Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 259 - Administration › Rule 701-259.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of this chapter, 701-Chapter 68, and 701-Chapter
				  69, the following definitions shall govern:
"Appropriate state agency"
or
"state
				  agency"
means the department of revenue or the state department of
				  transportation, whichever is responsible for control, maintenance, or
				  supervision of the power, requirement, or duty referred to in Iowa Code chapter
				  452A.
"Aviation gasoline"
means any gasoline
				  capable of being used for propelling aircraft which is invoiced as aviation
				  gasoline or is received, sold, stored, or withdrawn from storage for purposes
				  of propelling aircraft. It does not include motor fuel capable of being used
				  for propelling motor vehicles.
"B-11"
means biodiesel blended fuel
				  formulated with a minimum percentage of 11 percent by volume of biodiesel, if
				  the formulation meets the standards provided in Iowa Code section
				  214A.2. A
				  similar notation refers to biodiesel blended fuel containing other percentages
				  of biodiesel. For example, "B-5" means biodiesel blended fuel formulated with a
				  minimum percentage of 5 percent by volume of biodiesel, if the formulation
				  meets the standards provided in Iowa Code section
				  214A.2.
"Biodiesel"
means a renewable fuel comprised
				  of mono-alkyl esters of long-chain fatty acids derived from vegetable oils or
				  animal fats, which meets the standards provided in Iowa Code section
				  214A.2.
"Biodiesel blended fuel"
means a blend of
				  biodiesel with petroleum-based diesel fuel which meets the standards, including
				  separately the standard for its biodiesel component, provided in Iowa Code
				  section
				  214A.2.
"Biodiesel distribution percentage"
means
				  the number of gallons of biodiesel blended fuel classified as B-11 or higher
				  that is distributed in this state as expressed as a percentage of the number of
				  gallons of special fuel for diesel engines of motor vehicles distributed in
				  this state during the determination period. The determination period is the
				  previous calendar year.
"Biofuel"
means ethanol or biodiesel.
"Blender"
means a person who owns and blends
				  two or more fuels, including ethanol or biodiesel, at a nonterminal location to
				  produce ethanol blended gasoline or biodiesel blended fuel. The person is not
				  restricted to blending ethanol with gasoline or biodiesel with diesel. The
				  blend is taxed according to its fuel and alcohol content, which may result in
				  additional tax due or an allowable refund for the blender. See rule
				  701-85.4 (452A).
"Carrier"
means and includes any person who
				  operates or causes to be operated any commercial motor vehicle on any public
				  highway in this state.
"Common carrier"
or
"contract
				  carrier"
means a person involved in the movement of motor fuel or
				  special fuel from the terminal or movement of the motor fuel or special fuel
				  imported into this state, who is not an owner of the motor fuel or special
				  fuel.
"Commercial motor vehicle"
means a passenger
				  vehicle that has seats for more than nine passengers in addition to the driver,
				  any road tractor, any truck tractor, or any truck having two or more axles
				  which passenger vehicle, road tractor, truck tractor, or truck is propelled on
				  the public highways by either motor fuel or special fuel. "Commercial motor
				  vehicle" does not include a motor truck with a combined gross weight of less
				  than 26,000 pounds, operated as a part of an identifiable one-way fleet and
				  which is leased for less than 30 days to a lessee for the purpose of moving
				  property which is not owned by the lessor.
"Conventional blendstock for oxygenate
				  blending"
means one or more motor fuel components intended for
				  blending with an oxygenate or oxygenates to produce gasoline.
"Dealer"
means a person, other than a
				  distributor, who engages in the business of selling or distributing motor fuel
				  or special fuel to the end user in this state.
"Denatured ethanol"
means ethanol that is to
				  be blended with gasoline, has been derived from cereal grains, complies with
				  American Society of Testing Materials designation D-4806-95b, and may be
				  denatured only as specified in Code of Federal Regulations, Titles 20, 21, and
				  27. Alcohol and denatured ethanol have the same meaning.
"Department"
means the department of
				  revenue.
"Diesel fuel"
or
"diesel"
means diesel as defined in Iowa Code section
				  214A.1.
"Director"
means the director of the Iowa
				  department of revenue or the director's authorized representative.
