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House File 2279 - IntroducedA Bill ForAn Act 1relating to the excise taxes on motor fuel and certain
2special fuel, and including applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 452A.3, subsections 1, 2, 3, 4, 5, and 6,
2Code 2020, are amended to read as follows:
31. Except as otherwise provided in this section and in this
4subchapter, until June 30, 2020, this subsection shall apply
5to the excise tax imposed on each gallon of motor fuel used for
6any purpose for the privilege of operating motor vehicles in
7this state.
8a. An excise tax of thirty cents is imposed on each gallon
9of motor fuel other than ethanol blended gasoline classified
10as E-15 or higher.
11a. b. The On and after July 1, 2026, an excise tax of
12thirty cents is imposed on each gallon of ethanol blended
13gasoline classified as E-15 or higher. Before July 1,
142026, the rate of the excise tax on ethanol blended gasoline
15classified as E-15 or higher shall be based on the number
16of gallons of ethanol blended gasoline classified as E-15 or
17higher that is are distributed in this state as expressed as a
18percentage of the number of gallons of motor fuel distributed
19in this state, which is referred to as the distribution
20percentage. For purposes of this subsection paragraph, only
21ethanol blended gasoline and nonblended gasoline, not including
22aviation gasoline, shall be used in determining the percentage
23basis for the excise tax. The department shall determine
24the percentage basis for each determination period beginning
25January 1 and ending December 31 based on data from the reports
26filed pursuant to section 452A.33. The rate for the excise
27tax shall apply for the period beginning July 1 and ending
28June 30 following the end of the determination period. Before
29July 1, 2026, the rate of the excise tax on each gallon of
30ethanol blended gasoline classified as E-15 or higher shall be
31as follows:
32b. The rate for the excise tax shall be as follows:
33(1) If the distribution percentage is not greater than fifty
34 ten percent, the rate shall be twenty-nine twenty-four cents
35for ethanol blended gasoline and thirty cents for motor fuel
-1-1other than ethanol blended gasoline.
2(2) If the distribution percentage is greater than fifty
3 ten percent but not greater than fifty-five twelve percent, the
4rate shall be twenty-nine twenty-four and five-tenths cents for
5ethanol blended gasoline and thirty and one-tenth cents for
6motor fuel other than ethanol blended gasoline.
7(3) If the distribution percentage is greater than
8fifty-five twelve percent but not greater than sixty fourteen
9 percent, the rate shall be twenty-nine twenty-five cents for
10ethanol blended gasoline and thirty and three-tenths cents for
11motor fuel other than ethanol blended gasoline.
12(4) If the distribution percentage is greater than sixty
13 fourteen percent but not greater than sixty-five sixteen
14 percent, the rate shall be twenty-nine twenty-five and
15five-tenths cents for ethanol blended gasoline and thirty and
16five-tenths cents for motor fuel other than ethanol blended
17gasoline.
18(5) If the distribution percentage is greater than
19sixty-five sixteen percent but not greater than seventy
20 eighteen percent, the rate shall be twenty-nine twenty-six
21 cents for ethanol blended gasoline and thirty and seven-tenths
22cents for motor fuel other than ethanol blended gasoline.
23(6) If the distribution percentage is greater than
24seventy eighteen percent but not greater than seventy-five
25 twenty percent, the rate shall be twenty-nine twenty-six and
26five-tenths cents for ethanol blended gasoline and thirty-one
27cents for motor fuel other than ethanol blended gasoline.
28(7) If the distribution percentage is greater than
29seventy-five twenty percent but not greater than eighty
30 twenty-two percent, the rate shall be twenty-nine and
31three-tenths twenty-seven cents for ethanol blended gasoline
32and thirty and eight-tenths cents for motor fuel other than
33ethanol blended gasoline.
34(8) If the distribution percentage is greater than eighty
35 twenty-two percent but not greater than eighty-five twenty-six
-2-1 percent, the rate shall be twenty-nine twenty-seven and
2five-tenths cents for ethanol blended gasoline and thirty and
3seven-tenths cents for motor fuel other than ethanol blended
4gasoline.
5(9) If the distribution percentage is greater than
6eighty-five twenty-six percent but not greater than ninety
7 thirty-five percent, the rate shall be twenty-nine and
8seven-tenths twenty-eight cents for ethanol blended gasoline
9and thirty and four-tenths cents for motor fuel other than
10ethanol blended gasoline.
11(10) If the distribution percentage is greater than ninety
12 thirty-five percent but not greater than ninety-five forty-five
13 percent, the rate shall be twenty-nine and nine-tenths
14 twenty-eight and five-tenths cents for ethanol blended gasoline
15and thirty and one-tenth cents for motor fuel other than
16ethanol blended gasoline.
