First Regular Session 115th General Assembly (2007)
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HOUSE ENROLLED ACT No. 1065
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-6-2.5-28; (07)HE1065.1.1. -->
SECTION 1. IC 6-6-2.5-28 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: 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) or 30.5
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
(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
(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
SOURCE: IC 6-6-2.5-30.5; (07)HE1065.1.2. -->
SECTION 2. IC 6-6-2.5-30.5 IS ADDED TO THE INDIANA
CODE AS A NEW
SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 30.5. (a) Except as provided in
subsection (b), special fuel is exempt from the special fuel tax if:
(1) the special fuel has a nominal biodiesel content of at least
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
(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.
HEA 1065 _ Concur
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