,
30liquefied natural gas, and liquefied petroleum gas dealers
31and users, licensed electric fuel dealers and users, terminal
32operators, nonterminal storage facility operations, and
33interstate commercial motor vehicle operators.
34 Sec. 35. Section 452A.62, subsection 1, paragraph a, Code
352019, is amended by adding the following new subparagraph:
-21-1 NEW SUBPARAGRAPH. (5) A licensed electric fuel dealer or
2user or person supplying electric fuel to a licensed electric
3fuel dealer or user.
4 Sec. 36. Section 452A.62, subsection 1, paragraph b, Code
52019, is amended to read as follows:
6b. To examine the records, books, papers, receipts, and
7invoices of any distributor, supplier, restrictive supplier,
8importer, blender, exporter, terminal operator, nonterminal
9storage facility, licensed compressed natural gas, liquefied
10natural gas, or liquefied petroleum gas dealer or user,
11licensed electric fuel dealer or user, or any other person
12who possesses fuel upon which the tax has not been paid to
13determine financial responsibility for the payment of the taxes
14imposed by this chapter.
15 Sec. 37. Section 452A.63, subsection 1, Code 2019, is
16amended to read as follows:
171. All information obtained by the department of revenue or
18the state department of transportation from the examining of
19reports, returns, or records required to be filed or kept under
20this chapter shall be treated as confidential and shall not be
21divulged except to other state officers, a member or members of
22the general assembly, or any duly appointed committee of either
23or both houses of the general assembly, or to a representative
24of the state having some responsibility in connection with the
25collection of the taxes imposed or in proceedings brought under
26this chapter. The appropriate state agency may make available
27to the public on or before forty-five days following the last
28day of the month in which the tax is required to be paid, the
29names of suppliers, restrictive suppliers, and importers and as
30to each of them the total gallons of motor fuel, undyed special
31fuel, and ethanol blended gasoline withdrawn from terminals
32or imported into the state during that month. The department
33of revenue or the state department of transportation, upon
34request of officials entrusted with enforcement of the motor
35fuel tax laws of the federal government or any other state, may
-22-1forward to these officials any pertinent information which the
2appropriate state agency may have relative to motor fuel, and
3 special fuel, and electric fuel, provided the officials of the
4other state furnish like information.
5 Sec. 38. Section 452A.73, Code 2019, is amended to read as
6follows:
7452A.73 Embezzlement of fuel tax money — penalty.
8Every sale of motor fuel in this state, and every sale
9of undyed special fuel dispensed by the seller into a fuel
10supply tank of a motor vehicle, and every sale of electric
11fuel dispensed by the seller into the battery or other energy
12storage device of an electric motor vehicle shall, unless
13otherwise provided, be presumed to include as a part of the
14purchase price the fuel tax due the state of Iowa under the
15provisions of this chapter. Every person collecting fuel tax
16money as part of the selling price of motor fuel, or undyed
17special fuel, or electric fuel shall hold the tax money in
18trust for the state of Iowa unless the fuel tax on the fuel
19has been previously paid to the state of Iowa. Any person
20receiving fuel tax money in trust and failing to remit it to
21the department of revenue on or before time required shall be
22guilty of theft.
23 Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and
24f, Code 2019, are amended to read as follows:
25c. For any seller to issue or any purchaser to receive
26and retain any incorrect or false invoice or sales ticket in
27connection with the sale or purchase of motor fuel, or undyed
28special fuel, or electric fuel.
29e. For any person to act as a supplier, restrictive
30supplier, importer, exporter, blender, or compressed natural
31gas, liquefied natural gas, or liquefied petroleum gas dealer
32or user, or electric fuel dealer or user without the required
33license.
34f. For any person to use motor fuel, undyed special fuel,
35or dyed special fuel in the fuel supply tank of a vehicle, or
-23-1electric fuel in the battery or other energy storage device of
2an electric vehicle, with respect to which the person knowingly
3has not paid or had charged to the person’s account with a
4distributor or dealer, or with respect to which the person does
5not, within the time required in this chapter, report and pay
6the applicable fuel tax.