17(11) If the distribution percentage is greater than
18ninety-five forty-five percent but not greater than sixty-five
19percent, the rate shall be thirty twenty-nine cents for ethanol
20blended gasoline and thirty cents for motor fuel other than
21ethanol blended gasoline.
22(12) If the distribution percentage is greater than
23sixty-five percent but not greater than eighty-five percent,
24the rate shall be twenty-nine and two-tenths cents.
25(13) If the distribution percentage is greater than
26eighty-five percent but not greater than ninety-five percent,
27the rate shall be twenty-nine and five-tenths cents.
28(14) If the distribution percentage is greater than
29ninety-five percent, the rate shall be thirty cents.
30c. The provisions of paragraph “b” and subsection 6
31 3, paragraph “a”, subparagraph (2), shall be subject to
32legislative review at least every six five years. The review
33shall be based upon a fuel distribution percentage formula
34status report containing the recommendations of a legislative
35interim committee appointed to conduct a review of the fuel
-3-1distribution percentage formulas, to be prepared with the
2assistance of the department of revenue in association
3with the department of transportation. The report shall
4include recommendations for changes or revisions to the
5fuel distribution percentage formulas based upon advances
6in technology, fuel use trends, and fuel price fluctuations
7observed during the preceding six-year five-year interval; an
8analysis of the operation of the fuel distribution percentage
9formulas during the preceding six-year five-year interval; and
10a summary of issues that have arisen since the previous review
11and potential approaches for resolution of those issues. The
12first such report shall be submitted to the general assembly no
13later than January 1, 2020, with subsequent reports developed
14and submitted by January 1 at least every sixth fifth year
15thereafter.
162. Except as otherwise provided in this section and in this
17subchapter, after June 30, 2020, an excise tax of thirty cents
18is imposed on each gallon of motor fuel used for any purpose
19for the privilege of operating motor vehicles in this state.
203. An excise tax of seventeen cents is imposed on each
21gallon of E-85 gasoline, subject to the determination provided
22in subsection 4.
234. The rate of the excise tax on E-85 gasoline imposed in
24subsection 3 shall be determined based on the number of gallons
25of E-85 gasoline that are distributed in this state during the
26previous calendar year. The department shall determine the
27actual tax paid for E-85 gasoline for each period beginning
28January 1 and ending December 31. The amount of the tax paid on
29E-85 gasoline during the past calendar year shall be compared
30to the amount of tax on E-85 gasoline that would have been paid
31using the tax rate for gasoline imposed in subsection 1 or
322 and a difference shall be established. If this difference
33is equal to or greater than twenty-five thousand dollars, the
34tax rate for E-85 gasoline for the period beginning July 1
35following the end of the determination period shall be the rate
-4-1in effect as stated in subsection 1 or 2.
25. 2. For the privilege of operating aircraft in this state
3an excise tax of eight cents per gallon is imposed on the use of
4all aviation gasoline.
56. 3. a. For the privilege of operating motor vehicles or
6aircraft in this state, there is imposed an excise tax on the
7use of special fuel in a motor vehicle or aircraft.
8(1) Except as otherwise provided in this section and in
9this subchapter, for the period ending June 30, 2015, and for
10the period beginning July 1, 2020, and thereafter, the rate
11of the excise tax rate on each gallon of special fuel for
12diesel engines of motor vehicles used for any purpose for the
13privilege of operating motor vehicles in this state, other
14than biodiesel blended fuel classified as B-11 or higher, is
15thirty-two and five-tenths cents per gallon.
16(2) Except as otherwise provided in this section and in
17this subchapter, for the period beginning July 1, 2015, and
18ending June 30, 2020, this subparagraph shall apply to the
19excise tax imposed on each gallon of special fuel for diesel
20engines of motor vehicles biodiesel blended fuel classified
21as B-11 or higher used for any purpose for the privilege of
22operating motor vehicles in this state. The On and after
23July 1, 2026, the rate of the excise tax on each gallon
24of biodiesel blended fuel classified as B-11 or higher is
25thirty-two and five-tenths cents. Before July 1, 2026, the
26 rate of the excise tax shall be based on the number of gallons
27of biodiesel blended fuel classified as B-11 or higher that is
28distributed in this state as expressed as a percentage of the
29number of gallons of special fuel for diesel engines of motor
30vehicles distributed in this state, which is referred to as
31the distribution percentage. The department shall determine
32the percentage basis for each determination period beginning
33January 1 and ending December 31 based on data from the reports
34filed pursuant to section 452A.33. The rate for of the excise
35tax shall apply for the period beginning July 1 and ending June
-5-130 following the end of the determination period. The Before
2July 1, 2026, the rate for of the excise tax on each gallon of
3biodiesel blended fuel classified as B-11 or higher shall be
4as follows:
5(a) If the distribution percentage is not greater than fifty
6percent, the rate shall be twenty-nine and five-tenths cents
7for biodiesel blended fuel classified as B-11 or higher and
8thirty-two and five-tenths cents for special fuel for diesel
9engines of motor vehicles other than biodiesel blended fuel
10classified as B-11 or higher.
