HOUSE BILL No. 1617
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-2-6.2; IC 6-2.5-14; IC 6-8.1-1-1;
Synopsis: Ignition interlock device and sales tax. Establishes the
ignition interlock fund. Imposes an additional 1% sales and use tax on
a passenger vehicle that gets less than 15 mpg. Provides that the
additional revenue will be distributed to the ignition interlock fund and
the public mass transportation fund. Provides that a court order
granting probationary driving privileges to a person must prohibit the
person from operating a motor vehicle unless the vehicle is equipped
with an ignition interlock device if the person: (1) does not have a
previous conviction for operating a vehicle or motorboat while
intoxicated; or (2) has a previous conviction that occurred at least ten
years before the conviction under consideration by the court. (Current
law does not require a court order granting probationary driving
privileges to a person who does not have a previous conviction for
operating a vehicle or motorboat while intoxicated to prohibit the
person from operating a motor vehicle unless the vehicle is equipped
with an ignition interlock device.)
Effective: July 1, 2007.
January 23, 2007, read first time and referred to Committee on Judiciary.
First Regular Session 115th General Assembly (2007)
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between statutes enacted by the 2006 Regular Session of the General Assembly.
HOUSE BILL No. 1617
A BILL FOR AN ACT to amend the Indiana Code concerning
motor vehicles and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-2-6.2; (07)IN1617.1.1. -->
SECTION 1. IC 5-2-6.2 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
Chapter 6.2. Ignition Interlock Fund
Sec. 1. As used in this chapter, "ignition interlock device" has
the meaning set forth under IC 9-13-2-76.
Sec. 2. As used in this chapter, "institute" means the Indiana
criminal justice institute established by IC 5-2-6-3.
Sec. 3. As used in this chapter, "local governmental entities" has
the meaning set forth under IC 5-2-6-1.
Sec. 4. (a) The ignition interlock fund is established to provide
local governmental entities with funds to assist with the
administration costs associated with ignition interlock devices and
costs associated with providing an ignition interlock device to an
indigent person. The fund shall be administered by the institute
and consists of:
(1) revenues received under IC 6-2.5-14; and
(2) any appropriations to the fund.
(b) The expenses of administering the fund shall be paid from
money in the fund.
(c) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 5. The institute shall distribute money in the fund to local
governmental entities in Indiana for the purpose of assisting local
governmental entities with:
(1) administration costs associated with ignition interlock
(2) the costs associated with providing an ignition interlock
device to an indigent person.
Sec. 6. The institute may adopt rules under IC 4-22-2 and
guidelines to implement this chapter.
SOURCE: IC 6-2.5-14; (07)IN1617.1.2. -->
SECTION 2. IC 6-2.5-14 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 14. Motor Vehicle Supplemental Sales and Use Tax
Sec. 1. (a) As used in this chapter, "fuel economy" means the
number of miles traveled by a qualified passenger vehicle per
gasoline or special fuel consumed, as determined in subsection (b).
(b) The number of miles traveled by a qualified passenger
vehicle with a:
(1) model year 2007 or earlier, is the average between the
average city miles per gallon and the average highway miles
per gallon; or
(2) model year 2008 and thereafter, is the combined fuel
as determined in the Fuel Economy Guide published by the United
States Environmental Protection Agency and the United States
Department of Energy.
Sec. 2. As used in this chapter, "gasoline" has the meaning set
forth in IC 6-6-1.1-103.
Sec. 3. As used in this chapter, "motor vehicle" has the meaning
set forth in IC 9-13-2-105.
Sec. 4. (a) As used in this chapter, "passenger vehicle" means
any motor vehicle:
(1) designed and used for carrying not more than fifteen (15)
(2) that has a gross weight of less than ten thousand (10,000)
(3) not used for business purposes.
(b) The term does not include:
(1) pickup trucks;
(2) recreational vehicles; or
(3) vehicles used to provide public transportation for people
Sec. 5. As used in this chapter, "pickup truck" means a motor
vehicle with an enclosed forward passenger compartment and an
open rearward compartment used for the transportation of
Sec. 6. As used in this chapter, "qualified passenger vehicle"
means a passenger vehicle that has a fuel economy of fifteen (15)
miles per gallon or less.
Sec. 7. As used in this chapter, "recreational vehicle" has the
meaning set forth in IC 9-13-2-150.
Sec. 8. As used in this chapter, "special fuel" has the meaning
set forth in IC 6-6-2.5-22.
Sec. 9. This chapter applies to qualified passenger vehicles sold
at retail as new vehicles after June 30, 2007.
Sec. 10. In addition to the state gross retail tax imposed under
IC 6-2.5-2-1 or the use tax imposed under IC 6-2.5-3-2, a motor
vehicle supplemental sales and use tax is imposed on a transaction
involving a qualified passenger vehicle. A qualified passenger
vehicle is subject to the tax imposed by this chapter if the qualified
motor vehicle is subject to tax imposed under IC 6-2.5-2-1 or
Sec. 11. The motor vehicle supplemental sales and use tax is
measured by the gross retail income received in a retail unitary
transaction at a rate of one percent (1%).