7 Sec. 40. Section 452A.74, subsection 1, Code 2019, is
8amended by adding the following new paragraph:
9 NEW PARAGRAPH. h. For any licensed electric fuel dealer or
10user to dispense electric fuel into the battery or other energy
11storage device of any electric motor vehicle without collecting
12the fuel tax.
13 Sec. 41. Section 452A.76, subsection 2, Code 2019, is
14amended to read as follows:
152. Authority is given to the department of revenue,
16the state department of transportation, the department of
17public safety, and any peace officer as requested by such
18departments to enforce the provisions of subchapter I, sections
19452A.40 through 452A.44, and this subchapter of this chapter.
20The department of revenue shall adopt rules providing for
21enforcement under subchapter I and this subchapter of this
22chapter regarding the use of motor fuel or special fuel in
23implements of husbandry. Enforcement personnel or requested
24peace officers are authorized to stop a conveyance suspected
25to be illegally transporting motor fuel or special fuel on
26the highways, to investigate the cargo, and also have the
27authority to inspect or test the fuel in the supply tank of a
28conveyance to determine if legal fuel is being used to power
29the conveyance. The operator of any vehicle transporting
30motor fuel or special fuel shall, upon request, produce and
31offer for inspection the manifest or loading and delivery
32invoices pertaining to the load and trip in question and shall
33permit the authority to inspect and measure the contents of
34the vehicle. If the vehicle operator fails to produce the
35evidence or if, when produced, the evidence fails to contain
-24-1the required information and it appears that there is an
2attempt to evade payment of the fuel tax, the vehicle operator
3will be subject to the penalty provisions contained in section
4452A.74A.
5 Sec. 42. Section 452A.78, Code 2019, is amended to read as
6follows:
7452A.78 Other remedies available.
8The special remedies provided under the provisions of this
9chapter to enable the state to collect motor a fuel excise tax
10imposed by this chapter shall not be construed as depriving the
11state of any other remedy it might have either at law or in
12equity independent of this chapter. The state shall have the
13right to maintain an action at law for the collection of said
14taxes required to be paid herein and in connection therewith
15shall be entitled to a writ of attachment without bond.
16 Sec. 43. Section 452A.79, Code 2019, is amended to read as
17follows:
18452A.79 Use of revenue.
19Except as provided in sections 452A.79A, 452A.82, and
20452A.84, the net proceeds of the excise tax on the diesel
21special fuel, and the excise tax on motor fuel and other
22special fuel, the excise tax on electric fuel, and penalties
23collected under the provision of this chapter, shall be
24credited to the road use tax fund.
25 Sec. 44. Section 452A.80, Code 2019, is amended to read as
26follows:
27452A.80 Microfilm or photographic copies — originals
28destroyed.
29The appropriate state agency shall have the power and
30authority to record, copy, or reproduce by any photographic,
31photostatic, microfilm, microcard, miniature photographic,
32or other process which accurately reproduces or forms a
33durable medium for so reproducing the original of any forms
34or records pertaining to motor a fuel tax or undyed special
35fuel tax imposed by this chapter, or any paper or document with
-25-1respect to refund of the tax. If the forms and records have
2been reproduced in accordance with this section, the state
3agency may destroy the originals and the reproductions shall
4be competent evidence in any court in accordance with the
5provision of section 622.30.
6 Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall
7designate sections 452A.40 through 452A.44, as enacted by
8this division of this Act, as a new subchapter within chapter
9452A, and may redesignate the new and preexisting subchapters,
10replace references to sections 452A.40 through 452A.44
11with references to the new subchapter, and correct internal
12references as necessary, including references in subchapter
13headnotes.
14 Sec. 46. EFFECTIVE DATE. This division of this Act takes
15effect July 1, 2023.
ns/jh/md
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.
52. To procure a license, a person shall file with the
6department an application signed under penalty for false
7certificate setting forth all of the following:
8a. The name under which the licensee will transact business
9in this state.
10b. The location, with street number address, of the
11principal office or place of business of the licensee within
12this state.
13c. The name and complete residence address of the owner
14or the names and addresses of the partners, if the licensee
15is a partnership, or the names and addresses of the principal
16officers, if the licensee is a corporation or association.