11(b) If the distribution percentage is greater than fifty
12percent but not greater than fifty-five percent, the rate
13shall be twenty-nine and eight-tenths cents for biodiesel
14blended fuel classified as B-11 or higher and thirty-two and
15five-tenths cents for special fuel for diesel engines of motor
16vehicles other than biodiesel blended fuel classified as B-11
17or higher.
18(c) If the distribution percentage is greater than
19fifty-five percent but not greater than sixty percent, the rate
20shall be thirty and one-tenth cents for biodiesel blended fuel
21classified as B-11 or higher and thirty-two and five-tenths
22cents for special fuel for diesel engines of motor vehicles
23other than biodiesel blended fuel classified as B-11 or higher.
24(d) If the distribution percentage is greater than sixty
25percent but not greater than sixty-five percent, the rate shall
26be thirty and four-tenths cents for biodiesel blended fuel
27classified as B-11 or higher and thirty-two and five-tenths
28cents for special fuel for diesel engines of motor vehicles
29other than biodiesel blended fuel classified as B-11 or higher.
30(e) If the distribution percentage is greater than
31sixty-five percent but not greater than seventy percent, the
32rate shall be thirty and seven-tenths cents for biodiesel
33blended fuel classified as B-11 or higher and thirty-two and
34five-tenths cents for special fuel for diesel engines of motor
35vehicles other than biodiesel blended fuel classified as B-11
-6-1or higher.
2(f) If the distribution percentage is greater than seventy
3percent but not greater than seventy-five percent, the rate
4shall be thirty-one cents for biodiesel blended fuel classified
5as B-11 or higher and thirty-two and five-tenths cents for
6special fuel for diesel engines of motor vehicles other than
7biodiesel blended fuel classified as B-11 or higher.
8(g) If the distribution percentage is greater than
9seventy-five percent but not greater than eighty percent, the
10rate shall be thirty-one and three-tenths cents for biodiesel
11blended fuel classified as B-11 or higher and thirty-two and
12five-tenths cents for special fuel for diesel engines of motor
13vehicles other than biodiesel blended fuel classified as B-11
14or higher.
15(h) If the distribution percentage is greater than eighty
16percent but not greater than eighty-five percent, the rate
17shall be thirty-one and six-tenths cents for biodiesel
18blended fuel classified as B-11 or higher and thirty-two and
19five-tenths cents for special fuel for diesel engines of motor
20vehicles other than biodiesel blended fuel classified as B-11
21or higher.
22(i) If the distribution percentage is greater than
23eighty-five percent but not greater than ninety percent, the
24rate shall be thirty-one and nine-tenths cents for biodiesel
25blended fuel classified as B-11 or higher and thirty-two and
26five-tenths cents for special fuel for diesel engines of motor
27vehicles other than biodiesel blended fuel classified as B-11
28or higher.
29(j) If the distribution percentage is greater than ninety
30percent but not greater than ninety-five percent, the rate
31shall be thirty-two and two-tenths cents for biodiesel
32blended fuel classified as B-11 or higher and thirty-two and
33five-tenths cents for special fuel for diesel engines of motor
34vehicles other than biodiesel blended fuel classified as B-11
35or higher.
-7- 1(k) If the distribution percentage is greater than
2ninety-five percent, the rate shall be thirty-two and
3five-tenths cents for biodiesel blended fuel classified as B-11
4or higher and thirty-two and five-tenths cents for special
5fuel for diesel engines of motor vehicles other than biodiesel
6blended fuel classified as B-11 or higher.
7(3) The rate of the excise tax on special fuel for aircraft
8is five cents per gallon.
9(4) On all other special fuel, unless otherwise specified in
10this section, the per gallon rate of the excise tax is the same
11as the motor fuel tax under subsection 1.
12b. Indelible dye meeting United States environmental
13protection agency and internal revenue service regulations must
14be added to fuel before or upon withdrawal at a terminal or
15refinery rack for that fuel to be exempt from tax and the dyed
16fuel may be used only for an exempt purpose.
