Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 353 be amended to read as follows:

    Delete the title and insert the following:
    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

SOURCE: Page 1, line 1; (12)MO035303.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 6-2.5-4-1; (12)MO035303.1. -->     "SECTION 1. IC 6-2.5-4-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) A person is a retail merchant making a retail transaction when he the person engages in selling at retail.
    (b) A person is engaged in selling at retail when, in the ordinary course of his the person's regularly conducted trade or business, he: the person:
        (1) acquires tangible personal property for the purpose of resale; and
        (2) transfers that property to another person for consideration.
    (c) For purposes of determining what constitutes selling at retail, it does not matter whether:
        (1) the property is transferred in the same form as when it was acquired;
        (2) the property is transferred alone or in conjunction with other property or services; or
        (3) the property is transferred conditionally or otherwise.
    (d) Notwithstanding subsection (b), a person is not selling at retail if he the person is making a wholesale sale as described in section 2

of this chapter.
    (e) The gross retail income received from selling at retail is only taxable under this article to the extent that the income represents:
        (1) the price of the property transferred, without the rendition of any service; and
        (2) except as provided in subsection (g), any bona fide charges which are made for preparation, fabrication, alteration, modification, finishing, completion, delivery, or other service performed in respect to the property transferred before its transfer and which are separately stated on the transferor's records.
For purposes of this subsection, a transfer is considered to have occurred after delivery of the property to the purchaser.
    (f) Notwithstanding subsection (e):
        (1) in the case of retail sales of gasoline (as defined in IC 6-6-1.1-103) and special fuel (as defined in IC 6-6-2.5-22) made before May 28, 2012, or after September 3, 2012, the gross retail income received from selling at retail is:
             (A) the total sales price of the gasoline or special fuel; minus
             (B) the part of that price attributable to tax imposed under IC 6-6-1.1, IC 6-6-2.5, or Section 4041(a) or Section 4081 of the Internal Revenue Code; and
         (2) in the case of retail sales of gasoline (as defined in IC 6-6-1.1-103) and special fuel (as defined in IC 6-6-2.5-22) made after May 27, 2012, and before September 4, 2012, the gross retail income received from selling at retail is:
            (A) the lesser of:
                (i) the total sales price of the gasoline or special fuel; or
                (ii) an amount equal to three dollars ($3) per gallon of gasoline or special fuel multiplied by the number of gallons of gasoline or special fuel sold; minus
            (B) the part of that price attributable to tax imposed under IC 6-6-1.1, IC 6-6-2.5, or Section 4041(a) or Section 4081 of the Internal Revenue Code; and
    
        (2) (3) in the case of retail sales of cigarettes (as defined in IC 6-7-1-2), the gross retail income received from selling at retail is the total sales price of the cigarettes including the tax imposed under IC 6-7-1.
    (g) Gross retail income does not include income that represents charges for serving or delivering food and food ingredients furnished, prepared, or served for consumption at a location, or on equipment, provided by the retail merchant. However, the exclusion under this subsection only applies if the charges for the serving or delivery are stated separately from the price of the food and food ingredients when the purchaser pays the charges.

SOURCE: IC 6-2.5-7-1; (12)MO035303.2. -->     SECTION 2. IC 6-2.5-7-1, AS AMENDED BY P.L.1-2007, SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

