DEPARTMENT OF STATE REVENUE
Departmental Notice #2
June 1, 2011
Prepayment of Sales Tax on Gasoline
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.
1) the statewide average retail price per gallon of gasoline (excluding the Indiana gasoline tax, the federal gasoline tax, and the Indiana gross retail tax); multiplied by
2) the state gross retail tax rate [7%]; multiplied by
3) eighty percent (80%); and then
4) rounded to the nearest one-tenth of one cent ($0.001)
1) determine the lesser of the results in step one or
2) the product of:
(i) the prepayment rate in effect on the day immediately preceding the day on which the prepayment rate is redetermined; multiplied by
(ii) one hundred twenty-five percent (125%); and then
3) round the result to the nearest one-tenth of one cent ($0.001).
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 sixty-eight and nine-tenths cents ($2.689). The most recent retail price of gasoline available was based on data contained in the May 2011 Petroleum Marketing Monthly as published by the Energy Information Agency.
Based on the provisions of Step 1 and Step 2; the calculations are as follows:
| | | |
| Step 1 | | |
| Statewide average retail price per gallon: | 2.689 | |
| Multiplied by the state retail tax of: | x.07 | |
| | 0.18823 | |
| Multiplied by eighty percent (80%) | x 0.8 | |
| | 0.1506 | |
| | | |
| Rounded to the nearest one-tenth of one cent: | 0.151 | |
| | | |
| Step 2 | | |
| Previous 6 month prepayment rate: | 0.123 | |
| Multiplied by 125% | x 1.25 | |
| | 0.1538 | |
| | | |
| Rounded to the nearest one tenth of one cent: | 0.154 | |
Based upon the above calculations, Step 1 will be used in determining the prepayment rate. The prepayment rate of sales tax on gasoline for the six (6) month period beginning July 1, 2011, is fifteen and one-tenths cents (0.151) per gallon.
Indiana Department of State Revenue
John Eckart
Commissioner
The prepayment rates for periods beginning July 1, 1994 are established below:
| | | | |
| Period | | | Rate Per Gallon |
| July 1, 1994 | to | December 31, 1994 | 2.9 cents |
| January 1, 1995 | to | June 30, 1995 | 3.7 cents |
| July 1, 1995 | to | December 31, 1995 | 3.3 cents |
| January 1, 1996 | to | June 30, 1996 | 3.3 cents |
| July 1, 1996 | to | December 31, 1996 | 3.4 cents |
| January 1, 1997 | to | June 30, 1997 | 4.0 cents |
| July 1, 1997 | to | December 31, 1997 | 3.9 cents |
| January 1, 1998 | to | June 30, 1998 | 4.0 cents |
| July 1, 1998 | to | December 31, 1998 | 2.9 cents |
| January 1, 1999 | to | June 30, 1999 | 3.0 cents |
| July 1, 1999 | to | December 31, 1999 | 2.4 cents |
| January 1, 2000 | to | June 30, 2000 | 3.6 cents |
| July 1, 2000 | to | December 31, 2000 | 4.6 cents |
| January 1, 2001 | to | June 30, 2001 | 4.9 cents |
| July 1, 2001 | to | December 31, 2001 | 4.9 cents |
| January 1, 2002 | to | June 30, 2002 | 4.9 cents |
| July 1, 2002 | to | December 31, 2002 | 3.2 cents |
| January 1, 2003 | to | June 30, 2003 | 5.3 cents |
| July 1, 2003 | to | December 31, 2003 | 6.6 cents |
| January 1, 2004 | to | June 30, 2004 | 6.5 cents |
| July 1, 2004 | to | December 31, 2004 | 6.6 cents |
| January 1, 2005 | to | June 30, 2005 | 7.6 cents |
| July 1, 2005 | to | December 31, 2005 | 7.8 cents |
| January 1, 2006 | to | June 30, 2006 | 11.2 cents |
| July 1, 2006 | to | December 31, 2006 | 9.5 cents |
| January 1, 2007 | to | June 30, 2007 | 11.9 cents |
| July 1, 2007 | to | December 31, 2007 | 9.9 cents |
| January 1, 2008 | to | June 30, 2008 | 12.4 cents |
| July 1, 2008 | to | December 31, 2008 | 15.5 cents |
| January 1, 2009 | to | January 31, 2009 | 19.4 cents |
| February 1, 2009 | to | June 30, 2009 | 9.9 cents |
| July 1, 2009 | to | December 31, 2009 | 8.9 cents |
| January 1, 2010 | to | June 30, 2010 | 11.1 cents |
| July 1, 2010 | to | December 31, 2010 | 11.8 cents |
| January 1, 2011 | to | June 30, 2011 | 12.3 cents |
| July 1, 2011 | to | December 31, 2011 | 15.1 cents |
Posted: 06/29/2011 by Legislative Services Agency
DIN: 20110629-IR-045110355NRA
Composed: May 04,2024 10:09:52AM EDT
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