Relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement used in agricultural production

Under current law, the excise tax on each gallon of ethanol blended gasoline classified as E-15 or higher is based on the distribution percentage of those fuels compared to the distribution of all nonaviation gasoline motor fuel, and ranges from 24 cents to 30 cents. For motor fuel and undyed special fuel used for a variety of exempt purposes under Code section 452A.17, including in implements used in agricultural production, a person who pays the excise tax may claim a refund from the Iowa department of revenue. This bill exempts ethanol blended gasoline formulated with more than 85 percent by volume of ethanol from imposition and collection of the excise tax when purchased at a terminal or refinery rack exclusively for use in an implement used in agricultural production.