Bill Text: IN SB0479 | 2013 | Regular Session | Enrolled
Bill Title: Use tax on gasoline.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Passed) 2013-05-13 - Public Law 227 [SB0479 Detail]
Download: Indiana-2013-SB0479-Enrolled.html
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
Chapter 3.5. Collection of Use Tax on Gasoline
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.
Sec. 2. As used in this chapter, "E85" has the meaning set forth in IC 6-6-1.1-103.
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.
Sec. 4. As used in this chapter, "gasoline" has the meaning set forth in IC 6-6-1.1-103(g).
Sec. 5. As used in this chapter, "Indiana gasoline tax" means the tax imposed under IC 6-6-1.1.
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.
Sec. 7. As used in this chapter, "price per unit before the
addition of state and federal taxes" means an amount that equals
the remainder of:
(1) the total price per unit; minus
(2) the gasoline use tax, Indiana gasoline tax, and federal
gasoline taxes that are part of the total price per unit.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
(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.
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.
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 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.
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.
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.
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.
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.
SECTION 2. IC 6-2.5-4-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2014]: Sec. 1. (a) A person is a retail merchant making a retail transaction when
(b) A person is engaged in selling at retail when, in the ordinary course of
(1) acquires tangible personal property for the purpose of resale; and
(2) transfers that property to another person for consideration.
(c) For purposes of determining what constitutes selling at retail, it does not matter whether:
(1) the property is transferred in the same form as when it was acquired;
(2) the property is transferred alone or in conjunction with other property or services; or
(3) the property is transferred conditionally or otherwise.
(d) Notwithstanding subsection (b), a person is not selling at retail if
(e) The gross retail income received from selling at retail is only taxable under this article to the extent that the income represents:
(1) the price of the property transferred, without the rendition of any service; and
(2) except as provided in subsection (g), any bona fide charges which are made for preparation, fabrication, alteration, modification, finishing, completion, delivery, or other service performed in respect to the property transferred before its transfer and which are separately stated on the transferor's records.
For purposes of this subsection, a transfer is considered to have occurred after delivery of the property to the purchaser.
(f) Notwithstanding subsection (e):
(1) in the case of retail sales of
price of the gasoline or special fuel minus the part of that price
attributable to tax imposed under IC 6-6-1.1, IC 6-6-2.5 or Section
4041(a) or Section 4081 of the Internal Revenue Code; and
(2) in the case of retail sales of cigarettes (as defined in
IC 6-7-1-2), the gross retail income received from selling at retail
is the total sales price of the cigarettes including the tax imposed
under IC 6-7-1.
(g) Gross retail income does not include income that represents
charges for serving or delivering food and food ingredients furnished,
prepared, or served for consumption at a location, or on equipment,
provided by the retail merchant. However, the exclusion under this
subsection only applies if the charges for the serving or delivery are
stated separately from the price of the food and food ingredients when
the purchaser pays the charges.
SECTION 3. IC 6-2.5-6-10, AS AMENDED BY P.L.146-2008,
SECTION 313, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2014]: Sec. 10. (a) In order to compensate retail
merchants and those required to remit gasoline use tax for collecting
and timely remitting the state gross retail tax, and the state use tax, and
the gasoline use tax, every retail merchant or person required to
remit the gasoline use tax, except a retail merchant referred to as
provided in subsection (c), is entitled to deduct and retain from the
amount of those taxes otherwise required to be remitted under
IC 6-2.5-7-5, IC 6-2.5-3.5, or under this chapter, if timely remitted, a
retail merchant's collection allowance.
(b) The allowance equals a percentage of the retail merchant's state
gross retail and use tax or the person's gasoline use tax liability
accrued during a calendar year, specified as follows:
(1) Seventy-three hundredths percent (0.73%), if the retail
merchant's state gross retail and use tax or gasoline use tax
liability accrued during the state fiscal year ending on June 30 of
the immediately preceding calendar year did not exceed sixty
thousand dollars ($60,000).
(2) Fifty-three hundredths percent (0.53%), if the retail merchant's
state gross retail and use tax or gasoline use tax liability accrued
during the state fiscal year ending on June 30 of the immediately
preceding calendar year:
(A) was greater than sixty thousand dollars ($60,000); and
(B) did not exceed six hundred thousand dollars ($600,000).
(3) Twenty-six hundredths percent (0.26%), if the retail merchant's state gross retail and use tax liability or the person's gasoline use tax accrued during the state fiscal year ending on June 30 of the immediately preceding calendar year was greater than six hundred thousand dollars ($600,000).
