Proration of tax; credits; refund for destroyed vehicle not replaced
Sec. 7. (a) In respect 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 motor
vehicle registration laws of Indiana, to register vehicles, the tax
imposed by this chapter shall become due and payable at the time the
vehicle is acquired, brought into the state, or otherwise becomes
subject to registration and the amount of tax to be paid by the owner
for the remainder of the year shall be reduced by ten percent (10%)
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 at the
time of the registration of the vehicle.
(b) In the case of a vehicle that is acquired, or brought into the
state, or for any other reason becomes subject to registration after
January 1 of any year, then the owner may pay the applicable
registration fee on the vehicle as provided in the motor vehicle
registration laws and any excise tax due on the vehicle for the
remainder of the annual registration year and simultaneously register
the vehicle and pay the applicable registration fee and the excise tax
due for the next succeeding annual registration year.
(c) 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.
(d) The owner of a vehicle who sells 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) ten percent (10%) for each full or partial calendar month
that has elapsed in the registrant's annual registration year
before the date of the sale.
The credit shall be applied to the tax due on any other vehicle
purchased or subsequently registered by the owner in the same
registrant's annual registration year. If the credit is not fully used and
the amount of the credit remaining is at least four dollars ($4), the
owner is entitled to a refund in the amount of the unused credit. The
owner must pay a fee of three dollars ($3) to the bureau to cover
costs of providing the refund, which may be deducted from the
refund. The bureau shall issue the refund. The bureau shall transfer
to the bureau of motor vehicles commission three dollars ($3) of the
fee to cover the commission's costs in processing the refund. To
claim the credit and refund provided by this subsection, the owner of
the vehicle must present to the bureau proof of sale of the vehicle.
(e) Subject to the requirements of subsection (g), the owner of
a vehicle that is destroyed in a year in which the owner has paid the
tax imposed by this chapter, which vehicle is not replaced by a
replacement vehicle for which a credit is issued under this section,
shall receive a refund in an amount equal to ten percent (10%) of the
tax paid for each full calendar month remaining in the registrant's
annual registration year after the date of destruction, but only upon
presentation or return to the bureau of the following:
(1) A request for refund on a form furnished by the bureau.
(2) A statement of proof of destruction on an affidavit
furnished by the bureau.
(3) The license plate from the vehicle.
(4) The registration from the vehicle.
However, the refund may not exceed ninety percent (90%) of the tax
paid on the destroyed vehicle. The amount shall be refunded by a
warrant issued by the auditor of the county that received the excise
tax revenue and shall be paid out of the special account created for
settlement of the excise tax collections under IC 6-6-5-10. For
purposes of this subsection, a vehicle is considered destroyed if the
cost of repair of damages suffered by the vehicle exceeds the
vehicle's fair market value.
(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) ten percent (10%) 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 of the product of:
(A) ten percent (10%) of the owner's excise tax liability
computed as of the time the owner would have been
required to register if there had been no name change; and
(B) 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.
(g) In order to claim a credit under subsection (e) for a vehicle
that is destroyed, the owner of the vehicle must present to the bureau
of motor vehicles a valid registration for the vehicle within ninety
(90) days of the date that it was destroyed. The bureau shall then fix
the amount of the credit that the owner is entitled to receive.
(Formerly: Acts 1969, c.423, s.7; Acts 1971, P.L.73, SEC.4; Acts
1973, P.L.54, SEC.4.) As amended by Acts 1981, P.L.94, SEC.3; Acts
1982, P.L.60, SEC.3; Acts 1982, P.L.61, SEC.1; P.L.92-1983, SEC.1;
P.L.91-1983, SEC.3; P.L.335-1989(ss), SEC.11; P.L.43-1994,
SEC.3; P.L.70-1998, SEC.1.
Last modified: May 28, 2006