License tax; presumptions; computation; liability for collection and
remittance; sulfur content; penalty
Sec. 28. (a) A license tax of sixteen cents ($0.16) per gallon 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) of this chapter. 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 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.
(c) Except as provided in subsection (d), the tax imposed on
special fuel by subsection (a) shall be measured by invoiced gallons
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(d) 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.
(d) 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.
(e) 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.
(f) 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.
(g) 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.
(h) 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).
(i) 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 Class D 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.
Last modified: May 28, 2006