Citations Affected: IC 6-2.5-7-5; IC 15-15-12.
Synopsis: Corn marketing council. Repeals provisions concerning
deductions to retail merchants under the E85 reimbursement program.
Adds requirements applying to membership on the corn marketing
council (council). Changes the date by which a petition for candidacy
to the council may be filed. Provides that the council operates on the
basis of its own fiscal year. (Current law requires the council to operate
on a state fiscal year basis.) Establishes a formula to determine the
maximum administrative expenses of the council. Provides that the cost
of processing refunds and the cost of applying for grants are not
administrative expenses. Requires a first purchaser of corn to remit the
corn sale assessment within 30 days after collection. Requires a first
purchaser that is not subject to assessment to sign and date an
exemption form. Establishes an assessment refund schedule based upon
the amount owed. Makes a technical change.
Effective: July 1, 2012.
January 9, 2012, read first time and referred to Committee on Agriculture and Natural
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals.
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) 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), IC 6-2.5-6-10 and
(c) A retail merchant is entitled to deduct from the amount of state
gross retail tax required to be remitted under subsection (b) 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) and (f), 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
STEP THREE: Add the amounts determined under STEPS ONE
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 total amount of deductions allowed under subsection (c)
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) 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) 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) 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) 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) The budget agency may suspend the deduction program under
subsection (c) 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
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
(d) Each member of the council is entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with the member's duties, as provided in the state travel policies and procedures established by the Indiana department of administration and approved by the budget agency. However, council members are not entitled to a salary or per diem.
under this chapter for any purpose other than the purposes authorized
by this chapter. The amount of money expended on administering this
a state the council's fiscal year may not exceed ten percent
(10%) of the total average amount of assessments, grants, and gifts
received by the council in that state fiscal year. as calculated under
(e) The council shall determine the amount that it may expend to administer this chapter using the following formula:
STEP ONE: Determine the amount of assessments, grants, and gifts received by the council in each of the preceding five (5) fiscal years beginning with the immediately preceding fiscal year.
STEP TWO: Determine the average annual amount of assessments, grants, and gifts received by the council in each fiscal year using three (3) of the five (5) fiscal years described in STEP ONE after excluding the years in which the total amount of assessments, grants, and gifts received by the council were the highest and lowest.
STEP THREE: Divide the amount in STEP TWO by ten (10).
The amount determined under STEP THREE is the maximum amount that the council may expend on administering this chapter for the current fiscal year.
(f) The cost of processing refunds and the cost of applying for grants are not administrative expenses under this section.
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) in the immediately preceding qualified reporting period
(as defined in IC 6-2.5-7-5(e)), 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.