This document is not a "statement" required to be published in the Indiana Register under IC 4-22-7-7. However, under IC 6-2.5-7-14, the Department is required to publish the prepayment rate in the June and December issues of the Indiana Register. The purpose of this notice is to inform each refiner, terminal operator, and qualified distributor known to the Department to be required to collect prepayments of sales tax on gasoline of the "prepayment rate" effective for the next six-month period. A prepayment rate is calculated twice a year by the Department and is effective for the period January 1 through June 30, or, July 1 through December 31, as appropriate.

The prepayment rate is defined by IC 6-2.5-7-1 and IC 6-2.5-7.14 as the product of:

Step 1

Step 2

Using the most recent retail price of gasoline available (as required by IC 6-2.5-7-14(b)), the Department has determined the statewide average retail price per gallon of gasoline to be two dollars and forty two cents ($2.420). The most recent retail price of gasoline available was based on data contained in the November 2006 Petroleum Marketing Monthly as published by the Energy Information Agency.

Based on the provision of Step 1 and Step 2; the calculations are as follows:

Based upon the above calculations step 2 will be used in determining the prepayment rate. The prepayment rate of sales tax on gasoline for the six – (6) month period beginning January 1, 2007, is eleven and nine-tenths cents ($0.119) per gallon.

Indiana Department of State Revenue

______________________________

John Eckart

Commissioner

The prepayment rates for periods beginning July 1, 1994 are established below: