CHAPTER 2.5. SPECIAL FUEL TAX
IC 6-6-2.5
Chapter 2.5. Special Fuel Tax
IC 6-6-2.5-1
"Alternative fuel" defined
Sec. 1. As used in this chapter, "alternative fuel" means aliquefied petroleum gas, compressed natural gas product, or acombination of liquefied petroleum gas and a compressed natural gasproduct, not including a biodiesel fuel or biodiesel blend, used in aninternal combustion engine or motor to propel any form of vehicle,machine, or mechanical contrivance. The term includes all forms offuel commonly or commercially known or sold as butane, propane,or compressed natural gas.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.122-2006,SEC.19.
IC 6-6-2.5-1.5
"Biodiesel" defined
Sec. 1.5. (a) As used in this chapter, "biodiesel" means arenewable, biodegradable, mono alkyl ester combustible liquid fuelderived from agricultural plant oils or animal fats that meetsAmerican Society for Testing and Materials specificationsD6751-03a Standard Specification for Biodiesel Fuel (B100) BlendStock for Distillate Fuels, as well as other fuels of the samederivation capable of use in the generation of power for thepropulsion of a motor vehicle, airplane, or motorboat.
(b) As used in this chapter, "blended biodiesel" means a blend ofbiodiesel with petroleum diesel fuel so that the volume percentage ofbiodiesel in the blend is at least two percent (2%). A biodiesel blendmay be described as "Bxx" where "xx" represents the volumepercentage of biodiesel fuel. "B2" is the type of biodiesel blend withthe least volume percentage of biodiesel fuel, and "B99" is the typeof biodiesel fuel with the most volume percentage of biodiesel fuel.The term does not include biodiesel (B100).
As added by P.L.122-2006, SEC.20.
IC 6-6-2.5-2
"Blender" defined
Sec. 2. As used in this chapter, "blender" means a person whoengages in the process of blending.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-3
"Blending" defined
Sec. 3. As used in this chapter, "blending" means the mixing ofone (1) or more petroleum products, with or without another product,excluding biodiesel or blended biodiesel, if the product obtained bythe blending is capable of use in the generation of power for thepropulsion of a motor vehicle, an airplane, or a motorboat. The termdoes not include that blending that occurs in the process of refining
by the original refiner of crude petroleum or the blending of a deminimis amount of products such as carburetor detergent, oxidationinhibitor, lubricating oil, and greases.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995,SEC.13; P.L.122-2006, SEC.21.
IC 6-6-2.5-4
"Bulk end user" defined
Sec. 4. As used in this chapter, "bulk end user" means a personwho receives into the person's own storage facilities at least twohundred forty thousand (240,000) gallons annually of special fuel forthe person's own consumption.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-5
"Bulk plant" defined
Sec. 5. As used in this chapter, "bulk plant" means a gasoline orspecial fuel storage facility, other than a terminal, that is primarilyused for redistribution of gasoline and special fuel by a motor vehiclewith a capacity of not more than five thousand four hundred (5,400)gallons.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995,SEC.14.
IC 6-6-2.5-6
"Commissioner" defined
Sec. 6. As used in this chapter, "commissioner" means theadministrative head of the department or that person's designee.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-7
"Department" defined
Sec. 7. As used in this chapter, "department" means thedepartment of state revenue.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-8
"Destination state" defined
Sec. 8. As used in this chapter, "destination state" means the statefor which a motor vehicle or barge is destined for off-loading intostorage facilities for consumption or resale.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-8.5
"Dyed fuel user" defined
Sec. 8.5. As used in this chapter, "dyed fuel user" means a personthat qualifies for the federal diesel fuel tax exemption under Section4082 of the Internal Revenue Code to operate motor vehicles on thehighways with dyed fuel in the fuel supply tank.
As added by P.L.61-1996, SEC.1.
IC 6-6-2.5-9
"Export" defined
Sec. 9. As used in this chapter, "export" means:
(1) with respect to a seller, when special fuel is deliveredout-of-state by or for the seller; and
(2) with respect to a purchaser, when special fuel is deliveredout-of-state by or for the purchaser.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-10
"Exporter" defined
Sec. 10. As used in this chapter, "exporter" means any person,other than a supplier, who purchases special fuel in Indiana for thepurpose of transporting or delivering the fuel to another state orcountry.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-11
Repealed
(Repealed by P.L.210-2005, SEC.76.)
IC 6-6-2.5-12
"Heating oil" defined
Sec. 12. As used in this chapter, "heating oil" means a special fuelthat is burned in a boiler, furnace, or stove for heating or industrialprocessing purposes.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-13
"Import" defined
Sec. 13. As used in this chapter, "import" means:
(1) with respect to a seller, when special fuel is delivered intoIndiana from out-of-state by or for the seller; and
(2) with respect to a purchaser, when special fuel is deliveredinto Indiana from out-of-state by or for the purchaser.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-13.1
"Import verification number" defined
Sec. 13.1. As used in this chapter, "import verification number"means the number assigned by the department, or the department'sdesignee or appointee, with respect to a single transport truckdelivery into Indiana from another state upon request for an assignednumber by a licensed importer or transporter carrying undyed orunmarked special fuel, or both, into Indiana for the account of alicensed importer.
As added by P.L.18-1994, SEC.12. Amended by P.L.85-1995,SEC.15.
IC 6-6-2.5-14 "Invoiced gallons" defined
Sec. 14. As used in this chapter, "invoiced gallons" means thegallons accurately billed on an invoice on payment to a supplier.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.13.
