Bill Text: IA SF2068 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act requiring the rates of the excise taxes on motor fuel and certain special fuel used in motor vehicles to be based on changes in the consumer price index and including effective date provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-02-03 - Subcommittee, McCoy, Breitbach, and Dearden. S.J. 170. [SF2068 Detail]
Download: Iowa-2013-SF2068-Introduced.html
Senate
File
2068
-
Introduced
SENATE
FILE
2068
BY
CHELGREN
A
BILL
FOR
An
Act
requiring
the
rates
of
the
excise
taxes
on
motor
fuel
1
and
certain
special
fuel
used
in
motor
vehicles
to
be
2
based
on
changes
in
the
consumer
price
index
and
including
3
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
452A.3,
subsection
1A,
Code
2014,
is
1
amended
to
read
as
follows:
2
1A.
Except
as
otherwise
provided
in
this
section
and
in
this
3
division
,
after
June
30,
2014,
an
excise
tax
of
twenty
cents
is
4
imposed
on
each
gallon
of
motor
fuel
used
for
any
purpose
for
5
the
privilege
of
operating
motor
vehicles
in
this
state.
The
6
rate
shall
be
determined
by
the
department
as
follows:
7
a.
For
the
period
beginning
July
1,
2014,
and
ending
June
8
30,
2015,
the
rate
of
the
excise
tax
shall
be
the
amount
9
calculated
by
applying
the
percentage
change
in
the
consumer
10
price
index
for
all
urban
consumers
for
the
twelve-month
period
11
commencing
April
1,
2013,
as
published
in
the
federal
register
12
by
the
United
States
department
of
labor,
bureau
of
labor
13
statistics,
to
twenty
cents,
rounded
to
the
nearest
one-half
of
14
a
cent.
For
purposes
of
this
paragraph
“a”
,
if
the
percentage
15
change
is
zero
or
less,
the
rate
in
effect
for
the
period
16
beginning
July
1,
2014,
and
ending
June
30,
2015,
shall
be
17
twenty
cents.
18
b.
Beginning
July
1,
2015,
and
annually
on
July
1
19
thereafter,
the
rate
of
the
excise
tax
shall
be
the
amount
20
calculated
by
applying
to
the
amount
of
the
excise
tax
in
21
effect
on
the
preceding
June
30,
as
an
increase
or
decrease,
22
the
percentage
change
in
the
consumer
price
index
for
all
urban
23
consumers
for
the
twelve-month
period
commencing
April
1
of
the
24
calendar
year
preceding
the
calendar
year
in
which
the
rate
25
determined
under
this
paragraph
takes
effect,
as
published
in
26
the
federal
register
by
the
United
States
department
of
labor,
27
bureau
of
labor
statistics,
rounded
to
the
nearest
one-half
of
28
a
cent.
29
Sec.
2.
Section
452A.3,
subsection
3,
Code
2014,
is
amended
30
to
read
as
follows:
31
3.
a.
For
the
privilege
of
operating
motor
vehicles
or
32
aircraft
in
this
state,
there
is
imposed
an
excise
tax
on
the
33
use
of
special
fuel
in
a
motor
vehicle
or
aircraft.
34
b.
The
tax
rate
on
special
fuel
for
diesel
engines
of
motor
35
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vehicles
is
twenty-two
and
one-half
cents
per
gallon
shall
be
1
determined
by
the
department
as
follows:
2
(1)
For
the
period
beginning
July
1,
2014,
and
ending
June
3
30,
2015,
the
rate
of
the
tax
shall
be
the
amount
calculated
4
by
applying
the
percentage
change
in
the
consumer
price
index
5
for
all
urban
consumers
for
the
twelve-month
period
commencing
6
April
1,
2013,
as
published
in
the
federal
register
by
the
7
United
States
department
of
labor,
bureau
of
labor
statistics,
8
to
twenty-two
and
one-half
cents,
rounded
to
the
nearest
9
one-half
of
a
cent
.
For
purposes
of
this
subparagraph
(1),
if
10
the
percentage
change
is
zero
or
less,
the
rate
in
effect
for
11
the
period
beginning
July
1,
2014,
and
ending
June
30,
2015,
12
shall
be
twenty-two
and
one-half
cents.
13
(2)
Beginning
July
1,
2015,
and
annually
on
July
1
14
thereafter,
the
rate
of
the
excise
tax
on
each
gallon
of
15
special
fuel
for
diesel
engines
of
motor
vehicles
shall
be
the
16
amount
calculated
by
applying
to
the
amount
of
the
excise
tax
17
in
effect
on
the
preceding
June
30,
as
an
increase
or
decrease,
18
the
percentage
change
in
the
consumer
price
index
for
all
urban
19
consumers
for
the
twelve-month
period
commencing
April
1
of
the
20
calendar
year
preceding
the
calendar
year
in
which
the
rate
21
determined
under
this
subparagraph
takes
effect,
as
published
22
in
the
federal
register
by
the
United
States
department
of
23
labor,
bureau
of
labor
statistics,
rounded
to
the
nearest
24
one-half
of
a
cent.
25
(3)
The
rate
of
tax
on
special
fuel
for
aircraft
is
three
26
cents
per
gallon.
