HF 2798

House
File
2798
-
Introduced
HOUSE
FILE
2798
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2343)
(SUCCESSOR
TO
HSB
561)
(COMPANION
TO
SF
2493
BY
COMMITTEE
ON
WAYS
AND
MEANS)
A
BILL
FOR
An
Act
relating
to
the
excise
tax
on
certain
ethanol
blended
1
gasoline
purchased
exclusively
for
use
in
an
implement
of
2
husbandry
used
in
agricultural
production.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5210HZ
(1)
91
th/ns
H.F.
2798
Section
1.
NEW
SECTION
.
452A.16
Exempt
fuel
——
implements
1
of
husbandry.
2
1.
The
excise
tax
under
section
452A.3
shall
not
be
imposed
3
or
collected
on
ethanol
blended
gasoline
formulated
with
more
4
than
eighty-five
percent
by
volume
of
ethanol
when
purchased
at
5
a
terminal
or
refinery
rack
exclusively
for
use
in
an
implement
6
of
husbandry
used
in
agricultural
production.
7
2.
A
person
who
purchases
fuel
on
which
an
excise
tax
is
not
8
collected
in
accordance
with
subsection
1
shall
substantiate
9
the
purchase
with
an
exemption
certificate
provided
by
the
10
department.
The
exemption
certificate
must
be
complete
and
11
correct
according
to
the
requirements
of
the
director,
signed
12
by
the
purchaser,
and
retained
by
the
supplier.
A
supplier
13
shall
retain
exemption
certificates
for
at
least
three
years.
14
3.
The
department
shall
disallow
all
sales
of
gallonage
15
described
in
this
section
unless
proof
is
established
by
an
16
exemption
certificate.
17
4.
If
a
purchaser
uses
or
disposes
of
fuel
that
was
18
purchased
using
an
exemption
certificate
pursuant
to
subsection
19
2
in
a
nonexempt
manner,
the
purchaser
is
solely
liable
for
the
20
excise
tax
and
shall
remit
the
tax
directly
to
the
department.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
Under
current
law,
the
excise
tax
on
each
gallon
of
ethanol
25
blended
gasoline
classified
as
E-15
or
higher
is
based
on
26
the
distribution
percentage
of
those
fuels
compared
to
the
27
distribution
of
all
nonaviation
gasoline
motor
fuel,
and
28
ranges
from
24
cents
to
30
cents.
For
motor
fuel
and
undyed
29
special
fuel
used
for
a
variety
of
exempt
purposes
under
Code
30
section
452A.17,
including
in
implements
used
in
agricultural
31
production,
a
person
who
pays
the
excise
tax
may
claim
a
refund
32
from
the
Iowa
department
of
revenue
(IDR).
33
This
bill
exempts
ethanol
blended
gasoline
formulated
with
34
more
than
85
percent
by
volume
of
ethanol
from
imposition
and
35
-1-
LSB
5210HZ
(1)
91
th/ns
1/
2
H.F.
2798
collection
of
the
excise
tax
when
purchased
at
a
terminal
or
1
refinery
rack
exclusively
for
use
in
an
implement
of
husbandry
2
used
in
agricultural
production.
3
The
bill
requires
a
person
who
purchases
fuel
on
which
4
an
excise
tax
is
not
collected
in
accordance
with
the
bill
5
to
substantiate
the
purchase
with
an
exemption
certificate
6
provided
by
IDR.
The
exemption
certificate
must
be
complete
7
and
correct
according
to
the
requirements
of
the
director
of
8
revenue,
signed
by
the
purchaser,
and
retained
by
the
supplier.
9
A
supplier
must
retain
exemption
certificates
for
at
least
10
three
years.
The
bill
requires
IDR
to
disallow
all
sales
of
11
fuel
described
in
the
bill
unless
proof
is
established
by
an
12
exemption
certificate.
If
a
purchaser
uses
or
disposes
of
13
fuel
that
was
purchased
using
an
exemption
certificate
in
a
14
nonexempt
manner,
the
purchaser
is
solely
liable
for
the
excise
15
tax
and
is
required
to
remit
the
tax
directly
to
IDR.
16
Under
current
law,
IDR
requires
similar
exemption
17
certificates
for
tax-exempt
sales
of
compressed
natural
gas,
18
liquefied
natural
gas,
liquefied
petroleum
gas,
hydrogen,
and
19
electric
fuel.
20
-2-
LSB
5210HZ
(1)
91
th/ns
2/
2