Exempts ethanol blended gasoline with more than 85% ethanol from excise tax for agricultural use.

This bill exempts ethanol blended gasoline with more than 85% ethanol from the excise tax when purchased for use in agricultural implements. It requires purchasers to obtain and retain an exemption certificate from the Iowa Department of Revenue. Suppliers must also retain these certificates for at least three years. The bill mandates that the Department disallow sales of the fuel unless an exemption certificate is provided. If the fuel is used in a nonexempt manner, the purchaser becomes liable for the excise tax.

Exempts ethanol blended gasoline with more than 85% ethanol from excise tax for agricultural use.

This bill exempts ethanol blended gasoline with more than 85% ethanol from the excise tax when purchased for use in agricultural implements. It requires purchasers to obtain and retain an exemption certificate from the Iowa Department of Revenue. Suppliers must also retain these certificates for at least three years. The bill mandates that the Department disallow sales of the fuel unless an exemption certificate is provided. If the fuel is used in a nonexempt manner, the purchaser becomes liable for the excise tax.