173. A dealer’s or user’s license shall be required for each
18separate place of business or location, other than a residence,
19where electric fuel is delivered or placed into the battery or
20other energy storage device of an electric motor vehicle.
214. a. The department may deny the issuance of a license to
22an applicant who is substantially delinquent in the payment of
23a tax due, or the interest or penalty on the tax, administered
24by the department. If the applicant is a partnership, a
25license may be denied if a partner owes any delinquent tax,
26interest, or penalty. If the applicant is a corporation, a
27license may be denied if any officer having a substantial legal
28or equitable interest in the ownership of the corporation owes
29any delinquent tax, interest, or penalty of the applicant
30corporation.
31b. The department may deny the issuance of a license if
32an application for a license to transact business as a dealer
33or user in this state is filed by a person whose license or
34registration has been canceled for cause at any time under the
35provisions of this chapter or any prior motor fuel tax law, if
-14-1the department has reason to believe that the application is
2not filed in good faith, or if the application is filed by some
3person as a subterfuge for the real person in interest whose
4license or registration has been canceled for cause under the
5provisions of this chapter or any prior motor fuel tax law.
6The applicant shall be given fifteen days’ notice in writing of
7the date of the hearing and shall have the right to appear in
8person or by counsel and present testimony.
95. a. The application in proper form having been accepted
10for filing, and the other conditions and requirements of this
11section and subchapter IV having been complied with, the
12department shall issue to the applicant a license to transact
13business as an electric fuel dealer or user in this state. The
14license shall remain in full force and effect until canceled as
15provided in this chapter.
16b. The license shall not be assignable and shall be valid
17only for the licensee in whose name it is issued.
18c. The department shall keep and file all applications and
19bonds and a record of all licensees.
20 Sec. 26. NEW SECTION. 452A.43 Records.
211. A licensed electric fuel dealer or user shall maintain,
22for a period of three years, records of all transactions by
23which the dealer or user dispenses electric fuel into the
24batteries or other energy storage devices of electric motor
25vehicles, including pertinent records and papers as required
26by the department.
272. If in the normal conduct of a dealer’s or user’s business
28the records are maintained and kept at an office outside this
29state, the records shall be made available for audit and
30examination by the department at the office outside this state,
31but the audit and examination shall be without expense to this
32state.
333. The department, after an audit and examination of records
34required to be maintained under this section, may authorize
35their disposal upon the written request of the dealer or user.
-15-1 Sec. 27. NEW SECTION. 452A.44 Refunds.
21. A person who uses electric fuel for any of the nontaxable
3purposes set forth in section 452A.17, subsection 1, paragraph
4“a”, for motor fuel and undyed special fuel, and who has paid
5the electric fuel tax either directly to the department or by
6having the tax added to the price of the fuel, and who has
7a refund permit, upon presentation to and approval by the
8department of a claim for refund, subject to the conditions set
9forth in section 452A.17, subsection 1, paragraph “b”, shall be
10reimbursed and repaid the amount of the tax which the claimant
11has paid on the kilowatt hours so used, except that the amount
12of a refund payable may be applied by the department against
13any tax liability outstanding on the books of the department
14against the claimant. Refunds under this section are subject
15to the limitations and requirements set forth in section
16452A.17, subsection 3, for motor fuel and undyed special fuel
17refunds.
182. A person shall not claim a refund under this section
19until the person has obtained a refund permit meeting the
20requirements of section 452A.18 from the department. The
21department may revoke a refund permit pursuant to section
22452A.19.
233. Tax collected on electric fuel that is not taxable, or
24tax collected in excess of the actual amount of tax due, is
25subject to section 452A.22.
26 Sec. 28. Section 452A.52, Code 2019, is amended to read as
27follows:
28452A.52 Fuels imported in supply tanks of motor vehicles —
29 applicability.
301. a. No A person shall not bring into this state in
31the fuel supply tanks of a commercial motor vehicle, or any
32other container, regardless of whether or not the supply tanks
33are connected to the motor of the vehicle, any motor fuel or
34special fuel to be used in the operation of the vehicle in
35this state unless that person has paid or made arrangements in
-16-1advance with the state department of transportation for payment
2of Iowa fuel taxes on the gallonage consumed in operating the
3vehicle in this state; except that this subchapter shall not
4apply to a private passenger automobile.
