2023 Indiana Code › Title 6. Taxation › Article 6. Motor Fuel and Vehicle Excise Taxes › Chapter 2.5. Special Fuel Tax › 6-6-2.5-28. License Tax; Presumptions; Computation; Liability for Collection and Remittance; Sulfur Content; Penalty

Sec. 28. (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.
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; P.L.277-2013, SEC.10; P.L.158-2013, SEC.95; P.L.190-2014, SEC.24; P.L.218-2017, SEC.39; P.L.185-2018, SEC.4; P.L.159-2021, SEC.32; P.L.201-2023, SEC.108.