Iowa DOR Announces Increase in Fuel Tax Rate on Alcohol, Ethanol Blended Gasoline Effective July 1

The Iowa Department of Revenue (DOR) has announced that the fuel tax rate on Alcohol and Ethanol Blended Gasoline E-15 or Higher will increase from $0.265 to $0.280 per gallon effective July. The increase is required under 2020 Senate File 2403 and reflects a rise in the ethanol distribution percentage from 19.4 percent to 28.8 percent for the 2025 determination period. All other fuel tax rates remain unchanged. Refund claims must be calculated using the applicable rate based on the date of purchase, and the department will issue revised fuel tax forms for periods beginning July 1. [Iowa Dep’t of ...