Imposing a tax on the transportation of liquefied carbon dioxide through pipelines, and providing for penalties

This bill imposes a tax on the transportation of liquefied carbon dioxide (carbon dioxide) through pipelines.50 per metric ton of carbon dioxide transported by the pipeline company within or through this state through a pipeline to any recipient located within or outside the state. The bill reduces the tax rate to $1 per metric ton of carbon dioxide transported through or within the state if the carbon dioxide is used in enhanced oil recovery. The bill defines “enhanced oil recovery” to mean an advanced oil extraction technique to remove stranded crude oil from a reservoir after the use of primary or secondary extraction techniques. The bill directs the department of revenue (department) to administer and enforce the tax, and requires the department to adopt rules to administer the bill.3, shall disclose to the department whether carbon dioxide is transported though or within the state through the pipelines owned, operated, or leased by the pipeline company, and whether the carbon dioxide being transported is used in enhanced oil recovery. The bill requires each pipeline company to file a return before March 31 following the tax year in which a pipeline company transported liquefied carbon dioxide subject to the tax imposed under the bill.50 metric ton rate; (2) the total taxable metric tons of liquefied carbon dioxide transported through or within the state subject to the $1 metric ton rate; and (3) the amount of tax due for the year.57E. The bill establishes procedures for the failure to file a return or for filing an incorrect return. The bill specifies the actions of the department are subject to judicial review pursuant to Code chapter 17A (Iowa administrative procedures Act). The bill also establishes procedures for posting a bond when the amount of tax is in dispute, and specifies an appeal may be taken by the pipeline company or the director to the supreme court irrespective of the amount involved. The bill establishes procedures for a state tax lien if the tax imposed is not paid. The lien is prior to and superior to all subsequent liens on personal property within the state, without the necessity of recording the lien. The bill requires a lien on real property to be recorded. The lien may be preserved against subsequent mortgagees, purchasers, or judgment creditors, for value and without notice of the lien, on any real property situated in the state by filing with the recorder of the county in which the real property is located a notice of the lien. The bill specifies there is no limitation for the enforcement of a civil remedy pursuant to any proceeding or action taken to levy, appraise, assess, determine, or enforce the collection of any tax or penalty due under the bill. A pipeline company, or officer, member, or employee of the pipeline company, who willfully attempts to evade the tax imposed or the payment of the tax is guilty of a class “D” felony. A class “D” felony is punishable by confinement for no more than five years and a fine of at least $1,025 but not more than $10,245. The bill also specifies a person is guilty of a fraudulent practice if the person willfully files a fraudulent return, who willfully fails to pay 90 percent of the tax, or does not sign or file the return. The bill requires a prosecution for a criminal offense to be commenced within six years after the commission of the offense. The bill establishes procedures for correcting errors or overpayment of taxes by allowing for refunds or crediting overpayment on the return for the following tax year. The bill also specifies the information provided on the return is confidential information and employees of the department that may have access to the return commit a serious misdemeanor for improperly disclosing information about a pipeline company’s return. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. The bill requires each pipeline company that is subject to the tax to maintain records associated with the tax for a period of five years. The records shall include those associated with any additions or dispositions of property.