5b. A person shall not bring into this state in the batteries
6or other energy storage devices of a commercial motor vehicle,
7or any other energy storage device, regardless of whether the
8batteries or storage devices are connected to the motor of
9the vehicle, any electric fuel to be used in the operation
10of the vehicle in this state unless that person has paid or
11made arrangements in advance with the state department of
12transportation for payment of Iowa fuel taxes on the kilowatt
13hours consumed in operating the vehicle in this state.
142. Any person who is unable to display either of the
15permits or the license provided in section 452A.53 and brings
16into the state in the fuel supply tanks of a commercial motor
17vehicle more than thirty gallons of motor fuel or special fuel,
18or brings into the state in the batteries or other energy
19storage devices of a commercial motor vehicle more than three
20hundred fifty kilowatt hours of electric fuel, in violation
21of subsection 1 commits a simple misdemeanor punishable as
22a scheduled violation under section 805.8A, subsection 13,
23paragraph “c”.
243. This subchapter shall not apply to a private passenger
25automobile.
26 Sec. 29. Section 452A.53, subsections 2, 3, and 5, Code
272019, are amended to read as follows:
282. Persons choosing not to make advance arrangements with
29the state department of transportation by procuring a permit or
30license are not relieved of their responsibility to purchase
31motor fuel, and special fuel, and electric fuel commensurate
32with their use of the state’s highway system. When there
33is reasonable cause to believe that there is evasion of the
34fuel tax on commercial motor vehicles, the state department
35of transportation may audit persons not holding a permit
-17-1or license. Audits shall be conducted pursuant to section
2452A.55 and in accordance with international fuel tax agreement
3guidelines. The state department of transportation shall
4collect all taxes due and refund any overpayment.
53. A permanent international fuel tax agreement permit
6or license may be obtained upon application to the state
7department of transportation. A fee of ten dollars shall be
8charged for each permit or license issued. The holder of
9a permanent permit or license shall have the privilege of
10bringing into this state in the fuel supply tanks of commercial
11motor vehicles any amount of motor fuel or special fuel, or in
12the batteries or other energy storage devices of commercial
13motor vehicles any amount of electric fuel, to be used in the
14operation of the vehicles and for that privilege shall pay
15Iowa motor fuel or special fuel taxes as provided in section
16452A.54.
175. Each vehicle operated into or through Iowa in interstate
18operations using motor fuel, or special fuel, or electric fuel
19 acquired in any other state shall carry in or on the vehicle a
20duplicate or evidence of the permit or license required in this
21section. A fee not to exceed fifty cents shall be charged for
22each duplicate or other evidence of a permit or license issued.
23 Sec. 30. Section 452A.54, subsections 1, 2, and 4, Code
242019, are amended to read as follows:
251. Fuel tax liability under this subchapter shall be
26computed on the total number of gallons of each kind of
27motor fuel and special fuel, and the total number of kilowatt
28hours of electric fuel, consumed in the operation in Iowa by
29commercial motor vehicles subject to this subchapter at the
30same rate for each kind of fuel as would be applicable if taxed
31under subchapter I of this chapter and section 452A.41. A
32refund against the fuel tax liability so computed shall be
33allowed, on excess Iowa motor fuel purchased, in the amount
34of fuel tax paid at the prevailing rate per gallon set out
35under subchapter I of this chapter on motor fuel and special
-18-1fuel, and rate per kilowatt hour set out under section 452A.41
2on electric fuel, consumed by commercial motor vehicles, the
3operation of which is subject to this subchapter.
42. Notwithstanding any provision of this chapter to the
5contrary, except as provided in this section, the holder of a
6permanent international fuel tax agreement permit or license
7may make application to the state department of transportation
8for a refund, not later than the last day of the third month
9following the quarter in which the overpayment of Iowa fuel
10tax paid on excess purchases of motor fuel or special fuel
11was reported as provided in section 452A.8, or electric
12fuel was reported as provided in section 452A.41, and which
13application is supported by such proof as the state department
14of transportation may require. The state department of
15transportation shall refund Iowa fuel tax paid on motor fuel,
16 or special fuel, or electric fuel purchased in excess of the
17amount consumed by such commercial motor vehicles in their
18operation on the highways of this state.