17 Sec. 2. Section 452A.31, subsection 2, paragraph a,
18subparagraph (1), Code 2020, is amended by adding the following
19new subparagraph division:
20 NEW SUBPARAGRAPH DIVISION. (c) The total E-15 gasoline
21gallonage which is the total number of gallons of ethanol
22blended gasoline classified as E-15 or higher, including E-85
23gasoline.
24 Sec. 3. Section 452A.31, subsection 3, paragraph a, Code
252020, is amended by adding the following new subparagraph:
26 NEW SUBPARAGRAPH. (02) The total B-11 gallonage which
27is the total number of gallons of biodiesel blended fuel
28classified as B-11 or higher.
29 Sec. 4. Section 452A.31, subsection 4, paragraph a,
30subparagraph (1), Code 2020, is amended by adding the following
31new subparagraph division:
32 NEW SUBPARAGRAPH DIVISION. (c) The aggregate E-15 gasoline
33gallonage which is the aggregate total number of gallons
34of ethanol blended gasoline classified as E-15 or higher,
35including E-85 gasoline.
-8-1 Sec. 5. Section 452A.31, subsection 5, paragraph a, Code
22020, is amended by adding the following new subparagraph:
3 NEW SUBPARAGRAPH. (02) The aggregate B-11 gallonage which
4is the aggregate total number of gallons of biodiesel blended
5fuel classified as B-11 or higher.
6 Sec. 6. APPLICABILITY. The provision of the section of
7this Act amending section 452A.3 to require the department
8of revenue to determine the percentage basis for each
9determination period beginning January 1 and ending December
1031 based on data from the reports filed pursuant to section
11452A.33 for purposes of the excise tax on biodiesel blended
12fuel classified as B-11 or higher applies to the determination
13period beginning January 1, 2021, and to each determination
14period thereafter, for the rate of the excise tax on each
15gallon of biodiesel blended fuel classified as B-11 or higher
16beginning July 1, 2021.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill relates to the excise taxes on motor fuel and
21certain special fuel.
22Under current law, until June 30, 2020, the per-gallon
23excise tax on ethanol blended gasoline is up to 2 cents less
24than the per-gallon excise tax on other motor fuel, based on
25the distribution percentage of the fuels. After June 30, 2020,
26the per-gallon excise tax on ethanol blended gasoline and other
27motor fuel is 30 cents. The bill instead imposes a per-gallon
28excise tax of 30 cents on motor fuel other than ethanol blended
29gasoline classified as E-15 or higher. Until July 1, 2026,
30the bill imposes a per-gallon excise tax on ethanol blended
31gasoline classified as E-15 or higher that is up to 6 cents
32less than the per-gallon excise tax on other motor fuel, based
33on the distribution percentage of the fuels. On and after July
341, 2026, the per-gallon excise tax on ethanol blended gasoline
35classified as E-15 or higher is 30 cents. The bill requires
-9-1the distribution percentage to be based on data from reports
2filed pursuant to Code section 452A.33.
3Current law provides for legislative review of the fuel
4distribution percentage formulas at least every six years,
5with the first report due no later than January 1, 2020. The
6bill instead provides for legislative review of the fuel
7distribution percentage formulas at least every five years.
8Under current law, the per-gallon excise tax on E-85
9gasoline is up to 14 cents less than the per-gallon excise tax
10on other motor fuel, depending on the amount of excise tax
11paid on E-85 gasoline during the past calendar year and the
12amount of the excise tax on other motor fuel. The bill strikes
13the provisions relating to the per-gallon excise tax on E-85
14gasoline.
15Under current law, until June 30, 2020, the per-gallon
16excise tax on biodiesel blended fuel classified as B-11 or
17higher is up to 3 cents less than the per-gallon excise tax
18on other special fuel for diesel engines of motor vehicles,
19based on the distribution percentage of the fuels. After June
2030, 2020, the per-gallon excise tax on biodiesel blended fuel
21classified as B-11 or higher and other special fuel for diesel
22engines of motor vehicles is 32.5 cents. The bill extends the
23date on which the per-gallon excise tax on biodiesel blended
24fuel classified as B-11 or higher becomes 32.5 cents to July 1,
252026. For the determination period beginning January 1, 2021,
26and for each determination period thereafter, the bill requires
27the distribution percentage to be based on data from reports
28filed pursuant to Code section 452A.33.
29The bill creates reporting classifications under Code
30section 452A.31 for ethanol blended gasoline classified as
31E-15 or higher and biodiesel blended fuel classified as B-11
32or higher for purposes of gallonage reports submitted to the
33department of revenue pursuant to Code section 452A.33.
34By operation of law, to the extent the excise tax on E-85
35gasoline and ethanol blended gasoline classified as lower than
-10-1E-15 is increased more than 0.5 cents per gallon, the inventory
2tax set forth in Code section 452A.85 applies.
