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Senate File 2403 - EnrolledAn Actrelating to the excise taxes on motor fuel and certain
special fuel, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 452A.3, subsections 1, 2, 3, 4, 5, and 6,
Code 2020, are amended to read as follows:
1. Except as otherwise provided in this section and in this
subchapter, until June 30, 2020, this subsection shall apply
to the excise tax imposed on each gallon of motor fuel used for
any purpose for the privilege of operating motor vehicles in
this state.
a. An excise tax of thirty cents is imposed on each gallon
of motor fuel other than ethanol blended gasoline classified
as E-15 or higher.
a. b. The On and after July 1, 2026, an excise tax of
thirty cents is imposed on each gallon of ethanol blended
gasoline classified as E-15 or higher. Before July 1,
2026, the rate of the excise tax on ethanol blended gasoline
classified as E-15 or higher shall be based on the number
of gallons of ethanol blended gasoline classified as E-15 or
higher that is are distributed in this state as expressed as a
percentage of the number of gallons of motor fuel distributed
in this state, which is referred to as the distribution
percentage. For purposes of this subsection paragraph, only
ethanol blended gasoline and nonblended gasoline, not including
aviation gasoline, shall be used in determining the percentage
basis for the excise tax. The department shall determine
the percentage basis for each determination period beginning
January 1 and ending December 31 based on data from the reports
filed pursuant to section 452A.33. The rate for the excise
tax shall apply for the period beginning July 1 and ending
June 30 following the end of the determination period. Before
July 1, 2026, the rate of the excise tax on each gallon of
ethanol blended gasoline classified as E-15 or higher shall be
as follows:
b. The rate for the excise tax shall be as follows:
(1) If the distribution percentage is not greater than fifty
ten percent, the rate shall be twenty-nine twenty-four cents
for ethanol blended gasoline and thirty cents for motor fuel
-1-other than ethanol blended gasoline.
(2) If the distribution percentage is greater than fifty
ten percent but not greater than fifty-five twelve percent, the
rate shall be twenty-nine twenty-four and five-tenths cents for
ethanol blended gasoline and thirty and one-tenth cents for
motor fuel other than ethanol blended gasoline.
(3) If the distribution percentage is greater than
fifty-five twelve percent but not greater than sixty fourteen
percent, the rate shall be twenty-nine twenty-five cents for
ethanol blended gasoline and thirty and three-tenths cents for
motor fuel other than ethanol blended gasoline.
(4) If the distribution percentage is greater than sixty
fourteen percent but not greater than sixty-five sixteen
percent, the rate shall be twenty-nine twenty-five and
five-tenths cents for ethanol blended gasoline and thirty and
five-tenths cents for motor fuel other than ethanol blended
gasoline.
(5) If the distribution percentage is greater than
sixty-five sixteen percent but not greater than seventy
eighteen percent, the rate shall be twenty-nine twenty-six
cents for ethanol blended gasoline and thirty and seven-tenths
cents for motor fuel other than ethanol blended gasoline.
(6) If the distribution percentage is greater than
seventy eighteen percent but not greater than seventy-five
twenty percent, the rate shall be twenty-nine twenty-six and
five-tenths cents for ethanol blended gasoline and thirty-one
cents for motor fuel other than ethanol blended gasoline.
(7) If the distribution percentage is greater than
seventy-five twenty percent but not greater than eighty
twenty-two percent, the rate shall be twenty-nine and
three-tenths twenty-seven cents for ethanol blended gasoline
and thirty and eight-tenths cents for motor fuel other than
ethanol blended gasoline.
(8) If the distribution percentage is greater than eighty
twenty-two percent but not greater than eighty-five twenty-six
-2- percent, the rate shall be twenty-nine twenty-seven and
five-tenths cents for ethanol blended gasoline and thirty and
seven-tenths cents for motor fuel other than ethanol blended
gasoline.
