IC 6-6-2.5-1 "Alternative fuel" defined
Sec. 1. As used in this chapter, "alternative fuel" means a
liquefied petroleum gas, compressed natural gas product, or a
combination of liquefied petroleum gas and a compressed natural gas
product, not including a biodiesel fuel or biodiesel blend, used in an
internal combustion engine or motor to propel any form of vehicle,
machine, or mechanical contrivance. The term includes all forms of
fuel 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 a
renewable, biodegradable, mono alkyl ester combustible liquid fuel
derived from agricultural plant oils or animal fats that meets
American Society for Testing and Materials specifications
D6751-03a Standard Specification for Biodiesel Fuel (B100) Blend
Stock for Distillate Fuels, as well as other fuels of the same
derivation capable of use in the generation of power for the
propulsion of a motor vehicle, airplane, or motorboat.
(b) As used in this chapter, "blended biodiesel" means a blend of
biodiesel with petroleum diesel fuel so that the volume percentage of
biodiesel in the blend is at least two percent (2%). A biodiesel blend
may be described as "Bxx" where "xx" represents the volume
percentage of biodiesel fuel. "B2" is the type of biodiesel blend with
the least volume percentage of biodiesel fuel, and "B99" is the type
of 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 who
engages 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 of
one (1) or more petroleum products, with or without another product,
excluding biodiesel or blended biodiesel, if the product obtained by
the blending is capable of use in the generation of power for the
propulsion of a motor vehicle, an airplane, or a motorboat. The term
does not include that blending that occurs in the process of refining
by the original refiner of crude petroleum or the blending of a de
minimis amount of products such as carburetor detergent, oxidation
inhibitor, 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 person
who receives into the person's own storage facilities at least two
hundred forty thousand (240,000) gallons annually of special fuel for
the 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 or
special fuel storage facility, other than a terminal, that is primarily
used for redistribution of gasoline and special fuel by a motor vehicle
with 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 the
administrative 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 the
department 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 state
for which a motor vehicle or barge is destined for off-loading into
storage 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 person
that qualifies for the federal diesel fuel tax exemption under Section
4082 of the Internal Revenue Code to operate motor vehicles on the
highways 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 delivered
out-of-state by or for the seller; and
(2) with respect to a purchaser, when special fuel is delivered
out-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 the
purpose of transporting or delivering the fuel to another state or
country. 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 fuel
that is burned in a boiler, furnace, or stove for heating or industrial
processing 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 into
Indiana from out-of-state by or for the seller; and
(2) with respect to a purchaser, when special fuel is delivered
into 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's
designee or appointee, with respect to a single transport truck
delivery into Indiana from another state upon request for an assigned
number by a licensed importer or transporter carrying undyed or
unmarked special fuel, or both, into Indiana for the account of a
licensed 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 the
gallons 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 that
is liquid in excess of sixty (60) degrees fahrenheit and a pressure of
fourteen 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 vehicle
designed principally for road use and that is propelled by an internal
combustion 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" means
any person who does not meet the geographic jurisdictional
connections to Indiana required of a supplier (as defined in section
23 of this chapter), but who holds an inventory position in a federally
qualified terminal located outside of Indiana and who is registered
under 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 representative
appointed by a court, the state, a political subdivision (as defined in
IC 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 the
entire width between boundary lines of each publicly maintained way
in Indiana, including streets and alleys in cities and towns, when any
part 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 for
delivering special fuel from a refinery or terminal into a motor
vehicle, 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 removal
from any refinery or terminal in Indiana, or the entry into Indiana of
any special fuel for consumption, use, sale, or warehousing, except
for transfers in bulk into or within a terminal in Indiana between
registered suppliers. The tax imposed under section 28 of this chapter
with respect to special fuel removed from terminals within Indiana
and with respect to special fuel which is the subject of a tax
precollection agreement pursuant to section 35(j) of this chapter,
shall be imposed at the same time and in the same manner as the tax
imposed by Sections 4081 to 4083 of the Internal Revenue Code. The
definitions of the terms "removal", "entry", and "transfers in bulk"
shall have the same meanings described in the Internal Revenue
Code 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 that
engages in the business of selling or distributing special fuel to the
end 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 all
combustible gases and liquids that are:
(1) suitable for the generation of power in an internal
combustion engine or motor; or
(2) used exclusively for heating, industrial, or farm purposes
other than for the operation of a motor vehicle.
Special fuel includes biodiesel and blended biodiesel (as defined in
IC 6-6-2.5-1.5). However, the term does not include gasoline (as
defined in IC 6-6-1.1-103), ethanol produced, stored, or sold for the
manufacture of or compounding or blending with gasoline,
alternative fuels, kerosene, and jet fuel (if the purchaser of the jet
fuel has provided to the seller proof of the purchaser's federal jet fuel
registration 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 that
imports or acquires immediately upon import into Indiana special
fuel by pipeline or marine vessel from within a state, territory, or
possession of the United States into a terminal or that imports special
fuel into Indiana from a foreign country, or that produces,
manufactures, or refines special fuel within Indiana, or that owns
special fuel in the pipeline and terminal distribution system in
Indiana, and is subject to the general taxing or police jurisdiction of
Indiana, and in any case is also registered under Section 4101 of the
Internal Revenue Code for transactions in taxable motor fuels in the
bulk distribution system. A terminal operator shall not be considered
a supplier merely because the terminal operator handles special fuel
consigned 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 storage
and distribution facility that is supplied by pipeline or marine vessel,
and from which special fuel may be removed at a rack and that has
been registered as a qualified terminal by the Internal Revenue
Service for receipt of taxable motor fuels free of federal motor fuel
taxes. 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 the
person who by ownership or contractual agreement is charged with
the responsibility and physical control over the operation of the
terminal. However, there shall be only one (1) person charged with
responsibility as operator at each terminal for purposes of this
chapter. 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 within
a terminal" includes the following:
(1) A marine barge movement of fuel from a refinery or
terminal to a terminal.
(2) Pipeline movements of fuel from a refinery or terminal to
terminal.
(3) Book transfers of product within a terminal between
suppliers before completion of removal across the rack.
(4) Two (2) party exchanges between licensed suppliers and
permissive 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 person
and 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 buffer
between two (2) different products in a pipeline shipment, or a mix
of two (2) different products within a refinery or terminal that results
in 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 a
vehicle designed to transport motor fuel in bulk from a terminal in
lots 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" means
a transaction in which a product is transferred from one (1) licensed
supplier or permissive supplier to another when:
(1) the transaction includes a transfer from the person who
holds the original inventory position for special fuel in the
terminal as indicated in the records of the terminal operator; and
(2) the exchange transaction is completed before removal from
the terminal by the receiving exchange partner, provided that
the terminal operator in the terminal operator's books and
records treats the receiving exchange party as the supplier that
receives the product for purposes of reporting the events to the
state 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 that
acquires special fuel from a supplier or from another wholesaler for
subsequent resale to a retail establishment or bulk end user by tank
cars, 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 and
remittance; sulfur content; penalty
Sec. 28. (a) A license tax of sixteen cents ($0.16) per gallon is
imposed on all special fuel sold or used in producing or generating
power for propelling motor vehicles except fuel used under section
30(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 and
section 35 of this chapter.
(b) The department shall consider it a rebuttable presumption that
all undyed or unmarked special fuel, or both, received in Indiana is
to be sold for use in propelling motor vehicles.
(c) Except as provided in subsection (d), the tax imposed on
special fuel by subsection (a) shall be measured by invoiced gallons
of nonexempt special fuel received by a licensed supplier in Indiana
for sale or resale in Indiana or with respect to special fuel subject to
a tax precollection agreement under section 35(d) of this chapter,
such special fuel removed by a licensed supplier from a terminal
outside of Indiana for sale for export or for export to Indiana and in
any case shall generally be determined in the same manner as the tax
imposed by Section 4081 of the Internal Revenue Code and Code of
Federal Regulations.
(d) The tax imposed by subsection (a) on special fuel imported
into Indiana, other than into a terminal, is imposed at the time the
product is entered into Indiana and shall be measured by invoiced
gallons received at a terminal or at a bulk plant.
(e) In computing the tax, all special fuel in process of transfer
from tank steamers at boat terminal transfers and held in storage
pending wholesale bulk distribution by land transportation, or in
tanks and equipment used in receiving and storing special fuel from
interstate pipelines pending wholesale bulk reshipment, shall not be
subject to tax.
(f) The department shall consider it a rebuttable presumption that
special fuel consumed in a motor vehicle plated for general highway
use is subject to the tax imposed under this chapter. A person
claiming exempt use of special fuel in such a vehicle must maintain
adequate records as required by the department to document the
vehicle's taxable and exempt use.
(g) A person that engages in blending fuel for taxable sale or use
in Indiana is primarily liable for the collection and remittance of the
tax imposed under subsection (a). The person shall remit the tax due
in conjunction with the filing of a monthly report in the form
prescribed by the department.
(h) A person that receives special fuel that has been blended for
taxable sale or use in Indiana is secondarily liable to the state for the
tax imposed under subsection (a).
(i) A person may not use special fuel on an Indiana public
highway if the special fuel contains a sulfur content that exceeds five
one-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 violation
is a Class A misdemeanor if the person has committed one (1) prior
unrelated violation of this subsection, and a Class D felony if the
person has committed more than one (1) unrelated violation of this
subsection. 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 held
for sale on the effective date of an increase in the license tax rate
imposed under section 28 of this chapter are subject to an inventory
tax based on the gallons in storage as of the close of the business day
preceding 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 for
purposes of determining the inventory tax;
(2) report the gallons listed in subdivision (1) on forms
provided by the commissioner; and
(3) pay the tax due not more than thirty (30) days after the
prescribed 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 be
pumped out of the storage tank because the special fuel is below the
mouth of the draw pipe. For this purpose, the person may deduct two
hundred (200) gallons for a storage tank with a capacity of less than
ten thousand (10,000) gallons, and four hundred (400) gallons for a
storage tank with a capacity that exceeds ten thousand (10,000)
gallons.
(c) The amount of the inventory tax is equal to the inventory tax
rate times the gallons in storage as determined under subsection (b).
The inventory tax rate is equal to the difference of the increased
license tax rate minus the previous license tax rate.
(d) The inventory tax shall be considered a listed tax for the
purposes 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 for
export from Indiana to another state or country to which the
exporter is specifically licensed to export exports by a supplier,
or exports for which the destination state special fuel tax has
been paid to the supplier and proof of export is available in the
form of a destination state bill of lading.
(2) Special fuel sold to the United States or an agency or
instrumentality thereof.
(3) Special fuel sold to a post exchange or other concessionaire
on a federal reservation within Indiana. However, the post
exchange or concessionaire shall collect, report, and pay
quarterly to the department any tax permitted by federal law on
special fuel sold.
(4) Special fuel sold to a public transportation corporation
established under IC 36-9-4 and used for the transportation of
persons for compensation within the territory of the
corporation.
(5) Special fuel sold to a public transit department of a
municipality and used for the transportation of persons for
compensation within a service area, no part of which is more
than five (5) miles outside the corporate limits of the
municipality.
(6) Special fuel sold to a common carrier of passengers,
including a business operating a taxicab (as defined in
IC 6-6-1.1-103(l)) and used by the carrier to transport
passengers 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 commissioner
to have been used to operate equipment attached to a motor
vehicle, if the special fuel was placed into the fuel supply tank
of a motor vehicle that has a common fuel reservoir for travel
on a highway and for the operation of equipment.
(8) Special fuel used for nonhighway purposes, used as heating
oil, or in trains.
(9) Special fuel sold by a supplier to an unlicensed person for
export from Indiana to another state and the special fuel has
been dye addityzed in accordance with section 31 of this
chapter.
(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 procedures
established in section 32 of this chapter.
(c) The department shall provide information to licensed suppliers
of the destination state or states to which exporters are authorized to
export.