Sec. 12. The motor vehicle supplemental sales and use tax shall
be imposed, exempted, credited, paid, and collected in the same
manner that the state gross retail tax is imposed, exempted,
credited, paid, and collected. However, the return to be filed for the
payment of the tax under this chapter may be made separately or
may be combined with the return filed for the payment of the state
gross retail tax, as prescribed by the department.
Sec. 13. (a) The department shall account for all motor vehicle
supplemental sales and use tax that the department collects.
(b) The department shall deposit collections under subsection
(a) in the following manner:
(1) Eighty-five percent (85%) of the collections shall be paid
into the ignition interlock fund established by IC 5-2-6.2-3.
(2) Fifteen percent (15%) of the collections shall be paid into
the public mass transportation fund established by
SOURCE: IC 6-8.1-1-1; (07)IN1617.1.3. -->
SECTION 3. IC 6-8.1-1-1, AS AMENDED BY P.L.162-2006,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 1. "Listed taxes" or "taxes" includes only the
pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the river boat
admissions tax (IC 4-33-12); the river boat wagering tax (IC 4-33-13);
the gross income tax (IC 6-2.1) (repealed); the utility receipts and
utility services use taxes (IC 6-2.3); the state gross retail and use taxes
(IC 6-2.5); the motor vehicle supplemental sales and use tax
(IC 6-2.5-14); the adjusted gross income tax (IC 6-3); the supplemental
net income tax (IC 6-3-8) (repealed); the county adjusted gross income
tax (IC 6-3.5-1.1); the county option income tax (IC 6-3.5-6); the
county economic development income tax (IC 6-3.5-7); the municipal
option income tax (IC 6-3.5-8); the auto rental excise tax (IC 6-6-9);
the financial institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1);
the alternative fuel permit fee (IC 6-6-2.1); the special fuel tax
(IC 6-6-2.5); the motor carrier fuel tax (IC 6-6-4.1); a motor fuel tax
collected under a reciprocal agreement under IC 6-8.1-3; the motor
vehicle excise tax (IC 6-6-5); the commercial vehicle excise tax
(IC 6-6-5.5); the hazardous waste disposal tax (IC 6-6-6.6); the
cigarette tax (IC 6-7-1); the beer excise tax (IC 7.1-4-2); the liquor
excise tax (IC 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider
excise tax (IC 7.1-4-4.5); the malt excise tax (IC 7.1-4-5); the
petroleum severance tax (IC 6-8-1); the various innkeeper's taxes
(IC 6-9); the various food and beverage taxes (IC 6-9); the county
admissions tax (IC 6-9-13 and IC 6-9-28); the oil inspection fee
(IC 16-44-2); the emergency and hazardous chemical inventory form
fee (IC 6-6-10); the penalties assessed for oversize vehicles (IC 9-20-3
and IC 9-30); the fees and penalties assessed for overweight vehicles
(IC 9-20-4 and IC 9-30); the underground storage tank fee (IC 13-23);
the solid waste management fee (IC 13-20-22); and any other tax or fee
that the department is required to collect or administer.
SOURCE: IC 9-30-5-16; (07)IN1617.1.4. -->
SECTION 4. IC 9-30-5-16, AS AMENDED BY P.L.172-2006,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 16. (a) Except as provided in subsections (b) and
(c) and section 10 of this chapter, the court may, in granting
probationary driving privileges under this chapter, also order that the
probationary driving privileges include the requirement that a person
may not operate a motor vehicle unless the vehicle is equipped with a
functioning certified ignition interlock device under IC 9-30-8.
(b) An order granting probationary driving privileges:
(A) section 12(a) of this chapter;
if the person has a previous
conviction that occurred at least ten (10) years before the
conviction under consideration by the court; or
(B) section 12(c) of this chapter; or
(2) to a person who has a prior unrelated conviction for an offense
under this chapter of which the consumption of alcohol is an
must prohibit the person from operating a motor vehicle unless the
vehicle is equipped with a functioning certified ignition interlock
device under IC 9-30-8. However, a court is not required to order the
installation of an ignition interlock device for a person described in
subdivision (1) or (2) if the person is successfully participating in a
court supervised alcohol treatment program in which the person is
taking disulfiram or a similar substance that the court determines is
effective in treating alcohol abuse.
(c) A court may not order the installation of an ignition interlock
device on a vehicle operated by an employee to whom any of the
(1) Has been convicted of violating section 1 or 2 of this chapter.
(2) Is employed as the operator of a vehicle owned, leased, or
provided by the employee's employer.
(3) Is subject to a labor agreement that prohibits an employee who
is convicted of an alcohol related offense from operating the
SOURCE: ; (07)IN1617.1.5. -->
SECTION 5. [EFFECTIVE JULY 1, 2007] IC 6-8.1-1-1, as
amended by this act, and IC 6-2.5-14, as added by this act, apply to
retail transactions that occur after June 30, 2007.