UPON PASSAGE]: Sec. 1. (a) The definitions in this section apply throughout this chapter.
    (b) "Kerosene" has the same meaning as the definition contained in IC 16-44-2-2.
    (c) "Gasoline" has the same meaning as the definition contained in IC 6-6-1.1-103.
    (d) "Special fuel" has the same meaning as the definition contained in IC 6-6-2.5-22.
    (e) "E85" has the meaning set forth in IC 6-6-1.1-103.
    (f) "Unit" means the unit of measure, such as a gallon or a liter, by which gasoline or special fuel is sold.
    (g) "Metered pump" means a stationary pump which is capable of metering the amount of gasoline or special fuel dispensed from it and which is capable of simultaneously calculating and displaying the price of the gasoline or special fuel dispensed.
    (h) "Indiana gasoline tax" means the tax imposed under IC 6-6-1.1.
    (i) "Indiana special fuel tax" means the tax imposed under IC 6-6-2.5.
    (j) "Federal gasoline tax" means the excise tax imposed under Section 4081 of the Internal Revenue Code.
    (k) "Federal special fuel tax" means the excise tax imposed under Section 4041 of the Internal Revenue Code.
    (l) "Price per unit before the addition of state and federal taxes" means an amount which equals the remainder of:
        (1) the total price per unit; minus
        (2) the state gross retail, Indiana gasoline or special fuel, and federal gasoline or special fuel taxes which are part of the total price per unit.
    (m) "Total price per unit" means the price per unit at which gasoline or special fuel is actually sold, including the state gross retail, Indiana gasoline or special fuel, and federal gasoline or special fuel taxes which are part of the sales price.
    (n) "Distributor" means a person who is the first purchaser of gasoline from a refiner, a terminal operator, or supplier, regardless of the location of the purchase.
    (o) "Prepayment rate" means a rate per gallon of gasoline determined by the department under section 14 or 14.1 of this chapter, as applicable, for use in calculating prepayment amounts of gross retail tax under section 9 of this chapter.
    (p) "Purchase or shipment" means a sale or delivery of gasoline, but does not include:
        (1) an exchange transaction between refiners, terminal operators, or a refiner and terminal operator; or
        (2) a delivery by pipeline, ship, or barge to a refiner or terminal operator.
    (q) "Qualified distributor" means a distributor who:


        (1) is a licensed distributor under IC 6-6-1.1; and
        (2) holds an unrevoked permit issued under section 7 of this chapter.
    (r) "Refiner" means a person who manufactures or produces gasoline by any process involving substantially more than the blending of gasoline.
    (s) "Terminal operator" means a person that:
        (1) stores gasoline in tanks and equipment used in receiving and storing gasoline from interstate or intrastate pipelines pending wholesale bulk reshipment; or
        (2) stores gasoline at a boat terminal transfer that is a dock or tank, or equipment contiguous to a dock or tank, including equipment used in the unloading of gasoline from a ship or barge and used in transferring the gasoline to a tank pending wholesale bulk reshipment.
SOURCE: IC 6-2.5-7-1.1; (12)MO035303.3. -->     SECTION 3. IC 6-2.5-7-1.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1.1. (a) As used in this chapter, "maximum taxable price per unit before the addition of state and federal taxes" means an amount that equals the remainder of:
        (1) a total price per unit equal to three dollars ($3) per gallon; minus
        (2) the state gross retail, Indiana gasoline or special fuel, and federal gasoline or special fuel taxes that are part of the total price per unit specified in subdivision (1).

     (b) This section expires December 31, 2012.
SOURCE: IC 6-2.5-7-3; (12)MO035303.4. -->     SECTION 4. IC 6-2.5-7-3, AS AMENDED BY P.L.146-2008, SECTION 314, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) This section applies before May 28, 2012, and after September 3, 2012.
    (a) (b) 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 ($0.001), of:
        (1) the price per unit before the addition of state and federal taxes; multiplied by
        (2) seven percent (7%).
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) (c) 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 ($0.001), of:
        (1) the price per unit before the addition of state and federal taxes; multiplied by
        (2) seven percent (7%).
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.
SOURCE: IC 6-2.5-7-3.1; (12)MO035303.5. -->     SECTION 5. IC 6-2.5-7-3.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.1. (a) This section applies after May 27, 2012, and before September 4, 2012.
     (b) 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 ($0.001), of:
        (1) the lesser of:
            (A) the price per unit before the addition of state and federal taxes; or
            (B) the maximum taxable price per unit before the addition of state and federal taxes; multiplied by
        (2) seven percent (7%).
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) With respect to the sale of special fuel or kerosene that 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 ($0.001), of:
        (1) the lesser of:
            (A) the price per unit before the addition of state and federal taxes; or
            (B) the maximum taxable price per unit before the addition of state and federal taxes; multiplied by
        (2) seven percent (7%).
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.
    (d) This section expires December 31, 2012.