27
(4)
On
all
other
special
fuel,
unless
otherwise
specified
in
28
this
section
,
the
per
gallon
rate
is
the
same
as
the
motor
fuel
29
tax.
30
c.
Indelible
dye
meeting
United
States
environmental
31
protection
agency
and
internal
revenue
service
regulations
must
32
be
added
to
fuel
before
or
upon
withdrawal
at
a
terminal
or
33
refinery
rack
for
that
fuel
to
be
exempt
from
tax
and
the
dyed
34
fuel
may
be
used
only
for
an
exempt
purpose.
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Sec.
3.
Section
452A.3,
Code
2014,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
8.
Annually
by
May
31,
the
director
3
shall
cause
an
advisory
notice
to
be
published
in
the
Iowa
4
administrative
bulletin
and
in
a
newspaper
of
general
5
circulation
in
this
state,
stating
the
rate
of
taxes
to
be
in
6
effect
on
or
after
July
1
of
the
same
year,
as
established
7
pursuant
to
subsection
1A,
subsection
1C
if
applicable,
and
8
subsection
3,
paragraph
“b”
,
subparagraphs
(1),
(2),
and
(4).
9
The
publication
of
the
rate
of
tax
by
the
director
is
exempt
10
from
chapter
17A.
11
Sec.
4.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
12
immediate
importance,
takes
effect
upon
enactment.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
provides
for
the
determination
of
the
rates
of
17
the
excise
taxes
on
motor
fuel
and
special
fuel
used
in
diesel
18
engines
of
motor
vehicles
based
on
changes
in
the
consumer
19
price
index
(CPI).
20
Currently,
the
rate
of
the
excise
tax
on
a
gallon
of
motor
21
fuel
is
linked
to
the
distribution
percentage
of
ethanol
22
blended
gasoline
and
fuel
other
than
ethanol
blended
gasoline
23
sold
in
this
state,
but
beginning
July
1,
2014,
the
tax
rate
24
for
both
ethanol
blended
gasoline
and
motor
fuel
other
than
25
ethanol
blended
gasoline
will
be
20
cents
per
gallon.
The
26
current
rate
of
the
excise
tax
on
special
fuel
for
diesel
27
engines
of
motor
vehicles
is
22.5
cents
per
gallon.
28
The
bill
provides
that
for
the
period
beginning
July
1,
29
2014,
and
ending
June
30,
2015,
the
rate
of
the
excise
tax
on
30
motor
fuel
——
both
ethanol
blended
gasoline
and
fuel
other
31
than
ethanol
blended
gasoline
——
will
be
the
amount
calculated
32
by
applying
the
percentage
change
in
the
CPI
for
all
urban
33
consumers
for
the
12-month
period
commencing
April
1,
2013,
34
as
published
in
the
federal
register
by
the
United
States
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2068
department
of
labor,
bureau
of
labor
statistics,
to
20
cents,
1
rounded
to
the
nearest
one-half
of
a
cent.
However,
if
the
2
percentage
change
in
the
CPI
is
zero
or
less,
the
rate
of
the
3
tax
will
remain
at
20
cents.
For
the
period
beginning
July
4
1,
2014,
and
ending
June
30,
2015,
the
rate
of
the
excise
tax
5
on
special
fuel
for
diesel
engines
of
motor
vehicles
will
be
6
the
amount
calculated
by
applying
the
percentage
change
in
7
the
CPI
to
22.5
cents,
rounded
to
the
nearest
one-half
of
a
8
cent.
However,
if
the
percentage
change
in
the
CPI
is
zero
9
or
less,
the
rate
of
the
tax
will
remain
at
22.5
cents.
By
10
operation
of
law,
the
rate
determined
under
the
bill
for
motor
11
fuel
is
also
the
rate
for
special
fuel
that
is
not
for
diesel
12
engines
of
motor
vehicles
or
for
aircraft,
and
under
specified
13
circumstances,
the
rate
determined
under
the
bill
for
motor
14
fuel
may
also
be
the
rate
for
E-85
gasoline.
15
Beginning
July
1,
2015,
and
annually
on
July
1
thereafter,
16
the
rate
of
the
excise
tax
on
a
gallon
of
motor
fuel
or
on
a
17
gallon
of
special
fuel
used
in
diesel
engines
of
motor
vehicles
18
will
be
the
amount
calculated
by
applying,
as
an
increase
or
19
decrease,
the
percentage
change
in
the
CPI
for
the
12-month
20
period
commencing
April
1
of
the
previous
year
to
the
amount
21
of
the
applicable
excise
tax
in
effect
on
June
30
immediately
22
preceding
the
effective
date
of
the
new
tax
rate.
23
The
bill
requires
the
director
of
revenue
to
have
an
advisory
24
notice
published
in
the
Iowa
administrative
bulletin
and
in
25
a
newspaper
of
general
circulation
in
the
state
by
May
31
26
annually
stating
the
rate
of
the
taxes
on
motor
fuel,
special
27
fuel
for
diesel
engines
of
motor
vehicles,
and
other
affected
28
fuels
to
be
in
effect
the
following
July
1.
29
The
bill
takes
effect
upon
enactment.
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