(c) A retail merchant described in IC 6-2.5-4-5 or IC 6-2.5-4-6 is not entitled to the allowance provided by this section. A retail merchant is not entitled to the allowance provided by this section with respect to gasoline use taxes imposed by IC 6-2.5-3.5.
SECTION 4. IC 6-2.5-7-1, AS AMENDED BY P.L.1-2007, SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2014]: Sec. 1. (a) The definitions in this section apply throughout this chapter.
(b) "Kerosene" has the same meaning as the definition contained in IC 16-44-2-2.
(1) the total price per unit; minus
(2) the state gross retail, Indiana
SECTION 5. IC 6-2.5-7-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2014]: Sec. 2. Except as provided in section 2.5 of this chapter, a retail merchant who uses a metered pump to dispense
advertise the gasoline or special fuel at a price that is different than the
price that he the retail merchant is required to display on the metered
pump.
SECTION 6. IC 6-2.5-7-3, AS AMENDED BY P.L.146-2008,
SECTION 314, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2014]: Sec. 3. (a) With respect to the sale of
gasoline which is dispensed from a metered pump, a retail merchant
shall collect, for each unit of gasoline sold, state gross retail tax in an
amount equal to the product, rounded to the nearest one-tenth of one
cent ($0.001), of:
(1) the price per unit before the addition of state and federal taxes;
multiplied by
(2) seven percent (7%).
The retail merchant shall collect the state gross retail tax prescribed in
this section even if the transaction is exempt from taxation under
IC 6-2.5-5.
(b) With respect to the sale of special fuel or kerosene which is
dispensed from a metered pump, unless the purchaser provides an
exemption certificate in accordance with IC 6-2.5-8-8, a retail merchant
shall collect, for each unit of special fuel or kerosene sold, state gross
retail tax in an amount equal to the product, rounded to the nearest
one-tenth of one cent ($0.001), of:
(1) the price per unit before the addition of state and federal taxes;
multiplied by
(2) seven percent (7%).
Unless the exemption certificate is provided, the retail merchant shall
collect the state gross retail tax prescribed in this section even if the
transaction is exempt from taxation under IC 6-2.5-5.
SECTION 7. IC 6-2.5-7-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2014]: Sec. 4. (a) If a sale of
gasoline or special fuel is exempt from the state gross retail tax, the
person who 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 him the person the state gross retail tax
collected with respect to the exempt transaction.
(b) Notwithstanding the other provisions of this section, the
department may prescribe simplified procedures to make adjustments
for exempt transactions.
SECTION 8. IC 6-2.5-7-5, AS AMENDED BY P.L.98-2012,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2014]: Sec. 5. (a) Each retail merchant who dispenses
gasoline or special fuel from a metered pump shall, in the manner
prescribed in IC 6-2.5-6, report to the department the following
information:
(1) The total number of gallons of gasoline sold from a metered
pump during the period covered by the report.
(2) The total amount of money received from the sale of gasoline
described in subdivision (1) during the period covered by the
report.
(3) That portion of the amount described in subdivision (2) which
represents state and federal taxes imposed under this article,
IC 6-6-1.1, or Section 4081 of the Internal Revenue Code.
(4) (1) The total number of gallons of special fuel sold from a
metered pump during the period covered by the report.
(5) (2) The total amount of money received from the sale of
special fuel during the period covered by the report.
(6) (3) That portion of the amount described in subdivision (5) (2)
that represents state and federal taxes imposed under this article,
IC 6-6-2.5, or Section 4041 or Section 4081 of the Internal
Revenue Code.
(7) The total number of gallons of E85 sold from a metered pump
during the period covered by the report.
(b) Concurrently with filing the report, the retail merchant shall
remit the state gross retail tax in an amount which equals six and
fifty-four hundredths percent (6.54%) of the gross receipts, including
state gross retail taxes but excluding Indiana and federal gasoline and
special fuel taxes, received by the retail merchant from the sale of the
gasoline and special fuel that is covered by the report and on which the
retail merchant was required to collect state gross retail tax. The retail
merchant shall remit that amount regardless of the amount of state
gross retail tax which the merchant has actually collected under this
chapter. However, the retail merchant is entitled to deduct and retain
the amounts prescribed in IC 6-2.5-6-10, and IC 6-2.5-6-11.
SECTION 9. IC 6-2.5-7-7 IS REPEALED [EFFECTIVE JULY 1,
2014]. Sec. 7. (a) A distributor desiring to receive gasoline within
Indiana without prepaying gross retail tax must hold an uncancelled
permit issued by the department to collect prepayments of gross retail
tax from retail merchants.