IC 6-6-2.5-15
"Liquid" defined
Sec. 15. As used in this chapter, "liquid" means any substance thatis liquid in excess of sixty (60) degrees fahrenheit and a pressure offourteen and seven-tenths (14.7) pounds per square inch absolute.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-16
"Motor vehicle" defined
Sec. 16. As used in this chapter, "motor vehicle" means a vehicledesigned principally for road use and that is propelled by an internalcombustion engine or motor.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.14.
IC 6-6-2.5-16.1
"Permissive supplier" defined
Sec. 16.1. As used in this chapter, "permissive supplier" meansany person who does not meet the geographic jurisdictionalconnections to Indiana required of a supplier (as defined in section23 of this chapter), but who holds an inventory position in a federallyqualified terminal located outside of Indiana and who is registeredunder Section 4101 of the Internal Revenue Code.
As added by P.L.18-1994, SEC.15.
IC 6-6-2.5-17
"Person" defined
Sec. 17. As used in this chapter, "person" means a natural person,a partnership, a firm, an association, a corporation, a representativeappointed by a court, the state, a political subdivision (as defined inIC 36-1-2-13), or any other entity, group, or syndicate.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-18
"Public highway" defined
Sec. 18. As used in this chapter, "public highway" means theentire width between boundary lines of each publicly maintained wayin Indiana, including streets and alleys in cities and towns, when anypart of the way is open to the public use for motor vehicle travel.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.16.
IC 6-6-2.5-19
"Rack" defined Sec. 19. As used in this chapter, "rack" means a dock, a platform,or an open bay with a series of metered pipes and hoses fordelivering special fuel from a refinery or terminal into a motorvehicle, rail car, or marine vessel.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-20
"Received" defined
Sec. 20. As used in this chapter, "received" means the removalfrom any refinery or terminal in Indiana, or the entry into Indiana ofany special fuel for consumption, use, sale, or warehousing, exceptfor transfers in bulk into or within a terminal in Indiana betweenregistered suppliers. The tax imposed under section 28 of this chapterwith respect to special fuel removed from terminals within Indianaand with respect to special fuel which is the subject of a taxprecollection agreement pursuant to section 35(j) of this chapter,shall be imposed at the same time and in the same manner as the taximposed by Sections 4081 to 4083 of the Internal Revenue Code. Thedefinitions of the terms "removal", "entry", and "transfers in bulk"shall have the same meanings described in the Internal RevenueCode or Code of Federal Regulations.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.17.
IC 6-6-2.5-21
"Retailer" defined
Sec. 21. As used in this chapter, "retailer" means a person thatengages in the business of selling or distributing special fuel to theend user within Indiana.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-22
"Special fuel" defined
Sec. 22. As used in this chapter, "special fuel" means allcombustible gases and liquids that are:
(1) suitable for the generation of power in an internalcombustion engine or motor; or
(2) used exclusively for heating, industrial, or farm purposesother than for the operation of a motor vehicle.
Special fuel includes biodiesel and blended biodiesel (as defined inIC 6-6-2.5-1.5). However, the term does not include gasoline (asdefined in IC 6-6-1.1-103), ethanol produced, stored, or sold for themanufacture of or compounding or blending with gasoline,alternative fuels, kerosene, and jet fuel (if the purchaser of the jetfuel has provided to the seller proof of the purchaser's federal jet fuelregistration at or before the time of sale).
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.18; P.L.122-2006, SEC.22.
IC 6-6-2.5-23 "Supplier" defined
Sec. 23. As used in this chapter, "supplier" means a person thatimports or acquires immediately upon import into Indiana specialfuel by pipeline or marine vessel from within a state, territory, orpossession of the United States into a terminal or that imports specialfuel into Indiana from a foreign country, or that produces,manufactures, or refines special fuel within Indiana, or that ownsspecial fuel in the pipeline and terminal distribution system inIndiana, and is subject to the general taxing or police jurisdiction ofIndiana, and in any case is also registered under Section 4101 of theInternal Revenue Code for transactions in taxable motor fuels in thebulk distribution system. A terminal operator shall not be considereda supplier merely because the terminal operator handles special fuelconsigned to it within a terminal.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.19.
IC 6-6-2.5-24
"Terminal" defined
Sec. 24. As used in this chapter, "terminal" means a fuel storageand distribution facility that is supplied by pipeline or marine vessel,and from which special fuel may be removed at a rack and that hasbeen registered as a qualified terminal by the Internal RevenueService for receipt of taxable motor fuels free of federal motor fueltaxes.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.20.
IC 6-6-2.5-25
"Terminal operator" defined
Sec. 25. As used in this chapter, "terminal operator" means theperson who by ownership or contractual agreement is charged withthe responsibility and physical control over the operation of theterminal. However, there shall be only one (1) person charged withresponsibility as operator at each terminal for purposes of thischapter.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-25.1
"Transfer in bulk into or within a terminal" defined
Sec. 25.1. As used in this chapter, "transfer in bulk into or withina terminal" includes the following:
(1) A marine barge movement of fuel from a refinery orterminal to a terminal.
(2) Pipeline movements of fuel from a refinery or terminal toterminal.
(3) Book transfers of product within a terminal betweensuppliers before completion of removal across the rack.
(4) Two (2) party exchanges between licensed suppliers andpermissive suppliers.As added by P.L.18-1994, SEC.21.
IC 6-6-2.5-25.9
"Transporter" defined
Sec. 25.9. As used in this chapter, "transporter" means the personand its agent, including the driver, that transports special fuel.
As added by P.L.85-1995, SEC.16.