(d) Subject to gallonage limits and other conditions established by
the department, the department shall provide for refund of the tax
imposed by this chapter to a wholesale distributor exporting undyed
special fuel out of a bulk plant in this state in a vehicle capable of
carrying not more than five thousand four hundred (5,400) gallons if
the destination of that vehicle does not exceed twenty-five (25) miles
from 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 is
exempt from the special fuel tax if:
(1) the special fuel has a nominal biodiesel content of at least
twenty percent (20%);
(2) the special fuel is used only for a personal, noncommercial
use 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 an
individual may claim the exemption under this section in a year is
equal to:
(1) two thousand (2,000); divided by
(2) the average percentage volume of biodiesel in each gallon
used by the individual.
(c) The department shall issue an exemption certificate to an
individual who produces evidence of nontaxability under subsection
(a)(1), (a)(2), and (a)(3). A certificate issued under this subsection is
valid for a period determined by the department, but not to exceed
five (5) years. The department may allow an individual to renew an
exemption certification for additional five (5) year periods. An
exemption certificate applies only to special fuel described in
subsection (a). An individual holding a certificate issued under this
subsection shall notify the department:
(1) of any address change by the individual; and
(2) when the individual ceases using special fuel that is exempt
under this section.
(d) An individual who is issued an exemption certificate under
this section must submit to the department a report, in a form
prescribed 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 immediately
preceding year; and
(2) the average percentage volume of biodiesel in each gallon
of special fuel;
to which the exemption was applied in the calendar year ending on
the immediately preceding December 31.
(e) An individual who is issued an exemption certificate under
this section is not subject to the reporting requirements under section
35 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 this
chapter shall have dye added to it at or before the time of withdrawal
at a terminal or refinery rack. At the option of the supplier, the dye
added may be either:
(1) dye required to be added pursuant to United States
Environmental Protection Agency requirements; or
(2) dye with specifications and amounts as required by the
department.
(b) The department may require that special fuel exempted under
section 30(a)(8) of this chapter shall have a marker added to the
special fuel not later than the time of withdrawal at a terminal or
refinery rack. The marker must meet the specifications required by
the 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 supplier
on special fuel used for an exempt purpose, including section
30(a)(4) through 30(a)(7) of this chapter and pretaxed exempt fuel
under section 30(a)(8) of this chapter, but which was not dyed or
marked, or both, in accordance with section 31 of this chapter, shall
be refunded by the department to the user or the user's assignee under
rules adopted by the department, in accordance with subsection (c),
upon presentation of proof of exempt use by the end user in the form
that the department prescribes.
(b) Special fuel tax that has been collected by a supplier on
special fuel that was removed from a terminal or refinery for delivery
in Indiana, and was exported by a licensed exporter shall be refunded
by the department to the licensed exporter in accordance with
subsection (c), upon presentation of proof of export in the form that
the department prescribes.
(c) Special fuel tax that has been erroneously paid by a person
shall be refunded by the department in accordance with subsection
(d).
(d) To claim a refund under subsection (a) through (c), a person
must present to the department a statement that contains a written
verification that the claim is made under penalties of perjury and lists
the total amount of special fuel purchased and used for non-highway
purposes. The claim must be filed not more than three (3) years after
the date the special fuel was purchased. The statement must show
that payment for the purchase has been made and the amount of tax
paid on the purchase has been remitted.
(e) The department may make any investigations it considers
necessary 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 chapter
on the use of special fuel in the operation of an intercity bus (as
defined 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 fuel
in 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 user
shall submit to the department a claim for a refund, in the form
prescribed by the department, that includes the following
information:
(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 outside
Indiana.
(2) Any other information reasonably requested by the
department. 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) days
of the filing required by section 32 of this chapter, the department
shall pay interest at the rate established by IC 6-8.1-9 from a date that
is ninety (90) days after the date that the department receives the
claim for refund and all necessary documentation until a date,
determined by the commissioner, that does not precede by more than
thirty (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; customer
refunds; application
Sec. 34. No supplier shall claim a deduction from taxable gallons
for gallons actually purchased by the customer, notwithstanding that
the supplier has issued a corrective credit or rebilling to a customer
adjusting the tax liability. The only remedy available to a customer
to offset liability for special fuel tax paid is to apply for a refund as
provided 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 supplier
in Indiana that is imposed by section 28 of this chapter shall be
collected and remitted to the state by the supplier who receives
taxable gallons in accordance with subsection (b).
(b) On or before the fifteenth day of each month, licensed
suppliers and licensed permissive suppliers shall make an estimated
payment of all taxes imposed on transactions that occurred during the
previous calendar month equal to:
(1) one hundred percent (100%) of the amount remitted by the
licensed supplier or licensed permissive supplier for the month
preceding the previous calendar month; or
(2) ninety-five percent (95%) of the amount actually due and
payable by the licensed supplier or licensed permissive supplier
for the previous month.
Any remaining tax imposed on transactions occurring during a
calendar month shall be due and payable on or before the twentieth
day of the following month, except as provided in subsection (i).
Underpayments of estimated taxes due and owing the department are
not subject to a penalty under section 63(a) of this chapter.
(c) A supplier who sells special fuel shall collect from the
purchaser the special fuel tax imposed under section 28 of this
chapter. At the election of an eligible purchaser, the seller shall not
require a payment of special fuel tax from the purchaser at a time that
is earlier than the date on which the tax is required to be remitted by
the supplier under subsection (b). This election shall be subject to a
condition that the eligible purchaser's remittances of all amounts of
tax due the seller shall be paid by electronic funds transfer on or
before the due date of the remittance by the supplier to the
department, and the eligible purchaser's election under this
subsection may be terminated by the seller if the eligible purchaser
does not make timely payments to the seller as required by this
subsection.
(d) As used in this section, "eligible purchaser" means a person
who has authority from the department to make the election under
subsection (c) and includes every person who is licensed and in good
standing as a special fuel dealer or special fuel user, as determined
by the department, as of July 1, 1993, who has purchased a minimum
of two hundred forty thousand (240,000) taxable gallons of special
fuel each year in the preceding two (2) years, or who otherwise meets
the financial responsibility and bonding requirements of subsection
(e).
(e) Each purchaser that desires to make an election under
subsection (c) shall present evidence of the purchaser's eligible
purchaser status to the purchaser's seller. The department shall
determine whether the purchaser is an eligible purchaser. The
department may require a purchaser that pays the tax to a supplier to
file with the department a surety bond payable to the state, upon
which the purchaser is the obligor or other financial security, in an
amount satisfactory to the department. The department may require
that the bond indemnify the department against bad debt deductions
claimed by the supplier under subsection (g).
(f) The department shall have the authority to rescind a
purchaser's eligibility and election to defer special fuel tax
remittances upon a showing of good cause, including failure to make
timely payment under subsection (c), by sending written notice to all
suppliers and eligible purchasers. The department may require
further assurance of the purchaser's financial responsibility, or may
increase the bond requirement for that purchaser, or any other action
that the department may require to ensure remittance of the special
fuel tax.
(g) In computing the amount of special fuel tax due, the supplier
and permissive supplier shall be entitled to a deduction from the tax
payable the amount of tax paid by the supplier that has become
uncollectible from a purchaser. The department shall adopt rules
establishing the evidence a supplier must provide to receive the
deduction. The deduction shall be claimed on the first return
following the date of the failure of the purchaser if the payment
remains unpaid as of the filing date of that return or the deduction
shall be disallowed. The claim shall identify the defaulting purchaser
and any tax liability that remains unpaid. If a purchaser fails to make
a timely payment of the amount of tax due, the supplier's deduction
shall be limited to the amount due from the purchaser, plus any tax
that accrues from that purchaser for a period of ten (10) days
following the date of failure to pay. No additional deduction shall be
allowed until the department has authorized the purchaser to make a
new election under subsection (e). The department may require the
deduction to be reported in the same manner as prescribed in Section
166 of the Internal Revenue Code.
(h) The supplier and each reseller of special fuel is considered to
be a collection agent for this state with respect to that special fuel
tax, which shall be set out on all invoices and billings as a separate
line item.
(i) Except as provided in subsection (e), the tax imposed by
section 28 of this chapter on special fuel imported from another state
shall be paid by the licensed importer who has imported the
nonexempt special fuel not later than three (3) business days after the
earlier of:
(1) the time that the nonexempt special fuel entered into
Indiana; or
(2) the time that a valid import verification number was
assigned by the department under rules and procedures adopted
by the department.
However, if the importer and the importer's reseller have previously
entered into a tax precollection agreement as described in subsection
(j), and the agreement remains in effect, the supplier with whom the
agreement has been made shall become jointly liable with the
importer for the tax and shall remit the tax to the department on
behalf of the importer. This subsection does not apply to an importer
with respect to imports in vehicles with a capacity of not more than
five thousand four hundred (5,400) gallons.
(j) The department, a licensed importer, the reseller to a licensed
importer, and a licensed supplier or permissive supplier may jointly
enter into an agreement for the licensed supplier or permissive
supplier to precollect and remit the tax imposed by this chapter with
respect to special fuel imported from a terminal outside of Indiana in
the same manner and at the same time as the tax would arise and be
paid under this chapter if the special fuel had been received by the
licensed supplier or permissive supplier at a terminal in Indiana. If
the supplier is also the importer, the agreement shall be entered into
between the supplier and the department. However, any licensed
supplier or permissive supplier may make an election with the
department to treat all out-of-state terminal removals with an Indiana
destination as shown on the terminal-issued shipping paper as if the
removals were received by the supplier in Indiana pursuant to section
28 of this chapter and subsection (a), for all purposes. In this case,
the election and notice of the election to a supplier's customers shall
operate instead of a three (3) party precollection agreement. The
department may impose requirements reasonably necessary for the
enforcement of this subsection.
(k) Each licensed importer who is liable for the tax imposed by
this chapter on nonexempt special fuel imported by a fuel transport
truck having less than five thousand four hundred (5,400) gallons
capacity, for which tax has not previously been paid to a supplier,
shall remit the special fuel tax for the preceding month's import
activities with the importer's monthly report of activities. A licensed
importer shall be allowed to retain two-thirds (2/3) of the collection
allowance provided for in section 37(a) of this chapter for the tax
timely remitted by the importer directly to the state, subject to the
same 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 tax
timely remitted by the licensed importer directly to the state, subject
to 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 shall
remit the special fuel taxes due by electronic fund transfer (as
defined in IC 4-8.1-2-7) or by delivering in person or by overnight
courier a payment by cashier's check, certified check, or money order
to the department. The transfer or payment shall be made on or
before 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 portion
of remittance; amount; failure to report or remit on time
Sec. 37. (a) Every supplier and permissive supplier who properly
remits tax under this chapter shall be allowed to retain one and
six-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 under
subsection (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 special
fuel is resold by that wholesale distributor or another wholesale
distributor to an eligible purchaser, the last wholesale
distributor 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 a
supplier, and that retail dealer or bulk end user is responsible
for shipping the product, then the supplier shall pass through
two-thirds (2/3) to the retail dealer or bulk end user. If the
supplier is responsible for shipping the product, the supplier
shall retain two-thirds (2/3) and pass through one-third (1/3) to
the eligible purchaser.
(c) If a monthly report is filed or the amount due is remitted later
than the time required by this chapter, the supplier shall pay to the
department all of the special fuel tax the dealer collected from the
sale 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 fuel
belongs to the state. A supplier shall hold the money in trust for the
state 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 to
collect the tax, and is personally liable for the tax, penalty, and
interest. 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 nonexempt
purpose; remittance of tax
Sec. 39. Any person who has consumed tax-exempt dyed or
marked special fuel, or both, for a nonexempt purpose, as permitted
under section 62 of this chapter, shall remit the tax due by filing a
monthly report and remitting the tax due on forms prescribed by the
department. 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 bulk
plant in Indiana shall prepare and provide to the driver of every
vehicle receiving special fuel at the facility a shipping document
setting out on its face the destination state as represented to the
terminal operator by the shipper or the shipper's agent, except that an
operator of a bulk plant in Indiana delivering special fuel into a
vehicle 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 the
Indiana public highways shall carry on board a shipping paper issued
by the terminal operator or the bulk plant operator of the facility
where the special fuel was obtained, which shipping paper shall set
out on its face the state of destination of the special fuel transported
in the vehicle, except that operators of vehicles with a capacity of not
more than five thousand four hundred (5,400) gallons that have
received special fuel at a bulk plant in Indiana for delivery to an end
consumer in Indiana are exempt from this provision with respect to
the special fuel. A person who violates this subsection commits a
Class A infraction (as defined in IC 34-28-5-4).
