(a)A license tax 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, at the applicable rate specified in subsection (b). 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 license tax described in subsection (a) is imposed at the
following applicable rate per special fuel gallon:
(1)Before July 1, 2017, sixteen cents ($0.16).
(2)For July 1, 2017, through June 30, 2018, the lesser of:
(A)the rate resulting from using the factors determined under
IC 6-6-1.6-2; or
(B)twenty-six cents ($0.26).
(3)For July 1, 2018, through June 30, 2019, the product of:
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(a) A license tax 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, at the applicable rate specified in subsection (b). 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 license tax described in subsection (a) is imposed at the
following applicable rate per special fuel gallon:
(1) Before July 1, 2017, sixteen cents ($0.16).
(2) For July 1, 2017, through June 30, 2018, the lesser of:
(A) the rate resulting from using the factors determined under
IC 6-6-1.6-2; or
(B) twenty-six cents ($0.26).
(3) For July 1, 2018, through June 30, 2019, the product of:
(A) the sum of:
(i) the rate in effect on June 30; and
(ii) twenty-one cents ($0.21); multiplied by
(B) the factor determined under IC 6-6-1.6-3.
(4) Beginning July 1, 2019, and each July 1 through July 1, 2027,
the department shall determine an applicable rate equal to the
product of:
(A) the rate in effect on June 30; multiplied by
(B) the factor determined under IC 6-6-1.6-3.
The rate shall be rounded to the nearest cent ($0.01). However, after
June 30, 2018, and before July 1, 2019, the new applicable rate may not
exceed the rate in effect on June 30 plus twenty-three cents ($0.23).
After June 30, 2019, the new applicable rate may not exceed the rate
in effect on June 30 plus two cents ($0.02). However, the new rate may
not be less than the rate in effect on June 30. If the calculation of a new
rate would produce a rate that is less than the rate in effect on June 30,
the new rate shall be the rate in effect on June 30. The department shall
publish the rate that will take effect on July 1 on the department's
website not later than June 1.
(c) 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.
(d) Except as provided in subsection (e), the tax imposed on special
fuel by subsection (a) shall be measured by invoiced gallons (or diesel
or gasoline gallon equivalents in the case of a special fuel described in
section 22.5(2) or 22.5(3) of this chapter) 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(j) 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.
(e) 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.
(f) 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.
(g) 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.
(h) 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.
(i) 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).
(j) 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 Level 6 felony if the person
has committed more than one (1) unrelated violation of this subsection.