"Distributor"
means a person who acquires
				  tax-paid motor fuel, special fuel, or alcohol from a supplier, restrictive
				  supplier, or importer, or another distributor for subsequent sale at wholesale
				  and distribution by tank cars or tank trucks or both. The department may
				  require that the distributor be registered to have terminal purchase
				  rights.
"E-85 gasoline"
means ethanol blended
				  gasoline formulated with a minimum percentage of between 70 and 85 percent by
				  volume of ethanol, if the formulation meets the standards provided in Iowa Code
				  section
				  214A.2.
"Eligible purchaser"
means a distributor of
				  motor fuel or special fuel who elects to make delayed payments to a licensed
				  supplier and must use electronic funds transfer.
"End user"
of special fuel means a person
				  who has purchased a minimum of 240,000 gallons of special fuel each year in the
				  two preceding years who elects to make delayed payments to a licensed supplier
				  and must use electronic funds transfer.
"Ethanol"
means ethyl alcohol that is to be
				  blended with gasoline if the ethanol meets the standards provided in Iowa Code
				  section
				  214A.2.
"Ethanol blended gasoline"
means a
				  formulation of gasoline which is a liquid petroleum product blended with
				  ethanol, if the formulation meets the standards provided in Iowa Code section
				  214A.2. When
				  "motor fuel" is used in these rules, it includes ethanol blended
				  gasoline.
"Ethanol distribution percentage"
means the
				  number of gallons of ethanol blended gasoline that is distributed in this state
				  as expressed as a percentage of the number of gallons of motor fuel, excluding
				  aviation gasoline, distributed in this state during the determination period.
				  The determination period is the previous calendar year.
"Export"
means delivery across the
				  boundaries of this state by or for the seller or purchaser from a place of
				  origin in this state.
"Exporter"
means a person or other entity
				  who acquires fuel in this state for export to another state.
"Foreign supplier"
means a person licensed
				  as a supplier to collect and report the tax, but who does not have
				  jurisdictional connections with this state.
"Fuel(s)"
means and includes both motor fuel
				  and special fuel as defined in Iowa Code chapter 452A.
"Fuel taxes"
means the per gallon excise
				  taxes imposed under division I of Iowa Code chapter 452A with respect to motor
				  fuel and undyed special fuel.
"Gallon,"
with respect to compressed natural
				  gas, means a gasoline gallon equivalent. A gasoline gallon equivalent of
				  compressed natural gas is five and sixty-six hundredths pounds or one hundred
				  twenty-six and sixty-seven hundredths cubic feet measured at a base temperature
				  of 60 degrees Fahrenheit and a pressure of fourteen and seventy-three
				  hundredths pounds per square inch absolute. "Gallon," with respect to liquefied
				  natural gas, means a diesel gallon equivalent. A diesel gallon equivalent of
				  liquefied natural gas is six and six hundredths pounds.
"Gasoline"
means any liquid product
				  prepared, advertised, offered for sale or sold for use as, or commonly and
				  commercially used as, motor fuel for use in a spark-ignition, internal
				  combustion engine, and which meets the specifications provided in Iowa Code
				  section
				  214A.2.
"Import"
means delivery across the
				  boundaries of this state by or for the seller or purchaser from a place of
				  origin outside this state.
"Importer"
means a person who imports motor
				  fuel or undyed special fuel in bulk or transport load into the state by truck,
				  rail, or barge.
"Invoiced gallons"
means gross gallons as
				  shown on the bill of lading or manifest.
"Iowa urban transit system"
means a system
				  whereby motor buses are operated primarily upon the streets of cities for the
				  transportation of passengers for an established fare and which accepts
				  passengers who present themselves for transportation without discrimination up
				  to the limit of the capacity of each motor bus. "Iowa urban transit system"
				  also includes motor buses operated upon the streets of adjoining cities,
				  whether interstate or intrastate, for the transportation of passengers without
				  discrimination up to the limit of the capacity of the motor bus.
Privately chartered bus services, motor carriers and
				  interurban carriers subject to the jurisdiction of the state department of
				  transportation, school bus services, and taxicabs shall not be construed to be
				  an urban transit system nor a part of any such system.
"Licensee"
means a person holding an
				  uncanceled supplier's, restrictive supplier's, importer's, exporter's, or
				  blender's license issued by the department or any other person who possesses
				  fuel for which the tax has not been paid.
