The bill establishes a tax framework for the transportation of liquefied carbon dioxide (CO2) through pipelines in Iowa, imposing a standard rate of $2.50 per metric ton, with a reduced rate of $1 per metric ton for CO2 utilized in enhanced oil recovery. It defines key terms related to the tax, outlines the reporting responsibilities of pipeline companies to the Department of Revenue, and mandates annual returns detailing CO2 transportation and tax obligations. The generated revenue is allocated to the taxpayer relief fund. Additionally, the bill includes administrative procedures for tax enforcement, penalties for non-compliance, and provisions for maintaining the confidentiality of tax-related information.

Moreover, the legislation introduces new legal provisions that classify willful tax evasion as a class D felony, with penalties including confinement and substantial fines. It also addresses fraudulent practices related to tax filings, requiring prosecutions to be initiated within six years of the offense. The bill allows for corrections of tax errors or overpayments and emphasizes the confidentiality of tax return information, imposing penalties on employees who disclose such information improperly. Pipeline companies are mandated to retain tax-related records for five years, ensuring compliance and accountability in the transportation of CO2.

Statutes affected:
Introduced: 438.3