IC 6-6-2.5-26
"Transmix" defined
Sec. 26. As used in this chapter, "transmix" means the bufferbetween two (2) different products in a pipeline shipment, or a mixof two (2) different products within a refinery or terminal that resultsin an off-grade mixture.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-26.1
"Transport truck" defined
Sec. 26.1. As used in this chapter, "transport truck" means avehicle designed to transport motor fuel in bulk from a terminal inlots greater than five thousand four hundred (5,400) gallons.
As added by P.L.18-1994, SEC.22. Amended by P.L.85-1995,SEC.17.
IC 6-6-2.5-26.2
"Two party exchange" defined
Sec. 26.2. As used in this chapter, "two (2) party exchange" meansa transaction in which a product is transferred from one (1) licensedsupplier or permissive supplier to another when:
(1) the transaction includes a transfer from the person whoholds the original inventory position for special fuel in theterminal as indicated in the records of the terminal operator; and
(2) the exchange transaction is completed before removal fromthe terminal by the receiving exchange partner, provided thatthe terminal operator in the terminal operator's books andrecords treats the receiving exchange party as the supplier thatreceives the product for purposes of reporting the events to thestate of Indiana.
As added by P.L.18-1994, SEC.23.
IC 6-6-2.5-27
"Wholesaler" defined
Sec. 27. As used in this chapter, "wholesaler" means a person thatacquires special fuel from a supplier or from another wholesaler forsubsequent resale to a retail establishment or bulk end user by tankcars, motor vehicles, or both.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.24.
IC 6-6-2.5-28 License tax; presumptions; computation; liability for collection andremittance; sulfur content; penalty
Sec. 28. (a) A license tax of sixteen cents ($0.16) per gallon isimposed on all special fuel sold or used in producing or generatingpower for propelling motor vehicles except fuel used under section30(a)(8) or 30.5 of this chapter. The tax shall be paid at those times,in the manner, and by those persons specified in this section andsection 35 of this chapter.
(b) The department shall consider it a rebuttable presumption thatall undyed or unmarked special fuel, or both, received in Indiana isto be sold for use in propelling motor vehicles.
(c) Except as provided in subsection (d), the tax imposed onspecial fuel by subsection (a) shall be measured by invoiced gallonsof nonexempt special fuel received by a licensed supplier in Indianafor sale or resale in Indiana or with respect to special fuel subject toa tax precollection agreement under section 35(d) of this chapter,such special fuel removed by a licensed supplier from a terminaloutside of Indiana for sale for export or for export to Indiana and inany case shall generally be determined in the same manner as the taximposed by Section 4081 of the Internal Revenue Code and Code ofFederal Regulations.
(d) The tax imposed by subsection (a) on special fuel importedinto Indiana, other than into a terminal, is imposed at the time theproduct is entered into Indiana and shall be measured by invoicedgallons received at a terminal or at a bulk plant.
(e) In computing the tax, all special fuel in process of transferfrom tank steamers at boat terminal transfers and held in storagepending wholesale bulk distribution by land transportation, or intanks and equipment used in receiving and storing special fuel frominterstate pipelines pending wholesale bulk reshipment, shall not besubject to tax.
(f) The department shall consider it a rebuttable presumption thatspecial fuel consumed in a motor vehicle plated for general highwayuse is subject to the tax imposed under this chapter. A personclaiming exempt use of special fuel in such a vehicle must maintainadequate records as required by the department to document thevehicle's taxable and exempt use.
(g) A person that engages in blending fuel for taxable sale or usein Indiana is primarily liable for the collection and remittance of thetax imposed under subsection (a). The person shall remit the tax duein conjunction with the filing of a monthly report in the formprescribed by the department.
(h) A person that receives special fuel that has been blended fortaxable sale or use in Indiana is secondarily liable to the state for thetax imposed under subsection (a).
(i) A person may not use special fuel on an Indiana publichighway if the special fuel contains a sulfur content that exceeds fiveone-hundredths of one percent (0.05%). A person who knowingly:
(1) violates; or
(2) aids or abets another person to violate;this subsection commits a Class A infraction. However, the violationis a Class A misdemeanor if the person has committed one (1) priorunrelated violation of this subsection, and a Class D felony if theperson has committed more than one (1) unrelated violation of thissubsection.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.25; P.L.85-1995, SEC.18; P.L.33-2007, SEC.1.
IC 6-6-2.5-29
Inventory tax; exclusions; amount
Sec. 29. (a) Persons having title to special fuel in storage and heldfor sale on the effective date of an increase in the license tax rateimposed under section 28 of this chapter are subject to an inventorytax based on the gallons in storage as of the close of the business daypreceding the effective date of the increased license tax rate.
(b) Persons subject to the tax imposed under this section shall:
(1) take an inventory to determine the gallons in storage forpurposes of determining the inventory tax;
(2) report the gallons listed in subdivision (1) on formsprovided by the commissioner; and
(3) pay the tax due not more than thirty (30) days after theprescribed inventory date.
In determining the amount of special fuel tax due under this section,the person may exclude the amount of special fuel that will not bepumped out of the storage tank because the special fuel is below themouth of the draw pipe. For this purpose, the person may deduct twohundred (200) gallons for a storage tank with a capacity of less thanten thousand (10,000) gallons, and four hundred (400) gallons for astorage tank with a capacity that exceeds ten thousand (10,000)gallons.
(c) The amount of the inventory tax is equal to the inventory taxrate times the gallons in storage as determined under subsection (b).The inventory tax rate is equal to the difference of the increasedlicense tax rate minus the previous license tax rate.
(d) The inventory tax shall be considered a listed tax for thepurposes of IC 6-8.1.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-30
Exemptions from special fuel tax; provision of export information;refunds
Sec. 30. (a) The following are exempt from the special fuel tax:
(1) Special fuel sold by a supplier to a licensed exporter forexport from Indiana to another state or country to which theexporter is specifically licensed to export exports by a supplier,or exports for which the destination state special fuel tax hasbeen paid to the supplier and proof of export is available in theform of a destination state bill of lading.