(9) If the distribution percentage is greater than
eighty-five twenty-six percent but not greater than ninety
thirty-five percent, the rate shall be twenty-nine and
seven-tenths twenty-eight cents for ethanol blended gasoline
and thirty and four-tenths cents for motor fuel other than
ethanol blended gasoline.
(10) If the distribution percentage is greater than ninety
thirty-five percent but not greater than ninety-five forty-five
percent, the rate shall be twenty-nine and nine-tenths
twenty-eight and five-tenths cents for ethanol blended gasoline
and thirty and one-tenth cents for motor fuel other than
ethanol blended gasoline.
(11) If the distribution percentage is greater than
ninety-five forty-five percent but not greater than sixty-five
percent, the rate shall be thirty twenty-nine cents for ethanol
blended gasoline and thirty cents for motor fuel other than
ethanol blended gasoline.
(12) If the distribution percentage is greater than
sixty-five percent but not greater than eighty-five percent,
the rate shall be twenty-nine and two-tenths cents.
(13) If the distribution percentage is greater than
eighty-five percent but not greater than ninety-five percent,
the rate shall be twenty-nine and five-tenths cents.
(14) If the distribution percentage is greater than
ninety-five percent, the rate shall be thirty cents.
c. The provisions of paragraph “b” and subsection 6
3, paragraph “a”, subparagraph (2), shall be subject to
legislative review at least every six five years. The review
shall be based upon a fuel distribution percentage formula
status report containing the recommendations of a legislative
interim committee appointed to conduct a review of the fuel
-3-distribution percentage formulas, to be prepared with the
assistance of the department of revenue in association
with the department of transportation. The report shall
include recommendations for changes or revisions to the
fuel distribution percentage formulas based upon advances
in technology, fuel use trends, and fuel price fluctuations
observed during the preceding six-year five-year interval; an
analysis of the operation of the fuel distribution percentage
formulas during the preceding six-year five-year interval; and
a summary of issues that have arisen since the previous review
and potential approaches for resolution of those issues. The
first such report shall be submitted to the general assembly no
later than January 1, 2020, with subsequent reports developed
and submitted by January 1 at least every sixth fifth year
thereafter.
2. Except as otherwise provided in this section and in this
subchapter, after June 30, 2020, an excise tax of thirty cents
is imposed on each gallon of motor fuel used for any purpose
for the privilege of operating motor vehicles in this state.
3. An excise tax of seventeen cents is imposed on each
gallon of E-85 gasoline, subject to the determination provided
in subsection 4.
4. The rate of the excise tax on E-85 gasoline imposed in
subsection 3 shall be determined based on the number of gallons
of E-85 gasoline that are distributed in this state during the
previous calendar year. The department shall determine the
actual tax paid for E-85 gasoline for each period beginning
January 1 and ending December 31. The amount of the tax paid on
E-85 gasoline during the past calendar year shall be compared
to the amount of tax on E-85 gasoline that would have been paid
using the tax rate for gasoline imposed in subsection 1 or
2 and a difference shall be established. If this difference
is equal to or greater than twenty-five thousand dollars, the
tax rate for E-85 gasoline for the period beginning July 1
following the end of the determination period shall be the rate
-4-in effect as stated in subsection 1 or 2.
5. 2. For the privilege of operating aircraft in this state
an excise tax of eight cents per gallon is imposed on the use of
all aviation gasoline.
6. 3. a. For the privilege of operating motor vehicles or
aircraft in this state, there is imposed an excise tax on the
use of special fuel in a motor vehicle or aircraft.
(1) Except as otherwise provided in this section and in
this subchapter, for the period ending June 30, 2015, and for
the period beginning July 1, 2020, and thereafter, the rate
of the excise tax rate on each gallon of special fuel for
diesel engines of motor vehicles used for any purpose for the
privilege of operating motor vehicles in this state, other
than biodiesel blended fuel classified as B-11 or higher, is
thirty-two and five-tenths cents per gallon.
