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DEPARTMENT OF STATE REVENUE

Departmental Notice #2
December, 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.

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
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)

Step 2
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 three dollars and seven and nine-tenths cents ($3.079) for the month of August. The data is derived from www.IndianaGasPrices.com.

Based on the provisions of Step 1 and Step 2; the calculations are as follows:
Step 1     
Statewide average retail price per gallon:  3.079   
Multiplied by the state retail tax of:  x.07   
  0.21553   
Multiplied by eighty percent (80%)  x 0.8   
  0.1724   
     
Rounded to the nearest one-tenth of one cent:  0.172   
     
Step 2     
Previous 6 month prepayment rate:  0.151   
Multiplied by 125%  x 1.25   
  0.18875   
     
Rounded to the nearest one tenth of one cent:  0.189   

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 January 1, 2012, is seventeen and two-tenths ($0.172) 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  2.4 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 
January 1, 2012  to  June 30, 2012  17.2 cents 

Posted: 11/30/2011 by Legislative Services Agency

DIN: 20111130-IR-045110710NRA
Composed: Jul 10,2014 9:16:16PM EDT
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