(2) Special fuel sold to the United States or an agency orinstrumentality thereof. (3) Special fuel sold to a post exchange or other concessionaireon a federal reservation within Indiana. However, the postexchange or concessionaire shall collect, report, and payquarterly to the department any tax permitted by federal law onspecial fuel sold.
(4) Special fuel sold to a public transportation corporationestablished under IC 36-9-4 and used for the transportation ofpersons for compensation within the territory of thecorporation.
(5) Special fuel sold to a public transit department of amunicipality and used for the transportation of persons forcompensation within a service area, no part of which is morethan five (5) miles outside the corporate limits of themunicipality.
(6) Special fuel sold to a common carrier of passengers,including a business operating a taxicab (as defined inIC 6-6-1.1-103(l)) and used by the carrier to transportpassengers within a service area that is not larger than one (1)county, and counties contiguous to that county.
(7) The portion of special fuel determined by the commissionerto have been used to operate equipment attached to a motorvehicle, if the special fuel was placed into the fuel supply tankof a motor vehicle that has a common fuel reservoir for travelon a highway and for the operation of equipment.
(8) Special fuel used for nonhighway purposes, used as heatingoil, or in trains.
(9) Special fuel sold by a supplier to an unlicensed person forexport from Indiana to another state and the special fuel hasbeen dye addityzed in accordance with section 31 of thischapter.
(10) Sales of transmix between licensed suppliers.
(b) The exemption from tax provided under subsection (a)(4)through (a)(7) shall be applied for through the refund proceduresestablished in section 32 of this chapter.
(c) The department shall provide information to licensed suppliersof the destination state or states to which exporters are authorized toexport.
(d) Subject to gallonage limits and other conditions established bythe department, the department shall provide for refund of the taximposed by this chapter to a wholesale distributor exporting undyedspecial fuel out of a bulk plant in this state in a vehicle capable ofcarrying not more than five thousand four hundred (5,400) gallons ifthe destination of that vehicle does not exceed twenty-five (25) milesfrom the border of Indiana.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.26; P.L.100-1995, SEC.1.
IC 6-6-2.5-30.5
Exemption from special fuel tax; restricted personal,noncommercial use Sec. 30.5. (a) Except as provided in subsection (b), special fuel isexempt from the special fuel tax if:
(1) the special fuel has a nominal biodiesel content of at leasttwenty percent (20%);
(2) the special fuel is used only for a personal, noncommercialuse and is not for resale; and
(3) the individual using the special fuel:
(A) produces the biodiesel content of the special fuel; and
(B) obtains an exemption certificate under subsection (c)before using the special fuel.
(b) The maximum number of gallons of special fuel for which anindividual may claim the exemption under this section in a year isequal to:
(1) two thousand (2,000); divided by
(2) the average percentage volume of biodiesel in each gallonused by the individual.
(c) The department shall issue an exemption certificate to anindividual who produces evidence of nontaxability under subsection(a)(1), (a)(2), and (a)(3). A certificate issued under this subsection isvalid for a period determined by the department, but not to exceedfive (5) years. The department may allow an individual to renew anexemption certification for additional five (5) year periods. Anexemption certificate applies only to special fuel described insubsection (a). An individual holding a certificate issued under thissubsection shall notify the department:
(1) of any address change by the individual; and
(2) when the individual ceases using special fuel that is exemptunder this section.
(d) An individual who is issued an exemption certificate underthis section must submit to the department a report, in a formprescribed by the department, not later than January 20 of each year.The report must include:
(1) the number of gallons of special fuel in the immediatelypreceding year; and
(2) the average percentage volume of biodiesel in each gallonof special fuel;
to which the exemption was applied in the calendar year ending onthe immediately preceding December 31.
(e) An individual who is issued an exemption certificate underthis section is not subject to the reporting requirements under section35 of this chapter.
As added by P.L.33-2007, SEC.2.
IC 6-6-2.5-31
Exempted special fuels; dye requirements and specifications;markers
Sec. 31. (a) Special fuel exempted under section 30(a)(8) of thischapter shall have dye added to it at or before the time of withdrawalat a terminal or refinery rack. At the option of the supplier, the dyeadded may be either: (1) dye required to be added pursuant to United StatesEnvironmental Protection Agency requirements; or
(2) dye with specifications and amounts as required by thedepartment.
(b) The department may require that special fuel exempted undersection 30(a)(8) of this chapter shall have a marker added to thespecial fuel not later than the time of withdrawal at a terminal orrefinery rack. The marker must meet the specifications required bythe department.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995,SEC.19.
IC 6-6-2.5-32
Refunds; circumstances; claims; investigations
Sec. 32. (a) Special fuel tax that has been collected by a supplieron special fuel used for an exempt purpose, including section30(a)(4) through 30(a)(7) of this chapter and pretaxed exempt fuelunder section 30(a)(8) of this chapter, but which was not dyed ormarked, or both, in accordance with section 31 of this chapter, shallbe refunded by the department to the user or the user's assignee underrules adopted by the department, in accordance with subsection (c),upon presentation of proof of exempt use by the end user in the formthat the department prescribes.
(b) Special fuel tax that has been collected by a supplier onspecial fuel that was removed from a terminal or refinery for deliveryin Indiana, and was exported by a licensed exporter shall be refundedby the department to the licensed exporter in accordance withsubsection (c), upon presentation of proof of export in the form thatthe department prescribes.