-11-mo/ns
2special fuel, and including applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 452A.3, subsections 1, 2, 3, 4, 5, and 6,
2Code 2020, are amended to read as follows:
31. Except as otherwise provided in this section and in this
4subchapter, until June 30, 2020, this subsection shall apply
5to the excise tax imposed on each gallon of motor fuel used for
6any purpose for the privilege of operating motor vehicles in
7this state.
8a. An excise tax of thirty cents is imposed on each gallon
9of motor fuel other than ethanol blended gasoline classified
10as E-15 or higher.
11a. b. The On and after July 1, 2026, an excise tax of
12thirty cents is imposed on each gallon of ethanol blended
13gasoline classified as E-15 or higher. Before July 1,
142026, the rate of the excise tax on ethanol blended gasoline
15classified as E-15 or higher shall be based on the number
16of gallons of ethanol blended gasoline classified as E-15 or
17higher that is are distributed in this state as expressed as a
18percentage of the number of gallons of motor fuel distributed
19in this state, which is referred to as the distribution
20percentage. For purposes of this subsection paragraph, only
21ethanol blended gasoline and nonblended gasoline, not including
22aviation gasoline, shall be used in determining the percentage
23basis for the excise tax. The department shall determine
24the percentage basis for each determination period beginning
25January 1 and ending December 31 based on data from the reports
26filed pursuant to section 452A.33. The rate for the excise
27tax shall apply for the period beginning July 1 and ending
28June 30 following the end of the determination period. Before
29July 1, 2026, the rate of the excise tax on each gallon of
30ethanol blended gasoline classified as E-15 or higher shall be
31as follows:
32b. The rate for the excise tax shall be as follows:
33(1) If the distribution percentage is not greater than fifty
34 ten percent, the rate shall be twenty-nine twenty-four cents
35for ethanol blended gasoline and thirty cents for motor fuel
-1-1other than ethanol blended gasoline.
2(2) If the distribution percentage is greater than fifty
3 ten percent but not greater than fifty-five twelve percent, the
4rate shall be twenty-nine twenty-four and five-tenths cents for
5ethanol blended gasoline and thirty and one-tenth cents for
6motor fuel other than ethanol blended gasoline.
7(3) If the distribution percentage is greater than
8fifty-five twelve percent but not greater than sixty fourteen
9 percent, the rate shall be twenty-nine twenty-five cents for
10ethanol blended gasoline and thirty and three-tenths cents for
11motor fuel other than ethanol blended gasoline.
12(4) If the distribution percentage is greater than sixty
13 fourteen percent but not greater than sixty-five sixteen
14 percent, the rate shall be twenty-nine twenty-five and
15five-tenths cents for ethanol blended gasoline and thirty and
16five-tenths cents for motor fuel other than ethanol blended
17gasoline.
18(5) If the distribution percentage is greater than
19sixty-five sixteen percent but not greater than seventy
20 eighteen percent, the rate shall be twenty-nine twenty-six
21 cents for ethanol blended gasoline and thirty and seven-tenths
22cents for motor fuel other than ethanol blended gasoline.
23(6) If the distribution percentage is greater than
24seventy eighteen percent but not greater than seventy-five
25 twenty percent, the rate shall be twenty-nine twenty-six and
26five-tenths cents for ethanol blended gasoline and thirty-one
27cents for motor fuel other than ethanol blended gasoline.
28(7) If the distribution percentage is greater than
29seventy-five twenty percent but not greater than eighty
30 twenty-two percent, the rate shall be twenty-nine and
31three-tenths twenty-seven cents for ethanol blended gasoline
32and thirty and eight-tenths cents for motor fuel other than
33ethanol blended gasoline.
34(8) If the distribution percentage is greater than eighty
35 twenty-two percent but not greater than eighty-five twenty-six
-2-1 percent, the rate shall be twenty-nine twenty-seven and
2five-tenths cents for ethanol blended gasoline and thirty and
3seven-tenths cents for motor fuel other than ethanol blended
4gasoline.
5(9) If the distribution percentage is greater than
6eighty-five twenty-six percent but not greater than ninety
7 thirty-five percent, the rate shall be twenty-nine and
8seven-tenths twenty-eight cents for ethanol blended gasoline
9and thirty and four-tenths cents for motor fuel other than
10ethanol blended gasoline.
11(10) If the distribution percentage is greater than ninety
12 thirty-five percent but not greater than ninety-five forty-five
13 percent, the rate shall be twenty-nine and nine-tenths
14 twenty-eight and five-tenths cents for ethanol blended gasoline
15and thirty and one-tenth cents for motor fuel other than
16ethanol blended gasoline.
