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Iowa Fuel Tax Rate Change Effective July 1, 2017

The Iowa fuel tax rate for gasoline will change on July 1, 2017.  Iowa fuel tax rates are based on a fuel distribution percentage formula.  Applying that formula resulted in the change.

All other Iowa fuel tax rates will remain the same.  Please refer to the tables below for all applicable tax rates.

There is no inventory tax associated with the rate changes.

Iowa Fuel Tax Rates per Gallon

Rate Changing on 7-1-17

Fuel Type Current Rate New Rate Effective 7-1-17
Gasoline $0.307 $0.305

Rates Not Changing on 7-1-17

Fuel Type

Current Rate

Alcohol

$0.290

Ethanol Blended Gasoline

$0.290

E85

$0.290

Diesel (including biodiesel B10
and lower)

$0.325

Biodiesel B11 or Higher

$0.295

Aviation Gasoline

$0.080

Aviation Jet

$0.050

Liquefied Petroleum Gas (LPG)

$0.300

Liquefied Natural Gas (LNG)

$0.325

Compressed Natural Gas (CNG)

$0.310

Claims for fuel tax refunds must be calculated using the correct rates based on the date of purchase. The telephone refund system will be updated with the new tax rate.  The system will calculate refunds using the correct tax rate for the invoice dates given. Therefore, separate refund claims must be filed for invoices dated prior to July 1, 2017 as well as those dated on or after July 1, 2017.