Due to COVID-19, the current Iowa legislative session was suspended on March 15, 2020 until June 3, 2020. The bill was passed by the legislature on June 3, 2020 and signed into law on June 30, 2020. The new Iowa fuel tax rates begin July 1, 2020.
Please refer to the tables below for all applicable tax rates and their effective dates.
You can view the Iowa Fuel Tax Information page for additional information.
The Ethanol Blended Gasoline E-15 or Higher is a new fuel group effective 7/1/20.
The Ethanol Blended Gasoline E-85 fuel group should not be used for transactions occurring 7/1/20 and after. These fuels will be reported in the new Ethanol Blended Gasoline E-15 or Higher fuel group and taxed at the E-15 or Higher rate.
Prior to July 1, 2020, tax rates for motor fuel and special fuel were based on a fuel distribution percentage formula which used gallon totals from the Iowa Fuel Tax Monthly Report. On July 1, 2020 that formula was modified and will now use gallon totals from the Iowa Retailers Fuel Gallons Annual Report, resulting in tax rate changes to select fuel types.
By operation of law, the rate changes result in the requirement for an inventory tax to be collected on Ethanol Blended Gasoline E-10 to E-14 and Biodiesel B-11 or Higher in storage and held for sale as of midnight, June 30, 2020. The inventory tax on these two fuel categories will be remitted by non-terminal inventory holders. The Department will provide separate instructions for filing the inventory tax.
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 and available to use. Separate refund claims must be filed for invoices dated prior to July 1, 2020, as well as those dated on or after July 1, 2020.
To obtain the revised fuel tax forms, please refer to the Department's Tax Forms Index.