"Mobile machinery and equipment"
means
				  vehicles self-propelled by an internal combustion engine but not designed or
				  used primarily for the transportation of persons or property on public highways
				  and only incidentally operated or moved over a highway including, but not
				  limited to, corn shellers, truck-mounted feed grinders, roller mills,
				  ditch-digging apparatus, power shovels, draglines, earth-moving equipment and
				  machinery, and road construction and maintenance machinery such as asphalt
				  spreaders, bituminous mixers, bucket loaders, ditchers, leveling graders,
				  finishing machines, motor graders, paving mixers, road rollers, scarifiers, and
				  earth-moving scrapers. However, "mobile machinery and equipment" does not
				  include dump trucks or self-propelled vehicles originally designed for the
				  transportation of persons or property on public highways and to which
				  machinery, such as truck-mounted transit mixers, cranes, shovels, welders, air
				  compressors, well-boring apparatus or lime spreaders, has been attached.
"Motor fuel"
means a substance or
				  combination of substances which is intended to be or is capable of being used
				  for the purpose of operating an internal combustion engine, including but not
				  limited to a motor vehicle, and is kept for sale or sold for that purpose and
				  includes the following:
1. All products commonly or commercially known or sold as
				  gasoline (including ethanol blended gasoline, casinghead, and absorption or
				  natural gasoline) regardless of their classifications or uses, and including
				  transmix which serves as a buffer between fuel products in the pipeline
				  distribution process.
2. Any liquid advertised, offered for sale, sold for use as,
				  or commonly or commercially used as a fuel for propelling motor vehicles, which
				  when subjected to distillation of gasoline, naphtha, kerosene, and similar
				  petroleum products (American Society of Testing Materials designation D-86),
				  shows not less than 10 percent distilled (recovered) below 347° F (175°
				  C) and not less than 95 percent distilled (recovered) below 464° F
				  (240° C).
"Motor fuel"
does not include special fuel
				  and does not include liquefied gases which would not exist as liquids at a
				  temperature of 60° F and a pressure of 14 7/10 pounds per square inch
				  absolute, or naphthas and solvents unless the liquefied gases or naphthas and
				  solvents are used as a component in the manufacture, compounding, or blending
				  of a liquid within paragraph "2," in which event the resulting product shall be
				  deemed to be motor fuel. "Motor fuel" also does not include methanol unless
				  blended with other motor fuels for use in an aircraft or for propelling motor
				  vehicles.
"Motor vehicle"
means and includes all
				  vehicles (except those operated on rails) which are propelled by internal
				  combustion engines and are of such design as to permit their mobile use on
				  public highways for transporting persons or property. A farm tractor while
				  operated on a farm or for the purpose of hauling farm machinery, equipment, or
				  produce shall not be deemed to be a motor vehicle. "Motor vehicle" shall not
				  include "mobile machinery and equipment."
"Naphthas and solvents"
means and includes
				  those liquids which come within the distillation specifications for motor fuel,
				  but which are designed and sold for exclusive use other than as a fuel for
				  propelling motor vehicles.
"Nonethanol blended gasoline"
means gasoline
				  other than ethanol blended gasoline.
"Nonrefiner biofuel manufacturer"
means an
				  entity that produces, manufactures, or refines biofuel and does not directly or
				  through a related entity refine, blend, import, or produce a conventional
				  blendstock for oxygenate blending, gasoline, or diesel fuel.
"Nonterminal storage facility"
means a
				  facility where motor fuel or special fuel, other than liquefied petroleum gas,
				  is stored that is not supplied by a pipeline or a marine vessel. "Nonterminal
				  storage facility" includes a facility that manufactures products such as
				  ethanol, biofuel, blend stocks, or additives which may be used as motor fuel or
				  special fuel, other than liquefied petroleum gas, for operating motor vehicles
				  or aircraft.
"Person"
means and includes natural persons,
				  partnerships, firms, associations, corporations, representatives appointed by
				  any court, and political subdivisions of this state or any other group or
				  combination acting as a unit and the plural as well as the singular number
				  applies.
"Petrodiesel"
means petroleum-based diesel
				  fuel. Petrodiesel contains no biodiesel.