(b) To obtain a permit, a distributor 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 if:
(1) the application is filed by a distributor whose permit has
previously been cancelled for cause;
(2) the application is not filed in good faith, as determined by the
department; or
(3) the application is filed by some person as a subterfuge for the
real person in interest whose permit has previously been cancelled
for cause.
(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 in whose name it is issued. If there is a change
in name or ownership, the distributor must apply for a new permit.
(f) The department may revoke a distributor's permit for good cause.
(g) Before being denied a permit under subsection (c) or before
having a permit revoked under subsection (f), a distributor is entitled
to a hearing after five (5) days written notice. At the hearing the
distributor may appear in person or by counsel and present testimony.
(h) The department shall keep a record of all qualified distributors.
SECTION 10. IC 6-2.5-7-8 IS REPEALED [EFFECTIVE JULY 1,
2014]. Sec. 8. (a) The department may require a distributor to file,
concurrently with the filing of an application for a permit, a bond:
(1) in an amount of not less than two thousand dollars ($2,000)
nor more than a three (3) month prepayment tax liability for 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 reports and
payment of all prepayment of gross retail 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 (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 audited
annual financial statements to determine if any change is required in
the amount of the distributor's bond.
SECTION 11. IC 6-2.5-7-9 IS REPEALED [EFFECTIVE JULY 1,
2014]. Sec. 9. (a) Except as provided in section 13 of this chapter, at
the time of purchase or shipment of gasoline from a refiner or terminal
operator, a distributor who is not a qualified distributor shall prepay to
the refiner or terminal operator the state gross retail tax in an amount
determined under subsection (d).
(b) At the time of purchase or shipment of gasoline from a qualified
distributor, a retail merchant shall prepay to the qualified distributor
the state gross retail tax in an amount determined under subsection (d).
(c) If gasoline is delivered to a retail outlet for resale and the gross
retail tax in the amount determined under subsection (d) has not been
prepaid on the gasoline, the refiner, terminal operator, or qualified
distributor making the delivery shall prepay to the department the gross
retail tax in an amount determined under subsection (d). A bulk plant
is not considered to be a retail outlet.
(d) The amount of tax that must be prepaid under this section
equals:
(1) the prepayment rate per gallon of gasoline; multiplied by
(2) the number of invoiced gallons purchased or shipped.
(e) A purchaser or receiver of gasoline that makes a prepayment
under this chapter is not subject to any liability to the state for the
amount of the prepayment.
SECTION 12. IC 6-2.5-7-10 IS REPEALED [EFFECTIVE JULY
1, 2014]. Sec. 10. (a) Each refiner or terminal operator and each
qualified distributor that has received a prepayment of the state gross
retail tax under this chapter shall remit the tax received 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 prepayments
received after the fifteenth day and before the end of the
preceding month.
(2) On or before the twenty-fifth day of each month for
prepayments received after the end of the preceding month and
before the sixteenth day of the month in which the prepayments
are made.
(b) Before the end of each month, each refiner or terminal operator
and each qualified distributor shall file a report covering the prepaid
taxes received 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.
(2) The amount of tax prepaid by each purchaser or receiver.
(3) Any other information reasonably required by the department.
SECTION 13. IC 6-2.5-7-11 IS REPEALED [EFFECTIVE JULY
1, 2014]. Sec. 11. Each distributor that prepays the state gross retail tax
under this chapter shall file a monthly report with the department. The
report shall be filed no later than the last day of the month following
the month that the report covers. The report must include the following:
(1) The number of gallons of gasoline purchased or received by
the distributor from each refiner, terminal operator, or another
distributor.
(2) The amount of state gross retail tax prepaid to each refiner,
terminal operator, or distributor.
(3) The number of gallons of gasoline sold to each distributor,
retail merchant, exempt purchaser, or other person and the
amount of state gross retail tax collected from each distributor,
retail merchant, or other person identifying the location of each
distributor, retail merchant, exempt purchaser, or other person, as
required by the department.
(4) Any other information reasonably required by the department.
SECTION 14. IC 6-2.5-7-12 IS REPEALED [EFFECTIVE JULY
1, 2014]. Sec. 12. (a) Except as provided in subsection (b), a distributor
that prepays the state gross retail tax under this chapter shall separately
state the amount of tax prepaid 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 prepaid tax.