SOURCE: IC 6-2.5-7-5; (12)MO035303.6. -->     SECTION 6. IC 6-2.5-7-5, AS AMENDED BY P.L.148-2009, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) This section applies before May 28, 2012, and after September 3, 2012.
    (a) (b) 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 this article, 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 this article, IC 6-6-2.5, or Section 4041 of the Internal Revenue Code.
        (7) The total number of gallons of E85 sold from a metered pump during the period covered by the report.
    (b) (c) Concurrently with filing the report, the retail merchant shall remit the state gross retail tax in an amount which equals six and fifty-four hundredths percent (6.54%) 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 the merchant has actually collected under this chapter. However, the retail merchant is entitled to deduct and retain the amounts prescribed in subsection (c), (d), IC 6-2.5-6-10, and IC 6-2.5-6-11.
    (c) (d) A retail merchant is entitled to deduct from the amount of state gross retail tax required to be remitted under subsection (b) (c) the amount determined under STEP THREE of the following formula:
        STEP ONE: Determine:
            (A) the sum of the prepayment amounts made during the period covered by the retail merchant's report; minus
            (B) 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.
        STEP TWO: Subject to subsections (d) (e) and (f), (g), for qualified reporting periods beginning after June 30, 2009, and ending before July 1, 2020, determine the product of:
            (A) eighteen cents ($0.18); multiplied by
            (B) the number of gallons of E85 sold at retail by the retail merchant during the period covered by the retail merchant's report.
        STEP THREE: Add the amounts determined under STEPS ONE

and TWO.
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) (e) The total amount of deductions allowed under subsection (c) (d) STEP TWO may not exceed the amount of money that the budget agency determines is available in the retail merchant E85 deduction reimbursement fund established under IC 15-15-12-30.5 for the deductions for all retail merchants in a particular qualified reporting period. A retail merchant is not required to apply for an allocation of deductions under subsection (c) (d) STEP TWO. Before August 1 of each year, the budget agency shall estimate whether the amount of deductions from the immediately preceding qualified reporting period that are subject to reimbursement under IC 15-15-12-30.5(f) and the deductions expected to be reported under subsection (c) (d) STEP TWO for the qualified reporting periods beginning after December 31 and ending before April 1 of the following year will exceed the amount of money available in the retail merchant E85 deduction reimbursement fund for the deductions. If the budget agency determines that the amount of money in the retail merchant E85 deduction reimbursement fund is insufficient to cover the amount of the deductions expected to be reported, the budget agency shall publish in the Indiana Register a notice that the deduction program under subsection (c) (d) STEP TWO is suspended with respect to the qualified reporting periods occurring in the following calendar year and that no deductions will be granted for retail transactions occurring in the qualified reporting periods occurring in the following calendar year.
    (e) (f) As used in this section, "qualified reporting period" refers to a reporting period beginning after December 31 and ending before April 1 of each year.
    (f) (g) The budget agency may suspend the deduction program under subsection (c) (d) STEP TWO for a particular year at any time during a qualified reporting period if the budget agency determines that the amount of money in the retail merchant E85 deduction reimbursement fund and the amount of money that will be transferred to the fund on July 1 will not be sufficient to reimburse the deductions expected to occur before the deduction program for the year ends on March 31. The budget agency shall immediately provide notice to the participating retail merchants of the decision to suspend the deduction program for that year.