"Public highways"
means and includes any way
				  or place available to the public for purposes of vehicular travel
				  notwithstanding temporarily closed.
"Racing fuel"
means leaded gasoline of 110
				  octane or more that does not meet American Society of Testing Materials
				  designation D-4814 for gasoline and is sold in bulk for use in nonregistered
				  motor vehicles.
"Refiner"
means a person engaged in the
				  refining of crude oil to produce motor fuel or special fuel, and includes any
				  affiliate of such person.
"Regional transit system"
means a public
				  transit system serving one county or all or part of a multicounty area whose
				  boundaries correspond to the same boundaries as those of the regional planning
				  areas designated by the governor, except as agreed upon by the department. Each
				  county board of supervisors within the region is responsible for determining
				  the service and funding within its county. However, the administration and
				  overhead support services for the overall regional transit system shall be
				  consolidated into one existing or new agency to be mutually agreed upon by the
				  participating members. Privately chartered bus services and uses other than
				  providing services that are open and public on a shared-ride basis shall not be
				  construed to be a regional transit system.
"Restrictive supplier"
means a person not
				  otherwise licensed as an importer who imports motor fuel or undyed special fuel
				  into this state in amounts of less than 4,000 gallons in tank wagons or in
				  small tanks.
"Special fuel"
means fuel oils, kerosene and
				  all combustible gases and liquids suitable for the generation of power for
				  propulsion of motor vehicles or turbine-powered aircraft, and includes any
				  substance used for that purpose, except that it does not include motor fuel.
				  Kerosene and methanol shall not be considered to be special fuels, unless the
				  kerosene or methanol is blended with other special fuels for use in a motor
				  vehicle with a diesel engine.
"Supplier"
means a person who acquires motor
				  fuel or special fuel by pipeline or marine vessel from a state, territory, or
				  possession of the United States, or from a foreign country for storage at and
				  distribution from a terminal and who is registered under 26 U.S.C. § 4101
				  for tax-free transactions in fuel; a person who produces in this state or
				  acquires by truck, railcar, or barge for storage at and distribution from a
				  terminal, biofuel, biodiesel, alcohol, or alcohol derivative substances; or a
				  person who produces, manufactures, or refines motor fuel or special fuel in
				  this state. "Supplier" includes a person who does not meet the jurisdictional
				  connection to this state but voluntarily agrees to act as a supplier for
				  purposes of collecting and reporting the motor fuel or special fuel tax.
				  "Supplier" does not include a retail dealer or wholesaler who merely blends
				  alcohol with gasoline or biofuel with diesel before the sale or distribution of
				  the product or a terminal operator who merely handles, in a terminal, motor
				  fuel or special fuel consigned to the terminal operator.
"Taxpayer"
means anyone responsible for
				  paying fuel taxes directly to the department of revenue under Iowa Code chapter
				  452A.
"Terminal"
means a motor fuel, alcohol, or
				  special fuel storage and distribution facility that is supplied by a pipeline
				  or a marine vessel and from which the fuel may be removed at a rack. "Terminal"
				  does not include a facility at which motor fuel or special fuel blend stocks
				  and additives are used in the manufacture of products other than motor fuel or
				  special fuel and from which no motor fuel or special fuel is removed.
"Terminal operator"
means the person who by
				  ownership or contractual agreement is charged with the responsibility for, or
				  physical control over, and operation of a terminal. If coventurers own a
				  terminal, "terminal operator" means the person who is appointed to exercise the
				  responsibility for, or physical control over, and operation of the
				  terminal.
"Terminal owner"
means a person who holds a
				  legal or equitable interest in a terminal.
"Withdrawn from terminal"
means physical
				  movement from a supplier to a distributor or eligible end user or from an
				  alcohol manufacturer to a nonterminal location and includes an importer going
				  out of state and obtaining fuel from a terminal and bringing the fuel into the
				  state, and a restrictive supplier bringing fuel into the state even though not
				  purchased directly from a terminal. Exchange of product by suppliers while in
				  the distribution channel and the physical movement of alcohol from an alcohol
				  manufacturer to an Iowa licensed supplier's alcohol storage at a terminal are
				  not to be considered "withdrawn from terminal."
This rule is intended to implement Iowa Code sections
				  452A.2 and
				  452A.59.