2015 Indiana Code TITLE 6. TAXATION ARTICLE 2.5. STATE GROSS RETAIL AND USE TAXES CHAPTER 3.5. COLLECTION OF USE TAX ON GASOLINE
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IC 6-2.5-3.5
Chapter 3.5. Collection of Use Tax on Gasoline
IC 6-2.5-3.5-1
"Distributor"
Sec. 1. As used in this chapter, "distributor" means a person that
is the first purchaser of gasoline from a refiner, terminal operator, or
supplier, regardless of the location of the purchase.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-2
Repealed
(As added by P.L.227-2013, SEC.1. Repealed by P.L.2-2014,
SEC.27.)
IC 6-2.5-3.5-3
"Federal gasoline tax"
Sec. 3. As used in this chapter, "federal gasoline tax" means the
excise tax imposed on gasoline under Section 4081 of the Internal
Revenue Code.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-4
"Gasoline"
Sec. 4. As used in this chapter, "gasoline" has the meaning set
forth in IC 6-6-1.1-103(g).
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-5
"Indiana gasoline tax"
Sec. 5. As used in this chapter, "Indiana gasoline tax" means the
tax imposed under IC 6-6-1.1.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-6
"Metered pump"
Sec. 6. As used in this chapter, "metered pump" means a stationary
pump that is capable of metering the amount of gasoline or special
fuel dispensed from it and that is capable of simultaneously
calculating and displaying the price of the gasoline or special fuel
dispensed.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-7
Repealed
(As added by P.L.227-2013, SEC.1. Repealed by P.L.2-2014,
SEC.28.)
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IC 6-2.5-3.5-8
"Purchase or shipment"
Sec. 8. As used in this chapter, "purchase or shipment" means a
sale or delivery of gasoline, but does not include:
(1) an exchange transaction between refiners, terminal
operators, or a refiner and terminal operator; or
(2) a delivery by pipeline, ship, or barge to a refiner or terminal
operator.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-9
"Qualified distributor"
Sec. 9. As used in this chapter, "qualified distributor" means a
distributor that:
(1) is a licensed distributor under IC 6-6-1.1; and
(2) holds an uncanceled permit issued under section 17 of this
chapter.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-10
"Refiner"
Sec. 10. As used in this chapter, "refiner" means a person who
manufactures or produces gasoline by any process involving
substantially more than the blending of gasoline.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-11
"Terminal operator"
Sec. 11. As used in this chapter, "terminal operator" means a
person that:
(1) stores gasoline in tanks and equipment used in receiving and
storing gasoline from interstate or intrastate pipelines pending
wholesale bulk reshipment; or
(2) stores gasoline at a boat terminal transfer that is a dock or
tank, or equipment contiguous to a dock or tank, including
equipment used in the unloading of gasoline from a ship or
barge and used in transferring the gasoline to a tank pending
wholesale bulk reshipment.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-12
"Total price per unit"
Sec. 12. As used in this chapter, "total price per unit" means the
price per unit at which gasoline is actually sold, including the
gasoline use tax, Indiana gasoline tax, and federal gasoline tax that
are part of the sales price.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-13
Indiana Code 2015
"Unit"
Sec. 13. As used in this chapter, "unit" means the unit of measure,
such as a gallon or a liter, by which gasoline is sold.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-14
"Use tax rate"
Sec. 14. As used in this chapter, "use tax rate" means a rate per
gallon of gasoline determined by the department under section 15 of
this chapter and used to calculate the use tax due on the retail sale of
gasoline under section 16 of this chapter, notwithstanding the
collection procedures set forth in this chapter.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-15
Monthly notice of the gasoline use tax rate
Sec. 15. (a) Before the twenty-second day of each month, the
department shall determine and provide a notice of the gasoline use
tax rate to be used during the following month and the source of the
data used to determine the gasoline use tax rate and the statewide
average retail price per gallon of gasoline. The notice shall be
published on the department's Internet web site in a departmental
notice.
(b) In determining the gasoline use tax rate under this section, the
department shall use:
(1) the statewide average retail price per gallon of gasoline
(based on the retail price per gallon of gasoline from the
sixteenth day of the previous month to the fifteenth day of the
current month), excluding the Indiana gasoline tax, federal
gasoline tax, the Indiana gasoline use tax, and Indiana gross
retail tax (if any); multiplied by
(2) seven percent (7%).
To determine the statewide average retail price, the department shall
use a data service that updates the most recent retail price of gasoline.
The gasoline use tax rate per gallon of gasoline determined by the
department under this section shall be rounded to the nearest
one-tenth of one cent ($0.001).
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-16
Remittance of gasoline use tax to the department
Sec. 16. A qualified distributor, a refiner, or a terminal operator
that sells gasoline for delivery to a retail merchant located in Indiana
shall remit the gasoline use tax to the department for each gallon of
gasoline sold. The person shall remit that amount regardless of the
amount of gasoline use tax that the person has actually collected
under this chapter. However, the person is entitled to deduct and
retain the amounts prescribed in IC 6-2.5-6-10 and IC 6-2.5-6-11.
As added by P.L.227-2013, SEC.1.