SOURCE: IC 6-2.5-7-5.1; (12)MO035303.7. -->     SECTION 7. IC 6-2.5-7-5.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.1. (a) This section applies after May 27, 2012, and before September 4, 2012.
    (b) 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) For each price point at which the retail merchant sold gasoline from a metered pump during the period covered by the report, the total number of gallons of gasoline sold from a metered pump at the specified price point 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) The part of the amount described in subdivision (2) that represents state and federal taxes imposed under this article, IC 6-6-1.1, or Section 4081 of the Internal Revenue Code.
        (4) For each price point at which the retail merchant sold special fuel from a metered pump during the period covered by the report, the total number of gallons of special fuel sold from a metered pump at the specified price point 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) The part of the amount described in subdivision (5) that represents state and federal taxes imposed under this article, IC 6-6-2.5, or Section 4041 of the Internal Revenue Code.
        (7) The total number of gallons of E85 sold from a metered pump during the period covered by the report.
    (c) Concurrently with filing the report, the retail merchant shall remit the state gross retail tax that the retail merchant was required to collect from the sale of the gasoline and special fuel under section 3.1 of this chapter for the period that is covered by the report. The retail merchant shall remit that amount regardless of the amount of state gross retail tax which the merchant has actually collected under this chapter. However, the retail merchant is entitled to deduct and retain the amounts prescribed in subsection (d), IC 6-2.5-6-10, and IC 6-2.5-6-11.
    (d) A retail merchant is entitled to deduct from the amount of state gross retail tax required to be remitted under subsection (c) the amount determined under STEP THREE of the following formula:
        STEP ONE: Determine:
            (A) the sum of the prepayment amounts made during the period covered by the retail merchant's report; minus
            (B) 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.
        STEP TWO: Subject to subsections (e) and (g), for qualified reporting periods beginning after June 30, 2009, and ending before July 1, 2020, determine the product of:
            (A) eighteen cents ($0.18); multiplied by
            (B) the number of gallons of E85 sold at retail by the retail merchant during the period covered by the retail merchant's report.
        STEP THREE: Add the amounts determined under STEPS ONE and TWO.
For purposes of this section, a prepayment of the gross retail tax is presumed to occur on the date on which it is invoiced.
    (e) The total amount of deductions allowed under subsection (d) STEP TWO may not exceed the amount of money that the budget agency determines is available in the retail merchant E85 deduction reimbursement fund established under IC 15-15-12-30.5 for the deductions for all retail merchants in a particular qualified reporting period. A retail merchant is not required to apply for an allocation of deductions under subsection (d) STEP TWO. Before August 1 of each year, the budget agency shall estimate whether the amount of deductions from the immediately preceding qualified reporting period that are subject to reimbursement under IC 15-15-12-30.5(f) and the deductions expected to be reported under subsection (d) STEP TWO for the qualified reporting periods beginning after December 31 and ending before April 1 of the following year will exceed the amount of money available in the retail merchant E85 deduction reimbursement fund for the deductions. If the budget agency determines that the amount of money in the retail merchant E85 deduction reimbursement fund is insufficient to cover the amount of the deductions expected to be reported, the budget agency shall publish in the Indiana Register a notice that the deduction program under subsection (d) STEP TWO is suspended with respect to the qualified reporting periods occurring in the following calendar year and that no deductions will be granted for retail transactions occurring in the qualified reporting periods occurring in the following calendar year.
    (f) As used in this section, "qualified reporting period" refers to a reporting period beginning after December 31 and ending before April 1 of each year.
    (g) The budget agency may suspend the deduction program under subsection (d) STEP TWO for a particular year at any time during a qualified reporting period if the budget agency determines that the amount of money in the retail merchant E85 deduction reimbursement fund and the amount of money that will be transferred to the fund on July 1 will not be sufficient to reimburse the deductions expected to occur before the deduction program for the year ends on March 31. The budget agency shall immediately provide notice to the participating retail merchants of the decision to suspend the deduction program for that year.