194. To determine the amount of fuel taxes due under this
20subchapter and to prevent the evasion thereof, the state
21department of transportation shall require a quarterly report
22on forms prescribed by the state department of transportation.
23It shall be filed not later than the last day of the month
24following the quarter reported, and each quarter thereafter.
25These reports shall be required of all persons who have been
26issued a permit or license under this subchapter and shall
27cover actual operation and fuel consumption in Iowa on the
28basis of the permit or license holder’s average consumption
29of fuel in Iowa, determined by the total miles traveled and
30the total fuel purchased and consumed for highway use by the
31permittee’s or licensee’s commercial motor vehicles in the
32permittee’s or licensee’s entire operation in all states to
33establish an overall miles per gallon ratio or miles per
34kilowatt hour ratio, which ratio shall be used to compute the
35gallons or kilowatt hours used for the miles traveled in Iowa.
-19-1Failure to receive a quarterly report or fuel credentials by
2mail, facsimile transmission, or any other means of delivery
3does not relieve a person from the person’s fuel tax liability
4or from the requirement to display current fuel credentials.
5 Sec. 31. Section 452A.57, subsections 3, 5, and 8, Code
62019, are amended to read as follows:
73. “Commercial motor vehicle” means a passenger vehicle
8that has seats for more than nine passengers in addition to
9the driver, any road tractor, any truck tractor, or any truck
10having two or more axles which passenger vehicle, road tractor,
11truck tractor, or truck is propelled on the public highways
12by either motor fuel, or special fuel, or electric fuel.
13“Commercial motor vehicle” does not include a motor truck with a
14combined gross weight of less than twenty-six thousand pounds,
15operated as a part of an identifiable one-way fleet and which
16is leased for less than thirty days to a lessee for the purpose
17of moving property which is not owned by the lessor.
185. “Fuel taxes” means the per gallon and per kilowatt excise
19taxes imposed under subchapters I and III of this chapter, and
20section 452A.41, with respect to motor fuel, and undyed special
21fuel, and electric fuel.
228. “Motor vehicle” shall mean and include all vehicles,
23except those operated on rails, which are propelled by internal
24combustion engines or electric motors and are of such design as
25to permit their mobile use on public highways for transporting
26persons or property. A farm tractor while operated on a farm
27or for the purpose of hauling farm machinery, equipment, or
28produce shall not be deemed to be a motor vehicle. “Motor
29vehicle” shall not include “mobile machinery and equipment” as
30defined in this section.
31 Sec. 32. Section 452A.58, subsection 2, Code 2019, is
32amended to read as follows:
332. A lessor of a commercial motor vehicle shall be deemed
34a carrier with respect to such vehicles leased to others by
35the lessor and motor fuel, or special fuel, or electric fuel
-20-1 consumed thereby if the lessor supplies or pays for the motor
2fuel, or special fuel, or electric fuel consumed by such
3vehicle or makes rental or other charges calculated to include
4the cost of such fuel.
5 Sec. 33. Section 452A.59, Code 2019, is amended to read as
6follows:
7452A.59 Administrative rules.
8The department of revenue and the state department
9of transportation are authorized and empowered to adopt
10rules under chapter 17A, relating to the administration
11and enforcement of this chapter as deemed necessary by the
12departments. However, when in the opinion of the director
13it is necessary for the efficient administration of this
14chapter, the director may regard persons in possession of motor
15fuel, special fuel, biofuel, alcohol, or alcohol derivative
16substances as blenders, dealers, eligible purchasers,
17exporters, importers, restrictive suppliers, suppliers,
18terminal operators, or nonterminal storage facility operators,
19or persons in possession of electric fuel as electric fuel
20dealers or users.
