2023 Indiana Code › Title 6. Taxation › Article 6. Motor Fuel and Vehicle Excise Taxes › Chapter 5. Motor Vehicle Excise Tax › 6-6-5-7.2. Application of Section; Proration of Tax; Credits; Refund for Destroyed Vehicle Not Replaced

Sec. 7.2. (a) This section applies to a vehicle that has been acquired, or brought into the state, or for any other reason becomes subject to registration after the regular annual registration date in the year on or before which the owner of the vehicle is required, under the vehicle registration laws of Indiana, to register vehicles.
(b) For taxes due and payable before January 1, 2017, the amount of tax to be paid by the owner for the remainder of the year shall be reduced by eight and thirty-three hundredths percent (8.33%) for each full calendar month that has elapsed since the regular annual registration date in the year fixed by the motor vehicle registration laws for annual registration by the owner. The tax shall be paid by the owner at the time of the registration of the vehicle.
(c) For taxes due and payable after December 31, 2016, the tax shall be paid by the owner at the time of the registration of the vehicle and is determined as follows:
(1) For a vehicle with an initial registration period under IC 9-18.1-11-3, the amount determined under STEP THREE of the following formula:
STEP ONE: Determine the number of months remaining until the vehicle's next registration date under IC 9-18.1-11-3. A partial month shall be rounded up to one (1) month.
STEP TWO: Multiply the STEP ONE result by one-twelfth (1/12).
STEP THREE: Multiply the annual excise tax for the vehicle by the STEP TWO product.
(2) For a vehicle with a renewal registration period described in IC 9-18.1-11-3(b), the vehicle excise tax for the current registration period.
(d) Except as provided in subsection (f), no reduction in the applicable annual excise tax will be allowed to an Indiana resident applicant upon registration of any vehicle that was owned by the applicant on or prior to the registrant's annual registration period. A vehicle owned by an Indiana resident applicant that was located in and registered for use in another state during the same calendar year shall be entitled to the same reduction when registered in Indiana.
(e) The owner of a vehicle who sells or otherwise disposes of the vehicle in a year in which the owner has paid the tax imposed by this chapter shall receive a credit equal to the remainder of:
(1) the tax paid for the vehicle; reduced by
(2) one-twelfth (1/12) for each full or partial calendar month that has elapsed in the registrant's annual registration year before the date of the sale, destruction, or other disposal of the vehicle.
If the credit is not fully used within ninety (90) days of the sale, destruction, or other disposal of the vehicle and the amount of the credit remaining is at least four dollars ($4), the bureau shall issue a refund to the owner in the amount of the unused credit, less a fee of three dollars ($3) to the bureau to cover costs of processing the refund, which may be deducted from the refund. The bureau shall deposit the fee for processing the refund in the commission fund established by IC 9-14-14-1. To claim the credit and refund provided by this subsection, the owner of the vehicle must present to the bureau proof of sale, destruction, or disposal of the vehicle. Any vehicle excise tax refund issued under this subsection shall be paid out of the special account created for settlement of the excise tax collections under IC 6-6-5-10.
(f) If the name of the owner of a vehicle is legally changed and the change has caused a change in the owner's annual registration date, the excise tax liability of the owner shall be adjusted as follows:
(1) If the name change requires the owner to register sooner than the owner would have been required to register if there had been no name change, the owner shall, at the time the name change is reported, be authorized a refund from the county treasurer in the amount of the product of:
(A) one-twelfth (1/12) of the owner's last preceding annual excise tax liability; and
(B) the number of full calendar months between the owner's new regular annual registration month and the next succeeding regular annual registration month that is based on the owner's former name.
(2) If the name change required the owner to register later than the owner would have been required to register if there had been no name change, the vehicle shall be subject to excise tax for the period between the month in which the owner would have been required to register if there had been no name change and the new regular annual registration month in the amount determined under STEP FOUR of the following formula:
STEP ONE: Determine the number of full calendar months between the month in which the owner would have been required to register if there had been no name change and the owner's new regular annual registration month.
STEP TWO: Multiply the STEP ONE amount by one-twelfth (1/12).
STEP THREE: Determine the owner's tax liability computed as of the time the owner would have been required to register if there had been no name change.
STEP FOUR: Multiply the STEP TWO product by the STEP THREE amount.
As added by P.L.184-2007, SEC.3. Amended by P.L.3-2008, SEC.64; P.L.149-2015, SEC.16; P.L.198-2016, SEC.33; P.L.256-2017, SEC.33; P.L.156-2020, SEC.26.