(c) Special fuel tax that has been erroneously paid by a personshall be refunded by the department in accordance with subsection(d).
(d) To claim a refund under subsection (a) through (c), a personmust present to the department a statement that contains a writtenverification that the claim is made under penalties of perjury and liststhe total amount of special fuel purchased and used for non-highwaypurposes. The claim must be filed not more than three (3) years afterthe date the special fuel was purchased. The statement must showthat payment for the purchase has been made and the amount of taxpaid on the purchase has been remitted.
(e) The department may make any investigations it considersnecessary before refunding the special fuel tax to a person.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995,SEC.20.
IC 6-6-2.5-32.5
Refund of special fuel tax; qualification; claim for refund
Sec. 32.5. (a) A person that pays the tax imposed by this chapteron the use of special fuel in the operation of an intercity bus (asdefined in IC 9-13-2-83) is entitled to a refund of the tax without
interest if the person has:
(1) consumed the special fuel outside Indiana;
(2) paid a special fuel tax or highway use tax for the special fuelin at least one (1) state or other jurisdiction outside Indiana; and
(3) complied with subsection (b).
(b) To qualify for a refund under this section, a special fuel usershall submit to the department a claim for a refund, in the formprescribed by the department, that includes the followinginformation:
(1) Any evidence requested by the department of the following:
(A) Payment of the tax imposed by this chapter.
(B) Payment of taxes in another state or jurisdiction outsideIndiana.
(2) Any other information reasonably requested by thedepartment.
As added by P.L.85-1995, SEC.21.
IC 6-6-2.5-33
Payment of interest on refund claim
Sec. 33. If a claim for refund is not issued within ninety (90) daysof the filing required by section 32 of this chapter, the departmentshall pay interest at the rate established by IC 6-8.1-9 from a date thatis ninety (90) days after the date that the department receives theclaim for refund and all necessary documentation until a date,determined by the commissioner, that does not precede by more thanthirty (30) days, the date on which the refund is made.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995,SEC.22.
IC 6-6-2.5-34
Supplier deduction for gallons purchased; prohibition; customerrefunds; application
Sec. 34. No supplier shall claim a deduction from taxable gallonsfor gallons actually purchased by the customer, notwithstanding thatthe supplier has issued a corrective credit or rebilling to a customeradjusting the tax liability. The only remedy available to a customerto offset liability for special fuel tax paid is to apply for a refund asprovided by section 32(d) of this chapter.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-35
Collection and remittance of special fuel tax
Sec. 35. (a) The tax on special fuel received by a licensed supplierin Indiana that is imposed by section 28 of this chapter shall becollected and remitted to the state by the supplier who receivestaxable gallons in accordance with subsection (b).
(b) On or before the fifteenth day of each month, licensedsuppliers and licensed permissive suppliers shall make an estimatedpayment of all taxes imposed on transactions that occurred during theprevious calendar month equal to: (1) one hundred percent (100%) of the amount remitted by thelicensed supplier or licensed permissive supplier for the monthpreceding the previous calendar month; or
(2) ninety-five percent (95%) of the amount actually due andpayable by the licensed supplier or licensed permissive supplierfor the previous month.
Any remaining tax imposed on transactions occurring during acalendar month shall be due and payable on or before the twentiethday of the following month, except as provided in subsection (i).Underpayments of estimated taxes due and owing the department arenot subject to a penalty under section 63(a) of this chapter.
(c) A supplier who sells special fuel shall collect from thepurchaser the special fuel tax imposed under section 28 of thischapter. At the election of an eligible purchaser, the seller shall notrequire a payment of special fuel tax from the purchaser at a time thatis earlier than the date on which the tax is required to be remitted bythe supplier under subsection (b). This election shall be subject to acondition that the eligible purchaser's remittances of all amounts oftax due the seller shall be paid by electronic funds transfer on orbefore the due date of the remittance by the supplier to thedepartment, and the eligible purchaser's election under thissubsection may be terminated by the seller if the eligible purchaserdoes not make timely payments to the seller as required by thissubsection.
(d) As used in this section, "eligible purchaser" means a personwho has authority from the department to make the election undersubsection (c) and includes every person who is licensed and in goodstanding as a special fuel dealer or special fuel user, as determinedby the department, as of July 1, 1993, who has purchased a minimumof two hundred forty thousand (240,000) taxable gallons of specialfuel each year in the preceding two (2) years, or who otherwise meetsthe financial responsibility and bonding requirements of subsection(e).
(e) Each purchaser that desires to make an election undersubsection (c) shall present evidence of the purchaser's eligiblepurchaser status to the purchaser's seller. The department shalldetermine whether the purchaser is an eligible purchaser. Thedepartment may require a purchaser that pays the tax to a supplier tofile with the department a surety bond payable to the state, uponwhich the purchaser is the obligor or other financial security, in anamount satisfactory to the department. The department may requirethat the bond indemnify the department against bad debt deductionsclaimed by the supplier under subsection (g).
(f) The department shall have the authority to rescind apurchaser's eligibility and election to defer special fuel taxremittances upon a showing of good cause, including failure to maketimely payment under subsection (c), by sending written notice to allsuppliers and eligible purchasers. The department may requirefurther assurance of the purchaser's financial responsibility, or mayincrease the bond requirement for that purchaser, or any other action
that the department may require to ensure remittance of the specialfuel tax.