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IC 6-2.5-3.5-17
Permit to receive gasoline without paying the gasoline use tax
Sec. 17. (a) A distributor, refiner, or terminal operator desiring to
receive gasoline within Indiana without paying the gasoline use tax
must hold an uncanceled permit issued by the department to collect
payments of gasoline use tax from purchasers and recipients of
gasoline.
(b) To obtain a permit, a distributor, refiner, or terminal operator
must file with the department a sworn application containing
information that the department reasonably requires.
(c) The department may refuse to issue a permit to a distributor,
refiner, or terminal operator if:
(1) the application is filed by a distributor, refiner, or terminal
operator whose permit has previously been canceled for cause;
(2) the application is not filed in good faith, as determined by
the department;
(3) the application is filed by a person as a subterfuge for the
real person in interest whose permit has previously been
canceled for cause; or
(4) the distributor, refiner, or terminal operator has outstanding
tax liability with the department for which a tax warrant has
been issued.
(d) A permit may not be issued unless the application is
accompanied by an audited and current financial statement and a
license fee of one hundred dollars ($100).
(e) A permit issued under this section is not assignable and is valid
only for the distributor, refiner, or terminal operator in whose name
it is issued. If there is a change in name or ownership, the distributor,
refiner, or terminal operator must apply for a new permit.
(f) The department may revoke a permit for good cause.
(g) Before being denied a permit under subsection (c) or before
having a permit revoked under subsection (f), a distributor, refiner,
or terminal operator is entitled to a hearing after five (5) business
days written notice. At the hearing, the distributor, refiner, or
terminal operator may appear in person or by counsel and present
testimony.
(h) The department shall keep a record of all qualified distributors,
refiners, and terminal operators.
(i) The department may publish a list of qualified distributors on
the department's Internet web site. The list must be limited to the
following information:
(1) The name of each qualified distributor.
(2) The complete address of each qualified distributor.
(3) The telephone number of each qualified distributor.
(j) The information contained in a list published under subsection
(i) is not confidential under IC 6-8.1-7-1.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-18
Indiana Code 2015
Bond associated with a permit
Sec. 18. (a) The department may require a distributor, refiner, or
terminal operator to file, concurrently with the filing of an application
for a permit, a bond:
(1) in an amount of at least two thousand dollars ($2,000) and
not more than an amount equal to a three (3) month gasoline use
tax liability for the distributor, as estimated by the department;
(2) in cash or with a surety company approved by the
department;
(3) upon which the distributor is the principal obligor and the
state is the obligee; and
(4) conditioned upon the prompt filing of true electronic reports
and payment of all gasoline use taxes collected by the
distributor, together with any penalties and interest, and upon
faithful compliance with this chapter.
The department shall determine the amount of the distributor's bond,
if any.
(b) If after a hearing (conducted after at least five (5) days written
notice) the department determines that the amount of a distributor's
bond is insufficient, the distributor shall upon written demand of the
department file a new bond.
(c) The department may require a distributor to file a new bond
with a satisfactory surety in the same form and amount if:
(1) liability upon the old bond is discharged or reduced by
judgment rendered, payment made, or otherwise; or
(2) in the opinion of the department, any surety on the old bond
becomes unsatisfactory.
(d) If a new bond obtained under subsection (b) or (c) is
unsatisfactory, the department shall cancel the permit of the
distributor. If the new bond is satisfactorily furnished, the department
shall release in writing the surety on the old bond from any liability
accruing after the effective date of the new bond.
(e) Sixty (60) days after making a written request for release to the
department, the surety of a bond furnished by a distributor is released
from any liability to the state accruing on the bond. The release does
not affect any liability accruing before expiration of the sixty (60)
day period. The department shall promptly notify the distributor
furnishing the bond that the surety has requested release. Unless the
distributor obtains a new bond that meets the requirements of this
section and files the new bond with the department within the sixty
(60) day period, the department shall cancel the distributor's permit.
(f) The department may require a distributor to furnish certified
public accountant reviewed or audited annual financial statements to
determine if any change is required in the amount of the distributor's
bond.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-19
Collection of gasoline use tax
Indiana Code 2015
Sec. 19. (a) Except as provided in section 22 of this chapter, at the
time of purchase or shipment of gasoline from a refiner or terminal
operator to a distributor that is not a qualified distributor, the refiner
or terminal operator shall collect and the distributor shall pay to the
refiner or terminal operator the gasoline use tax in an amount
determined under subsection (d).
(b) At the time of purchase or shipment of gasoline from a
qualified distributor to a retail merchant, the qualified distributor
shall collect and the retail merchant shall pay to the qualified
distributor the gasoline use tax in an amount determined under
subsection (d).
(c) If gasoline is delivered to a retail merchant for resale and the
gasoline use tax in the amount determined under subsection (d) has
not been paid on the gasoline, the refiner, terminal operator, or
qualified distributor making the delivery shall pay to the department
the gasoline use tax in an amount determined under subsection (d).
For purposes of this chapter, a bulk plant is considered to be a retail
merchant, except when the bulk plant is also a qualified distributor.