(c) Every person transporting special fuel in vehicles upon the
public highways of Indiana shall provide the original or a copy of the
terminal issued shipping document accompanying the shipment to
the operator of the retail outlet or bulk plant to which delivery of the
shipment was made. A person who knowingly violates or knowingly
aids and abets another person in violating this subsection commits a
Class D felony.
(d) Each operator of a special fuel retail outlet or bulk plant shall
receive, examine, and retain for a period of thirty (30) days at the
delivery location the terminal issued shipping document received
from the transporter for every shipment of special fuel that is
delivered to that location, with record retention of the shipping paper
of three (3) years required offsite. A person who knowingly violates
or knowingly aids and abets another person in violating this
subsection commits a Class D felony.
(e) No bulk end user, retail dealer, bulk plant operator, or
wholesale distributor shall knowingly accept delivery of special fuel
into storage facilities in Indiana if that delivery is not accompanied
by a shipping paper issued by the terminal operator or bulk plant
operator, that sets out on its face Indiana as the state of destination
of the special fuel. A person who knowingly violates or knowingly
aids and abets another person in violating this subsection commits a
Class D felony.
(f) The department shall provide for relief in a case where a
shipment of special fuel is legitimately diverted from the represented
destination state after the shipping paper has been issued by the
terminal operator or where the terminal operator failed to cause
proper information to be printed on the shipping paper. These relief
provisions shall include a provision requiring that the shipper or its
agent provide notification before the diversion or correction to the
department if an intended diversion or correction is to occur, and the
relief provision shall be consistent with the refund provisions of this
chapter.
(g) The supplier and the terminal operator shall be entitled to rely
for all purposes of this chapter on the representation by the shipper
or the shipper's agent as to the shipper's intended state of destination
or tax exempt use. The shipper, the importer, the transporter, the
shipper's agent, and any purchaser, not the supplier or terminal
operator, shall be jointly liable for any tax otherwise due to the state
as a result of a diversion of the special fuel from the represented
destination 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 a
supplier shall first obtain a supplier's license. The fee for a supplier's
license shall be five hundred dollars ($500).
(b) Any person who desires to collect the tax imposed by this
chapter as a supplier and who meets the definition of a permissive
supplier may obtain a permissive supplier's license. Application for
or possession of a permissive supplier's license shall not in itself
subject the applicant or licensee to the jurisdiction of Indiana for any
other 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 under
subsection (a) engaged in business in Indiana as a terminal operator
shall 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 exporter
shall first obtain an exporter's license. However, in order to obtain a
license to export special fuel from Indiana to another specified state,
a person shall be licensed either to collect and remit special fuel
taxes or be licensed to deal in tax free special fuel in that other
specified state of destination. The fee for an exporter's license is two
hundred dollars ($200).
(e) Each person who is not licensed as a supplier shall obtain a
transporter's license before transporting special fuel by whatever
manner from a point outside Indiana to a point inside Indiana, or
from a point inside Indiana to a point outside Indiana, regardless of
whether the person is engaged for hire in interstate commerce or for
hire in intrastate commerce. The registration fee for a transporter's
license is fifty dollars ($50).
(f) Each person who wishes to cause special fuel to be delivered
into Indiana on the person's own behalf, for the person's own
account, or for resale to an Indiana purchaser, from another state in
a fuel transport vehicle having a capacity of more than five thousand
four hundred (5,400) gallons, or in a pipeline or barge shipment into
storage facilities other than a qualified terminal, shall first make an
application for and obtain an importer's license. The fee for an
importer's license is two hundred dollars ($200). This subsection
does not apply to a person who imports special fuel that is exempt
because the special fuel has been dyed or marked, or both, in
accordance with section 31 of this chapter. This subsection does not
apply to a person who imports nonexempt special fuels meeting the
following conditions:
(1) The special fuel is subject to one (1) or more tax
precollection agreements with suppliers as provided in section
35 of this chapter.
(2) The special fuel tax precollection by the supplier is
expressly evidenced on the terminal-issued shipping paper as
specifically provided in section 62(e)(2) of this chapter.
(g) A person desiring to import special fuel to an Indiana
destination who does not enter into an agreement to prepay Indiana
special fuel tax to a supplier or permissive supplier under section 35
of 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 department
not earlier than twenty-four (24) hours before entering the state
with each import, if importing in a vehicle with a capacity of
more than five thousand four hundred (5,400) gallons.
(3) Display a proper import verification number on the shipping
document, if importing in a vehicle with a capacity of more than
five thousand four hundred (5,400) gallons.
(h) The department may require a person that wants to blend
special fuel to first obtain a license from the department. The
department may establish reasonable requirements for the proper
enforcement of this subsection, including the following:
(1) Guidelines under which a person may be required to obtain
a license.
(2) A requirement that a licensee file reports in the form and
manner required by the department.
(3) A requirement that a licensee meet the bonding
requirements 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 under
Section 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 department
may establish reasonable requirements for the proper enforcement of
this subsection, including guidelines under which a person may be
required to register and the form and manner of reports a registrant
is 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 this
chapter shall be made upon a form prepared and furnished by the
department. It shall be subscribed to by the applicant and shall
contain the information as the department may reasonably require for
the administration of this chapter, including the applicant's federal
identification number and, with respect to the applicant for an
exporter's license, a copy of the applicant's license to purchase or
handle special fuel tax free in the specified destination state or states
for which the export license is to be issued.
(b) The department shall investigate each applicant for a license
under this section. No license shall be issued if the department
determines 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 for
cause.
(4) Other reasonable cause for non-issuance exists.
(c) Applicants, including corporate officers, partners, and
individuals, for a license issued by the commissioner may be
required to submit their fingerprints to the commissioner at the time
of applying. Officers of publicly held corporations and their
subsidiaries shall be exempt from this fingerprinting provision.
Fingerprints required by this section must be submitted on forms
prescribed by the commissioner. The commissioner may forward to
the Federal Bureau of Investigation or any other agency for
processing all fingerprints submitted by license applicants. The
receiving agency shall issue its findings to the commissioner. The
license application fee shall be used to pay the costs of the
investigation. 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 licensing
and on an annual basis, list with the commissioner a description of
all vehicles, including license numbers, to be used on the highways
of Indiana in transporting special fuel from points outside Indiana to
points inside Indiana and from points inside Indiana to points outside
Indiana.
(b) The description required in subsection (a) must comply with
what is reasonably required by the commissioner, including the
carrying capacity of the vehicle. If the vehicle is a tractor-trailer type
vehicle, the trailer is the vehicle that must be described. When
additional vehicles are placed in service or when a vehicle previously
listed is retired from service during the year, the commissioner shall
be notified not more than ten (10) days after the change so that the
listing 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 a
license under this chapter, the department may require the applicant
to 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 the
commissioner; and
(2) conditioned upon the keeping of records and the making of
full and complete reports and payments as required by this
chapter.
(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 the
obligee; 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 reasonable
discretion, require a licensee to furnish current certified, audited
financial statements. If the commissioner determines that a licensee's
financial condition warrants an increase in the bond or cash deposit,
the commissioner may require the licensee to furnish an increased
bond 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; reduction
of cash deposit by judgment; additional deposit
Sec. 46. (a) The commissioner may require a licensee to file a new
bond with a satisfactory surety in the same form and amount if:
(1) liability upon the previous bond is discharged or reduced by
the judgment rendered, payment made, or otherwise disposed
of; or
(2) in the opinion of the commissioner, any surety on the
previous bond becomes unsa
IC 6-6-2.5-1 "Alternative fuel" defined
Sec. 1. As used in this chapter, "alternative fuel" means a
liquefied petroleum gas, compressed natural gas product, or a
combination of liquefied petroleum gas and a compressed natural gas
product, not including a biodiesel fuel or biodiesel blend, used in an
internal combustion engine or motor to propel any form of vehicle,
machine, or mechanical contrivance. The term includes all forms of
fuel 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 a
renewable, biodegradable, mono alkyl ester combustible liquid fuel
derived from agricultural plant oils or animal fats that meets
American Society for Testing and Materials specifications
D6751-03a Standard Specification for Biodiesel Fuel (B100) Blend
Stock for Distillate Fuels, as well as other fuels of the same
derivation capable of use in the generation of power for the
propulsion of a motor vehicle, airplane, or motorboat.
(b) As used in this chapter, "blended biodiesel" means a blend of
biodiesel with petroleum diesel fuel so that the volume percentage of
biodiesel in the blend is at least two percent (2%). A biodiesel blend
may be described as "Bxx" where "xx" represents the volume
percentage of biodiesel fuel. "B2" is the type of biodiesel blend with
the least volume percentage of biodiesel fuel, and "B99" is the type
of 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 who
engages 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 of
one (1) or more petroleum products, with or without another product,
excluding biodiesel or blended biodiesel, if the product obtained by
the blending is capable of use in the generation of power for the
propulsion of a motor vehicle, an airplane, or a motorboat. The term
does not include that blending that occurs in the process of refining
by the original refiner of crude petroleum or the blending of a de
minimis amount of products such as carburetor detergent, oxidation
inhibitor, 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 person
who receives into the person's own storage facilities at least two
hundred forty thousand (240,000) gallons annually of special fuel for
the 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 or
special fuel storage facility, other than a terminal, that is primarily
used for redistribution of gasoline and special fuel by a motor vehicle
with 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 the
administrative 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 the
department 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 state
for which a motor vehicle or barge is destined for off-loading into
storage 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 person
that qualifies for the federal diesel fuel tax exemption under Section
4082 of the Internal Revenue Code to operate motor vehicles on the
highways 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 delivered
out-of-state by or for the seller; and
(2) with respect to a purchaser, when special fuel is delivered
out-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 the
purpose of transporting or delivering the fuel to another state or
country. 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 fuel
that is burned in a boiler, furnace, or stove for heating or industrial
processing 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 into
Indiana from out-of-state by or for the seller; and
(2) with respect to a purchaser, when special fuel is delivered
into 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's
designee or appointee, with respect to a single transport truck
delivery into Indiana from another state upon request for an assigned
number by a licensed importer or transporter carrying undyed or
unmarked special fuel, or both, into Indiana for the account of a
licensed 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 the
gallons 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 that
is liquid in excess of sixty (60) degrees fahrenheit and a pressure of
fourteen 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 vehicle
designed principally for road use and that is propelled by an internal
combustion 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" means
any person who does not meet the geographic jurisdictional
connections to Indiana required of a supplier (as defined in section
23 of this chapter), but who holds an inventory position in a federally
qualified terminal located outside of Indiana and who is registered
under 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 representative
appointed by a court, the state, a political subdivision (as defined in
IC 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 the
entire width between boundary lines of each publicly maintained way
in Indiana, including streets and alleys in cities and towns, when any
part 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 for
delivering special fuel from a refinery or terminal into a motor
vehicle, 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 removal
from any refinery or terminal in Indiana, or the entry into Indiana of
any special fuel for consumption, use, sale, or warehousing, except
for transfers in bulk into or within a terminal in Indiana between
registered suppliers. The tax imposed under section 28 of this chapter
with respect to special fuel removed from terminals within Indiana
and with respect to special fuel which is the subject of a tax
precollection agreement pursuant to section 35(j) of this chapter,
shall be imposed at the same time and in the same manner as the tax
imposed by Sections 4081 to 4083 of the Internal Revenue Code. The
definitions of the terms "removal", "entry", and "transfers in bulk"
shall have the same meanings described in the Internal Revenue
Code 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 that
engages in the business of selling or distributing special fuel to the
end 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 all
combustible gases and liquids that are:
(1) suitable for the generation of power in an internal
combustion engine or motor; or
(2) used exclusively for heating, industrial, or farm purposes
other than for the operation of a motor vehicle.