(b) A distributor that:
(1) prepays the state gross retail tax under this chapter;
(2) is a retail merchant; and
(3) sells gasoline that is exempt from the gross retail tax, as
evidenced by a purchaser's exemption certificate issued by the
department;
may not require the exempt purchaser to pay the gross retail taxes
prepaid in the gasoline sold to the exempt purchaser. A distributor that
has prepaid gross retail taxes and has not been reimbursed because the
gasoline is sold to an exempt purchaser may file a claim for a refund,
if the amount of unreimbursed prepaid gross retail taxes exceeds five
hundred dollars ($500). A claim for a refund must be on the form
approved by the department and 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.
SECTION 15. IC 6-2.5-7-13 IS REPEALED [EFFECTIVE JULY
1, 2014]. Sec. 13. (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 prepayment required by section
9 of this chapter directly to the department. The distributor shall pay
the tax and submit the report according to the schedule set forth in
section 10 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 prepayment requirements of section 9 of this chapter.
SECTION 16. IC 6-2.5-7-14 IS REPEALED [EFFECTIVE JULY
1, 2014]. Sec. 14. (a) Before June 10 and December 10 of each year,
the department shall determine and provide to:
(1) each refiner and terminal operator and each qualified
distributor known to the department to be required to collect
prepayments of the state gross retail tax under this chapter; and
(2) any other person that makes a request;
a notice of the prepayment rate to be used during the following six (6)
month period. The department, after approval by the office of
management and budget, may determine a new prepayment rate if the
department finds that the statewide average retail price per gallon of
gasoline, excluding the Indiana and federal gasoline taxes and the
Indiana gross retail tax, has changed by at least twenty-five percent
(25%) since the most recent determination.
(b) In determining the prepayment rate under this section, the
department shall use the most recent retail price of gasoline available
to the department.
(c) The prepayment rate per gallon of gasoline determined by the
department under this section is the amount per gallon of gasoline
determined under STEP FOUR of the following formula:
STEP ONE: Determine the statewide average retail price per
gallon of gasoline, excluding the Indiana and federal gasoline
taxes and the Indiana gross retail tax.
STEP TWO: Determine the product of the following:
(A) The STEP ONE amount.
(B) The Indiana gross retail tax rate.
(C) Eighty percent (80%).
STEP THREE: Determine the lesser of:
(A) the STEP TWO result; or
(B) the product of:
(i) the prepayment rate in effect on the day immediately
preceding the day on which the prepayment rate is
redetermined under this section; multiplied by
SECTION 17. IC 6-2.5-7-15 IS REPEALED [EFFECTIVE JULY 1, 2014].
SECTION 18. IC 6-6-2.5-26.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 26.5. As used in this chapter, "truck stop" means a place of business designed for providing service to trucks and truck drivers, including selling fuel to truck drivers and providing support facilities for truck drivers.
SECTION 19. IC 6-6-2.5-41 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: 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.
(j) A person who owns a truck stop in Indiana must obtain from
the department a truck stop owner's license in the manner
prescribed by the department. A truck stop owner's license must
be renewed every two (2) years.
SECTION 20. IC 6-8.1-7-1, AS AMENDED BY P.L.182-2009(ss),
SECTION 254, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 1. (a) This subsection does not
apply to the disclosure of information concerning a conviction on a tax
evasion charge. Unless in accordance with a judicial order or as
otherwise provided in this chapter, the department, its employees,
former employees, counsel, agents, or any other person may not divulge
the amount of tax paid by any taxpayer, terms of a settlement
agreement executed between a taxpayer and the department,
investigation records, investigation reports, or any other information
disclosed by the reports filed under the provisions of the law relating
to any of the listed taxes, including required information derived from
a federal return, except to:
(1) members and employees of the department;
(2) the governor;
(3) the attorney general or any other legal representative of the
state in any action in respect to the amount of tax due under the
provisions of the law relating to any of the listed taxes; or
(4) any authorized officers of the United States;
when it is agreed that the information is to be confidential and to be
used solely for official purposes.
(b) The information described in subsection (a) may be revealed
upon the receipt of a certified request of any designated officer of the
state tax department of any other state, district, territory, or possession
of the United States when:
(1) the state, district, territory, or possession permits the exchange
of like information with the taxing officials of the state; and
(2) it is agreed that the information is to be confidential and to be
used solely for tax collection purposes.
(c) The information described in subsection (a) relating to a person
on public welfare or a person who has made application for public
welfare may be revealed to the director of the division of family
resources, and to any director of a county office of the division of
family resources located in Indiana, upon receipt of a written request
from either director for the information. The information shall be
treated as confidential by the directors. In addition, the information
described in subsection (a) relating to a person who has been
designated as an absent parent by the state Title IV-D agency shall be
made available to the state Title IV-D agency upon request. The
information shall be subject to the information safeguarding provisions
of the state and federal Title IV-D programs.