(2) Except as otherwise provided in this section and in
this subchapter, for the period beginning July 1, 2015, and
ending June 30, 2020, this subparagraph shall apply to the
excise tax imposed on each gallon of special fuel for diesel
engines of motor vehicles biodiesel blended fuel classified
as B-11 or higher used for any purpose for the privilege of
operating motor vehicles in this state. The On and after
July 1, 2026, the rate of the excise tax on each gallon
of biodiesel blended fuel classified as B-11 or higher is
thirty-two and five-tenths cents. Before July 1, 2026, the
rate of the excise tax shall be based on the number of gallons
of biodiesel blended fuel classified as B-11 or higher that is
distributed in this state as expressed as a percentage of the
number of gallons of special fuel for diesel engines of motor
vehicles distributed in this state, which is referred to as
the distribution percentage. The department shall determine
the percentage basis for each determination period beginning
January 1 and ending December 31 based on data from the reports
filed pursuant to section 452A.33. The rate for of the excise
tax shall apply for the period beginning July 1 and ending June
-5-30 following the end of the determination period. The Before
July 1, 2026, the rate for of the excise tax on each gallon of
biodiesel blended fuel classified as B-11 or higher shall be
as follows:
(a) If the distribution percentage is not greater than fifty
percent, the rate shall be twenty-nine and five-tenths cents
for biodiesel blended fuel classified as B-11 or higher and
thirty-two and five-tenths cents for special fuel for diesel
engines of motor vehicles other than biodiesel blended fuel
classified as B-11 or higher.
(b) If the distribution percentage is greater than fifty
percent but not greater than fifty-five percent, the rate
shall be twenty-nine and eight-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
(c) If the distribution percentage is greater than
fifty-five percent but not greater than sixty percent, the rate
shall be thirty and one-tenth cents for biodiesel blended fuel
classified as B-11 or higher and thirty-two and five-tenths
cents for special fuel for diesel engines of motor vehicles
other than biodiesel blended fuel classified as B-11 or higher.
(d) If the distribution percentage is greater than sixty
percent but not greater than sixty-five percent, the rate shall
be thirty and four-tenths cents for biodiesel blended fuel
classified as B-11 or higher and thirty-two and five-tenths
cents for special fuel for diesel engines of motor vehicles
other than biodiesel blended fuel classified as B-11 or higher.
(e) If the distribution percentage is greater than
sixty-five percent but not greater than seventy percent, the
rate shall be thirty and seven-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
-6-or higher.
(f) If the distribution percentage is greater than seventy
percent but not greater than seventy-five percent, the rate
shall be thirty-one cents for biodiesel blended fuel classified
as B-11 or higher and thirty-two and five-tenths cents for
special fuel for diesel engines of motor vehicles other than
biodiesel blended fuel classified as B-11 or higher.
(g) If the distribution percentage is greater than
seventy-five percent but not greater than eighty percent, the
rate shall be thirty-one and three-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
(h) If the distribution percentage is greater than eighty
percent but not greater than eighty-five percent, the rate
shall be thirty-one and six-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
(i) If the distribution percentage is greater than
eighty-five percent but not greater than ninety percent, the
rate shall be thirty-one and nine-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
(j) If the distribution percentage is greater than ninety
percent but not greater than ninety-five percent, the rate
shall be thirty-two and two-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
-7- (k) If the distribution percentage is greater than
ninety-five percent, the rate shall be thirty-two and
five-tenths cents for biodiesel blended fuel classified as B-11
or higher and thirty-two and five-tenths cents for special
fuel for diesel engines of motor vehicles other than biodiesel
blended fuel classified as B-11 or higher.
(3) The rate of the excise tax on special fuel for aircraft
is five cents per gallon.
(4) On all other special fuel, unless otherwise specified in
this section, the per gallon rate of the excise tax is the same
as the motor fuel tax under subsection 1.
b. Indelible dye meeting United States environmental
protection agency and internal revenue service regulations must
be added to fuel before or upon withdrawal at a terminal or
refinery rack for that fuel to be exempt from tax and the dyed
fuel may be used only for an exempt purpose.
