Ethanol producer, which connected directly to interstate pipeline to obtain natural gas to operate ethanol manufacturing plant, sought review of Department of Revenue’s denial of producer’s claim for a refund of replacement tax on natural gas delivery, asserting that tax was unconstitutional. The District Court denied producer’s constructional challenges. Producer appealed.
The Supreme Court of Iowa held that:
- Replacement tax did not violate Equal Protection Clause;
- Replacement tax did not violate uniform law provision of constitution;
- Framework of replacement tax did not violate dormant Commerce Clause; and
- Replacement tax did not violate extraterritoriality doctrine.