SSB 1168 – Increasing state funding for roads and bridges
SF 87 – Vehicle registration duties of county treasurers
SF 155 – Placement of license plate dump trucks
COMMITTEE ACTION:
SSB 1168, as amended in committee, makes changes to increase funding for Iowa’s roads and bridges. Highlights include:
Limits county bonding for road and bridge project – Money for counties from the Road Use Tax Fund (RUTF), including money from the secondary road fund, farm-to-market and Revitalize Iowa’s Sound Economy fund (RISE) cannot be used on debt if the term for repayment would exceed the useful life of the completed infrastructure project.
Increases permit fees for over-sized and/or overweight vehicles
- The annual permit fee on vehicles up to 80,000 pounds increase from $25 to $50.
- The annual permit fee on vehicles up to 156,000 pounds increases from $300 to $400.
- The single trip permit fee increases from $10 to $35.
- The annual all systems permit fee increases from $120 to $160.
Extends the state’s ability to tax ethanol and increases the tax
- The state tax on ethanol-blended fuel is extended to June 30, 2020.
- The state tax on ethanol-blended fuel is raised by 10 cents. The tax on ethanol blends is currently 19 cents per gallon.
Extends the state’s ability to tax gas and increases the tax
- The state tax on gas is extended to June 30, 2020.
- The state tax on gas is raised by 10 cents. The tax on gas is currently 21 cents per gallon.
Extends the state’s ability to tax diesel and increases the tax
- The state tax on diesel fuel is extended to June 30, 2020.
- The state tax on diesel fuel is raised by 10 cents. The tax on diesel is currently 22.5 cents per gallon.
- A market share formula is established for B-11 or higher and for special fuel for diesel engines. This is similar to Iowa’s ethanol distribution formula.
- The state tax on special fuel for aircraft is raised from 3 to 5 cents per gallon.
Increases the tax on LPG, CNG and LNG used in motor vehicles
- The state tax on Liquefied Petroleum Gas is raised by 10 cents. The tax on LPG is currently 20 cents per gallon.
- The state tax on Compressed Natural Gas is raised by 10 cents. The tax on CNG is currently 21 cents per gallon.
- The state tax on Liquefied Natural Gas is raised by 10 cents. The tax on LNG is currently 22.5 cents per gallon.
Legislative review of distribution formulas – A legislative interim committee will review the formulas for taxing fuel every six years in conjunction with the departments of Revenue and Transportation. The first report is due by January 1, 2020.
Extends Access Iowa Highways - The bill extends the Access Iowa Highway designation through July 1, 2025. Access Iowa Highways gives preference in funding to certain roads in Iowa’s Commercial & Industrial Network. The goal is to grow Iowa’s economy by providing for early completion of the construction of the most important portions of the Iowa highway system.
Legislative intent on use of fuel tax revenue – Revenue that goes to the DOT for primary roads and to the counties for secondary and farm-to-market roads as a result of the fuel tax increase should be used for critical roads and bridges projects only. The DOT must find an additional $10 million in efficiencies in FY16 and in FY17.
No inventory tax – All fuel in storage and held for sale on the date of increase is not subject to an inventory tax.
Effective upon enactment –
- Bonding provisions
- Access Iowa Highways provisions
Other effective dates
- The tax increases for gas, diesel and ethanol take effect on the first day of the month after the Governor signs the bill.
- The over-size/over-weight permit changes take effect January 1, 2016.
- The biodiesel distribution formula takes effect July 1, 2015. [2/17: 9-3 (Brase, Feenstra, Smith “no”; Danielson absent)]
SF 87 allows a county treasurer to collect delinquent parking fines from a vehicle registration applicant on behalf of the county or certain cities. The bill requires the applicant to remit full payment for the delinquent parking fines, along with a $5 processing fee and the renewal fee, to the county treasurer at the time of registration renewal. A county treasurer collecting on behalf of the county or a city is required to update the vehicle registration records through the Department of Transportation’s distributed teleprocessing network.
The bill strikes language related to payment of computer programming costs incurred by the DOT for collection of delinquent parking fines and replaces that payment with a $5 fee that the county treasurer may collect.
The bill allows a county treasurer to work with the clerk of the district court to collect delinquent court debt. The county treasurer may lift a hold on vehicle registration if an applicant remits full payment for their delinquent court debt. The county treasurer may also collect a $5 fee for the collection of court debt for deposit in the county general fund. [2/18: short form (Danielson absent)]
SF 155 – Current law requires a rear license plate to be lighted and readable from a distance of 50 feet. The scheduled fine is $20. This bill excludes from that requirement all commercial vehicles engaged exclusively in intrastate commerce that are dump trucks or that are used exclusively for the movement of construction materials and equipment to and from construction projects. [2/18: short form (Danielson absent)]