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DEPARTMENT OF STATE REVENUE

Departmental Notice #2
June 2013


SUBJECT: PREPAYMENT OF SALES TAX ON GASOLINE


DISCLAIMER: Departmental notices are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on either the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein. This document does not meet the definition of a "statement" required to be published in the Indiana Register under IC 4-22-2-7.

Statutory Calculation of Prepayment Rate

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%); rounded to
4) The nearest one-tenth of one cent ($0.001)

Step 2
1) Determine the lesser of the results in Step 1 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%); rounded to
3) 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 sixteen and five-tenths cents ($3.165) for the month of February 2013. 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:  3.165   
Multiplied by the state retail tax:  ×.07   
  0.22155   
Multiplied by 80%:  × 0.8   
  0.17724   
     
Rounded to the nearest one-tenth of one cent:  0.177   
     
Step 2     
Previous 6-month prepayment rate:  0.183   
Multiplied by 125%:  × 1.25   
  0.22875   
     
Rounded to the nearest $0.001:  0.229   

Prepayment Rate

Based on the previous calculations, Step 1 will be used to determine the prepayment rate. The prepayment rate of sales tax on gasoline for the 6-month period beginning July 1, 2013, is seventeen and seven-tenths cents ($0.177) per gallon.
_________________________
Michael J. Alley
Commissioner
Indiana Department of State Revenue

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, 201  to  December 31, 2011  15.1 cents 
January 1, 2012  to  June 30, 2012  17.2 cents 
July 1, 2012  to  December 31, 2012  16.3 cents 
January 1, 2013  to  June 30, 2013  18.3 cents 
July 1, 2013  to  December 31, 2013  17.7 cents 

Posted: 06/26/2013 by Legislative Services Agency

DIN: 20130626-IR-045130270NRA
Composed: Oct 20,2014 7:38:40AM EDT
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