     (h) This section expires December 31, 2012.
SOURCE: IC 6-2.5-7-6; (12)MO035303.8. -->     SECTION 8. IC 6-2.5-7-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) If the

deduction under section 5(c) 5(d) or 5.1(d) of this chapter, as applicable, exceeds the amount of gross retail tax required to be remitted under section 5(b) 5(c) or 5.1(c) of this chapter, as applicable, the retail merchant is entitled to a credit. The credit shall be used as follows:
        (1) First, the credit shall be applied against gross retail and use tax liability of the retail merchant that is required to be remitted under IC 6-2.5-6.
        (2) Second, any amount remaining shall be applied against the gasoline tax liability of the retail merchant, as determined under IC 6-6-1.1, excluding any liability for gasoline delivered to a taxable marine facility.
A retail merchant may file a claim for a refund instead of taking a credit or for a refund of any excess tax payment remaining after the credits allowed by this section. In addition, a retail merchant may file a claim for a refund under section 12 of this chapter.
    (b) A retail merchant that is entitled to a refund under this section must file a claim for the refund on the form approved by the department and must include any supporting documentation reasonably required by the department. If a retail merchant files a completed refund claim form that includes all supporting documentation, the excess tax payment that is not refunded within ninety (90) days accrues interest as provided in IC 6-8.1-9-2.
    (c) Before the fifth day of each month, the department shall determine and notify the treasurer of state of the amount of credits applied during the preceding month against the gasoline tax under this section. The treasurer of state shall transfer from the general fund:
        (1) to the highway, road, and street fund, twenty-five percent (25%) of the amount set forth in the department's notice; and
        (2) to the motor fuel tax fund of the motor vehicle highway account, seventy-five percent (75%) of the amount set forth in the department's notice.

SOURCE: IC 6-2.5-7-14; (12)MO035303.9. -->     SECTION 9. IC 6-2.5-7-14, AS AMENDED BY P.L.182-2009(ss), SECTION 182, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) This section applies before May 28, 2012, and after September 3, 2012.
    (a) (b) Before June 10 and December 10 of each year, the department shall determine and provide to:
        (1) each refiner and terminal operator and each qualified distributor known to the department to be required to collect prepayments of the state gross retail tax under this chapter; and
        (2) any other person that makes a request;
a notice of the prepayment rate to be used during the following six (6) month period. The department, after approval by the office of management and budget, may determine a new prepayment rate if the department finds that the statewide average retail price per gallon of

gasoline, excluding the Indiana and federal gasoline taxes and the Indiana gross retail tax, has changed by at least twenty-five percent (25%) since the most recent determination.
    (b) (c) In determining the prepayment rate under this section, the department shall use the most recent retail price of gasoline available to the department.
    (c) (d) The prepayment rate per gallon of gasoline determined by the department under this section is the amount per gallon of gasoline determined under STEP FOUR of the following formula:
        STEP ONE: Determine the statewide average retail price per gallon of gasoline, excluding the Indiana and federal gasoline taxes and the Indiana gross retail tax.
        STEP TWO: Determine the product of the following:
            (A) The STEP ONE amount.
            (B) The Indiana gross retail tax rate.
            (C) Eighty percent (80%).
        STEP THREE: Determine the lesser of:
            (A) the STEP TWO result; or
            (B) the product of:
                (i) the prepayment rate in effect on the day immediately preceding the day on which the prepayment rate is redetermined under this section; multiplied by
                (ii) one hundred twenty-five percent (125%).
        STEP FOUR: Round the STEP THREE result to the nearest one-tenth of one cent ($0.001).

