Iowa Senate Bill SSB3117

Iowa 2025-2026 Regular Session

• Introduced: 2/4/26
• Refer: 2/4/26

Caption

A bill for an act relating to reporting total gasoline and diesel fuel gallonage sold and dispensed by retail dealers for a determination period.(See SF 2393.)

Summary

This bill amends Iowa law governing retail fuel dealers’ reporting of gasoline and diesel gallonage sold or dispensed during a determination period. It ties compliance with the reporting requirement in section 452A.33 to eligibility for certain fuel-related tax credits, including credits for E-85 gasoline promotion, biodiesel blended fuel, and E-15 plus gasoline promotion. Under the bill, a retail dealer must timely file the required report for the latest determination period ending before the close of the dealer’s tax year in order to claim those credits. The bill also clarifies the penalty structure for failing to file or maintain the required report. The Department of Revenue may impose a civil penalty of up to $100 per occurrence, and the penalty is deposited into the state general fund. More significantly, a dealer that does not timely file the report becomes ineligible to claim the listed tax credits for that tax year and any succeeding tax years until the report is filed.

Impact

The bill would amend sections 422.11O, 422.11P, 422.11Y, and 452A.33 of the Iowa Code. Its practical effect is to condition access to state fuel-blend tax incentives on timely reporting of fuel gallonage data, which is used to calculate excise tax rates for higher-blend ethanol and biodiesel fuels. Retail fuel dealers that miss the reporting deadline could lose eligibility for the credits until compliance is restored, while the Department of Revenue gains a clearer enforcement mechanism through both civil penalties and credit disqualification.

Sentiment

No committee transcript or vote record is provided, so there is no direct evidence of debate or opposition in the available materials. Based on the bill text, the measure appears administrative and compliance-focused rather than controversial in policy design, with an emphasis on ensuring timely reporting and protecting the integrity of fuel tax credit administration.

Contention

The main point of potential contention is the bill’s use of tax-credit ineligibility as a compliance penalty. Retail dealers and fuel marketers may view the loss of E-85, biodiesel, and E-15-related credits as a significant sanction for late reporting, especially because the disqualification continues for succeeding tax years until the report is filed. On the other hand, the Department of Revenue and supporters of fuel-tax administration may favor the provision as a strong incentive to improve reporting accuracy and timeliness.