17(11) If the distribution percentage is greater than
18ninety-five forty-five percent but not greater than sixty-five
19percent, the rate shall be thirty twenty-nine cents for ethanol
20blended gasoline and thirty cents for motor fuel other than
21ethanol blended gasoline.
22(12) If the distribution percentage is greater than
23sixty-five percent but not greater than eighty-five percent,
24the rate shall be twenty-nine and two-tenths cents.
25(13) If the distribution percentage is greater than
26eighty-five percent but not greater than ninety-five percent,
27the rate shall be twenty-nine and five-tenths cents.
28(14) If the distribution percentage is greater than
29ninety-five percent, the rate shall be thirty cents.
30c. The provisions of paragraph “b” and subsection 6
31 3, paragraph “a”, subparagraph (2), shall be subject to
32legislative review at least every six five years. The review
33shall be based upon a fuel distribution percentage formula
34status report containing the recommendations of a legislative
35interim committee appointed to conduct a review of the fuel
-3-1distribution percentage formulas, to be prepared with the
2assistance of the department of revenue in association
3with the department of transportation. The report shall
4include recommendations for changes or revisions to the
5fuel distribution percentage formulas based upon advances
6in technology, fuel use trends, and fuel price fluctuations
7observed during the preceding six-year five-year interval; an
8analysis of the operation of the fuel distribution percentage
9formulas during the preceding six-year five-year interval; and
10a summary of issues that have arisen since the previous review
11and potential approaches for resolution of those issues. The
12first such report shall be submitted to the general assembly no
13later than January 1, 2020, with subsequent reports developed
14and submitted by January 1 at least every sixth fifth year
15thereafter.
162. Except as otherwise provided in this section and in this
17subchapter, after June 30, 2020, an excise tax of thirty cents
18is imposed on each gallon of motor fuel used for any purpose
19for the privilege of operating motor vehicles in this state.
203. An excise tax of seventeen cents is imposed on each
21gallon of E-85 gasoline, subject to the determination provided
22in subsection 4.
234. The rate of the excise tax on E-85 gasoline imposed in
24subsection 3 shall be determined based on the number of gallons
25of E-85 gasoline that are distributed in this state during the
26previous calendar year. The department shall determine the
27actual tax paid for E-85 gasoline for each period beginning
28January 1 and ending December 31. The amount of the tax paid on
29E-85 gasoline during the past calendar year shall be compared
30to the amount of tax on E-85 gasoline that would have been paid
31using the tax rate for gasoline imposed in subsection 1 or
322 and a difference shall be established. If this difference
33is equal to or greater than twenty-five thousand dollars, the
34tax rate for E-85 gasoline for the period beginning July 1
35following the end of the determination period shall be the rate
-4-1in effect as stated in subsection 1 or 2.
25. 2. For the privilege of operating aircraft in this state
3an excise tax of eight cents per gallon is imposed on the use of
4all aviation gasoline.
56. 3. a. For the privilege of operating motor vehicles or
6aircraft in this state, there is imposed an excise tax on the
7use of special fuel in a motor vehicle or aircraft.
8(1) Except as otherwise provided in this section and in
9this subchapter, for the period ending June 30, 2015, and for
10the period beginning July 1, 2020, and thereafter, the rate
11of the excise tax rate on each gallon of special fuel for
12diesel engines of motor vehicles used for any purpose for the
13privilege of operating motor vehicles in this state, other
14than biodiesel blended fuel classified as B-11 or higher, is
15thirty-two and five-tenths cents per gallon.
16(2) Except as otherwise provided in this section and in
17this subchapter, for the period beginning July 1, 2015, and
18ending June 30, 2020, this subparagraph shall apply to the
19excise tax imposed on each gallon of special fuel for diesel
20engines of motor vehicles biodiesel blended fuel classified
21as B-11 or higher used for any purpose for the privilege of
22operating motor vehicles in this state. The On and after
23July 1, 2026, the rate of the excise tax on each gallon
24of biodiesel blended fuel classified as B-11 or higher is
25thirty-two and five-tenths cents. Before July 1, 2026, the
26 rate of the excise tax shall be based on the number of gallons
27of biodiesel blended fuel classified as B-11 or higher that is
28distributed in this state as expressed as a percentage of the
29number of gallons of special fuel for diesel engines of motor
30vehicles distributed in this state, which is referred to as
31the distribution percentage. The department shall determine
32the percentage basis for each determination period beginning
33January 1 and ending December 31 based on data from the reports
34filed pursuant to section 452A.33. The rate for of the excise
35tax shall apply for the period beginning July 1 and ending June
-5-130 following the end of the determination period. The Before
2July 1, 2026, the rate for of the excise tax on each gallon of
3biodiesel blended fuel classified as B-11 or higher shall be
4as follows:
5(a) If the distribution percentage is not greater than fifty
6percent, the rate shall be twenty-nine and five-tenths cents
7for biodiesel blended fuel classified as B-11 or higher and
8thirty-two and five-tenths cents for special fuel for diesel
9engines of motor vehicles other than biodiesel blended fuel
10classified as B-11 or higher.