Special fuel includes biodiesel and blended biodiesel (as defined in
IC 6-6-2.5-1.5). However, the term does not include gasoline (as
defined in IC 6-6-1.1-103), ethanol produced, stored, or sold for the
manufacture of or compounding or blending with gasoline,
alternative fuels, kerosene, and jet fuel (if the purchaser of the jet
fuel has provided to the seller proof of the purchaser's federal jet fuel
registration 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 that
imports or acquires immediately upon import into Indiana special
fuel by pipeline or marine vessel from within a state, territory, or
possession of the United States into a terminal or that imports special
fuel into Indiana from a foreign country, or that produces,
manufactures, or refines special fuel within Indiana, or that owns
special fuel in the pipeline and terminal distribution system in
Indiana, and is subject to the general taxing or police jurisdiction of
Indiana, and in any case is also registered under Section 4101 of the
Internal Revenue Code for transactions in taxable motor fuels in the
bulk distribution system. A terminal operator shall not be considered
a supplier merely because the terminal operator handles special fuel
consigned 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 storage
and distribution facility that is supplied by pipeline or marine vessel,
and from which special fuel may be removed at a rack and that has
been registered as a qualified terminal by the Internal Revenue
Service for receipt of taxable motor fuels free of federal motor fuel
taxes. 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 the
person who by ownership or contractual agreement is charged with
the responsibility and physical control over the operation of the
terminal. However, there shall be only one (1) person charged with
responsibility as operator at each terminal for purposes of this
chapter. 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 within
a terminal" includes the following:
(1) A marine barge movement of fuel from a refinery or
terminal to a terminal.
(2) Pipeline movements of fuel from a refinery or terminal to
terminal.
(3) Book transfers of product within a terminal between
suppliers before completion of removal across the rack.
(4) Two (2) party exchanges between licensed suppliers and
permissive 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 person
and 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 buffer
between two (2) different products in a pipeline shipment, or a mix
of two (2) different products within a refinery or terminal that results
in 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 a
vehicle designed to transport motor fuel in bulk from a terminal in
lots 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" means
a transaction in which a product is transferred from one (1) licensed
supplier or permissive supplier to another when:
(1) the transaction includes a transfer from the person who
holds the original inventory position for special fuel in the
terminal as indicated in the records of the terminal operator; and
(2) the exchange transaction is completed before removal from
the terminal by the receiving exchange partner, provided that
the terminal operator in the terminal operator's books and
records treats the receiving exchange party as the supplier that
receives the product for purposes of reporting the events to the
state 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 that
acquires special fuel from a supplier or from another wholesaler for
subsequent resale to a retail establishment or bulk end user by tank
cars, 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 and
remittance; sulfur content; penalty
Sec. 28. (a) A license tax of sixteen cents ($0.16) per gallon is
imposed on all special fuel sold or used in producing or generating
power for propelling motor vehicles except fuel used under section
30(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 and
section 35 of this chapter.
(b) The department shall consider it a rebuttable presumption that
all undyed or unmarked special fuel, or both, received in Indiana is
to be sold for use in propelling motor vehicles.
(c) Except as provided in subsection (d), the tax imposed on
special fuel by subsection (a) shall be measured by invoiced gallons
of nonexempt special fuel received by a licensed supplier in Indiana
for sale or resale in Indiana or with respect to special fuel subject to
a tax precollection agreement under section 35(d) of this chapter,
such special fuel removed by a licensed supplier from a terminal
outside of Indiana for sale for export or for export to Indiana and in
any case shall generally be determined in the same manner as the tax
imposed by Section 4081 of the Internal Revenue Code and Code of
Federal Regulations.
(d) The tax imposed by subsection (a) on special fuel imported
into Indiana, other than into a terminal, is imposed at the time the
product is entered into Indiana and shall be measured by invoiced
gallons received at a terminal or at a bulk plant.
(e) In computing the tax, all special fuel in process of transfer
from tank steamers at boat terminal transfers and held in storage
pending wholesale bulk distribution by land transportation, or in
tanks and equipment used in receiving and storing special fuel from
interstate pipelines pending wholesale bulk reshipment, shall not be
subject to tax.
(f) The department shall consider it a rebuttable presumption that
special fuel consumed in a motor vehicle plated for general highway
use is subject to the tax imposed under this chapter. A person
claiming exempt use of special fuel in such a vehicle must maintain
adequate records as required by the department to document the
vehicle's taxable and exempt use.
(g) A person that engages in blending fuel for taxable sale or use
in Indiana is primarily liable for the collection and remittance of the
tax imposed under subsection (a). The person shall remit the tax due
in conjunction with the filing of a monthly report in the form
prescribed by the department.
(h) A person that receives special fuel that has been blended for
taxable sale or use in Indiana is secondarily liable to the state for the
tax imposed under subsection (a).
(i) A person may not use special fuel on an Indiana public
highway if the special fuel contains a sulfur content that exceeds five
one-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 violation
is a Class A misdemeanor if the person has committed one (1) prior
unrelated violation of this subsection, and a Class D felony if the
person has committed more than one (1) unrelated violation of this
subsection. 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 held
for sale on the effective date of an increase in the license tax rate
imposed under section 28 of this chapter are subject to an inventory
tax based on the gallons in storage as of the close of the business day
preceding 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 for
purposes of determining the inventory tax;
(2) report the gallons listed in subdivision (1) on forms
provided by the commissioner; and
(3) pay the tax due not more than thirty (30) days after the
prescribed 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 be
pumped out of the storage tank because the special fuel is below the
mouth of the draw pipe. For this purpose, the person may deduct two
hundred (200) gallons for a storage tank with a capacity of less than
ten thousand (10,000) gallons, and four hundred (400) gallons for a
storage tank with a capacity that exceeds ten thousand (10,000)
gallons.
(c) The amount of the inventory tax is equal to the inventory tax
rate times the gallons in storage as determined under subsection (b).
The inventory tax rate is equal to the difference of the increased
license tax rate minus the previous license tax rate.
(d) The inventory tax shall be considered a listed tax for the
purposes 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 for
export from Indiana to another state or country to which the
exporter is specifically licensed to export exports by a supplier,
or exports for which the destination state special fuel tax has
been paid to the supplier and proof of export is available in the
form of a destination state bill of lading.
(2) Special fuel sold to the United States or an agency or
instrumentality thereof.
(3) Special fuel sold to a post exchange or other concessionaire
on a federal reservation within Indiana. However, the post
exchange or concessionaire shall collect, report, and pay
quarterly to the department any tax permitted by federal law on
special fuel sold.
(4) Special fuel sold to a public transportation corporation
established under IC 36-9-4 and used for the transportation of
persons for compensation within the territory of the
corporation.
(5) Special fuel sold to a public transit department of a
municipality and used for the transportation of persons for
compensation within a service area, no part of which is more
than five (5) miles outside the corporate limits of the
municipality.
(6) Special fuel sold to a common carrier of passengers,
including a business operating a taxicab (as defined in
IC 6-6-1.1-103(l)) and used by the carrier to transport
passengers 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 commissioner
to have been used to operate equipment attached to a motor
vehicle, if the special fuel was placed into the fuel supply tank
of a motor vehicle that has a common fuel reservoir for travel
on a highway and for the operation of equipment.
(8) Special fuel used for nonhighway purposes, used as heating
oil, or in trains.
(9) Special fuel sold by a supplier to an unlicensed person for
export from Indiana to another state and the special fuel has
been dye addityzed in accordance with section 31 of this
chapter.
(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 procedures
established in section 32 of this chapter.
(c) The department shall provide information to licensed suppliers
of the destination state or states to which exporters are authorized to
export.
(d) Subject to gallonage limits and other conditions established by
the department, the department shall provide for refund of the tax
imposed by this chapter to a wholesale distributor exporting undyed
special fuel out of a bulk plant in this state in a vehicle capable of
carrying not more than five thousand four hundred (5,400) gallons if
the destination of that vehicle does not exceed twenty-five (25) miles
from 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 is
exempt from the special fuel tax if:
(1) the special fuel has a nominal biodiesel content of at least
twenty percent (20%);
(2) the special fuel is used only for a personal, noncommercial
use 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 an
individual may claim the exemption under this section in a year is
equal to:
(1) two thousand (2,000); divided by
(2) the average percentage volume of biodiesel in each gallon
used by the individual.
(c) The department shall issue an exemption certificate to an
individual who produces evidence of nontaxability under subsection
(a)(1), (a)(2), and (a)(3). A certificate issued under this subsection is
valid for a period determined by the department, but not to exceed
five (5) years. The department may allow an individual to renew an
exemption certification for additional five (5) year periods. An
exemption certificate applies only to special fuel described in
subsection (a). An individual holding a certificate issued under this
subsection shall notify the department:
(1) of any address change by the individual; and
(2) when the individual ceases using special fuel that is exempt
under this section.
(d) An individual who is issued an exemption certificate under
this section must submit to the department a report, in a form
prescribed 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 immediately
preceding year; and
(2) the average percentage volume of biodiesel in each gallon
of special fuel;
to which the exemption was applied in the calendar year ending on
the immediately preceding December 31.
(e) An individual who is issued an exemption certificate under
this section is not subject to the reporting requirements under section
35 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 this
chapter shall have dye added to it at or before the time of withdrawal
at a terminal or refinery rack. At the option of the supplier, the dye
added may be either:
(1) dye required to be added pursuant to United States
Environmental Protection Agency requirements; or
(2) dye with specifications and amounts as required by the
department.
(b) The department may require that special fuel exempted under
section 30(a)(8) of this chapter shall have a marker added to the
special fuel not later than the time of withdrawal at a terminal or
refinery rack. The marker must meet the specifications required by
the 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 supplier
on special fuel used for an exempt purpose, including section
30(a)(4) through 30(a)(7) of this chapter and pretaxed exempt fuel
under section 30(a)(8) of this chapter, but which was not dyed or
marked, or both, in accordance with section 31 of this chapter, shall
be refunded by the department to the user or the user's assignee under
rules adopted by the department, in accordance with subsection (c),
upon presentation of proof of exempt use by the end user in the form
that the department prescribes.
(b) Special fuel tax that has been collected by a supplier on
special fuel that was removed from a terminal or refinery for delivery
in Indiana, and was exported by a licensed exporter shall be refunded
by the department to the licensed exporter in accordance with
subsection (c), upon presentation of proof of export in the form that
the department prescribes.
(c) Special fuel tax that has been erroneously paid by a person
shall be refunded by the department in accordance with subsection
(d).
(d) To claim a refund under subsection (a) through (c), a person
must present to the department a statement that contains a written
verification that the claim is made under penalties of perjury and lists
the total amount of special fuel purchased and used for non-highway
purposes. The claim must be filed not more than three (3) years after
the date the special fuel was purchased. The statement must show
that payment for the purchase has been made and the amount of tax
paid on the purchase has been remitted.
(e) The department may make any investigations it considers
necessary 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 chapter
on the use of special fuel in the operation of an intercity bus (as
defined 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 fuel
in 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 user
shall submit to the department a claim for a refund, in the form
prescribed by the department, that includes the following
information:
(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 outside
Indiana.
(2) Any other information reasonably requested by the
department. 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) days
of the filing required by section 32 of this chapter, the department
shall pay interest at the rate established by IC 6-8.1-9 from a date that
is ninety (90) days after the date that the department receives the
claim for refund and all necessary documentation until a date,
determined by the commissioner, that does not precede by more than
thirty (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; customer
refunds; application
Sec. 34. No supplier shall claim a deduction from taxable gallons
for gallons actually purchased by the customer, notwithstanding that
the supplier has issued a corrective credit or rebilling to a customer
adjusting the tax liability. The only remedy available to a customer
to offset liability for special fuel tax paid is to apply for a refund as
provided 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 supplier
in Indiana that is imposed by section 28 of this chapter shall be
collected and remitted to the state by the supplier who receives
taxable gallons in accordance with subsection (b).