Sec. 2. Section 452A.31, subsection 2, paragraph a,
subparagraph (1), Code 2020, is amended by adding the following
new subparagraph division:
NEW SUBPARAGRAPH DIVISION. (c) The total E-15 gasoline
gallonage which is the total number of gallons of ethanol
blended gasoline classified as E-15 or higher, including E-85
gasoline.
Sec. 3. Section 452A.31, subsection 3, paragraph a, Code
2020, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH. (02) The total B-11 gallonage which
is the total number of gallons of biodiesel blended fuel
classified as B-11 or higher.
Sec. 4. Section 452A.31, subsection 4, paragraph a,
subparagraph (1), Code 2020, is amended by adding the following
new subparagraph division:
NEW SUBPARAGRAPH DIVISION. (c) The aggregate E-15 gasoline
gallonage which is the aggregate total number of gallons
of ethanol blended gasoline classified as E-15 or higher,
including E-85 gasoline.
-8- Sec. 5. Section 452A.31, subsection 5, paragraph a, Code
2020, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH. (02) The aggregate B-11 gallonage which
is the aggregate total number of gallons of biodiesel blended
fuel classified as B-11 or higher.
Sec. 6. APPLICABILITY. The provision of the section of
this Act amending section 452A.3 to require the department
of revenue to determine the percentage basis for each
determination period beginning January 1 and ending December
31 based on data from the reports filed pursuant to section
452A.33 for purposes of the excise tax on biodiesel blended
fuel classified as B-11 or higher applies to the determination
period beginning January 1, 2021, and to each determination
period thereafter, for the rate of the excise tax on each
gallon of biodiesel blended fuel classified as B-11 or higher
beginning July 1, 2021.
______________________________
CHARLES SCHNEIDERPresident of the Senate______________________________
PAT GRASSLEYSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 2403, Eighty-eighth General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2020______________________________
KIM REYNOLDSGovernormo/ns
special fuel, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 452A.3, subsections 1, 2, 3, 4, 5, and 6,
Code 2020, are amended to read as follows:
1. Except as otherwise provided in this section and in this
subchapter, until June 30, 2020, this subsection shall apply
to the excise tax imposed on each gallon of motor fuel used for
any purpose for the privilege of operating motor vehicles in
this state.
a. An excise tax of thirty cents is imposed on each gallon
of motor fuel other than ethanol blended gasoline classified
as E-15 or higher.
a. b. The On and after July 1, 2026, an excise tax of
thirty cents is imposed on each gallon of ethanol blended
gasoline classified as E-15 or higher. Before July 1,
2026, the rate of the excise tax on ethanol blended gasoline
classified as E-15 or higher shall be based on the number
of gallons of ethanol blended gasoline classified as E-15 or
higher that is are distributed in this state as expressed as a
percentage of the number of gallons of motor fuel distributed
in this state, which is referred to as the distribution
percentage. For purposes of this subsection paragraph, only
ethanol blended gasoline and nonblended gasoline, not including
aviation gasoline, shall be used in determining the percentage
basis for the excise tax. The department shall determine
the percentage basis for each determination period beginning
January 1 and ending December 31 based on data from the reports
filed pursuant to section 452A.33. The rate for the excise
tax shall apply for the period beginning July 1 and ending
June 30 following the end of the determination period. Before
July 1, 2026, the rate of the excise tax on each gallon of
ethanol blended gasoline classified as E-15 or higher shall be
as follows:
b. The rate for the excise tax shall be as follows:
(1) If the distribution percentage is not greater than fifty
ten percent, the rate shall be twenty-nine twenty-four cents
for ethanol blended gasoline and thirty cents for motor fuel
-1-other than ethanol blended gasoline.
(2) If the distribution percentage is greater than fifty
ten percent but not greater than fifty-five twelve percent, the
rate shall be twenty-nine twenty-four and five-tenths cents for
ethanol blended gasoline and thirty and one-tenth cents for
motor fuel other than ethanol blended gasoline.