11(b) If the distribution percentage is greater than fifty
12percent but not greater than fifty-five percent, the rate
13shall be twenty-nine and eight-tenths cents for biodiesel
14blended fuel classified as B-11 or higher and thirty-two and
15five-tenths cents for special fuel for diesel engines of motor
16vehicles other than biodiesel blended fuel classified as B-11
17or higher.
18(c) If the distribution percentage is greater than
19fifty-five percent but not greater than sixty percent, the rate
20shall be thirty and one-tenth cents for biodiesel blended fuel
21classified as B-11 or higher and thirty-two and five-tenths
22cents for special fuel for diesel engines of motor vehicles
23other than biodiesel blended fuel classified as B-11 or higher.
24(d) If the distribution percentage is greater than sixty
25percent but not greater than sixty-five percent, the rate shall
26be thirty and four-tenths cents for biodiesel blended fuel
27classified as B-11 or higher and thirty-two and five-tenths
28cents for special fuel for diesel engines of motor vehicles
29other than biodiesel blended fuel classified as B-11 or higher.
30(e) If the distribution percentage is greater than
31sixty-five percent but not greater than seventy percent, the
32rate shall be thirty and seven-tenths cents for biodiesel
33blended fuel classified as B-11 or higher and thirty-two and
34five-tenths cents for special fuel for diesel engines of motor
35vehicles other than biodiesel blended fuel classified as B-11
-6-1or higher.
2(f) If the distribution percentage is greater than seventy
3percent but not greater than seventy-five percent, the rate
4shall be thirty-one cents for biodiesel blended fuel classified
5as B-11 or higher and thirty-two and five-tenths cents for
6special fuel for diesel engines of motor vehicles other than
7biodiesel blended fuel classified as B-11 or higher.
8(g) If the distribution percentage is greater than
9seventy-five percent but not greater than eighty percent, the
10rate shall be thirty-one and three-tenths cents for biodiesel
11blended fuel classified as B-11 or higher and thirty-two and
12five-tenths cents for special fuel for diesel engines of motor
13vehicles other than biodiesel blended fuel classified as B-11
14or higher.
15(h) If the distribution percentage is greater than eighty
16percent but not greater than eighty-five percent, the rate
17shall be thirty-one and six-tenths cents for biodiesel
18blended fuel classified as B-11 or higher and thirty-two and
19five-tenths cents for special fuel for diesel engines of motor
20vehicles other than biodiesel blended fuel classified as B-11
21or higher.
22(i) If the distribution percentage is greater than
23eighty-five percent but not greater than ninety percent, the
24rate shall be thirty-one and nine-tenths cents for biodiesel
25blended fuel classified as B-11 or higher and thirty-two and
26five-tenths cents for special fuel for diesel engines of motor
27vehicles other than biodiesel blended fuel classified as B-11
28or higher.
29(j) If the distribution percentage is greater than ninety
30percent but not greater than ninety-five percent, the rate
31shall be thirty-two and two-tenths cents for biodiesel
32blended fuel classified as B-11 or higher and thirty-two and
33five-tenths cents for special fuel for diesel engines of motor
34vehicles other than biodiesel blended fuel classified as B-11
35or higher.
-7- 1(k) If the distribution percentage is greater than
2ninety-five percent, the rate shall be thirty-two and
3five-tenths cents for biodiesel blended fuel classified as B-11
4or higher and thirty-two and five-tenths cents for special
5fuel for diesel engines of motor vehicles other than biodiesel
6blended fuel classified as B-11 or higher.
7(3) The rate of the excise tax on special fuel for aircraft
8is five cents per gallon.
9(4) On all other special fuel, unless otherwise specified in
10this section, the per gallon rate of the excise tax is the same
11as the motor fuel tax under subsection 1.
12b. Indelible dye meeting United States environmental
13protection agency and internal revenue service regulations must
14be added to fuel before or upon withdrawal at a terminal or
15refinery rack for that fuel to be exempt from tax and the dyed
16fuel may be used only for an exempt purpose.
17 Sec. 2. Section 452A.31, subsection 2, paragraph a,
18subparagraph (1), Code 2020, is amended by adding the following
19new subparagraph division:
20 NEW SUBPARAGRAPH DIVISION. (c) The total E-15 gasoline
21gallonage which is the total number of gallons of ethanol
22blended gasoline classified as E-15 or higher, including E-85
23gasoline.