(b) On or before the fifteenth day of each month, licensed
suppliers and licensed permissive suppliers shall make an estimated
payment of all taxes imposed on transactions that occurred during the
previous calendar month equal to:
(1) one hundred percent (100%) of the amount remitted by the
licensed supplier or licensed permissive supplier for the month
preceding the previous calendar month; or
(2) ninety-five percent (95%) of the amount actually due and
payable by the licensed supplier or licensed permissive supplier
for the previous month.
Any remaining tax imposed on transactions occurring during a
calendar month shall be due and payable on or before the twentieth
day of the following month, except as provided in subsection (i).
Underpayments of estimated taxes due and owing the department are
not subject to a penalty under section 63(a) of this chapter.
(c) A supplier who sells special fuel shall collect from the
purchaser the special fuel tax imposed under section 28 of this
chapter. At the election of an eligible purchaser, the seller shall not
require a payment of special fuel tax from the purchaser at a time that
is earlier than the date on which the tax is required to be remitted by
the supplier under subsection (b). This election shall be subject to a
condition that the eligible purchaser's remittances of all amounts of
tax due the seller shall be paid by electronic funds transfer on or
before the due date of the remittance by the supplier to the
department, and the eligible purchaser's election under this
subsection may be terminated by the seller if the eligible purchaser
does not make timely payments to the seller as required by this
subsection.
(d) As used in this section, "eligible purchaser" means a person
who has authority from the department to make the election under
subsection (c) and includes every person who is licensed and in good
standing as a special fuel dealer or special fuel user, as determined
by the department, as of July 1, 1993, who has purchased a minimum
of two hundred forty thousand (240,000) taxable gallons of special
fuel each year in the preceding two (2) years, or who otherwise meets
the financial responsibility and bonding requirements of subsection
(e).
(e) Each purchaser that desires to make an election under
subsection (c) shall present evidence of the purchaser's eligible
purchaser status to the purchaser's seller. The department shall
determine whether the purchaser is an eligible purchaser. The
department may require a purchaser that pays the tax to a supplier to
file with the department a surety bond payable to the state, upon
which the purchaser is the obligor or other financial security, in an
amount satisfactory to the department. The department may require
that the bond indemnify the department against bad debt deductions
claimed by the supplier under subsection (g).
(f) The department shall have the authority to rescind a
purchaser's eligibility and election to defer special fuel tax
remittances upon a showing of good cause, including failure to make
timely payment under subsection (c), by sending written notice to all
suppliers and eligible purchasers. The department may require
further assurance of the purchaser's financial responsibility, or may
increase the bond requirement for that purchaser, or any other action
that the department may require to ensure remittance of the special
fuel tax.
(g) In computing the amount of special fuel tax due, the supplier
and permissive supplier shall be entitled to a deduction from the tax
payable the amount of tax paid by the supplier that has become
uncollectible from a purchaser. The department shall adopt rules
establishing the evidence a supplier must provide to receive the
deduction. The deduction shall be claimed on the first return
following the date of the failure of the purchaser if the payment
remains unpaid as of the filing date of that return or the deduction
shall be disallowed. The claim shall identify the defaulting purchaser
and any tax liability that remains unpaid. If a purchaser fails to make
a timely payment of the amount of tax due, the supplier's deduction
shall be limited to the amount due from the purchaser, plus any tax
that accrues from that purchaser for a period of ten (10) days
following the date of failure to pay. No additional deduction shall be
allowed until the department has authorized the purchaser to make a
new election under subsection (e). The department may require the
deduction to be reported in the same manner as prescribed in Section
166 of the Internal Revenue Code.
(h) The supplier and each reseller of special fuel is considered to
be a collection agent for this state with respect to that special fuel
tax, which shall be set out on all invoices and billings as a separate
line item.
(i) Except as provided in subsection (e), the tax imposed by
section 28 of this chapter on special fuel imported from another state
shall be paid by the licensed importer who has imported the
nonexempt special fuel not later than three (3) business days after the
earlier of:
(1) the time that the nonexempt special fuel entered into
Indiana; or
(2) the time that a valid import verification number was
assigned by the department under rules and procedures adopted
by the department.
However, if the importer and the importer's reseller have previously
entered into a tax precollection agreement as described in subsection
(j), and the agreement remains in effect, the supplier with whom the
agreement has been made shall become jointly liable with the
importer for the tax and shall remit the tax to the department on
behalf of the importer. This subsection does not apply to an importer
with respect to imports in vehicles with a capacity of not more than
five thousand four hundred (5,400) gallons.
(j) The department, a licensed importer, the reseller to a licensed
importer, and a licensed supplier or permissive supplier may jointly
enter into an agreement for the licensed supplier or permissive
supplier to precollect and remit the tax imposed by this chapter with
respect to special fuel imported from a terminal outside of Indiana in
the same manner and at the same time as the tax would arise and be
paid under this chapter if the special fuel had been received by the
licensed supplier or permissive supplier at a terminal in Indiana. If
the supplier is also the importer, the agreement shall be entered into
between the supplier and the department. However, any licensed
supplier or permissive supplier may make an election with the
department to treat all out-of-state terminal removals with an Indiana
destination as shown on the terminal-issued shipping paper as if the
removals were received by the supplier in Indiana pursuant to section
28 of this chapter and subsection (a), for all purposes. In this case,
the election and notice of the election to a supplier's customers shall
operate instead of a three (3) party precollection agreement. The
department may impose requirements reasonably necessary for the
enforcement of this subsection.
(k) Each licensed importer who is liable for the tax imposed by
this chapter on nonexempt special fuel imported by a fuel transport
truck having less than five thousand four hundred (5,400) gallons
capacity, for which tax has not previously been paid to a supplier,
shall remit the special fuel tax for the preceding month's import
activities with the importer's monthly report of activities. A licensed
importer shall be allowed to retain two-thirds (2/3) of the collection
allowance provided for in section 37(a) of this chapter for the tax
timely remitted by the importer directly to the state, subject to the
same 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 tax
timely remitted by the licensed importer directly to the state, subject
to 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 shall
remit the special fuel taxes due by electronic fund transfer (as
defined in IC 4-8.1-2-7) or by delivering in person or by overnight
courier a payment by cashier's check, certified check, or money order
to the department. The transfer or payment shall be made on or
before 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 portion
of remittance; amount; failure to report or remit on time
Sec. 37. (a) Every supplier and permissive supplier who properly
remits tax under this chapter shall be allowed to retain one and
six-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 under
subsection (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 special
fuel is resold by that wholesale distributor or another wholesale
distributor to an eligible purchaser, the last wholesale
distributor 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 a
supplier, and that retail dealer or bulk end user is responsible
for shipping the product, then the supplier shall pass through
two-thirds (2/3) to the retail dealer or bulk end user. If the
supplier is responsible for shipping the product, the supplier
shall retain two-thirds (2/3) and pass through one-third (1/3) to
the eligible purchaser.
(c) If a monthly report is filed or the amount due is remitted later
than the time required by this chapter, the supplier shall pay to the
department all of the special fuel tax the dealer collected from the
sale 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 fuel
belongs to the state. A supplier shall hold the money in trust for the
state 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 to
collect the tax, and is personally liable for the tax, penalty, and
interest. 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 nonexempt
purpose; remittance of tax
Sec. 39. Any person who has consumed tax-exempt dyed or
marked special fuel, or both, for a nonexempt purpose, as permitted
under section 62 of this chapter, shall remit the tax due by filing a
monthly report and remitting the tax due on forms prescribed by the
department. 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 bulk
plant in Indiana shall prepare and provide to the driver of every
vehicle receiving special fuel at the facility a shipping document
setting out on its face the destination state as represented to the
terminal operator by the shipper or the shipper's agent, except that an
operator of a bulk plant in Indiana delivering special fuel into a
vehicle 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 the
Indiana public highways shall carry on board a shipping paper issued
by the terminal operator or the bulk plant operator of the facility
where the special fuel was obtained, which shipping paper shall set
out on its face the state of destination of the special fuel transported
in the vehicle, except that operators of vehicles with a capacity of not
more than five thousand four hundred (5,400) gallons that have
received special fuel at a bulk plant in Indiana for delivery to an end
consumer in Indiana are exempt from this provision with respect to
the special fuel. A person who violates this subsection commits a
Class A infraction (as defined in IC 34-28-5-4).
(c) Every person transporting special fuel in vehicles upon the
public highways of Indiana shall provide the original or a copy of the
terminal issued shipping document accompanying the shipment to
the operator of the retail outlet or bulk plant to which delivery of the
shipment was made. A person who knowingly violates or knowingly
aids and abets another person in violating this subsection commits a
Class D felony.
(d) Each operator of a special fuel retail outlet or bulk plant shall
receive, examine, and retain for a period of thirty (30) days at the
delivery location the terminal issued shipping document received
from the transporter for every shipment of special fuel that is
delivered to that location, with record retention of the shipping paper
of three (3) years required offsite. A person who knowingly violates
or knowingly aids and abets another person in violating this
subsection commits a Class D felony.
(e) No bulk end user, retail dealer, bulk plant operator, or
wholesale distributor shall knowingly accept delivery of special fuel
into storage facilities in Indiana if that delivery is not accompanied
by a shipping paper issued by the terminal operator or bulk plant
operator, that sets out on its face Indiana as the state of destination
of the special fuel. A person who knowingly violates or knowingly
aids and abets another person in violating this subsection commits a
Class D felony.
(f) The department shall provide for relief in a case where a
shipment of special fuel is legitimately diverted from the represented
destination state after the shipping paper has been issued by the
terminal operator or where the terminal operator failed to cause
proper information to be printed on the shipping paper. These relief
provisions shall include a provision requiring that the shipper or its
agent provide notification before the diversion or correction to the
department if an intended diversion or correction is to occur, and the
relief provision shall be consistent with the refund provisions of this
chapter.
(g) The supplier and the terminal operator shall be entitled to rely
for all purposes of this chapter on the representation by the shipper
or the shipper's agent as to the shipper's intended state of destination
or tax exempt use. The shipper, the importer, the transporter, the
shipper's agent, and any purchaser, not the supplier or terminal
operator, shall be jointly liable for any tax otherwise due to the state
as a result of a diversion of the special fuel from the represented
destination 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 a
supplier shall first obtain a supplier's license. The fee for a supplier's
license shall be five hundred dollars ($500).
(b) Any person who desires to collect the tax imposed by this
chapter as a supplier and who meets the definition of a permissive
supplier may obtain a permissive supplier's license. Application for
or possession of a permissive supplier's license shall not in itself
subject the applicant or licensee to the jurisdiction of Indiana for any
other 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 under
subsection (a) engaged in business in Indiana as a terminal operator
shall 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 exporter
shall first obtain an exporter's license. However, in order to obtain a
license to export special fuel from Indiana to another specified state,
a person shall be licensed either to collect and remit special fuel
taxes or be licensed to deal in tax free special fuel in that other
specified state of destination. The fee for an exporter's license is two
hundred dollars ($200).
(e) Each person who is not licensed as a supplier shall obtain a
transporter's license before transporting special fuel by whatever
manner from a point outside Indiana to a point inside Indiana, or
from a point inside Indiana to a point outside Indiana, regardless of
whether the person is engaged for hire in interstate commerce or for
hire in intrastate commerce. The registration fee for a transporter's
license is fifty dollars ($50).
