Gasoline Use Tax
Beginning July 1, 2014, a gasoline use tax will be imposed on gasoline and gasohol fuels. The gasoline use tax replaces the prepaid sales tax on gasoline collected from the retail merchant.
The Indiana Department of Revenue will determine the gasoline use tax rate by calculating a rolling, monthly, statewide average retail price per gallon of gasoline (excluding tax), multiplied by 7 percent. Due to the calculation process, the gasoline use tax rate may change on a monthly basis depending on the average Indiana retail price of gasoline. The department will publish the gasoline use tax rate monthly in Departmental Notice #2.
The gasoline use tax will be collected when a qualified distributor sells gasoline to a nonqualified distributor. The tax will not be collected when a qualified distributor sells to qualified distributor or exports the gasoline to another state. The qualified distributor must collect and remit the tax from the nonqualified distributor to the Indiana Department of Revenue.
Retail stations should include the gasoline use tax in the pump price of gasoline. Retail stations are reimbursed for the gasoline use tax in the same way they are reimbursed for gasoline or special fuel taxes included in the pump price.
The gasoline use tax does not affect form MF-360, and licensed gasoline distributors will need to continue to report gasoline. In addition, the tax does not affect collecting, remitting, or reporting Indiana’s 18-cents-per-gallon gasoline tax and 1-cent-per-gallon oil inspection fee.
The exemptions provided in IC 6-2.5-5 apply to gasoline use tax. The department will provide more information regarding gasoline use tax in upcoming months. To read the Indiana law for gasoline use tax, click here.
Beginning with the July 2014 filing period, the ST-103P and the ST-103DR will be discontinued. Gasoline distributors must report and remit the gasoline use tax due on the new gasoline use tax Form GT-103 and complete a gasoline use tax monthly recap (Form GT-103DR), Schedule 1: Receipts, and Schedule 2: Disbursements. Taxpayers can complete the forms through INtax or bulk file.
Retail Merchant, Onetime Gasoline Use Tax Inventory Report (GT-Inventory Report)
All retail merchants who have gasoline products in their inventory on July 1, 2014, are required to remit the gasoline use tax due on the number of gallons in storage multiplied by the July 2014 Gasoline Use Tax Rate of $0.229.
The GT-103 must be filed semimonthly to remit the gasoline use tax, as follows:
- Transactions from the 1st to the 15th of the month are due on the 25th of the month.
- Transactions from the16th to the end of the month are due on the 10th of the following month.
- The first GT103 is due July 25, 2014, for transactions from July 1, 2014, to July 15, 2014.
The GT-103DR, Recap of Gasoline Use Tax by Distributors, must be filed before the end of each month for the taxes owed and the gallons of gasoline sold or shipped during the preceding month. The form must include
- The number of gallons of gasoline sold or shipped during the preceding month (from the first day to the last day of the month), identifying each purchaser or receiver.
- The amount of tax paid by each purchaser or recipient.
- Any other information reasonably required by the department.
- The first GT-103DR will be due before August 31, 2014.
For more information about the forms and filing requirements, read the gasoline use tax FAQ.
Taxpayers and gasoline distributors wanting to avoid manually entering large data files into INtax have the option to bulk file the GT-103DR monthly recap. The bulk file secure file transfer program (SFTP) provides XML file formats.
Bulk File Requirements:
- Taxpayers must register with INtax and have a 10-digit tax identification number (TID) with a 3-digit location. Note: Taxpayers do not need to register if they are already registered with INtax.
- Taxpayers must send PGP-encrypted files only.
- Taxpayers must successfully upload at least 2 test files without errors. Taxpayers cannot bulk file until they have completed this testing and certification process.
Bulk File Resources
Bulk File Technical Contacts
For more information about the technical requirements for the bulk file upload for the recap form, please contact the Indiana Department of Revenue at:
- Email – firstname.lastname@example.org
- Phone – (317) 233-5656
Distributors, refiners, or terminal operators who want to receive gas in Indiana without paying the gasoline use tax and distributors importing gasoline into Indiana must have a valid permit from the department. To register for the gasoline use tax permit, complete the FT-1 Fuel Tax License Application and submit the following:
- $100 application fee.
- Bond in the minimum amount of $2,000 or 3-months gasoline use tax liability, whichever is greater. The bond must have an effective date of July 1, 2014.
- Current financial statements.
- A new gasoline use tax bond may not be required for established distributors who are current and compliant with all fuel and listed taxes and who have had their Gasoline Distributor’s bonds requirement released due to good standing with the Indiana Department of Revenue.
For more information about the gasoline use tax permit and bond requirements, read the gasoline use tax FAQ .
The exemptions provided in Indiana Code 6-2.5-5 apply to the gasoline use tax. Transactions exempt from gasoline use tax include
- The sale of gasoline from a refiner or terminal operator to a qualified distributor
- The sale of gasoline from a qualified distributor to another qualified distributor
- A shipment of gasoline from Indiana to a location outside of Indiana (exported gasoline)
- The sale of gasoline that meets the sales tax exemption criteria as set forth in Indiana Code 6-2.5-5
A distributor that has paid gasoline use tax and has not been reimbursed because the gasoline is sold to an exempt purchaser may file form GA-110L, Claim for Refund. If a gasoline sale is exempt from gasoline use tax, the purchaser who pays the tax to a retail merchant may file form GA-110L. The GA-110L must include all supporting documentation.
For more information about refunds, read the gasoline use tax FAQ .
- March 17, 2014 – Bulk File Technical Q&A Web Conference for gasoline distributors from 3 p.m. to 4 p.m. Additional details can be found by clicking here.
- May 30, 2014 – Testing and certification for bulk filing begins.
- May 1, 2014 – July 1, 2014 – Registration for Gasoline Use Tax License via the FT-1 Application.
- July 25, 2014 – GT-103 is due for transactions from July 1 to July 15.
- July 31, 2014 – Gasoline Use Tax Inventory Form (GT-Inventory) is due from retailers for reconciliation of prepaid gasoline use tax as of July 1, 2014, inventory on hand.
- August 10, 2014 – GT-103 is due for transactions from July 16 to July 31.
- August 31, 2014 – GT103-DR monthly recap is due for July 2014 transactions.
For more information about gasoline use tax, please contact the Indiana Department of Revenue at:
- Email – email@example.com
- Phone – (317) 615-2630