CHAPTER 7. COLLECTION AND REMITTANCE OF STATE GROSS RETAIL TAX ON MOTOR FUEL
IC 6-2.5-7
Chapter 7. Collection and Remittance of State Gross Retail Taxon Motor Fuel
IC 6-2.5-7-1
Definitions
Sec. 1. (a) The definitions in this section apply throughout thischapter.
(b) "Kerosene" has the same meaning as the definition containedin IC 16-44-2-2.
(c) "Gasoline" has the same meaning as the definition containedin IC 6-6-1.1-103.
(d) "Special fuel" has the same meaning as the definitioncontained in IC 6-6-2.5-22.
(e) "E85" has the meaning set forth in IC 6-6-1.1-103.
(f) "Unit" means the unit of measure, such as a gallon or a liter, bywhich gasoline or special fuel is sold.
(g) "Metered pump" means a stationary pump which is capable ofmetering the amount of gasoline or special fuel dispensed from it andwhich is capable of simultaneously calculating and displaying theprice of the gasoline or special fuel dispensed.
(h) "Indiana gasoline tax" means the tax imposed underIC 6-6-1.1.
(i) "Indiana special fuel tax" means the tax imposed underIC 6-6-2.5.
(j) "Federal gasoline tax" means the excise tax imposed underSection 4081 of the Internal Revenue Code.
(k) "Federal special fuel tax" means the excise tax imposed underSection 4041 of the Internal Revenue Code.
(l) "Price per unit before the addition of state and federal taxes"means an amount which equals the remainder of:
(1) the total price per unit; minus
(2) the state gross retail, Indiana gasoline or special fuel, andfederal gasoline or special fuel taxes which are part of the totalprice per unit.
(m) "Total price per unit" means the price per unit at whichgasoline or special fuel is actually sold, including the state grossretail, Indiana gasoline or special fuel, and federal gasoline or specialfuel taxes which are part of the sales price.
(n) "Distributor" means a person who is the first purchaser ofgasoline from a refiner, a terminal operator, or supplier, regardlessof the location of the purchase.
(o) "Prepayment rate" means a rate per gallon of gasolinedetermined by the department under section 14 of this chapter for usein calculating prepayment amounts of gross retail tax under section9 of this chapter.
(p) "Purchase or shipment" means a sale or delivery of gasoline,but does not include:
(1) an exchange transaction between refiners, terminaloperators, or a refiner and terminal operator; or (2) a delivery by pipeline, ship, or barge to a refiner or terminaloperator.
(q) "Qualified distributor" means a distributor who:
(1) is a licensed distributor under IC 6-6-1.1; and
(2) holds an unrevoked permit issued under section 7 of thischapter.
(r) "Refiner" means a person who manufactures or producesgasoline by any process involving substantially more than theblending of gasoline.
(s) "Terminal operator" means a person that:
(1) stores gasoline in tanks and equipment used in receiving andstoring gasoline from interstate or intrastate pipelines pendingwholesale bulk reshipment; or
(2) stores gasoline at a boat terminal transfer that is a dock ortank, or equipment contiguous to a dock or tank, includingequipment used in the unloading of gasoline from a ship orbarge and used in transferring the gasoline to a tank pendingwholesale bulk reshipment.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.81-1983,SEC.1; P.L.94-1987, SEC.1; P.L.277-1993(ss), SEC.41;P.L.222-1999, SEC.1; P.L.122-2006, SEC.2; P.L.176-2006, SEC.1;P.L.1-2007, SEC.52.
IC 6-2.5-7-2
Display of price
Sec. 2. Except as provided in section 2.5 of this chapter, a retailmerchant who uses a metered pump to dispense gasoline or specialfuel shall display on the pump the total price per unit of the gasolineor special fuel. Subject to the provisions of section 2.5 of thischapter, a retail merchant may not advertise the gasoline or specialfuel at a price that is different than the price that he is required todisplay on the metered pump.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.81-1983,SEC.2.
