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Governor Reynolds To Sign Fuel Tax Increase And Apply Inventory Tax on E10 and B11

 

Iowa Governor Kim Reynolds has expected to sign into law Senate File 2403. Senate File 2403 will increase the excise tax rate on gallons of E10-E14 gasoline, as well as gallons of B11 plus diesel fuel effective Wednesday, July 1. Iowa Code 452A.85 states any fuel products with a tax rate increase greater than $0.005 per gallon shall be subject to an inventory tax based upon the gallonage in storage as of the close of the business day preceding the effective date of the increased excise tax rate. Gallons of E10-E14 gasoline in inventory on June 30, which remain in inventory on July 1, will require the marketer to remit $0.01 for each gallon in inventory to the Department of Revenue. Gallons of B11 plus diesel fuel in inventory on June 30, which remain in inventory on July 1, will require the marketer to remit $0.006 for each gallon in inventory to the Department of Revenue.

Tax Rate Comparison:

Fuel Tax Rates Applicable Through Tuesday, June 30, 2020

Fuel Type Description

Fuel Tax Rates through June 30, 2020

Gasoline

$0.305/gal

Alcohol

$0.29/gal

Ethanol Blended Gasoline

$0.29/gal

E85

$0.29/gal

Diesel (includes B10 and lower blends)

$0.325/gal

Biodiesel B11 or Higher

$0.295/gal

Aviation Gasoline

$.080/gal

Aviation Jet

$.050/gal

Liquefied Petroleum Gas (LPG)

$0.300/ gal

Liquefied Natural Gas (LNG)

$0.325/gal

Compressed Natural Gas (CNG)

$0.310/gal

 

 Fuel Tax Rates effective July 1, 2020

Fuel Type Description

Fuel Tax Rates effective July 1, 2020

Gasoline (E0 – E14)

$0.300/gal

Alcohol

$0.240/gal

E15 – E85

$0.240/gal

Diesel (includes B10 and lower blends)

$0.325/gal

Biodiesel B11 or Higher

$0.301/gal

Aviation Gasoline

$.080/gal

Aviation Jet

$.050/gal

Liquefied Petroleum Gas (LPG)

$0.300/ gal

Liquefied Natural Gas (LNG)

$0.325/gal

Compressed Natural Gas (CNG)

$0.310/gal

 

 

Inventory taxes are due to the Department of Revenue by July 31, 2020. Marketers should complete the 2020 Motor Fuel Tax Inventory Return and enclose a check payable to “Treasurer, State of Iowa” and mail to Fuel Tax Processing, Iowa Department of Revenue, PO Box 10465, Des Moines, Iowa 50306-0465 by July 31, 2020. Please contact John Maynes with FUELIowa if you questions (john@fueliowa.com; 515-421-4043).

Tax State Fuel







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