701—10.71(421) Penalty and enforcement provisions.
10.71(1) Illegal use of dyed fuel. The illegal use of dyed fuel in the supply tank of a motor vehicle
shall result in a civil penalty assessed against the owner or operator of the motor vehicle as follows:
a. A $200 fine for the first violation.
b. A $500 fine for a second violation within three years of the first violation.
c. A $1,000 fine for third and subsequent violations within three years of the first violation.
10.71(2) Illegal importation of untaxed fuel. A person who illegally imports motor fuel or undyed
special fuel without a valid importer’s license or supplier’s license shall be assessed a civil penalty as
stated below. However, the owner or operator of the importing vehicle shall not be guilty of violating
the illegal import provision if it is shown by the owner or operator that the owner or operator reasonably
did not know or reasonably should not have known of the illegal importation.
a. For a first violation, the importing vehicle shall be detained and a fine of $2,000 shall be paid
before the vehicle will be released. The owner or operator of the importing vehicle or the owner of the
fuel may be held liable for payment of the fine.
b. For a second violation, the importing vehicle shall be detained and a fine of $5,000 shall be
paid before the vehicle will be released. The owner or operator of the importing vehicle or the owner of
the fuel may be held liable to pay the fine.
c. For third and subsequent violations, the importing vehicle and the fuel shall be seized and a
fine of $10,000 shall be paid before the vehicle will be released. The owner or operator of the importing
vehicle or the owner of the fuel may be held liable to pay the fine.
d. If the owner or operator of the importing vehicle or the owner of the fuel fails to pay the tax
and fine for a first or second offense, the importing vehicle and the fuel may be seized. The Iowa
department of revenue, the Iowa department of transportation, or any peace officer, at the request of
either department, may seize the vehicle and the fuel.
e. If the operator or owner of the importing vehicle or the owner of the fuel moves the vehicle or
the fuel after the vehicle has been detained and a sticker has been placed on the vehicle stating that “this
vehiclecannotbemoveduntilthetax, penalty, andinteresthavebeenpaidtothedepartmentofrevenue,”
an additional penalty of $5,000 shall be assessed against the operator or owner of the importing vehicle
or the owner of the fuel.
10.71(3) Improper receipt of fuel credit or refund. If a person files an incorrect refund claim, in
addition to the amount of the excess claim, a penalty of 10 percent shall be added to the amount by which
the amount claimed and refunded exceeds the amount actually due and shall be paid to the department.
If a person knowingly files a fraudulent refund claim with the intent to evade the tax, the penalty shall be
75 percent in lieu of the 10 percent. The person shall also pay interest on the excess refunded at the rate
per month specified in Iowa Code section 421.7, counting each fraction of a month as an entire month,
computed from the date the refund was issued to the date the excess refund is repaid to the state.
10.71(4) Illegal heating of fuel. The deliberate heating of taxable motor fuel or special fuel by dealers
prior to consumer sale is a simple misdemeanor.
10.71(5) Prevention of inspection. The Iowa department of revenue or the Iowa department of
transportation may conduct inspections for coloration, markers, and shipping papers at any place where
taxable fuel is or may be loaded into transport vehicles, produced, or stored. Any attempts by a person to
prevent, stop, or delay an inspection of fuel or shipping papers by authorized personnel shall be subject
to a civil penalty of not more than $1,000 per occurrence. Any law enforcement officer requested by
the Iowa department of revenue or Iowa department of transportation may physically inspect, examine,
or otherwise search any tank, fuel supply tank of a vehicle, reservoir, or other container that can or may
be used for the production, storage, or transportation of any type of fuel.
10.71(6) Failure to conspicuously label a fuel pump. A retailer who does not conspicuously label a
pump or other delivery facility as required by the Internal Revenue Service, that dispenses dyed diesel
fuel so as to notify customers that it contains dyed fuel, shall pay to the department of revenue a penalty
of $100 per occurrence.
10.71(7) False or fraudulent return. Any person, including an officer of a corporation or a manager
of a limited liability company, who is required to make, render, sign, or verify any report or return
Ch 10, p.2 IAC
required by this chapter and who makes a false or fraudulent report, or who fails to file a report or return
with the intent to evade the tax, shall be guilty of a fraudulent practice. Any person who aids, abets, or
assists another person in making any false or fraudulent return or false statement in any return with the
intent to evade payment of tax shall be guilty of a fraudulent practice.
This rule is intended to implement 1995 Iowa Acts, chapter 155, section 36