IC 6-2.5-7-2.5
Pumps designated for trucks only; requirements
Sec. 2.5. (a) A retail merchant may designate any metered pumpsat a business location that dispense special fuel as being "for trucksonly". To do this, a retail merchant must place on the pump a signthat states that fuel dispensed from the metered pump may only beplaced in the fuel supply tanks of a truck. A sign that reads"TRUCKS ONLY" is sufficient to meet the requirements of thissubsection.
(b) A retail merchant may not dispense special fuel from ametered pump that is designated for trucks only into the supply tankof a vehicle that is not a truck.
(c) A retail merchant is not required to display the total price perunit of the special fuel on a metered pump if that particular meteredpump is designated for trucks only. (d) A retail merchant may advertise special fuel at a price thatdoes not include gross retail taxes that may be due on the sale of thespecial fuel only if he maintains a metered pump that is designatedfor trucks only. If a retail merchant advertises special fuel at a pricethat does not include any gross retail taxes that may be due on thesale of the special fuel, the retail merchant must display in easilyread lettering above or below the advertised price the words"EXEMPT TRUCKS ONLY".
As added by P.L.81-1983, SEC.3.
IC 6-2.5-7-3
Retail merchant; calculation of tax liability; metered pump sales;gasoline; kerosene; special fuels
Sec. 3. (a) With respect to the sale of gasoline which is dispensedfrom a metered pump, a retail merchant shall collect, for each unit ofgasoline sold, state gross retail tax in an amount equal to the product,rounded to the nearest one-tenth of one cent ($0.001), of:
(1) the price per unit before the addition of state and federaltaxes; multiplied by
(2) seven percent (7%).
The retail merchant shall collect the state gross retail tax prescribedin this section even if the transaction is exempt from taxation underIC 6-2.5-5.
(b) With respect to the sale of special fuel or kerosene which isdispensed from a metered pump, unless the purchaser provides anexemption certificate in accordance with IC 6-2.5-8-8, a retailmerchant shall collect, for each unit of special fuel or kerosene sold,state gross retail tax in an amount equal to the product, rounded tothe nearest one-tenth of one cent ($0.001), of:
(1) the price per unit before the addition of state and federaltaxes; multiplied by
(2) seven percent (7%).
Unless the exemption certificate is provided, the retail merchant shallcollect the state gross retail tax prescribed in this section even if thetransaction is exempt from taxation under IC 6-2.5-5.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.2-1982(ss),SEC.5; P.L.81-1983, SEC.4; P.L.80-1983, SEC.2; P.L.11-1984,SEC.2; P.L.222-1999, SEC.2; P.L.192-2002(ss), SEC.63;P.L.146-2008, SEC.314.
IC 6-2.5-7-4
Exempt transactions; refunds; procedures
Sec. 4. (a) If a sale of gasoline or special fuel is exempt from thestate gross retail tax, the person who pays the tax to the retailmerchant may file a claim for refund with the department. Theperson must file the claim on the form, in the manner, and with thesupporting documentation, prescribed by the department. If a personproperly files a claim for refund, the department shall refund to himthe state gross retail tax collected with respect to the exempttransaction. (b) Notwithstanding the other provisions of this section, thedepartment may prescribe simplified procedures to make adjustmentsfor exempt transactions.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.81-1983,SEC.5.
IC 6-2.5-7-5
Reports by gasoline or special fuel retail merchants; remitted taxamount; deduction of prepayment amounts; deduction of E85retail sales credit; limitation on deductions; suspension
Sec. 5. (a) Each retail merchant who dispenses gasoline or specialfuel from a metered pump shall, in the manner prescribed inIC 6-2.5-6, report to the department the following information:
(1) The total number of gallons of gasoline sold from a meteredpump during the period covered by the report.
(2) The total amount of money received from the sale ofgasoline described in subdivision (1) during the period coveredby the report.
(3) That portion of the amount described in subdivision (2)which represents state and federal taxes imposed under thisarticle, IC 6-6-1.1, or Section 4081 of the Internal RevenueCode.
(4) The total number of gallons of special fuel sold from ametered pump during the period covered by the report.
(5) The total amount of money received from the sale of specialfuel during the period covered by the report.
(6) That portion of the amount described in subdivision (5) thatrepresents state and federal taxes imposed under this article,IC 6-6-2.5, or Section 4041 of the Internal Revenue Code.
