Iowa Motor Fuel Excise Tax Changes Effective July 1, 2025 – Fuel Tax Inventory Return Required!

Iowa Motor Fuel Excise Tax Changes Effective July 1, 2025 – Fuel Tax Inventory Return Required!

Effective July 1, 2025, Iowa’s motor fuel excise tax rate for gasoline containing 15 percent by volume ethanol or greater will increase from $0.255 to $0.265. All other motor fuel excise tax rates will remain unchanged after the new state fiscal year takes effect on July 1, 2025. A summary of Iowa’s motor fuel excise tax rates can be accessed here.

In addition to the motor fuel excise tax increase for E15 and greater blends of gasoline, Iowa Code 452A.85 requires the filing of an Iowa Fuel Tax Inventory Return for persons having title to fuels in storage and held for sale on July 1, 2025, where there is an increase in the tax rate more than one-half cent per gallon. In this case, the excise tax rate for E15 plus blends of gasoline is increasing by one-cent per gallon, thereby triggering the requirement to file a return. An Iowa Fuel Tax Inventory Return will be required to be filed with the Department of Revenue by July 31, 2025. 

For retailers and eligible purchasers with E15 or greater blends in inventory, the returns shall be filed electronically via GovConnectIowa by clicking on the link “File 2025 Motor Fuel Inventory Return” shown on the respective account. If you have both a retailer account and an eligible purchaser account, only one return needs to be filed, please file it on the retailer account.

If you do not have a retailer account or eligible purchaser account and need to submit an inventory return, please complete and submit the paper form Fuel Tax Inventory Return (80-020).