Exempts ethanol blended gasoline with more than 85% ethanol from excise tax when used in agricultural production.

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. The bill mandates that suppliers retain these certificates for three years and disallows sales without proper documentation. If fuel is used in a nonexempt manner, the purchaser becomes solely liable for the excise tax and must remit it directly to the Iowa Department of Revenue.

Exempts ethanol blended gasoline with more than 85% ethanol from excise tax when used in agricultural production.

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. The bill mandates that suppliers retain these certificates for three years and disallows sales without proper documentation. If fuel is used in a nonexempt manner, the purchaser becomes solely liable for the excise tax and must remit it directly to the Iowa Department of Revenue.