(7) The total number of gallons of E85 sold from a meteredpump during the period covered by the report.
(b) Concurrently with filing the report, the retail merchant shallremit the state gross retail tax in an amount which equals six andfifty-four hundredths percent (6.54%) of the gross receipts, includingstate gross retail taxes but excluding Indiana and federal gasoline andspecial fuel taxes, received by the retail merchant from the sale of thegasoline and special fuel that is covered by the report and on whichthe retail merchant was required to collect state gross retail tax. Theretail merchant shall remit that amount regardless of the amount ofstate gross retail tax which the merchant has actually collected underthis chapter. However, the retail merchant is entitled to deduct andretain the amounts prescribed in subsection (c), IC 6-2.5-6-10, andIC 6-2.5-6-11.
(c) A retail merchant is entitled to deduct from the amount of stategross retail tax required to be remitted under subsection (b) theamount determined under STEP THREE of the following formula:
STEP ONE: Determine:
(A) the sum of the prepayment amounts made during theperiod covered by the retail merchant's report; minus
(B) the sum of prepayment amounts collected by the retail
merchant, in the merchant's capacity as a qualifieddistributor, during the period covered by the retailmerchant's report.
STEP TWO: Subject to subsections (d) and (f), for qualifiedreporting periods beginning after June 30, 2009, and endingbefore July 1, 2020, determine the product of:
(A) eighteen cents ($0.18); multiplied by
(B) the number of gallons of E85 sold at retail by the retailmerchant during the period covered by the retail merchant'sreport.
STEP THREE: Add the amounts determined under STEPSONE and TWO.
For purposes of this section, a prepayment of the gross retail tax ispresumed to occur on the date on which it is invoiced.
(d) The total amount of deductions allowed under subsection (c)STEP TWO may not exceed the amount of money that the budgetagency determines is available in the retail merchant E85 deductionreimbursement fund established under IC 15-15-12-30.5 for thedeductions for all retail merchants in a particular qualified reportingperiod. A retail merchant is not required to apply for an allocation ofdeductions under subsection (c) STEP TWO. Before August 1 ofeach year, the budget agency shall estimate whether the amount ofdeductions from the immediately preceding qualified reportingperiod that are subject to reimbursement under IC 15-15-12-30.5(f)and the deductions expected to be reported under subsection (c)STEP TWO for the qualified reporting periods beginning afterDecember 31 and ending before April 1 of the following year willexceed the amount of money available in the retail merchant E85deduction reimbursement fund for the deductions. If the budgetagency determines that the amount of money in the retail merchantE85 deduction reimbursement fund is insufficient to cover theamount of the deductions expected to be reported, the budget agencyshall publish in the Indiana Register a notice that the deductionprogram under subsection (c) STEP TWO is suspended with respectto the qualified reporting periods occurring in the following calendaryear and that no deductions will be granted for retail transactionsoccurring in the qualified reporting periods occurring in thefollowing calendar year.
(e) As used in this section, "qualified reporting period" refers toa reporting period beginning after December 31 and ending beforeApril 1 of each year.
(f) The budget agency may suspend the deduction program undersubsection (c) STEP TWO for a particular year at any time during aqualified reporting period if the budget agency determines that theamount of money in the retail merchant E85 deductionreimbursement fund and the amount of money that will be transferredto the fund on July 1 will not be sufficient to reimburse thedeductions expected to occur before the deduction program for theyear ends on March 31. The budget agency shall immediatelyprovide notice to the participating retail merchants of the decision to
suspend the deduction program for that year.
As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1980,P.L.10, SEC.2; P.L.2-1982(ss), SEC.6; P.L.81-1983, SEC.6;P.L.80-1983, SEC.3; P.L.11-1984, SEC.3; P.L.94-1987, SEC.2;P.L.277-1993(ss), SEC.42; P.L.192-2002(ss), SEC.64; P.L.122-2006,SEC.3; P.L.182-2007, SEC.1; P.L.146-2008, SEC.315;P.L.148-2009, SEC.2.
IC 6-2.5-7-5.5
Repealed
(Repealed by P.L.148-2009, SEC.11.)
