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 provide an exemption certificate, which must be retained by the supplier for three years. The Iowa Department of Revenue must disallow sales without proper certification. If fuel is used in a nonexempt manner, the purchaser is liable for the 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 provide an exemption certificate, which must be retained by the supplier for three years. The Iowa Department of Revenue must disallow sales without proper certification. If fuel is used in a nonexempt manner, the purchaser is liable for the tax.