(d) The amount of tax that must be paid under this section equals:
(1) the gasoline use tax rate per gallon of gasoline, as
determined by the department under section 15 of this chapter;
multiplied by
(2) the number of invoiced gallons purchased or shipped.
(e) A purchaser or receiver of gasoline that purchases the gasoline
at retail from a metered pump and makes a payment under this
chapter is not subject to any liability to the state for the amount of the
payment.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-20
Remittance of gasoline use tax; reporting
Sec. 20. (a) Each refiner or terminal operator and each qualified
distributor that is required to remit gasoline use tax under this chapter
shall remit the tax due to the department semimonthly, through the
department's online tax filing system, according to the following
schedule:
(1) On or before the tenth day of each month for gasoline sold
after the fifteenth day and before the end of the preceding
month.
(2) On or before the twenty-fifth day of each month for gasoline
sold after the end of the preceding month and before the
sixteenth day of the month in which the gasoline was sold.
(b) Before the end of each month, each refiner or terminal operator
and each qualified distributor shall file an electronic report covering
the taxes owed and the gallons of gasoline sold or shipped during the
preceding month. The report must include the following:
(1) The number of gallons of gasoline sold or shipped during the
preceding month, identifying each purchaser or receiver as
required by the department.
Indiana Code 2015
(2) The amount of tax paid by each purchaser or recipient.
(3) Any other information reasonably required by the
department, including statistics to meet federal requirements.
(c) The gasoline use tax collected under this chapter shall be
deposited in the same manner as state gross retail and use taxes are
required to be deposited under IC 6-2.5-10-1.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-21
Invoicing; sales to exempt purchasers
Sec. 21. (a) Except as provided in subsection (b), a distributor that
pays the gasoline use tax under this chapter shall separately state the
amount of tax paid on the invoice the distributor issues to its
purchaser or recipient. The purchaser or recipient shall pay to the
distributor an amount equal to the gasoline use tax paid.
(b) A distributor that:
(1) pays the gasoline use tax under this chapter;
(2) is a retail merchant; and
(3) sells gasoline that is exempt from the gasoline use tax, as
evidenced by a purchaser's exemption certificate issued by the
department;
may not require the exempt purchaser to pay the gasoline use taxes
paid on the gasoline sold to the exempt purchaser. A distributor that
has paid gasoline use taxes and has not been reimbursed because the
gasoline is sold to an exempt purchaser may file a claim for a refund.
A claim for a refund must be on the form approved by the department
and must include all supporting documentation reasonably required
by the department. If a distributor files a completed refund claim
form that includes all supporting documentation, the department shall
authorize the auditor of state to issue a warrant for the refund.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-22
Purchases or shipments of gasoline to or from locations outside
Indiana
Sec. 22. (a) If a purchase or shipment of gasoline is made to a
distributor (other than a qualified distributor) outside Indiana for
shipment into and subsequent sale or use by the distributor within
Indiana, the distributor shall make the payment required by section
19 of this chapter directly to the department. The distributor shall pay
the tax and submit the electronic report according to the schedule set
forth in section 20 of this chapter.
(b) If a purchase or shipment is made within Indiana for shipment
and subsequent sale outside Indiana, the purchase or shipment is
exempt from the gasoline use tax payment requirements of section 19
of this chapter. In such a case, if the gasoline use tax has already been
paid on the purchase or shipment, the distributor (including a
qualified distributor) may claim a credit for that gasoline use tax
against the amount required to be remitted if the distributor provides
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evidence that the shipment and subsequent sale were outside Indiana.
(c) A distributor importing gasoline into Indiana must obtain a
permit from the department under section 17 of this chapter.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-23
Consequences for failure to pay and failure to file
Sec. 23. (a) A refiner, terminal operator, or distributor (including
a qualified distributor) that fails to remit the tax or file the returns or
reports required by this chapter is subject to the penalties set forth in
IC 6-8.1-10.
(b) A distributor that fails to file the reports required by this
chapter is subject to the penalties set forth in IC 6-8.1-10.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-24
Display of price
Sec. 24. A retail merchant shall display on the metered pump the
total price per unit of the gasoline. A retail merchant may not
advertise the gasoline at a price that is different than the price that the
retail merchant is required to display on the metered pump.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-25
Exempt transactions; refunds; procedures
Sec. 25. If a sale of gasoline is exempt from the gasoline use tax,
the person that pays the tax to the retail merchant may file a claim for
refund with the department. The person must file the claim on the
form, in the manner, and with the supporting documentation,
prescribed by the department. If a person properly files a claim for
refund, the department shall refund to the person the gasoline use tax
collected with respect to the exempt transaction.
As added by P.L.227-2013, SEC.1.
IC 6-2.5-3.5-26
Relation to the state gross retail tax; exemptions
Sec. 26. (a) The gasoline use tax collected under this chapter is
considered equivalent to the state gross retail tax that would be
collected by a retail merchant in a retail sale and replaces the
obligation of the retail merchant to collect the state gross retail tax on
the sale of gasoline.
(b) The exemptions set forth in IC 6-2.5-5 apply to the gasoline
use tax imposed by this chapter.
As added by P.L.227-2013, SEC.1.
Indiana Code 2015
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