(g) In computing the amount of special fuel tax due, the supplierand permissive supplier shall be entitled to a deduction from the taxpayable the amount of tax paid by the supplier that has becomeuncollectible from a purchaser. The department shall adopt rulesestablishing the evidence a supplier must provide to receive thededuction. The deduction shall be claimed on the first returnfollowing the date of the failure of the purchaser if the paymentremains unpaid as of the filing date of that return or the deductionshall be disallowed. The claim shall identify the defaulting purchaserand any tax liability that remains unpaid. If a purchaser fails to makea timely payment of the amount of tax due, the supplier's deductionshall be limited to the amount due from the purchaser, plus any taxthat accrues from that purchaser for a period of ten (10) daysfollowing the date of failure to pay. No additional deduction shall beallowed until the department has authorized the purchaser to make anew election under subsection (e). The department may require thededuction to be reported in the same manner as prescribed in Section166 of the Internal Revenue Code.
(h) The supplier and each reseller of special fuel is considered tobe a collection agent for this state with respect to that special fueltax, which shall be set out on all invoices and billings as a separateline item.
(i) Except as provided in subsection (e), the tax imposed bysection 28 of this chapter on special fuel imported from another stateshall be paid by the licensed importer who has imported thenonexempt special fuel not later than three (3) business days after theearlier of:
(1) the time that the nonexempt special fuel entered intoIndiana; or
(2) the time that a valid import verification number wasassigned by the department under rules and procedures adoptedby the department.
However, if the importer and the importer's reseller have previouslyentered into a tax precollection agreement as described in subsection(j), and the agreement remains in effect, the supplier with whom theagreement has been made shall become jointly liable with theimporter for the tax and shall remit the tax to the department onbehalf of the importer. This subsection does not apply to an importerwith respect to imports in vehicles with a capacity of not more thanfive thousand four hundred (5,400) gallons.
(j) The department, a licensed importer, the reseller to a licensedimporter, and a licensed supplier or permissive supplier may jointlyenter into an agreement for the licensed supplier or permissivesupplier to precollect and remit the tax imposed by this chapter withrespect to special fuel imported from a terminal outside of Indiana inthe same manner and at the same time as the tax would arise and bepaid under this chapter if the special fuel had been received by thelicensed supplier or permissive supplier at a terminal in Indiana. If
the supplier is also the importer, the agreement shall be entered intobetween the supplier and the department. However, any licensedsupplier or permissive supplier may make an election with thedepartment to treat all out-of-state terminal removals with an Indianadestination as shown on the terminal-issued shipping paper as if theremovals were received by the supplier in Indiana pursuant to section28 of this chapter and subsection (a), for all purposes. In this case,the election and notice of the election to a supplier's customers shalloperate instead of a three (3) party precollection agreement. Thedepartment may impose requirements reasonably necessary for theenforcement of this subsection.
(k) Each licensed importer who is liable for the tax imposed bythis chapter on nonexempt special fuel imported by a fuel transporttruck having less than five thousand four hundred (5,400) gallonscapacity, for which tax has not previously been paid to a supplier,shall remit the special fuel tax for the preceding month's importactivities with the importer's monthly report of activities. A licensedimporter shall be allowed to retain two-thirds (2/3) of the collectionallowance provided for in section 37(a) of this chapter for the taxtimely remitted by the importer directly to the state, subject to thesame pass through provided for in section 37(a) of this chapter.
(l) A licensed importer shall be allowed to retain two-thirds (2/3)of the amount allowed in section 37(a) of this chapter of the taxtimely remitted by the licensed importer directly to the state, subjectto the same pass through provided for in section 37(a) of this chapter.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.27; P.L.61-1996, SEC.2; P.L.65-1997, SEC.1.
IC 6-6-2.5-36
Remittance of tax; procedures; deadline
Sec. 36. All suppliers required to remit the special fuel tax shallremit the special fuel taxes due by electronic fund transfer (asdefined in IC 4-8.1-2-7) or by delivering in person or by overnightcourier a payment by cashier's check, certified check, or money orderto the department. The transfer or payment shall be made on orbefore the date the tax is due.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-37
Costs of collection, reporting, and remittance; retention of portionof remittance; amount; failure to report or remit on time
Sec. 37. (a) Every supplier and permissive supplier who properlyremits tax under this chapter shall be allowed to retain one andsix-tenths percent (1.6%) of the tax to cover the costs of collecting,reporting, and timely remitting the tax imposed by this chapter.
(b) The amount that the supplier is permitted to retain undersubsection (a) shall be distributed by the supplier as follows:
(1) One-third (1/3) retained by the supplier.
(2) Two-thirds (2/3) to the wholesale distributor. If the specialfuel is resold by that wholesale distributor or another wholesale
distributor to an eligible purchaser, the last wholesaledistributor in the distribution process shall pass on one-half(1/2) of the two-thirds (2/3) to the eligible purchaser.
(3) If an eligible purchaser is the direct purchaser from asupplier, and that retail dealer or bulk end user is responsiblefor shipping the product, then the supplier shall pass throughtwo-thirds (2/3) to the retail dealer or bulk end user. If thesupplier is responsible for shipping the product, the suppliershall retain two-thirds (2/3) and pass through one-third (1/3) tothe eligible purchaser.
(c) If a monthly report is filed or the amount due is remitted laterthan the time required by this chapter, the supplier shall pay to thedepartment all of the special fuel tax the dealer collected from thesale of special fuel during the reporting period.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.28.
IC 6-6-2.5-38
Duties and responsibilities of supplier in collection of tax; liability
Sec. 38. The tax the supplier collects on the sale of special fuelbelongs to the state. A supplier shall hold the money in trust for thestate and for payment to the department as provided in this chapter.In the case of a corporation or partnership, each officer, employee,or member of the employer who is in that capacity is under a duty tocollect the tax, and is personally liable for the tax, penalty, andinterest.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-39
Consumption of tax-exempt dyed or marked fuel for nonexemptpurpose; remittance of tax
Sec. 39. Any person who has consumed tax-exempt dyed ormarked special fuel, or both, for a nonexempt purpose, as permittedunder section 62 of this chapter, shall remit the tax due by filing amonthly report and remitting the tax due on forms prescribed by thedepartment.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.85-1995,SEC.23.
