Introduced Version






HOUSE BILL No. 1613

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-2.5-5-39 ; IC 6-2.5-7-3 ; IC 6-2.5-7-5.

Synopsis: Sales tax exemption for gasohol. For purposes of the state gross retail tax, defines "gasohol" to mean a fuel that contains not more than 90% gasoline and at least 10% agriculturally derived ethyl alcohol. Exempts two-fifths of the state gross retail income derived from sales of gasohol from the state gross retail tax. Requires a retail merchant to collect state gross retail tax in an amount equal to 3% of the price per unit, before taxes, of gasohol sold.

Effective: July 1, 2001.





Grubb, McClain, Herndon, Sturtz




    January 17, 2001, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.

HOUSE BILL No. 1613



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-2.5-5-39; (01)IN1613.1.1. -->     SECTION 1. IC 6-2.5-5-39 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 39. (a) As used in this section, "gasohol" means a fuel that contains not more than ninety percent (90%) gasoline and at least ten percent (10%) agriculturally derived ethyl alcohol.
    (b) Two-fifths (2/5) of the state gross retail income derived from sales of gasohol is exempt from the state gross retail tax.
SOURCE: IC 6-2.5-7-3; (01)IN1613.1.2. -->     SECTION 2. IC 6-2.5-7-3 , AS AMENDED BY P.L.222-1999, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 3. (a) With respect to the sale of gasoline which is dispensed from a metered pump, a retail merchant shall collect, for each unit of gasoline sold, state gross retail tax in an amount equal to the product, rounded to the nearest one-tenth of one cent ($.001), of:
        (i) (1) the price per unit before the addition of state and federal taxes; multiplied by
        (ii) five percent (5%). (2) a percentage determined under subsection (c).
The retail merchant shall collect the state gross retail tax prescribed in this section even if the transaction is exempt from taxation under IC 6-2.5-5.
    (b) With respect to the sale of special fuel or kerosene which is dispensed from a metered pump, unless the purchaser provides an exemption certificate in accordance with IC 6-2.5-8-8 , a retail merchant shall collect, for each unit of special fuel or kerosene sold, state gross retail tax in an amount equal to the product, rounded to the nearest one-tenth of one cent ($.001), of:
        (i) (1) the price per unit before the addition of state and federal taxes; multiplied by
        (ii) (2) five percent (5%).
Unless the exemption certificate is provided, the retail merchant shall collect the state gross retail tax prescribed in this section even if the transaction is exempt from taxation under IC 6-2.5-5.
     (c) In the case of gasoline that is not exempt from the state gross retail tax under IC 6-2.5-5-39 , the percentage used under subsection (a)(2) equals five percent (5%). In the case of gasoline that is partially exempt from the state gross retail tax under IC 6-2.5-5-39 , the percentage used under subsection (a)(2) equals three percent (3%).
SOURCE: IC 6-2.5-7-5; (01)IN1613.1.3. -->     SECTION 3. IC 6-2.5-7-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 5. (a) Each retail merchant who dispenses gasoline or special fuel from a metered pump shall, in the manner prescribed in IC 6-2.5-6 , report to the department the following information:
        (1) The total number of gallons of gasoline sold from a metered pump during the period covered by the report.
        (2) The total amount of money received from the sale of gasoline described in subdivision (1) during the period covered by the report.
        (3) That portion of the amount described in subdivision (2) which represents state and federal taxes imposed under IC 6-2.5, IC 6-6-1.1 , or Section 4081 of the Internal Revenue Code.
        (4) The total number of gallons of special fuel sold from a metered pump during the period covered by the report.
        (5) The total amount of money received from the sale of special fuel during the period covered by the report.
        (6) That portion of the amount described in subdivision (5) that represents state and federal taxes imposed under IC 6-2.5, IC 6-6-2.5 , or Section 4041 of the Internal Revenue Code.
    (b) Concurrently with filing the report, the retail merchant shall

remit the state gross retail tax in an amount which equals one twenty-first (1/21) a fractional amount (determined under subsection (d)) of the gross receipts, including state gross retail taxes but excluding Indiana and federal gasoline and special fuel taxes, received by the retail merchant from the sale of the gasoline and special fuel that is covered by the report and on which the retail merchant was required to collect state gross retail tax. The retail merchant shall remit that amount regardless of the amount of state gross retail tax which he has actually collected under this chapter. However, the retail merchant is entitled to deduct and retain the amounts prescribed in subsection (c), IC 6-2.5-6-10 , and IC 6-2.5-6-11.
    (c) A retail merchant is entitled to deduct from the amount of state gross retail tax required to be remitted under subsection (b) an amount equal to:
        (1) the sum of the prepayment amounts made during the period covered by the retail merchant's report; minus
        (2) the sum of prepayment amounts collected by the retail merchant, in the merchant's capacity as a qualified distributor, during the period covered by the retail merchant's report.
For purposes of this section, a prepayment of the gross retail tax is presumed to occur on the date on which it is invoiced.
     (d) The fractional amount to be used under subsection (b) equals one twenty-first (1/21) in the case of sales of gasoline and special fuel that are not exempt from the state gross retail tax under IC 6-2.5-5-39. In the case of gasoline that is partially exempt from the state gross retail tax under IC 6-2.5-5-39 , the fractional amount to be used equals three one hundred-firsts (3/101).

SOURCE: ; (01)IN1613.1.4. -->     SECTION 4. [EFFECTIVE JULY 1, 2001] (a) IC 6-2.5-5-39 , as added by this act, and IC 6-2.5-7-3 , as amended by this act, apply to sales of gasohol in retail transactions that occur after June 30, 2001.
    (b) IC 6-2.5-7-5 , as amended by this act, applies to state gross retail and use tax returns filed after June 30, 2001.