24 Sec. 3. Section 452A.31, subsection 3, paragraph a, Code
252020, is amended by adding the following new subparagraph:
26 NEW SUBPARAGRAPH. (02) The total B-11 gallonage which
27is the total number of gallons of biodiesel blended fuel
28classified as B-11 or higher.
29 Sec. 4. Section 452A.31, subsection 4, paragraph a,
30subparagraph (1), Code 2020, is amended by adding the following
31new subparagraph division:
32 NEW SUBPARAGRAPH DIVISION. (c) The aggregate E-15 gasoline
33gallonage which is the aggregate total number of gallons
34of ethanol blended gasoline classified as E-15 or higher,
35including E-85 gasoline.
-8-1 Sec. 5. Section 452A.31, subsection 5, paragraph a, Code
22020, is amended by adding the following new subparagraph:
3 NEW SUBPARAGRAPH. (02) The aggregate B-11 gallonage which
4is the aggregate total number of gallons of biodiesel blended
5fuel classified as B-11 or higher.
6 Sec. 6. APPLICABILITY. The provision of the section of
7this Act amending section 452A.3 to require the department
8of revenue to determine the percentage basis for each
9determination period beginning January 1 and ending December
1031 based on data from the reports filed pursuant to section
11452A.33 for purposes of the excise tax on biodiesel blended
12fuel classified as B-11 or higher applies to the determination
13period beginning January 1, 2021, and to each determination
14period thereafter, for the rate of the excise tax on each
15gallon of biodiesel blended fuel classified as B-11 or higher
16beginning July 1, 2021.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill relates to the excise taxes on motor fuel and
21certain special fuel.
22Under current law, until June 30, 2020, the per-gallon
23excise tax on ethanol blended gasoline is up to 2 cents less
24than the per-gallon excise tax on other motor fuel, based on
25the distribution percentage of the fuels. After June 30, 2020,
26the per-gallon excise tax on ethanol blended gasoline and other
27motor fuel is 30 cents. The bill instead imposes a per-gallon
28excise tax of 30 cents on motor fuel other than ethanol blended
29gasoline classified as E-15 or higher. Until July 1, 2026,
30the bill imposes a per-gallon excise tax on ethanol blended
31gasoline classified as E-15 or higher that is up to 6 cents
32less than the per-gallon excise tax on other motor fuel, based
33on the distribution percentage of the fuels. On and after July
341, 2026, the per-gallon excise tax on ethanol blended gasoline
35classified as E-15 or higher is 30 cents. The bill requires
-9-1the distribution percentage to be based on data from reports
2filed pursuant to Code section 452A.33.
3Current law provides for legislative review of the fuel
4distribution percentage formulas at least every six years,
5with the first report due no later than January 1, 2020. The
6bill instead provides for legislative review of the fuel
7distribution percentage formulas at least every five years.
8Under current law, the per-gallon excise tax on E-85
9gasoline is up to 14 cents less than the per-gallon excise tax
10on other motor fuel, depending on the amount of excise tax
11paid on E-85 gasoline during the past calendar year and the
12amount of the excise tax on other motor fuel. The bill strikes
13the provisions relating to the per-gallon excise tax on E-85
14gasoline.
15Under current law, until June 30, 2020, the per-gallon
16excise tax on biodiesel blended fuel classified as B-11 or
17higher is up to 3 cents less than the per-gallon excise tax
18on other special fuel for diesel engines of motor vehicles,
19based on the distribution percentage of the fuels. After June
2030, 2020, the per-gallon excise tax on biodiesel blended fuel
21classified as B-11 or higher and other special fuel for diesel
22engines of motor vehicles is 32.5 cents. The bill extends the
23date on which the per-gallon excise tax on biodiesel blended
24fuel classified as B-11 or higher becomes 32.5 cents to July 1,
252026. For the determination period beginning January 1, 2021,
26and for each determination period thereafter, the bill requires
27the distribution percentage to be based on data from reports
28filed pursuant to Code section 452A.33.
29The bill creates reporting classifications under Code
30section 452A.31 for ethanol blended gasoline classified as
31E-15 or higher and biodiesel blended fuel classified as B-11
32or higher for purposes of gallonage reports submitted to the
33department of revenue pursuant to Code section 452A.33.
34By operation of law, to the extent the excise tax on E-85
35gasoline and ethanol blended gasoline classified as lower than
-10-1E-15 is increased more than 0.5 cents per gallon, the inventory
2tax set forth in Code section 452A.85 applies.
-11-mo/ns