(f) Each person who wishes to cause special fuel to be delivered
into Indiana on the person's own behalf, for the person's own
account, or for resale to an Indiana purchaser, from another state in
a fuel transport vehicle having a capacity of more than five thousand
four hundred (5,400) gallons, or in a pipeline or barge shipment into
storage facilities other than a qualified terminal, shall first make an
application for and obtain an importer's license. The fee for an
importer's license is two hundred dollars ($200). This subsection
does not apply to a person who imports special fuel that is exempt
because the special fuel has been dyed or marked, or both, in
accordance with section 31 of this chapter. This subsection does not
apply to a person who imports nonexempt special fuels meeting the
following conditions:
(1) The special fuel is subject to one (1) or more tax
precollection agreements with suppliers as provided in section
35 of this chapter.
(2) The special fuel tax precollection by the supplier is
expressly evidenced on the terminal-issued shipping paper as
specifically provided in section 62(e)(2) of this chapter.
(g) A person desiring to import special fuel to an Indiana
destination who does not enter into an agreement to prepay Indiana
special fuel tax to a supplier or permissive supplier under section 35
of 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 department
not earlier than twenty-four (24) hours before entering the state
with each import, if importing in a vehicle with a capacity of
more than five thousand four hundred (5,400) gallons.
(3) Display a proper import verification number on the shipping
document, if importing in a vehicle with a capacity of more than
five thousand four hundred (5,400) gallons.
(h) The department may require a person that wants to blend
special fuel to first obtain a license from the department. The
department may establish reasonable requirements for the proper
enforcement of this subsection, including the following:
(1) Guidelines under which a person may be required to obtain
a license.
(2) A requirement that a licensee file reports in the form and
manner required by the department.
(3) A requirement that a licensee meet the bonding
requirements 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 under
Section 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 department
may establish reasonable requirements for the proper enforcement of
this subsection, including guidelines under which a person may be
required to register and the form and manner of reports a registrant
is 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 this
chapter shall be made upon a form prepared and furnished by the
department. It shall be subscribed to by the applicant and shall
contain the information as the department may reasonably require for
the administration of this chapter, including the applicant's federal
identification number and, with respect to the applicant for an
exporter's license, a copy of the applicant's license to purchase or
handle special fuel tax free in the specified destination state or states
for which the export license is to be issued.
(b) The department shall investigate each applicant for a license
under this section. No license shall be issued if the department
determines 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 for
cause.
(4) Other reasonable cause for non-issuance exists.
(c) Applicants, including corporate officers, partners, and
individuals, for a license issued by the commissioner may be
required to submit their fingerprints to the commissioner at the time
of applying. Officers of publicly held corporations and their
subsidiaries shall be exempt from this fingerprinting provision.
Fingerprints required by this section must be submitted on forms
prescribed by the commissioner. The commissioner may forward to
the Federal Bureau of Investigation or any other agency for
processing all fingerprints submitted by license applicants. The
receiving agency shall issue its findings to the commissioner. The
license application fee shall be used to pay the costs of the
investigation. 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 licensing
and on an annual basis, list with the commissioner a description of
all vehicles, including license numbers, to be used on the highways
of Indiana in transporting special fuel from points outside Indiana to
points inside Indiana and from points inside Indiana to points outside
Indiana.
(b) The description required in subsection (a) must comply with
what is reasonably required by the commissioner, including the
carrying capacity of the vehicle. If the vehicle is a tractor-trailer type
vehicle, the trailer is the vehicle that must be described. When
additional vehicles are placed in service or when a vehicle previously
listed is retired from service during the year, the commissioner shall
be notified not more than ten (10) days after the change so that the
listing 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 a
license under this chapter, the department may require the applicant
to 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 the
commissioner; and
(2) conditioned upon the keeping of records and the making of
full and complete reports and payments as required by this
chapter.
(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 the
obligee; 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 reasonable
discretion, require a licensee to furnish current certified, audited
financial statements. If the commissioner determines that a licensee's
financial condition warrants an increase in the bond or cash deposit,
the commissioner may require the licensee to furnish an increased
bond 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; reduction
of cash deposit by judgment; additional deposit
Sec. 46. (a) The commissioner may require a licensee to file a new
bond with a satisfactory surety in the same form and amount if:
(1) liability upon the previous bond is discharged or reduced by
the judgment rendered, payment made, or otherwise disposed
of; or
(2) in the opinion of the commissioner, any surety on the
previous bond becomes unsa
IC 6-6-2.5-1 "Alternative fuel" defined
Sec. 1. As used in this chapter, "alternative fuel" means a
liquefied petroleum gas, compressed natural gas product, or a
combination of liquefied petroleum gas and a compressed natural gas
product, not including a biodiesel fuel or biodiesel blend, used in an
internal combustion engine or motor to propel any form of vehicle,
machine, or mechanical contrivance. The term includes all forms of
fuel 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 a
renewable, biodegradable, mono alkyl ester combustible liquid fuel
derived from agricultural plant oils or animal fats that meets
American Society for Testing and Materials specifications
D6751-03a Standard Specification for Biodiesel Fuel (B100) Blend
Stock for Distillate Fuels, as well as other fuels of the same
derivation capable of use in the generation of power for the
propulsion of a motor vehicle, airplane, or motorboat.
(b) As used in this chapter, "blended biodiesel" means a blend of
biodiesel with petroleum diesel fuel so that the volume percentage of
biodiesel in the blend is at least two percent (2%). A biodiesel blend
may be described as "Bxx" where "xx" represents the volume
percentage of biodiesel fuel. "B2" is the type of biodiesel blend with
the least volume percentage of biodiesel fuel, and "B99" is the type
of 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 who
engages 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 of
one (1) or more petroleum products, with or without another product,
excluding biodiesel or blended biodiesel, if the product obtained by
the blending is capable of use in the generation of power for the
propulsion of a motor vehicle, an airplane, or a motorboat. The term
does not include that blending that occurs in the process of refining
by the original refiner of crude petroleum or the blending of a de
minimis amount of products such as carburetor detergent, oxidation
inhibitor, 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 person
who receives into the person's own storage facilities at least two
hundred forty thousand (240,000) gallons annually of special fuel for
the 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 or
special fuel storage facility, other than a terminal, that is primarily
used for redistribution of gasoline and special fuel by a motor vehicle
with 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 the
administrative 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 the
department 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 state
for which a motor vehicle or barge is destined for off-loading into
storage 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 person
that qualifies for the federal diesel fuel tax exemption under Section
4082 of the Internal Revenue Code to operate motor vehicles on the
highways 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 delivered
out-of-state by or for the seller; and
(2) with respect to a purchaser, when special fuel is delivered
out-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 the
purpose of transporting or delivering the fuel to another state or
country. 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 fuel
that is burned in a boiler, furnace, or stove for heating or industrial
processing 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 into
Indiana from out-of-state by or for the seller; and
(2) with respect to a purchaser, when special fuel is delivered
into 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's
designee or appointee, with respect to a single transport truck
delivery into Indiana from another state upon request for an assigned
number by a licensed importer or transporter carrying undyed or
unmarked special fuel, or both, into Indiana for the account of a
licensed 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 the
gallons 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 that
is liquid in excess of sixty (60) degrees fahrenheit and a pressure of
fourteen 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 vehicle
designed principally for road use and that is propelled by an internal
combustion 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" means
any person who does not meet the geographic jurisdictional
connections to Indiana required of a supplier (as defined in section
23 of this chapter), but who holds an inventory position in a federally
qualified terminal located outside of Indiana and who is registered
under 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 representative
appointed by a court, the state, a political subdivision (as defined in
IC 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 the
entire width between boundary lines of each publicly maintained way
in Indiana, including streets and alleys in cities and towns, when any
part 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 for
delivering special fuel from a refinery or terminal into a motor
vehicle, 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 removal
from any refinery or terminal in Indiana, or the entry into Indiana of
any special fuel for consumption, use, sale, or warehousing, except
for transfers in bulk into or within a terminal in Indiana between
registered suppliers. The tax imposed under section 28 of this chapter
with respect to special fuel removed from terminals within Indiana
and with respect to special fuel which is the subject of a tax
precollection agreement pursuant to section 35(j) of this chapter,
shall be imposed at the same time and in the same manner as the tax
imposed by Sections 4081 to 4083 of the Internal Revenue Code. The
definitions of the terms "removal", "entry", and "transfers in bulk"
shall have the same meanings described in the Internal Revenue
Code 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 that
engages in the business of selling or distributing special fuel to the
end 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 all
combustible gases and liquids that are:
(1) suitable for the generation of power in an internal
combustion engine or motor; or
(2) used exclusively for heating, industrial, or farm purposes
other than for the operation of a motor vehicle.
Special fuel includes biodiesel and blended biodiesel (as defined in
IC 6-6-2.5-1.5). However, the term does not include gasoline (as
defined in IC 6-6-1.1-103), ethanol produced, stored, or sold for the
manufacture of or compounding or blending with gasoline,
alternative fuels, kerosene, and jet fuel (if the purchaser of the jet
fuel has provided to the seller proof of the purchaser's federal jet fuel
registration 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 that
imports or acquires immediately upon import into Indiana special
fuel by pipeline or marine vessel from within a state, territory, or
possession of the United States into a terminal or that imports special
fuel into Indiana from a foreign country, or that produces,
manufactures, or refines special fuel within Indiana, or that owns
special fuel in the pipeline and terminal distribution system in
Indiana, and is subject to the general taxing or police jurisdiction of
Indiana, and in any case is also registered under Section 4101 of the
Internal Revenue Code for transactions in taxable motor fuels in the
bulk distribution system. A terminal operator shall not be considered
a supplier merely because the terminal operator handles special fuel
consigned 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 storage
and distribution facility that is supplied by pipeline or marine vessel,
and from which special fuel may be removed at a rack and that has
been registered as a qualified terminal by the Internal Revenue
Service for receipt of taxable motor fuels free of federal motor fuel
taxes. 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 the
person who by ownership or contractual agreement is charged with
the responsibility and physical control over the operation of the
terminal. However, there shall be only one (1) person charged with
responsibility as operator at each terminal for purposes of this
chapter. 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 within
a terminal" includes the following:
(1) A marine barge movement of fuel from a refinery or
terminal to a terminal.
(2) Pipeline movements of fuel from a refinery or terminal to
terminal.
(3) Book transfers of product within a terminal between
suppliers before completion of removal across the rack.
(4) Two (2) party exchanges between licensed suppliers and
permissive 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 person
and 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 buffer
between two (2) different products in a pipeline shipment, or a mix
of two (2) different products within a refinery or terminal that results
in 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 a
vehicle designed to transport motor fuel in bulk from a terminal in
lots 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" means
a transaction in which a product is transferred from one (1) licensed
supplier or permissive supplier to another when:
(1) the transaction includes a transfer from the person who
holds the original inventory position for special fuel in the
terminal as indicated in the records of the terminal operator; and
(2) the exchange transaction is completed before removal from
the terminal by the receiving exchange partner, provided that
the terminal operator in the terminal operator's books and
records treats the receiving exchange party as the supplier that
receives the product for purposes of reporting the events to the
state 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 that
acquires special fuel from a supplier or from another wholesaler for
subsequent resale to a retail establishment or bulk end user by tank
cars, 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 and
remittance; sulfur content; penalty
Sec. 28. (a) A license tax of sixteen cents ($0.16) per gallon is
imposed on all special fuel sold or used in producing or generating
power for propelling motor vehicles except fuel used under section
30(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 and
section 35 of this chapter.
(b) The department shall consider it a rebuttable presumption that
all undyed or unmarked special fuel, or both, received in Indiana is
to be sold for use in propelling motor vehicles.
(c) Except as provided in subsection (d), the tax imposed on
special fuel by subsection (a) shall be measured by invoiced gallons
of nonexempt special fuel received by a licensed supplier in Indiana
for sale or resale in Indiana or with respect to special fuel subject to
a tax precollection agreement under section 35(d) of this chapter,
such special fuel removed by a licensed supplier from a terminal
outside of Indiana for sale for export or for export to Indiana and in
any case shall generally be determined in the same manner as the tax
imposed by Section 4081 of the Internal Revenue Code and Code of
Federal Regulations.
(d) The tax imposed by subsection (a) on special fuel imported
into Indiana, other than into a terminal, is imposed at the time the
product is entered into Indiana and shall be measured by invoiced
gallons received at a terminal or at a bulk plant.