21 Sec. 34. Section 452A.60, subsection 1, Code 2019, is
22amended to read as follows:
231. The department of revenue or the state department of
24transportation shall prescribe and furnish all forms, as
25applicable, upon which reports, returns, and applications shall
26be made and claims for refund presented under this chapter
27and may prescribe forms of record to be kept by suppliers,
28restrictive suppliers, importers, exporters, blenders, common
29carriers, contract carriers, licensed compressed natural gas,
30liquefied natural gas, and liquefied petroleum gas dealers
31and users, licensed electric fuel dealers and users, terminal
32operators, nonterminal storage facility operations, and
33interstate commercial motor vehicle operators.
34 Sec. 35. Section 452A.62, subsection 1, paragraph a, Code
352019, is amended by adding the following new subparagraph:
-21-1 NEW SUBPARAGRAPH. (5) A licensed electric fuel dealer or
2user or person supplying electric fuel to a licensed electric
3fuel dealer or user.
4 Sec. 36. Section 452A.62, subsection 1, paragraph b, Code
52019, is amended to read as follows:
6b. To examine the records, books, papers, receipts, and
7invoices of any distributor, supplier, restrictive supplier,
8importer, blender, exporter, terminal operator, nonterminal
9storage facility, licensed compressed natural gas, liquefied
10natural gas, or liquefied petroleum gas dealer or user,
11licensed electric fuel dealer or user, or any other person
12who possesses fuel upon which the tax has not been paid to
13determine financial responsibility for the payment of the taxes
14imposed by this chapter.
15 Sec. 37. Section 452A.63, subsection 1, Code 2019, is
16amended to read as follows:
171. All information obtained by the department of revenue or
18the state department of transportation from the examining of
19reports, returns, or records required to be filed or kept under
20this chapter shall be treated as confidential and shall not be
21divulged except to other state officers, a member or members of
22the general assembly, or any duly appointed committee of either
23or both houses of the general assembly, or to a representative
24of the state having some responsibility in connection with the
25collection of the taxes imposed or in proceedings brought under
26this chapter. The appropriate state agency may make available
27to the public on or before forty-five days following the last
28day of the month in which the tax is required to be paid, the
29names of suppliers, restrictive suppliers, and importers and as
30to each of them the total gallons of motor fuel, undyed special
31fuel, and ethanol blended gasoline withdrawn from terminals
32or imported into the state during that month. The department
33of revenue or the state department of transportation, upon
34request of officials entrusted with enforcement of the motor
35fuel tax laws of the federal government or any other state, may
-22-1forward to these officials any pertinent information which the
2appropriate state agency may have relative to motor fuel, and
3 special fuel, and electric fuel, provided the officials of the
4other state furnish like information.
5 Sec. 38. Section 452A.73, Code 2019, is amended to read as
6follows:
7452A.73 Embezzlement of fuel tax money — penalty.
8Every sale of motor fuel in this state, and every sale
9of undyed special fuel dispensed by the seller into a fuel
10supply tank of a motor vehicle, and every sale of electric
11fuel dispensed by the seller into the battery or other energy
12storage device of an electric motor vehicle shall, unless
13otherwise provided, be presumed to include as a part of the
14purchase price the fuel tax due the state of Iowa under the
15provisions of this chapter. Every person collecting fuel tax
16money as part of the selling price of motor fuel, or undyed
17special fuel, or electric fuel shall hold the tax money in
18trust for the state of Iowa unless the fuel tax on the fuel
19has been previously paid to the state of Iowa. Any person
20receiving fuel tax money in trust and failing to remit it to
21the department of revenue on or before time required shall be
22guilty of theft.
23 Sec. 39. Section 452A.74, subsection 1, paragraphs c, e, and
24f, Code 2019, are amended to read as follows:
25c. For any seller to issue or any purchaser to receive
26and retain any incorrect or false invoice or sales ticket in
27connection with the sale or purchase of motor fuel, or undyed
28special fuel, or electric fuel.
29e. For any person to act as a supplier, restrictive
30supplier, importer, exporter, blender, or compressed natural
31gas, liquefied natural gas, or liquefied petroleum gas dealer
32or user, or electric fuel dealer or user without the required
33license.