(3) If the distribution percentage is greater than
fifty-five twelve percent but not greater than sixty fourteen
percent, the rate shall be twenty-nine twenty-five cents for
ethanol blended gasoline and thirty and three-tenths cents for
motor fuel other than ethanol blended gasoline.
(4) If the distribution percentage is greater than sixty
fourteen percent but not greater than sixty-five sixteen
percent, the rate shall be twenty-nine twenty-five and
five-tenths cents for ethanol blended gasoline and thirty and
five-tenths cents for motor fuel other than ethanol blended
gasoline.
(5) If the distribution percentage is greater than
sixty-five sixteen percent but not greater than seventy
eighteen percent, the rate shall be twenty-nine twenty-six
cents for ethanol blended gasoline and thirty and seven-tenths
cents for motor fuel other than ethanol blended gasoline.
(6) If the distribution percentage is greater than
seventy eighteen percent but not greater than seventy-five
twenty percent, the rate shall be twenty-nine twenty-six and
five-tenths cents for ethanol blended gasoline and thirty-one
cents for motor fuel other than ethanol blended gasoline.
(7) If the distribution percentage is greater than
seventy-five twenty percent but not greater than eighty
twenty-two percent, the rate shall be twenty-nine and
three-tenths twenty-seven cents for ethanol blended gasoline
and thirty and eight-tenths cents for motor fuel other than
ethanol blended gasoline.
(8) If the distribution percentage is greater than eighty
twenty-two percent but not greater than eighty-five twenty-six
-2- percent, the rate shall be twenty-nine twenty-seven and
five-tenths cents for ethanol blended gasoline and thirty and
seven-tenths cents for motor fuel other than ethanol blended
gasoline.
(9) If the distribution percentage is greater than
eighty-five twenty-six percent but not greater than ninety
thirty-five percent, the rate shall be twenty-nine and
seven-tenths twenty-eight cents for ethanol blended gasoline
and thirty and four-tenths cents for motor fuel other than
ethanol blended gasoline.
(10) If the distribution percentage is greater than ninety
thirty-five percent but not greater than ninety-five forty-five
percent, the rate shall be twenty-nine and nine-tenths
twenty-eight and five-tenths cents for ethanol blended gasoline
and thirty and one-tenth cents for motor fuel other than
ethanol blended gasoline.
(11) If the distribution percentage is greater than
ninety-five forty-five percent but not greater than sixty-five
percent, the rate shall be thirty twenty-nine cents for ethanol
blended gasoline and thirty cents for motor fuel other than
ethanol blended gasoline.
(12) If the distribution percentage is greater than
sixty-five percent but not greater than eighty-five percent,
the rate shall be twenty-nine and two-tenths cents.
(13) If the distribution percentage is greater than
eighty-five percent but not greater than ninety-five percent,
the rate shall be twenty-nine and five-tenths cents.
(14) If the distribution percentage is greater than
ninety-five percent, the rate shall be thirty cents.
c. The provisions of paragraph “b” and subsection 6
3, paragraph “a”, subparagraph (2), shall be subject to
legislative review at least every six five years. The review
shall be based upon a fuel distribution percentage formula
status report containing the recommendations of a legislative
interim committee appointed to conduct a review of the fuel
-3-distribution percentage formulas, to be prepared with the
assistance of the department of revenue in association
with the department of transportation. The report shall
include recommendations for changes or revisions to the
fuel distribution percentage formulas based upon advances
in technology, fuel use trends, and fuel price fluctuations
observed during the preceding six-year five-year interval; an
analysis of the operation of the fuel distribution percentage
formulas during the preceding six-year five-year interval; and
a summary of issues that have arisen since the previous review
and potential approaches for resolution of those issues. The
first such report shall be submitted to the general assembly no
later than January 1, 2020, with subsequent reports developed
and submitted by January 1 at least every sixth fifth year
thereafter.