IC 6-2.5-7-6
Prepayment credit; claim for refund; transfers from general fund
Sec. 6. (a) If the deduction under section 5(c) of this chapterexceeds the amount of gross retail tax required to be remitted undersection 5(b) of this chapter, the retail merchant is entitled to a credit.The credit shall be used as follows:
(1) First, the credit shall be applied against gross retail and usetax liability of the retail merchant that is required to be remittedunder IC 6-2.5-6.
(2) Second, any amount remaining shall be applied against thegasoline tax liability of the retail merchant, as determined underIC 6-6-1.1, excluding any liability for gasoline delivered to ataxable marine facility.
A retail merchant may file a claim for a refund instead of taking acredit or for a refund of any excess tax payment remaining after thecredits allowed by this section. In addition, a retail merchant may filea claim for a refund under section 12 of this chapter.
(b) A retail merchant that is entitled to a refund under this sectionmust file a claim for the refund on the form approved by thedepartment and must include any supporting documentationreasonably required by the department. If a retail merchant files acompleted refund claim form that includes all supportingdocumentation, the excess tax payment that is not refunded withinninety (90) days accrues interest as provided in IC 6-8.1-9-2.
(c) Before the fifth day of each month, the department shalldetermine and notify the treasurer of state of the amount of creditsapplied during the preceding month against the gasoline tax underthis section. The treasurer of state shall transfer from the generalfund:
(1) to the highway, road, and street fund, twenty-five percent(25%) of the amount set forth in the department's notice; and
(2) to the motor fuel tax fund of the motor vehicle highwayaccount, seventy-five percent (75%) of the amount set forth inthe department's notice.
As added by P.L.94-1987, SEC.3.
IC 6-2.5-7-7
Distributor permit to collect prepayment from retail merchants Sec. 7. (a) A distributor desiring to receive gasoline withinIndiana without prepaying gross retail tax must hold an uncancelledpermit issued by the department to collect prepayments of grossretail tax from retail merchants.
(b) To obtain a permit, a distributor must file with the departmenta sworn application containing information that the departmentreasonably requires.
(c) The department may refuse to issue a permit to a distributor if:
(1) the application is filed by a distributor whose permit haspreviously been cancelled for cause;
(2) the application is not filed in good faith, as determined bythe department; or
(3) the application is filed by some person as a subterfuge forthe real person in interest whose permit has previously beencancelled for cause.
(d) A permit may not be issued unless the application isaccompanied by an audited and current financial statement and alicense fee of one hundred dollars ($100).
(e) A permit issued under this section is not assignable and isvalid only for the distributor in whose name it is issued. If there is achange in name or ownership, the distributor must apply for a newpermit.
(f) The department may revoke a distributor's permit for goodcause.
(g) Before being denied a permit under subsection (c) or beforehaving a permit revoked under subsection (f), a distributor is entitledto a hearing after five (5) days written notice. At the hearing thedistributor may appear in person or by counsel and presenttestimony.
(h) The department shall keep a record of all qualifieddistributors.
As added by P.L.94-1987, SEC.4.
IC 6-2.5-7-8
Distributor permittees; bond; financial statements
Sec. 8. (a) The department may require a distributor to file,concurrently with the filing of an application for a permit, a bond:
(1) in an amount of not less than two thousand dollars ($2,000)nor more than a three (3) month prepayment tax liability for thedistributor, as estimated by the department;
(2) in cash or with a surety company approved by thedepartment;
(3) upon which the distributor is the principal obligor and thestate is the obligee; and
(4) conditioned upon the prompt filing of true reports andpayment of all prepayment of gross retail taxes collected by thedistributor, together with any penalties and interest, and uponfaithful compliance with this chapter.
The department shall determine the amount of the distributor's bond,if any. (b) If after a hearing (after at least five (5) days written notice) thedepartment determines that the amount of a distributor's bond isinsufficient, the distributor shall upon written demand of thedepartment file a new bond.
(c) The department may require a distributor to file a new bondwith a satisfactory surety in the same form and amount if:
(1) liability upon the old bond is discharged or reduced byjudgment rendered, payment made, or otherwise; or
(2) in the opinion of the department any surety on the old bondbecomes unsatisfactory.