SOURCE: IC 6-2.5-7-14.1; (12)MO035303.10. -->     SECTION 10. IC 6-2.5-7-14.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14.1. (a) This section applies after May 27, 2012, and before September 4, 2012.
     (b) Before June 10 and December 10 of each year, the department shall determine and provide to:
        (1) each refiner and terminal operator and each qualified distributor known to the department to be required to collect prepayments of the state gross retail tax under this chapter; and
        (2) any other person that makes a request;
a notice of the prepayment rate to be used during the following six (6) month period. The department, after approval by the office of management and budget, may determine a new prepayment rate if the department finds that the statewide average retail price per gallon of gasoline, excluding the Indiana and federal gasoline taxes and the Indiana gross retail tax, has changed by at least twenty-five percent (25%) since the most recent determination.
    (c) In determining the prepayment rate under this section, the department shall use the most recent retail price of gasoline available to the department.
    (d) The prepayment rate per gallon of gasoline determined by the department under this section is the amount per gallon of gasoline determined under STEP FOUR of the following formula:
        STEP ONE: Determine the lesser of:
            (A) the statewide average retail price per gallon of gasoline, excluding the Indiana and federal gasoline taxes and the Indiana gross retail tax; or
            (B) the maximum taxable price per gallon of gasoline before the addition of state and federal taxes.
        STEP TWO: Determine the product of the following:
            (A) The STEP ONE amount.
            (B) The Indiana gross retail tax rate.
            (C) Eighty percent (80%).
        STEP THREE: Determine the lesser of:
            (A) the STEP TWO result; or
            (B) the product of:
                (i) the prepayment rate in effect on the day immediately preceding the day on which the prepayment rate is redetermined under this section; multiplied by
                (ii) one hundred twenty-five percent (125%).
        STEP FOUR: Round the STEP THREE result to the nearest one-tenth of one cent ($0.001).
    (e) This section expires December 31, 2012.

SOURCE: IC 15-15-12-30.5; (12)MO035303.11. -->     SECTION 11. IC 15-15-12-30.5, AS ADDED BY P.L.148-2009, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 30.5. (a) The retail merchant E85 deduction reimbursement fund is established. The fund consists of:
        (1) assessments transferred by the council for deposit in the fund under section 32.5 of this chapter;
        (2) gifts; and
        (3) grants.
    (b) Except as provided in subsection (g), money in the fund may only be used for the purposes described in subsection (d).
    (c) On May 1, the budget agency shall determine the sum of all retail merchant deductions allowed under IC 6-2.5-7-5(d) IC 6-2.5-7-5(e) or IC 6-2.5-7-5.1(e), as applicable, in the immediately preceding qualified reporting period (as defined in IC 6-2.5-7-5(e) IC 6-2.5-7-5(f) or IC 6-2.5-7-5.1(f), as applicable).
    (d) The budget agency shall transfer the amount determined under subsection (c) from the fund for deposit. The amount transferred under this subsection shall be deposited in the same manner as state gross retail and use taxes are required to be deposited under IC 6-2.5-10-1.
    (e) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund.
    (f) If the amount of money in the fund on May 1 is insufficient to reimburse the state for all retail merchant deductions allowed under IC 6-2.5-7-5(d) IC 6-2.5-7-5(e) or IC 6-2.5-7-5.1(e), as applicable, in the immediately preceding qualified reporting period (as defined in IC 6-2.5-7-5(e) IC 6-2.5-7-5(f) or IC 6-2.5-7-5.1(f), as applicable), the budget agency shall deduct from any amounts transferred for deposit into the fund in the remainder of that calendar year an amount sufficient to cure the insufficiency. The budget agency shall transfer any amounts deducted under this subsection for deposit in the same manner as state gross retail and use taxes are required to be deposited under IC 6-2.5-10-1.
    (g) If the retail merchant E85 deduction program is terminated, any balance in the fund must be transferred to the council.".
SOURCE: Page 1, line 10; (12)MO035303.1. -->     Page 1, after line 10, begin a new paragraph and insert:
SOURCE: ; (12)MO035303.13. -->     "SECTION 13. An emergency is declared for this act.".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 353 as printed February 24, 2012.)

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Representative Pelath


MO035303/DI 113     2012