|Other Exemptions: Iowa taxation for fuel is the terminal rack or supplier level. All fuel leaving the pipeline distribution system must have the tax paid. Only dyed diesel fuel used for off-highway purposes and fuel exported outside of Iowa is sold tax-free.
Refunds are allowable for the tax paid on motor fuel and undyed special fuel for more information go to. Iowa Legislature>Iowa Law & Rules> Administrative Rules>Revenue Department  Chapter 68 MOTOR FUEL AND UNDYED SPECIAL FUEL 701.68.8 to 701.68.13