SF 49 – Weight exemption for emergency vehicles
SF 206 – Displaying county names on license plates
SF 257 – Increasing state funding for roads and bridges
FLOOR ACTION:
SF 206 – Current law prohibits use of frames on license plates if they cover any numbers or letters printed on the plate. In spring of 2014, that was interpreted to include the county name, which appears at the bottom of all Iowa license plates, other than college and university specialty plates and firefighter plates. This bill, as amended, allows frames to cover the county name as long as they don’t cover the validation sticker, the plate number, or the name of the state, province, territory, country or other jurisdiction that issued the plate. The scheduled fine for a violation of this provision remains $20. [2/24: 49-0 (Chelgren absent)]
SF 257, as amended, 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 road funding – A legislative interim committee will review road funding 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. An amendment adopted on the floor ensures the
- The over-size/over-weight permit changes take effect January 1, 2016.
- The biodiesel distribution formula takes effect July 1, 2015. [2/24: 28-21 (Allen, Behn, Bisignano, Brase, Chapman, Courtney, Feenstra, Garrett, Guth, Mathis, Schneider, Schoenjahn, Schultz, Seng, Sinclair, Smith, Sodders, Taylor, Whitver, Wilhelm, Zaun “no”; Chelgren absent)]
COMMITTEE ACTION:
SF 49, as amended, broadens exceptions for size, weight and load limit to include all authorized emergency vehicles. Current law only exempts fire apparatus. [2/23: 10-0 (Dearden, Feenstra, Kraayenbrink absent)]