34f. For any person to use motor fuel, undyed special fuel,
35or dyed special fuel in the fuel supply tank of a vehicle, or
-23-1electric fuel in the battery or other energy storage device of
2an electric vehicle, with respect to which the person knowingly
3has not paid or had charged to the person’s account with a
4distributor or dealer, or with respect to which the person does
5not, within the time required in this chapter, report and pay
6the applicable fuel tax.
7 Sec. 40. Section 452A.74, subsection 1, Code 2019, is
8amended by adding the following new paragraph:
9 NEW PARAGRAPH. h. For any licensed electric fuel dealer or
10user to dispense electric fuel into the battery or other energy
11storage device of any electric motor vehicle without collecting
12the fuel tax.
13 Sec. 41. Section 452A.76, subsection 2, Code 2019, is
14amended to read as follows:
152. Authority is given to the department of revenue,
16the state department of transportation, the department of
17public safety, and any peace officer as requested by such
18departments to enforce the provisions of subchapter I, sections
19452A.40 through 452A.44, and this subchapter of this chapter.
20The department of revenue shall adopt rules providing for
21enforcement under subchapter I and this subchapter of this
22chapter regarding the use of motor fuel or special fuel in
23implements of husbandry. Enforcement personnel or requested
24peace officers are authorized to stop a conveyance suspected
25to be illegally transporting motor fuel or special fuel on
26the highways, to investigate the cargo, and also have the
27authority to inspect or test the fuel in the supply tank of a
28conveyance to determine if legal fuel is being used to power
29the conveyance. The operator of any vehicle transporting
30motor fuel or special fuel shall, upon request, produce and
31offer for inspection the manifest or loading and delivery
32invoices pertaining to the load and trip in question and shall
33permit the authority to inspect and measure the contents of
34the vehicle. If the vehicle operator fails to produce the
35evidence or if, when produced, the evidence fails to contain
-24-1the required information and it appears that there is an
2attempt to evade payment of the fuel tax, the vehicle operator
3will be subject to the penalty provisions contained in section
4452A.74A.
5 Sec. 42. Section 452A.78, Code 2019, is amended to read as
6follows:
7452A.78 Other remedies available.
8The special remedies provided under the provisions of this
9chapter to enable the state to collect motor a fuel excise tax
10imposed by this chapter shall not be construed as depriving the
11state of any other remedy it might have either at law or in
12equity independent of this chapter. The state shall have the
13right to maintain an action at law for the collection of said
14taxes required to be paid herein and in connection therewith
15shall be entitled to a writ of attachment without bond.
16 Sec. 43. Section 452A.79, Code 2019, is amended to read as
17follows:
18452A.79 Use of revenue.
19Except as provided in sections 452A.79A, 452A.82, and
20452A.84, the net proceeds of the excise tax on the diesel
21special fuel, and the excise tax on motor fuel and other
22special fuel, the excise tax on electric fuel, and penalties
23collected under the provision of this chapter, shall be
24credited to the road use tax fund.
25 Sec. 44. Section 452A.80, Code 2019, is amended to read as
26follows:
27452A.80 Microfilm or photographic copies — originals
28destroyed.
29The appropriate state agency shall have the power and
30authority to record, copy, or reproduce by any photographic,
31photostatic, microfilm, microcard, miniature photographic,
32or other process which accurately reproduces or forms a
33durable medium for so reproducing the original of any forms
34or records pertaining to motor a fuel tax or undyed special
35fuel tax imposed by this chapter, or any paper or document with
-25-1respect to refund of the tax. If the forms and records have
2been reproduced in accordance with this section, the state
3agency may destroy the originals and the reproductions shall
4be competent evidence in any court in accordance with the
5provision of section 622.30.
6 Sec. 45. CODE EDITOR DIRECTIVE. The Code editor shall
7designate sections 452A.40 through 452A.44, as enacted by
8this division of this Act, as a new subchapter within chapter
9452A, and may redesignate the new and preexisting subchapters,
10replace references to sections 452A.40 through 452A.44
11with references to the new subchapter, and correct internal
12references as necessary, including references in subchapter
13headnotes.
14 Sec. 46. EFFECTIVE DATE. This division of this Act takes
15effect July 1, 2023.
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