Iowa Admin. Code r. 701-261.11 - [Effective 4/23/2025] L.P.G. sold to the state of Iowa, its political subdivisions, contract carriers under contract with public schools to transport pupils or regional transit systems
(1)
Exempt sales.
a. If L.P.G.
is sold to the state of Iowa, its agencies, a political subdivision of the
state, or a regional transit system for public use, or a use specified in Iowa
Code section 452A.57(11),
and placed in storage, it may be sold tax-free.
b. Fuel sold by a dealer and delivered
directly into the fuel supply tank of a motor vehicle must be sold
tax-paid.
c. Since the L.P.G.
delivered into storage is not subject to tax, the governmental unit or regional
transit system need not be licensed as a special fuel user. However, if the
L.P.G. is used by a governmental unit or regional transit system for other than
"public purposes," it must obtain a user's license and pay the tax on all
highway L.P.G. used from the storage.
(2)
L.P.G. sold to a contract carrier
under contract with public schools to transport pupils.
a. When special fuel is sold directly to
contract carriers who have a contract with a public school under Iowa Code
section 285.5 for the transportation of
pupils of an approved public or nonpublic school, the fuel shall be sold
tax-paid.
b. If the contract
carrier is licensed as an L.P.G. fuel dealer or user, the licensee may buy the
fuel taxfree, but the tax must be remitted on the monthly dealer or user
return.
c. Any contract carrier who
has paid the tax is entitled to a refund.
(1)
A refund requested by contract carriers will be reduced by the applicable sales
tax, unless otherwise exempt.
(2)
All contract carriers must apply to the department for a refund registration
even if they currently hold a motor fuel tax license.
(3) 701-subrule 260.8(4) provides more
information about this refund type.
This rule is intended to implement Iowa Code sections 452A.3 and 452A.17.
Notes
ARC 6508C, IAB 9/7/22, effective 10/12/22; Editorial change: IAC Supplement 10/18/23
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