(1)
Exported fuel. Motor fuel or undyed special fuel sold for
export or exported from this state to another state, territory, or foreign
country is exempt from the excise tax.
a. The
fuel is deemed sold for export or exported only if the bill of lading or
manifest indicates that the destination of the fuel withdrawn from the terminal
is outside the state of Iowa. The mode of transportation is not of
consequence.
b. In the event fuel
is taxed and then subsequently exported, an amount equal to the tax previously
paid will be allowable as a refund, upon receipt by the department of the
appropriate documents, to the party who originally paid the tax.
c. If the sale of exported fuel is completed
in Iowa, then the sale is subject to Iowa sales tax if it is not exported for
resale or otherwise exempt from sales tax. The sale is completed in Iowa if the
foreign purchaser takes physical possession of the fuel in this state (rule
701-220.2
(423)).
(2)
Exempt purposes. "Exempt purposes" as they relate to dyed fuel
requirements in Iowa Code section
452A.3(3)
"b" are described in Iowa Code section
452A.17(1)
"a." This exemption does not apply to fuel used for idle time,
power takeoffs, reefer units, or pumping credits, or fuel used by contract
carriers.
This rule is intended to implement Iowa Code sections
452A.3 and
452A.17.
Notes
Iowa Admin.
Code r. 701-260.2
ARC 8225B, IAB 10/7/09, effective 11/11/09; ARC 0399C, IAB
10/17/12, effective 11/21/12; ARC 1442C, IAB 4/30/14, effective 6/4/14; ARC
1805C, IAB 1/7/15, effective 2/11/15; ARC 2247C, IAB 11/25/15, effective
12/30/15; ARC 2698C, IAB 8/31/16, effective 10/5/16; ARC 3146C, IAB 6/21/17,
effective 7/26/17; ARC 4252C, IAB 1/16/19, effective 2/20/19; ARC 4585C, IAB
7/31/19, effective 9/4/19; ARC 5842C, IAB 8/11/21, effective 9/15/21; ARC
6393C, IAB 6/29/22, effective 8/3/22; ARC 6508C, IAB 9/7/22, effective
10/12/22
Adopted by
IAB
March 19, 2025/Volume XLVII, Number 19, effective
4/23/2025