IC 6-6-2.5-40
Transportation of special fuel; requirements and procedures;violations
Sec. 40. (a) Each person operating a refinery, terminal, or bulkplant in Indiana shall prepare and provide to the driver of everyvehicle receiving special fuel at the facility a shipping documentsetting out on its face the destination state as represented to theterminal operator by the shipper or the shipper's agent, except that anoperator of a bulk plant in Indiana delivering special fuel into avehicle with a capacity of not more than five thousand four hundred(5,400) gallons for subsequent delivery to an end consumer in
Indiana is exempt from this requirement.
(b) Every person transporting special fuel in vehicles upon theIndiana public highways shall carry on board a shipping paper issuedby the terminal operator or the bulk plant operator of the facilitywhere the special fuel was obtained, which shipping paper shall setout on its face the state of destination of the special fuel transportedin the vehicle, except that operators of vehicles with a capacity of notmore than five thousand four hundred (5,400) gallons that havereceived special fuel at a bulk plant in Indiana for delivery to an endconsumer in Indiana are exempt from this provision with respect tothe special fuel. A person who violates this subsection commits aClass A infraction (as defined in IC 34-28-5-4).
(c) Every person transporting special fuel in vehicles upon thepublic highways of Indiana shall provide the original or a copy of theterminal issued shipping document accompanying the shipment tothe operator of the retail outlet or bulk plant to which delivery of theshipment was made. A person who knowingly violates or knowinglyaids and abets another person in violating this subsection commits aClass D felony.
(d) Each operator of a special fuel retail outlet or bulk plant shallreceive, examine, and retain for a period of thirty (30) days at thedelivery location the terminal issued shipping document receivedfrom the transporter for every shipment of special fuel that isdelivered to that location, with record retention of the shipping paperof three (3) years required offsite. A person who knowingly violatesor knowingly aids and abets another person in violating thissubsection commits a Class D felony.
(e) No bulk end user, retail dealer, bulk plant operator, orwholesale distributor shall knowingly accept delivery of special fuelinto storage facilities in Indiana if that delivery is not accompaniedby a shipping paper issued by the terminal operator or bulk plantoperator, that sets out on its face Indiana as the state of destinationof the special fuel. A person who knowingly violates or knowinglyaids and abets another person in violating this subsection commits aClass D felony.
(f) The department shall provide for relief in a case where ashipment of special fuel is legitimately diverted from the representeddestination state after the shipping paper has been issued by theterminal operator or where the terminal operator failed to causeproper information to be printed on the shipping paper. These reliefprovisions shall include a provision requiring that the shipper or itsagent provide notification before the diversion or correction to thedepartment if an intended diversion or correction is to occur, and therelief provision shall be consistent with the refund provisions of thischapter.
(g) The supplier and the terminal operator shall be entitled to relyfor all purposes of this chapter on the representation by the shipperor the shipper's agent as to the shipper's intended state of destinationor tax exempt use. The shipper, the importer, the transporter, theshipper's agent, and any purchaser, not the supplier or terminal
operator, shall be jointly liable for any tax otherwise due to the stateas a result of a diversion of the special fuel from the representeddestination state.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.29; P.L.85-1995, SEC.24; P.L.1-1998, SEC.80.
IC 6-6-2.5-41
Licenses
Sec. 41. (a) Each supplier engaged in business in Indiana as asupplier shall first obtain a supplier's license. The fee for a supplier'slicense shall be five hundred dollars ($500).
(b) Any person who desires to collect the tax imposed by thischapter as a supplier and who meets the definition of a permissivesupplier may obtain a permissive supplier's license. Application foror possession of a permissive supplier's license shall not in itselfsubject the applicant or licensee to the jurisdiction of Indiana for anyother purpose than administration and enforcement of this chapter.The fee for a permissive supplier's license is fifty dollars ($50).
(c) Each terminal operator other than a supplier licensed undersubsection (a) engaged in business in Indiana as a terminal operatorshall first obtain a terminal operator's license for each terminal site.The fee for a terminal operator's license is three hundred dollars($300).
(d) Each exporter engaged in business in Indiana as an exportershall first obtain an exporter's license. However, in order to obtain alicense to export special fuel from Indiana to another specified state,a person shall be licensed either to collect and remit special fueltaxes or be licensed to deal in tax free special fuel in that otherspecified state of destination. The fee for an exporter's license is twohundred dollars ($200).
(e) Each person who is not licensed as a supplier shall obtain atransporter's license before transporting special fuel by whatevermanner from a point outside Indiana to a point inside Indiana, orfrom a point inside Indiana to a point outside Indiana, regardless ofwhether the person is engaged for hire in interstate commerce or forhire in intrastate commerce. The registration fee for a transporter'slicense is fifty dollars ($50).
(f) Each person who wishes to cause special fuel to be deliveredinto Indiana on the person's own behalf, for the person's ownaccount, or for resale to an Indiana purchaser, from another state ina fuel transport vehicle having a capacity of more than five thousandfour hundred (5,400) gallons, or in a pipeline or barge shipment intostorage facilities other than a qualified terminal, shall first make anapplication for and obtain an importer's license. The fee for animporter's license is two hundred dollars ($200). This subsectiondoes not apply to a person who imports special fuel that is exemptbecause the special fuel has been dyed or marked, or both, inaccordance with section 31 of this chapter. This subsection does notapply to a person who imports nonexempt special fuels meeting thefollowing conditions: (1) The special fuel is subject to one (1) or more taxprecollection agreements with suppliers as provided in section35 of this chapter.
