Exempts ethanol blended gasoline with over 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 the Iowa Department of Revenue to disallow sales of such fuel unless an exemption certificate is provided. If a purchaser uses the fuel for nonexempt purposes, they are liable for the excise tax. The bill mandates that purchasers provide complete and correct exemption certificates, which suppliers must retain for three years.

Exempts ethanol blended gasoline with over 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 the Iowa Department of Revenue to disallow sales of such fuel unless an exemption certificate is provided. If a purchaser uses the fuel for nonexempt purposes, they are liable for the excise tax. The bill mandates that purchasers provide complete and correct exemption certificates, which suppliers must retain for three years.