Citations Affected: IC 6-6.
Synopsis: Special fuel tax exemption for certain biofuels. Provides a
special fuel tax exemption for certain biofuels produced for personal,
Effective: July 1, 2007.
January 8, 2007, read first time and referred to Committee on Natural Resources.
February 15, 2007, reported _ Do Pass.
February 19, 2007, read second time, ordered engrossed.
February 20, 2007, engrossed.
February 21, 2007, read third time, passed. Yeas 92, nays 0.
A BILL FOR AN ACT to amend the Indiana Code concerning
generally be determined in the same manner as the tax imposed by
Section 4081 of the Internal Revenue Code and Code of Federal
(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.
twenty percent (20%);
(2) the special fuel is used only for a personal, noncommercial use and is not for resale; and
(3) the individual using the special fuel:
(A) produces the biodiesel content of the special fuel; and
(B) obtains an exemption certificate under subsection (c) before using the special fuel.
(b) The maximum number of gallons of special fuel for which an individual may claim the exemption under this section in a year is equal to:
(1) two thousand (2,000); divided by
(2) the average percentage volume of biodiesel in each gallon used by the individual.
(c) The department shall issue an exemption certificate to an individual who produces evidence of nontaxability under subsection (a)(1), (a)(2), and (a)(3). A certificate issued under this subsection is valid for a period determined by the department, but not to exceed five (5) years. The department may allow an individual to renew an exemption certification for additional five (5) year periods. An exemption certificate applies only to special fuel described in subsection (a). An individual holding a certificate issued under this subsection shall notify the department:
(1) of any address change by the individual; and
(2) when the individual ceases using special fuel that is exempt under this section.
(d) An individual who is issued an exemption certificate under this section must submit to the department a report, in a form prescribed by the department, not later than January 20 of each year. The report must include:
(1) the number of gallons of special fuel in the immediately preceding year; and
(2) the average percentage volume of biodiesel in each gallon of special fuel;
to which the exemption was applied in the calendar year ending on the immediately preceding December 31.
(e) An individual who is issued an exemption certificate under this section is not subject to the reporting requirements under section 35 of this chapter.