(e) In computing the tax, all special fuel in process of transfer
from tank steamers at boat terminal transfers and held in storage
pending wholesale bulk distribution by land transportation, or in
tanks and equipment used in receiving and storing special fuel from
interstate pipelines pending wholesale bulk reshipment, shall not be
subject to tax.
(f) The department shall consider it a rebuttable presumption that
special fuel consumed in a motor vehicle plated for general highway
use is subject to the tax imposed under this chapter. A person
claiming exempt use of special fuel in such a vehicle must maintain
adequate records as required by the department to document the
vehicle's taxable and exempt use.
(g) A person that engages in blending fuel for taxable sale or use
in Indiana is primarily liable for the collection and remittance of the
tax imposed under subsection (a). The person shall remit the tax due
in conjunction with the filing of a monthly report in the form
prescribed by the department.
(h) A person that receives special fuel that has been blended for
taxable sale or use in Indiana is secondarily liable to the state for the
tax imposed under subsection (a).
(i) A person may not use special fuel on an Indiana public
highway if the special fuel contains a sulfur content that exceeds five
one-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 violation
is a Class A misdemeanor if the person has committed one (1) prior
unrelated violation of this subsection, and a Class D felony if the
person has committed more than one (1) unrelated violation of this
subsection. 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 held
for sale on the effective date of an increase in the license tax rate
imposed under section 28 of this chapter are subject to an inventory
tax based on the gallons in storage as of the close of the business day
preceding 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 for
purposes of determining the inventory tax;
(2) report the gallons listed in subdivision (1) on forms
provided by the commissioner; and
(3) pay the tax due not more than thirty (30) days after the
prescribed 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 be
pumped out of the storage tank because the special fuel is below the
mouth of the draw pipe. For this purpose, the person may deduct two
hundred (200) gallons for a storage tank with a capacity of less than
ten thousand (10,000) gallons, and four hundred (400) gallons for a
storage tank with a capacity that exceeds ten thousand (10,000)
gallons.
(c) The amount of the inventory tax is equal to the inventory tax
rate times the gallons in storage as determined under subsection (b).
The inventory tax rate is equal to the difference of the increased
license tax rate minus the previous license tax rate.
(d) The inventory tax shall be considered a listed tax for the
purposes 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 for
export from Indiana to another state or country to which the
exporter is specifically licensed to export exports by a supplier,
or exports for which the destination state special fuel tax has
been paid to the supplier and proof of export is available in the
form of a destination state bill of lading.
(2) Special fuel sold to the United States or an agency or
instrumentality thereof.
(3) Special fuel sold to a post exchange or other concessionaire
on a federal reservation within Indiana. However, the post
exchange or concessionaire shall collect, report, and pay
quarterly to the department any tax permitted by federal law on
special fuel sold.
(4) Special fuel sold to a public transportation corporation
established under IC 36-9-4 and used for the transportation of
persons for compensation within the territory of the
corporation.
(5) Special fuel sold to a public transit department of a
municipality and used for the transportation of persons for
compensation within a service area, no part of which is more
than five (5) miles outside the corporate limits of the
municipality.
(6) Special fuel sold to a common carrier of passengers,
including a business operating a taxicab (as defined in
IC 6-6-1.1-103(l)) and used by the carrier to transport
passengers 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 commissioner
to have been used to operate equipment attached to a motor
vehicle, if the special fuel was placed into the fuel supply tank
of a motor vehicle that has a common fuel reservoir for travel
on a highway and for the operation of equipment.
(8) Special fuel used for nonhighway purposes, used as heating
oil, or in trains.
(9) Special fuel sold by a supplier to an unlicensed person for
export from Indiana to another state and the special fuel has
been dye addityzed in accordance with section 31 of this
chapter.
(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 procedures
established in section 32 of this chapter.
(c) The department shall provide information to licensed suppliers
of the destination state or states to which exporters are authorized to
export.
(d) Subject to gallonage limits and other conditions established by
the department, the department shall provide for refund of the tax
imposed by this chapter to a wholesale distributor exporting undyed
special fuel out of a bulk plant in this state in a vehicle capable of
carrying not more than five thousand four hundred (5,400) gallons if
the destination of that vehicle does not exceed twenty-five (25) miles
from 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 is
exempt from the special fuel tax if:
(1) the special fuel has a nominal biodiesel content of at least
twenty percent (20%);
(2) the special fuel is used only for a personal, noncommercial
use 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 an
individual may claim the exemption under this section in a year is
equal to:
(1) two thousand (2,000); divided by
(2) the average percentage volume of biodiesel in each gallon
used by the individual.
(c) The department shall issue an exemption certificate to an
individual who produces evidence of nontaxability under subsection
(a)(1), (a)(2), and (a)(3). A certificate issued under this subsection is
valid for a period determined by the department, but not to exceed
five (5) years. The department may allow an individual to renew an
exemption certification for additional five (5) year periods. An
exemption certificate applies only to special fuel described in
subsection (a). An individual holding a certificate issued under this
subsection shall notify the department:
(1) of any address change by the individual; and
(2) when the individual ceases using special fuel that is exempt
under this section.
(d) An individual who is issued an exemption certificate under
this section must submit to the department a report, in a form
prescribed 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 immediately
preceding year; and
(2) the average percentage volume of biodiesel in each gallon
of special fuel;
to which the exemption was applied in the calendar year ending on
the immediately preceding December 31.
(e) An individual who is issued an exemption certificate under
this section is not subject to the reporting requirements under section
35 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 this
chapter shall have dye added to it at or before the time of withdrawal
at a terminal or refinery rack. At the option of the supplier, the dye
added may be either:
(1) dye required to be added pursuant to United States
Environmental Protection Agency requirements; or
(2) dye with specifications and amounts as required by the
department.
(b) The department may require that special fuel exempted under
section 30(a)(8) of this chapter shall have a marker added to the
special fuel not later than the time of withdrawal at a terminal or
refinery rack. The marker must meet the specifications required by
the 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 supplier
on special fuel used for an exempt purpose, including section
30(a)(4) through 30(a)(7) of this chapter and pretaxed exempt fuel
under section 30(a)(8) of this chapter, but which was not dyed or
marked, or both, in accordance with section 31 of this chapter, shall
be refunded by the department to the user or the user's assignee under
rules adopted by the department, in accordance with subsection (c),
upon presentation of proof of exempt use by the end user in the form
that the department prescribes.
(b) Special fuel tax that has been collected by a supplier on
special fuel that was removed from a terminal or refinery for delivery
in Indiana, and was exported by a licensed exporter shall be refunded
by the department to the licensed exporter in accordance with
subsection (c), upon presentation of proof of export in the form that
the department prescribes.
(c) Special fuel tax that has been erroneously paid by a person
shall be refunded by the department in accordance with subsection
(d).
(d) To claim a refund under subsection (a) through (c), a person
must present to the department a statement that contains a written
verification that the claim is made under penalties of perjury and lists
the total amount of special fuel purchased and used for non-highway
purposes. The claim must be filed not more than three (3) years after
the date the special fuel was purchased. The statement must show
that payment for the purchase has been made and the amount of tax
paid on the purchase has been remitted.
(e) The department may make any investigations it considers
necessary 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 chapter
on the use of special fuel in the operation of an intercity bus (as
defined 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 fuel
in 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 user
shall submit to the department a claim for a refund, in the form
prescribed by the department, that includes the following
information:
(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 outside
Indiana.
(2) Any other information reasonably requested by the
department. 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) days
of the filing required by section 32 of this chapter, the department
shall pay interest at the rate established by IC 6-8.1-9 from a date that
is ninety (90) days after the date that the department receives the
claim for refund and all necessary documentation until a date,
determined by the commissioner, that does not precede by more than
thirty (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; customer
refunds; application
Sec. 34. No supplier shall claim a deduction from taxable gallons
for gallons actually purchased by the customer, notwithstanding that
the supplier has issued a corrective credit or rebilling to a customer
adjusting the tax liability. The only remedy available to a customer
to offset liability for special fuel tax paid is to apply for a refund as
provided 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 supplier
in Indiana that is imposed by section 28 of this chapter shall be
collected and remitted to the state by the supplier who receives
taxable gallons in accordance with subsection (b).
(b) On or before the fifteenth day of each month, licensed
suppliers and licensed permissive suppliers shall make an estimated
payment of all taxes imposed on transactions that occurred during the
previous calendar month equal to:
(1) one hundred percent (100%) of the amount remitted by the
licensed supplier or licensed permissive supplier for the month
preceding the previous calendar month; or
(2) ninety-five percent (95%) of the amount actually due and
payable by the licensed supplier or licensed permissive supplier
for the previous month.
Any remaining tax imposed on transactions occurring during a
calendar month shall be due and payable on or before the twentieth
day of the following month, except as provided in subsection (i).
Underpayments of estimated taxes due and owing the department are
not subject to a penalty under section 63(a) of this chapter.
(c) A supplier who sells special fuel shall collect from the
purchaser the special fuel tax imposed under section 28 of this
chapter. At the election of an eligible purchaser, the seller shall not
require a payment of special fuel tax from the purchaser at a time that
is earlier than the date on which the tax is required to be remitted by
the supplier under subsection (b). This election shall be subject to a
condition that the eligible purchaser's remittances of all amounts of
tax due the seller shall be paid by electronic funds transfer on or
before the due date of the remittance by the supplier to the
department, and the eligible purchaser's election under this
subsection may be terminated by the seller if the eligible purchaser
does not make timely payments to the seller as required by this
subsection.
(d) As used in this section, "eligible purchaser" means a person
who has authority from the department to make the election under
subsection (c) and includes every person who is licensed and in good
standing as a special fuel dealer or special fuel user, as determined
by the department, as of July 1, 1993, who has purchased a minimum
of two hundred forty thousand (240,000) taxable gallons of special
fuel each year in the preceding two (2) years, or who otherwise meets
the financial responsibility and bonding requirements of subsection
(e).
(e) Each purchaser that desires to make an election under
subsection (c) shall present evidence of the purchaser's eligible
purchaser status to the purchaser's seller. The department shall
determine whether the purchaser is an eligible purchaser. The
department may require a purchaser that pays the tax to a supplier to
file with the department a surety bond payable to the state, upon
which the purchaser is the obligor or other financial security, in an
amount satisfactory to the department. The department may require
that the bond indemnify the department against bad debt deductions
claimed by the supplier under subsection (g).
(f) The department shall have the authority to rescind a
purchaser's eligibility and election to defer special fuel tax
remittances upon a showing of good cause, including failure to make
timely payment under subsection (c), by sending written notice to all
suppliers and eligible purchasers. The department may require
further assurance of the purchaser's financial responsibility, or may
increase the bond requirement for that purchaser, or any other action
that the department may require to ensure remittance of the special
fuel tax.
(g) In computing the amount of special fuel tax due, the supplier
and permissive supplier shall be entitled to a deduction from the tax
payable the amount of tax paid by the supplier that has become
uncollectible from a purchaser. The department shall adopt rules
establishing the evidence a supplier must provide to receive the
deduction. The deduction shall be claimed on the first return
following the date of the failure of the purchaser if the payment
remains unpaid as of the filing date of that return or the deduction
shall be disallowed. The claim shall identify the defaulting purchaser
and any tax liability that remains unpaid. If a purchaser fails to make
a timely payment of the amount of tax due, the supplier's deduction
shall be limited to the amount due from the purchaser, plus any tax
that accrues from that purchaser for a period of ten (10) days
following the date of failure to pay. No additional deduction shall be
allowed until the department has authorized the purchaser to make a
new election under subsection (e). The department may require the
deduction to be reported in the same manner as prescribed in Section
166 of the Internal Revenue Code.
(h) The supplier and each reseller of special fuel is considered to
be a collection agent for this state with respect to that special fuel
tax, which shall be set out on all invoices and billings as a separate
line item.