(2) The special fuel tax precollection by the supplier isexpressly evidenced on the terminal-issued shipping paper asspecifically provided in section 62(e)(2) of this chapter.
(g) A person desiring to import special fuel to an Indianadestination who does not enter into an agreement to prepay Indianaspecial fuel tax to a supplier or permissive supplier under section 35of this chapter on the imports must do the following:
(1) Obtain a valid license under subsection (f).
(2) Obtain an import verification number from the departmentnot earlier than twenty-four (24) hours before entering the statewith each import, if importing in a vehicle with a capacity ofmore than five thousand four hundred (5,400) gallons.
(3) Display a proper import verification number on the shippingdocument, if importing in a vehicle with a capacity of more thanfive thousand four hundred (5,400) gallons.
(h) The department may require a person that wants to blendspecial fuel to first obtain a license from the department. Thedepartment may establish reasonable requirements for the properenforcement of this subsection, including the following:
(1) Guidelines under which a person may be required to obtaina license.
(2) A requirement that a licensee file reports in the form andmanner required by the department.
(3) A requirement that a licensee meet the bondingrequirements specified by the department.
(i) The department may require a person that:
(1) is subject to the special fuel tax under this chapter;
(2) qualifies for a federal diesel fuel tax exemption underSection 4082 of the Internal Revenue Code; and
(3) is purchasing red dyed low sulfur diesel fuel;
to register with the department as a dyed fuel user. The departmentmay establish reasonable requirements for the proper enforcement ofthis subsection, including guidelines under which a person may berequired to register and the form and manner of reports a registrantis required to file.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,SEC.30; P.L.85-1995, SEC.25; P.L.61-1996, SEC.3.
IC 6-6-2.5-42
Application for license; form and content; investigation;fingerprints
Sec. 42. (a) Each application for a license under section 41 of thischapter shall be made upon a form prepared and furnished by thedepartment. It shall be subscribed to by the applicant and shallcontain the information as the department may reasonably require forthe administration of this chapter, including the applicant's federalidentification number and, with respect to the applicant for an
exporter's license, a copy of the applicant's license to purchase orhandle special fuel tax free in the specified destination state or statesfor which the export license is to be issued.
(b) The department shall investigate each applicant for a licenseunder this section. No license shall be issued if the departmentdetermines that any one (1) of the following exists:
(1) The application is not filed in good faith.
(2) The applicant is not the real party in interest.
(3) The license of the real party in interest has been revoked forcause.
(4) Other reasonable cause for non-issuance exists.
(c) Applicants, including corporate officers, partners, andindividuals, for a license issued by the commissioner may berequired to submit their fingerprints to the commissioner at the timeof applying. Officers of publicly held corporations and theirsubsidiaries shall be exempt from this fingerprinting provision.Fingerprints required by this section must be submitted on formsprescribed by the commissioner. The commissioner may forward tothe Federal Bureau of Investigation or any other agency forprocessing all fingerprints submitted by license applicants. Thereceiving agency shall issue its findings to the commissioner. Thelicense application fee shall be used to pay the costs of theinvestigation. The commissioner may maintain a file of fingerprints.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-43
Transporters; listing of vehicle descriptions with commissioner;contents
Sec. 43. (a) Each licensed transporter shall at the time of licensingand on an annual basis, list with the commissioner a description ofall vehicles, including license numbers, to be used on the highwaysof Indiana in transporting special fuel from points outside Indiana topoints inside Indiana and from points inside Indiana to points outsideIndiana.
(b) The description required in subsection (a) must comply withwhat is reasonably required by the commissioner, including thecarrying capacity of the vehicle. If the vehicle is a tractor-trailer typevehicle, the trailer is the vehicle that must be described. Whenadditional vehicles are placed in service or when a vehicle previouslylisted is retired from service during the year, the commissioner shallbe notified not more than ten (10) days after the change so that thelisting of the vehicles may be kept accurate.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-44
Surety bond or cash deposit; filing by applicants
Sec. 44. (a) Concurrently with the filing of an application for alicense under this chapter, the department may require the applicantto file with the commissioner a surety bond or cash deposit:
(1) in an amount determined by the commissioner of not less
than two thousand dollars ($2,000) or not more than a two (2)month tax liability for the applicant as estimated by thecommissioner; and
(2) conditioned upon the keeping of records and the making offull and complete reports and payments as required by thischapter.
(b) If the applicant files a bond, the bond must:
(1) be with a surety company approved by the commissioner;
(2) name the applicant as the principal and the state as theobligee; and
(3) be on forms prescribed by the department.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-45
Disclosure of financial records; increase in bond or cash deposit
Sec. 45. The commissioner may, at the commissioner's reasonablediscretion, require a licensee to furnish current certified, auditedfinancial statements. If the commissioner determines that a licensee'sfinancial condition warrants an increase in the bond or cash deposit,the commissioner may require the licensee to furnish an increasedbond or cash deposit.
As added by P.L.277-1993(ss), SEC.44.
IC 6-6-2.5-46
Filing of new bond; conditions; cancellation of license; reductionof cash deposit by judgment; additional deposit
Sec. 46. (a) The commissioner may require a licensee to file a newbond with a satisfactory surety in the same form and amount if:
(1) liability upon the previous bond is discharged or reduced bythe judgment rendered, payment made, or otherwise disposedof; or
(2) in the opinion of the commissioner, any surety on theprevious bond becomes unsa