2. Except as otherwise provided in this section and in this
subchapter, after June 30, 2020, an excise tax of thirty cents
is imposed on each gallon of motor fuel used for any purpose
for the privilege of operating motor vehicles in this state.
3. An excise tax of seventeen cents is imposed on each
gallon of E-85 gasoline, subject to the determination provided
in subsection 4.
4. The rate of the excise tax on E-85 gasoline imposed in
subsection 3 shall be determined based on the number of gallons
of E-85 gasoline that are distributed in this state during the
previous calendar year. The department shall determine the
actual tax paid for E-85 gasoline for each period beginning
January 1 and ending December 31. The amount of the tax paid on
E-85 gasoline during the past calendar year shall be compared
to the amount of tax on E-85 gasoline that would have been paid
using the tax rate for gasoline imposed in subsection 1 or
2 and a difference shall be established. If this difference
is equal to or greater than twenty-five thousand dollars, the
tax rate for E-85 gasoline for the period beginning July 1
following the end of the determination period shall be the rate
-4-in effect as stated in subsection 1 or 2.
5. 2. For the privilege of operating aircraft in this state
an excise tax of eight cents per gallon is imposed on the use of
all aviation gasoline.
6. 3. a. For the privilege of operating motor vehicles or
aircraft in this state, there is imposed an excise tax on the
use of special fuel in a motor vehicle or aircraft.
(1) Except as otherwise provided in this section and in
this subchapter, for the period ending June 30, 2015, and for
the period beginning July 1, 2020, and thereafter, the rate
of the excise tax rate on each gallon of special fuel for
diesel engines of motor vehicles used for any purpose for the
privilege of operating motor vehicles in this state, other
than biodiesel blended fuel classified as B-11 or higher, is
thirty-two and five-tenths cents per gallon.
(2) Except as otherwise provided in this section and in
this subchapter, for the period beginning July 1, 2015, and
ending June 30, 2020, this subparagraph shall apply to the
excise tax imposed on each gallon of special fuel for diesel
engines of motor vehicles biodiesel blended fuel classified
as B-11 or higher used for any purpose for the privilege of
operating motor vehicles in this state. The On and after
July 1, 2026, the rate of the excise tax on each gallon
of biodiesel blended fuel classified as B-11 or higher is
thirty-two and five-tenths cents. Before July 1, 2026, the
rate of the excise tax shall be based on the number of gallons
of biodiesel blended fuel classified as B-11 or higher that is
distributed in this state as expressed as a percentage of the
number of gallons of special fuel for diesel engines of motor
vehicles distributed in this state, which is referred to as
the distribution percentage. The department shall determine
the percentage basis for each determination period beginning
January 1 and ending December 31 based on data from the reports
filed pursuant to section 452A.33. The rate for of the excise
tax shall apply for the period beginning July 1 and ending June
-5-30 following the end of the determination period. The Before
July 1, 2026, the rate for of the excise tax on each gallon of
biodiesel blended fuel classified as B-11 or higher shall be
as follows:
(a) If the distribution percentage is not greater than fifty
percent, the rate shall be twenty-nine and five-tenths cents
for biodiesel blended fuel classified as B-11 or higher and
thirty-two and five-tenths cents for special fuel for diesel
engines of motor vehicles other than biodiesel blended fuel
classified as B-11 or higher.
(b) If the distribution percentage is greater than fifty
percent but not greater than fifty-five percent, the rate
shall be twenty-nine and eight-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
(c) If the distribution percentage is greater than
fifty-five percent but not greater than sixty percent, the rate
shall be thirty and one-tenth cents for biodiesel blended fuel
classified as B-11 or higher and thirty-two and five-tenths
cents for special fuel for diesel engines of motor vehicles
other than biodiesel blended fuel classified as B-11 or higher.
(d) If the distribution percentage is greater than sixty
percent but not greater than sixty-five percent, the rate shall
be thirty and four-tenths cents for biodiesel blended fuel
classified as B-11 or higher and thirty-two and five-tenths
cents for special fuel for diesel engines of motor vehicles
other than biodiesel blended fuel classified as B-11 or higher.