(i) Except as provided in subsection (e), the tax imposed by
section 28 of this chapter on special fuel imported from another state
shall be paid by the licensed importer who has imported the
nonexempt special fuel not later than three (3) business days after the
earlier of:
(1) the time that the nonexempt special fuel entered into
Indiana; or
(2) the time that a valid import verification number was
assigned by the department under rules and procedures adopted
by the department.
However, if the importer and the importer's reseller have previously
entered into a tax precollection agreement as described in subsection
(j), and the agreement remains in effect, the supplier with whom the
agreement has been made shall become jointly liable with the
importer for the tax and shall remit the tax to the department on
behalf of the importer. This subsection does not apply to an importer
with respect to imports in vehicles with a capacity of not more than
five thousand four hundred (5,400) gallons.
(j) The department, a licensed importer, the reseller to a licensed
importer, and a licensed supplier or permissive supplier may jointly
enter into an agreement for the licensed supplier or permissive
supplier to precollect and remit the tax imposed by this chapter with
respect to special fuel imported from a terminal outside of Indiana in
the same manner and at the same time as the tax would arise and be
paid under this chapter if the special fuel had been received by the
licensed supplier or permissive supplier at a terminal in Indiana. If
the supplier is also the importer, the agreement shall be entered into
between the supplier and the department. However, any licensed
supplier or permissive supplier may make an election with the
department to treat all out-of-state terminal removals with an Indiana
destination as shown on the terminal-issued shipping paper as if the
removals were received by the supplier in Indiana pursuant to section
28 of this chapter and subsection (a), for all purposes. In this case,
the election and notice of the election to a supplier's customers shall
operate instead of a three (3) party precollection agreement. The
department may impose requirements reasonably necessary for the
enforcement of this subsection.
(k) Each licensed importer who is liable for the tax imposed by
this chapter on nonexempt special fuel imported by a fuel transport
truck having less than five thousand four hundred (5,400) gallons
capacity, for which tax has not previously been paid to a supplier,
shall remit the special fuel tax for the preceding month's import
activities with the importer's monthly report of activities. A licensed
importer shall be allowed to retain two-thirds (2/3) of the collection
allowance provided for in section 37(a) of this chapter for the tax
timely remitted by the importer directly to the state, subject to the
same 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 tax
timely remitted by the licensed importer directly to the state, subject
to 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 shall
remit the special fuel taxes due by electronic fund transfer (as
defined in IC 4-8.1-2-7) or by delivering in person or by overnight
courier a payment by cashier's check, certified check, or money order
to the department. The transfer or payment shall be made on or
before 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 portion
of remittance; amount; failure to report or remit on time
Sec. 37. (a) Every supplier and permissive supplier who properly
remits tax under this chapter shall be allowed to retain one and
six-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 under
subsection (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 special
fuel is resold by that wholesale distributor or another wholesale
distributor to an eligible purchaser, the last wholesale
distributor 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 a
supplier, and that retail dealer or bulk end user is responsible
for shipping the product, then the supplier shall pass through
two-thirds (2/3) to the retail dealer or bulk end user. If the
supplier is responsible for shipping the product, the supplier
shall retain two-thirds (2/3) and pass through one-third (1/3) to
the eligible purchaser.
(c) If a monthly report is filed or the amount due is remitted later
than the time required by this chapter, the supplier shall pay to the
department all of the special fuel tax the dealer collected from the
sale 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 fuel
belongs to the state. A supplier shall hold the money in trust for the
state 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 to
collect the tax, and is personally liable for the tax, penalty, and
interest. 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 nonexempt
purpose; remittance of tax
Sec. 39. Any person who has consumed tax-exempt dyed or
marked special fuel, or both, for a nonexempt purpose, as permitted
under section 62 of this chapter, shall remit the tax due by filing a
monthly report and remitting the tax due on forms prescribed by the
department. 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 bulk
plant in Indiana shall prepare and provide to the driver of every
vehicle receiving special fuel at the facility a shipping document
setting out on its face the destination state as represented to the
terminal operator by the shipper or the shipper's agent, except that an
operator of a bulk plant in Indiana delivering special fuel into a
vehicle 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 the
Indiana public highways shall carry on board a shipping paper issued
by the terminal operator or the bulk plant operator of the facility
where the special fuel was obtained, which shipping paper shall set
out on its face the state of destination of the special fuel transported
in the vehicle, except that operators of vehicles with a capacity of not
more than five thousand four hundred (5,400) gallons that have
received special fuel at a bulk plant in Indiana for delivery to an end
consumer in Indiana are exempt from this provision with respect to
the special fuel. A person who violates this subsection commits a
Class A infraction (as defined in IC 34-28-5-4).
(c) Every person transporting special fuel in vehicles upon the
public highways of Indiana shall provide the original or a copy of the
terminal issued shipping document accompanying the shipment to
the operator of the retail outlet or bulk plant to which delivery of the
shipment was made. A person who knowingly violates or knowingly
aids and abets another person in violating this subsection commits a
Class D felony.
(d) Each operator of a special fuel retail outlet or bulk plant shall
receive, examine, and retain for a period of thirty (30) days at the
delivery location the terminal issued shipping document received
from the transporter for every shipment of special fuel that is
delivered to that location, with record retention of the shipping paper
of three (3) years required offsite. A person who knowingly violates
or knowingly aids and abets another person in violating this
subsection commits a Class D felony.
(e) No bulk end user, retail dealer, bulk plant operator, or
wholesale distributor shall knowingly accept delivery of special fuel
into storage facilities in Indiana if that delivery is not accompanied
by a shipping paper issued by the terminal operator or bulk plant
operator, that sets out on its face Indiana as the state of destination
of the special fuel. A person who knowingly violates or knowingly
aids and abets another person in violating this subsection commits a
Class D felony.
(f) The department shall provide for relief in a case where a
shipment of special fuel is legitimately diverted from the represented
destination state after the shipping paper has been issued by the
terminal operator or where the terminal operator failed to cause
proper information to be printed on the shipping paper. These relief
provisions shall include a provision requiring that the shipper or its
agent provide notification before the diversion or correction to the
department if an intended diversion or correction is to occur, and the
relief provision shall be consistent with the refund provisions of this
chapter.
(g) The supplier and the terminal operator shall be entitled to rely
for all purposes of this chapter on the representation by the shipper
or the shipper's agent as to the shipper's intended state of destination
or tax exempt use. The shipper, the importer, the transporter, the
shipper's agent, and any purchaser, not the supplier or terminal
operator, shall be jointly liable for any tax otherwise due to the state
as a result of a diversion of the special fuel from the represented
destination 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 a
supplier shall first obtain a supplier's license. The fee for a supplier's
license shall be five hundred dollars ($500).
(b) Any person who desires to collect the tax imposed by this
chapter as a supplier and who meets the definition of a permissive
supplier may obtain a permissive supplier's license. Application for
or possession of a permissive supplier's license shall not in itself
subject the applicant or licensee to the jurisdiction of Indiana for any
other 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 under
subsection (a) engaged in business in Indiana as a terminal operator
shall 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 exporter
shall first obtain an exporter's license. However, in order to obtain a
license to export special fuel from Indiana to another specified state,
a person shall be licensed either to collect and remit special fuel
taxes or be licensed to deal in tax free special fuel in that other
specified state of destination. The fee for an exporter's license is two
hundred dollars ($200).
(e) Each person who is not licensed as a supplier shall obtain a
transporter's license before transporting special fuel by whatever
manner from a point outside Indiana to a point inside Indiana, or
from a point inside Indiana to a point outside Indiana, regardless of
whether the person is engaged for hire in interstate commerce or for
hire in intrastate commerce. The registration fee for a transporter's
license is fifty dollars ($50).
(f) Each person who wishes to cause special fuel to be delivered
into Indiana on the person's own behalf, for the person's own
account, or for resale to an Indiana purchaser, from another state in
a fuel transport vehicle having a capacity of more than five thousand
four hundred (5,400) gallons, or in a pipeline or barge shipment into
storage facilities other than a qualified terminal, shall first make an
application for and obtain an importer's license. The fee for an
importer's license is two hundred dollars ($200). This subsection
does not apply to a person who imports special fuel that is exempt
because the special fuel has been dyed or marked, or both, in
accordance with section 31 of this chapter. This subsection does not
apply to a person who imports nonexempt special fuels meeting the
following conditions:
(1) The special fuel is subject to one (1) or more tax
precollection agreements with suppliers as provided in section
35 of this chapter.
(2) The special fuel tax precollection by the supplier is
expressly evidenced on the terminal-issued shipping paper as
specifically provided in section 62(e)(2) of this chapter.
(g) A person desiring to import special fuel to an Indiana
destination who does not enter into an agreement to prepay Indiana
special fuel tax to a supplier or permissive supplier under section 35
of 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 department
not earlier than twenty-four (24) hours before entering the state
with each import, if importing in a vehicle with a capacity of
more than five thousand four hundred (5,400) gallons.
(3) Display a proper import verification number on the shipping
document, if importing in a vehicle with a capacity of more than
five thousand four hundred (5,400) gallons.
(h) The department may require a person that wants to blend
special fuel to first obtain a license from the department. The
department may establish reasonable requirements for the proper
enforcement of this subsection, including the following:
(1) Guidelines under which a person may be required to obtain
a license.
(2) A requirement that a licensee file reports in the form and
manner required by the department.
(3) A requirement that a licensee meet the bonding
requirements 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 under
Section 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 department
may establish reasonable requirements for the proper enforcement of
this subsection, including guidelines under which a person may be
required to register and the form and manner of reports a registrant
is 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 this
chapter shall be made upon a form prepared and furnished by the
department. It shall be subscribed to by the applicant and shall
contain the information as the department may reasonably require for
the administration of this chapter, including the applicant's federal
identification number and, with respect to the applicant for an
exporter's license, a copy of the applicant's license to purchase or
handle special fuel tax free in the specified destination state or states
for which the export license is to be issued.
(b) The department shall investigate each applicant for a license
under this section. No license shall be issued if the department
determines 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 for
cause.
(4) Other reasonable cause for non-issuance exists.
(c) Applicants, including corporate officers, partners, and
individuals, for a license issued by the commissioner may be
required to submit their fingerprints to the commissioner at the time
of applying. Officers of publicly held corporations and their
subsidiaries shall be exempt from this fingerprinting provision.
Fingerprints required by this section must be submitted on forms
prescribed by the commissioner. The commissioner may forward to
the Federal Bureau of Investigation or any other agency for
processing all fingerprints submitted by license applicants. The
receiving agency shall issue its findings to the commissioner. The
license application fee shall be used to pay the costs of the
investigation. 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 licensing
and on an annual basis, list with the commissioner a description of
all vehicles, including license numbers, to be used on the highways
of Indiana in transporting special fuel from points outside Indiana to
points inside Indiana and from points inside Indiana to points outside
Indiana.
(b) The description required in subsection (a) must comply with
what is reasonably required by the commissioner, including the
carrying capacity of the vehicle. If the vehicle is a tractor-trailer type
vehicle, the trailer is the vehicle that must be described. When
additional vehicles are placed in service or when a vehicle previously
listed is retired from service during the year, the commissioner shall
be notified not more than ten (10) days after the change so that the
listing 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 a
license under this chapter, the department may require the applicant
to 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 the
commissioner; and
(2) conditioned upon the keeping of records and the making of
full and complete reports and payments as required by this
chapter.
(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 the
obligee; 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 reasonable
discretion, require a licensee to furnish current certified, audited
financial statements. If the commissioner determines that a licensee's
financial condition warrants an increase in the bond or cash deposit,
the commissioner may require the licensee to furnish an increased
bond 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; reduction
of cash deposit by judgment; additional deposit
Sec. 46. (a) The commissioner may require a licensee to file a new
bond with a satisfactory surety in the same form and amount if:
(1) liability upon the previous bond is discharged or reduced by
the judgment rendered, payment made, or otherwise disposed
of; or
(2) in the opinion of the commissioner, any surety on the
previous bond becomes unsa