(d) If a new bond obtained under subsection (b) or (c) isunsatisfactory, the department shall cancel the permit of thedistributor. If the new bond is satisfactorily furnished, the departmentshall release in writing the surety on the old bond from any liabilityaccruing after the effective date of the new bond.
(e) Sixty (60) days after making a written request for release tothe department, the surety of a bond furnished by a distributor isreleased from any liability to the state accruing on the bond. Therelease does not affect any liability accruing before expiration of thesixty (60) day period. The department shall promptly notify thedistributor furnishing the bond that the surety has requested release.Unless the distributor obtains a new bond that meets therequirements of this section and files the new bond with thedepartment within the sixty (60) day period, the department shallcancel the distributor's permit.
(f) The department may require a distributor to furnish auditedannual financial statements to determine if any change is required inthe amount of the distributor's bond.
As added by P.L.94-1987, SEC.5. Amended by P.L.71-1993, SEC.11.
IC 6-2.5-7-9
Amount of prepayment
Sec. 9. (a) Except as provided in section 13 of this chapter, at thetime of purchase or shipment of gasoline from a refiner or terminaloperator, a distributor who is not a qualified distributor shall prepayto the refiner or terminal operator the state gross retail tax in anamount determined under subsection (d).
(b) At the time of purchase or shipment of gasoline from aqualified distributor, a retail merchant shall prepay to the qualifieddistributor the state gross retail tax in an amount determined undersubsection (d).
(c) If gasoline is delivered to a retail outlet for resale and the grossretail tax in the amount determined under subsection (d) has not beenprepaid on the gasoline, the refiner, terminal operator, or qualifieddistributor making the delivery shall prepay to the department thegross retail tax in an amount determined under subsection (d). A bulkplant is not considered to be a retail outlet.
(d) The amount of tax that must be prepaid under this sectionequals:
(1) the prepayment rate per gallon of gasoline; multiplied by (2) the number of invoiced gallons purchased or shipped.
(e) A purchaser or receiver of gasoline that makes a prepaymentunder this chapter is not subject to any liability to the state for theamount of the prepayment.
As added by P.L.94-1987, SEC.6.
IC 6-2.5-7-10
Remitting tax receipts; reports
Sec. 10. (a) Each refiner or terminal operator and each qualifieddistributor that has received a prepayment of the state gross retail taxunder this chapter shall remit the tax received to the departmentsemimonthly, through the department's online tax filing system,according to the following schedule:
(1) On or before the tenth day of each month for prepaymentsreceived after the fifteenth day and before the end of thepreceding month.
(2) On or before the twenty-fifth day of each month forprepayments received after the end of the preceding month andbefore the sixteenth day of the month in which the prepaymentsare made.
(b) Before the end of each month, each refiner or terminaloperator and each qualified distributor shall file a report covering theprepaid taxes received and the gallons of gasoline sold or shippedduring the preceding month. The report must include the following:
(1) The number of gallons of gasoline sold or shipped duringthe preceding month, identifying each purchaser or receiver asrequired by the department.
(2) The amount of tax prepaid by each purchaser or receiver.
(3) Any other information reasonably required by thedepartment.
As added by P.L.94-1987, SEC.7. Amended by P.L.182-2009(ss),SEC.181.
IC 6-2.5-7-11
Reports of distributors
Sec. 11. Each distributor that prepays the state gross retail taxunder this chapter shall file a monthly report with the department.The report shall be filed no later than the last day of the monthfollowing the month that the report covers. The report must includethe following:
(1) The number of gallons of gasoline purchased or received bythe distributor from each refiner, terminal operator, or anotherdistributor.
(2) The amount of state gross retail tax prepaid to each refiner,terminal operator, or distributor.
(3) The number of gallons of gasoline sold to each distributor,retail merchant, exempt purchaser, or other person and theamount of state gross retail tax collected from each distributor,retail merchant, or other person identifying the location of eachdistributor, retail merchant, exempt purchaser, or other person,
as required by the department.
(4) Any other information reasonably required by thedepartment.
As added by P.L.94-1987, SEC.8.