(e) If the distribution percentage is greater than
sixty-five percent but not greater than seventy percent, the
rate shall be thirty and seven-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
-6-or higher.
(f) If the distribution percentage is greater than seventy
percent but not greater than seventy-five percent, the rate
shall be thirty-one cents for biodiesel blended fuel classified
as B-11 or higher and thirty-two and five-tenths cents for
special fuel for diesel engines of motor vehicles other than
biodiesel blended fuel classified as B-11 or higher.
(g) If the distribution percentage is greater than
seventy-five percent but not greater than eighty percent, the
rate shall be thirty-one and three-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
(h) If the distribution percentage is greater than eighty
percent but not greater than eighty-five percent, the rate
shall be thirty-one and six-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
(i) If the distribution percentage is greater than
eighty-five percent but not greater than ninety percent, the
rate shall be thirty-one and nine-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
(j) If the distribution percentage is greater than ninety
percent but not greater than ninety-five percent, the rate
shall be thirty-two and two-tenths cents for biodiesel
blended fuel classified as B-11 or higher and thirty-two and
five-tenths cents for special fuel for diesel engines of motor
vehicles other than biodiesel blended fuel classified as B-11
or higher.
-7- (k) If the distribution percentage is greater than
ninety-five percent, the rate shall be thirty-two and
five-tenths cents for biodiesel blended fuel classified as B-11
or higher and thirty-two and five-tenths cents for special
fuel for diesel engines of motor vehicles other than biodiesel
blended fuel classified as B-11 or higher.
(3) The rate of the excise tax on special fuel for aircraft
is five cents per gallon.
(4) On all other special fuel, unless otherwise specified in
this section, the per gallon rate of the excise tax is the same
as the motor fuel tax under subsection 1.
b. Indelible dye meeting United States environmental
protection agency and internal revenue service regulations must
be added to fuel before or upon withdrawal at a terminal or
refinery rack for that fuel to be exempt from tax and the dyed
fuel may be used only for an exempt purpose.
Sec. 2. Section 452A.31, subsection 2, paragraph a,
subparagraph (1), Code 2020, is amended by adding the following
new subparagraph division:
NEW SUBPARAGRAPH DIVISION. (c) The total E-15 gasoline
gallonage which is the total number of gallons of ethanol
blended gasoline classified as E-15 or higher, including E-85
gasoline.
Sec. 3. Section 452A.31, subsection 3, paragraph a, Code
2020, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH. (02) The total B-11 gallonage which
is the total number of gallons of biodiesel blended fuel
classified as B-11 or higher.
Sec. 4. Section 452A.31, subsection 4, paragraph a,
subparagraph (1), Code 2020, is amended by adding the following
new subparagraph division:
NEW SUBPARAGRAPH DIVISION. (c) The aggregate E-15 gasoline
gallonage which is the aggregate total number of gallons
of ethanol blended gasoline classified as E-15 or higher,
including E-85 gasoline.
-8- Sec. 5. Section 452A.31, subsection 5, paragraph a, Code
2020, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH. (02) The aggregate B-11 gallonage which
is the aggregate total number of gallons of biodiesel blended
fuel classified as B-11 or higher.
Sec. 6. APPLICABILITY. The provision of the section of
this Act amending section 452A.3 to require the department
of revenue to determine the percentage basis for each
determination period beginning January 1 and ending December
31 based on data from the reports filed pursuant to section
452A.33 for purposes of the excise tax on biodiesel blended
fuel classified as B-11 or higher applies to the determination
period beginning January 1, 2021, and to each determination
period thereafter, for the rate of the excise tax on each
gallon of biodiesel blended fuel classified as B-11 or higher
beginning July 1, 2021.
______________________________
CHARLES SCHNEIDERPresident of the Senate______________________________
PAT GRASSLEYSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 2403, Eighty-eighth General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2020______________________________
KIM REYNOLDSGovernormo/ns