(d) The name, address, Social Security number, and place of
employment relating to any individual who is delinquent in paying
educational loans owed to a postsecondary educational institution may
be revealed to that institution if it provides proof to the department that
the individual is delinquent in paying for educational loans. This
information shall be provided free of charge to approved postsecondary
educational institutions (as defined by IC 21-7-13-6(a)). The
department shall establish fees that all other institutions must pay to the
department to obtain information under this subsection. However, these
fees may not exceed the department's administrative costs in providing
the information to the institution.
(e) The information described in subsection (a) relating to reports
submitted under IC 6-6-1.1-502 concerning the number of gallons of
gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
gallons of special fuel sold by a supplier and the number of gallons of
special fuel exported by a licensed exporter or imported by a licensed
transporter may be released by the commissioner upon receipt of a
written request for the information.
(f) The information described in subsection (a) may be revealed
upon the receipt of a written request from the administrative head of a
state agency of Indiana when:
(1) the state agency shows an official need for the information;
and
(2) the administrative head of the state agency agrees that any
information released will be kept confidential and will be used
solely for official purposes.
(g) The information described in subsection (a) may be revealed
upon the receipt of a written request from the chief law enforcement
officer of a state or local law enforcement agency in Indiana when it is
agreed that the information is to be confidential and to be used solely
for official purposes.
(h) The name and address of retail merchants, including township,
as specified in IC 6-2.5-8-1(j) may be released solely for tax collection
purposes to township assessors and county assessors.
(i) The department shall notify the appropriate innkeepers' tax
board, bureau, or commission that a taxpayer is delinquent in remitting
innkeepers' taxes under IC 6-9.
(j) All information relating to the delinquency or evasion of the
motor vehicle excise tax may be disclosed to the bureau of motor
vehicles in Indiana and may be disclosed to another state, if the
information is disclosed for the purpose of the enforcement and
collection of the taxes imposed by IC 6-6-5.
(k) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable to the bureau of motor
vehicles in Indiana may be disclosed to the bureau and may be
disclosed to another state, if the information is disclosed for the
purpose of the enforcement and collection of the taxes imposed by
IC 6-6-5.5.
(l) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable under the International
Registration Plan may be disclosed to another state, if the information
is disclosed for the purpose of the enforcement and collection of the
taxes imposed by IC 6-6-5.5.
(m) All information relating to the delinquency or evasion of the excise taxes imposed on recreational vehicles and truck campers that are payable to the bureau of motor vehicles in Indiana may be disclosed to the bureau and may be disclosed to another state if the information is disclosed for the purpose of the enforcement and collection of the taxes imposed by IC 6-6-5.1.
(n) This section does not apply to:
(1) the beer excise tax, including brand and packaged type (IC 7.1-4-2);
(2) the liquor excise tax (IC 7.1-4-3);
(3) the wine excise tax (IC 7.1-4-4);
(4) the hard cider excise tax (IC 7.1-4-4.5);
(5) the malt excise tax (IC 7.1-4-5);
(6) the motor vehicle excise tax (IC 6-6-5);
(7) the commercial vehicle excise tax (IC 6-6-5.5); and
(8) the fees under IC 13-23.
(o) The name and business address of retail merchants within each county that sell tobacco products may be released to the division of mental health and addiction and the alcohol and tobacco commission solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
(p) The names and business addresses of persons issued licenses by the department under IC 6-6 and IC 6-7 may be released for the purpose of reporting the status of the license.
SECTION 21. [EFFECTIVE JANUARY 1, 2014] (a) Before June 30, 2014, and for purposes of IC 6-2.5-3.5, as added by this act, the department of state revenue shall publish the gasoline use tax rate prescribed by IC 6-2.5-3.5, as added by this act, that will apply to the sales of gasoline occurring in July 2014.
(b) Each retail merchant covered by IC 6-2.5-7 shall take an inventory of the gasoline in storage on the commencement of business on July 1, 2014. A retail merchant shall remit to the department of state revenue the product of:
(1) the number of gallons in storage on July 1, 2014; multiplied by
(2) the gasoline use tax rate in effect on July 1, 2014.
A retail merchant shall remit the amount due on or before August 1, 2014, on forms and in a manner prescribed by the department.
(c) This SECTION expires July 1, 2015.
SEA 479 _ CC 1
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