IC 6-2.5-7-12
Exempt purchasers from distributor; report; refund
Sec. 12. (a) Except as provided in subsection (b), a distributor thatprepays the state gross retail tax under this chapter shall separatelystate the amount of tax prepaid on the invoice the distributor issuesto its purchaser or recipient. The purchaser or recipient shall pay tothe distributor an amount equal to the prepaid tax.
(b) A distributor that:
(1) prepays the state gross retail tax under this chapter;
(2) is a retail merchant; and
(3) sells gasoline that is exempt from the gross retail tax, asevidenced by a purchaser's exemption certificate issued by thedepartment;
may not require the exempt purchaser to pay the gross retail taxesprepaid in the gasoline sold to the exempt purchaser. A distributorthat has prepaid gross retail taxes and has not been reimbursedbecause the gasoline is sold to an exempt purchaser may file a claimfor a refund (in addition to any claim for a refund under section 6 ofthis chapter), if the amount of unreimbursed prepaid gross retailtaxes exceeds five hundred dollars ($500). A claim for a refund mustbe on the form approved by the department and include allsupporting documentation reasonably required by the department. Ifa distributor files a completed refund claim form that includes allsupporting documentation, the department shall authorize the auditorof state to issue a warrant for the refund.
As added by P.L.94-1987, SEC.9.
IC 6-2.5-7-13
Foreign distributor or distribution; reports and payments
Sec. 13. (a) If a purchase or shipment of gasoline is made to adistributor (other than a qualified distributor) outside Indiana forshipment into and subsequent sale or use by the distributor withinIndiana, the distributor shall make the prepayment required bysection 9 of this chapter directly to the department. The distributorshall pay the tax and submit the report according to the schedule setforth in section 10 of this chapter.
(b) If a purchase or shipment is made within Indiana for shipmentand subsequent sale outside Indiana, the purchase or shipment isexempt from the prepayment requirements of section 9 of thischapter.
As added by P.L.94-1987, SEC.10.
IC 6-2.5-7-14
Prepayment rate schedule
Sec. 14. (a) Before June 10 and December 10 of each year, the
department shall determine and provide to:
(1) each refiner and terminal operator and each qualifieddistributor known to the department to be required to collectprepayments of the state gross retail tax under this chapter; and
(2) any other person that makes a request;
a notice of the prepayment rate to be used during the following six(6) month period. The department, after approval by the office ofmanagement and budget, may determine a new prepayment rate if thedepartment finds that the statewide average retail price per gallon ofgasoline, excluding the Indiana and federal gasoline taxes and theIndiana gross retail tax, has changed by at least twenty-five percent(25%) since the most recent determination.
(b) In determining the prepayment rate under this section, thedepartment shall use the most recent retail price of gasoline availableto the department.
(c) The prepayment rate per gallon of gasoline determined by thedepartment under this section is the amount per gallon of gasolinedetermined under STEP FOUR of the following formula:
STEP ONE: Determine the statewide average retail price pergallon of gasoline, excluding the Indiana and federal gasolinetaxes and the Indiana gross retail tax.
STEP TWO: Determine the product of the following:
(A) The STEP ONE amount.
(B) The Indiana gross retail tax rate.
(C) Eighty percent (80%).
STEP THREE: Determine the lesser of:
(A) the STEP TWO result; or
(B) the product of:
(i) the prepayment rate in effect on the day immediatelypreceding the day on which the prepayment rate isredetermined under this section; multiplied by
(ii) one hundred twenty-five percent (125%).
STEP FOUR: Round the STEP THREE result to the nearestone-tenth of one cent ($0.001).
As added by P.L.94-1987, SEC.11. Amended by P.L.176-2006,SEC.2; P.L.182-2009(ss), SEC.182.
IC 6-2.5-7-15
Penalties
Sec. 15. (a) A refiner, terminal operator, or distributor (includinga qualified distributor) that fails to remit the tax or file the returns orreports required by this chapter is subject to the penalties set forth inIC 6-8.1-10.
(b) A distributor that fails to file the reports required by section11 of this chapter is subject to the penalties set forth in IC 6-8.1-10.
As added by P.L.94-1987, SEC.12.