DEPARTMENT OF STATE REVENUE
Departmental Notice #2
December 2013
SUBJECT: Prepayment of Sales Tax on Gasoline
DISCLAIMER: 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.
Statutory Calculation of Prepayment Rate
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 two dollars ninety-nine and four-tenths cents ($2.994) for the month of August 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: | 2.994 | |
Multiplied by the state retail tax: | x .07 | |
| 0.20958 | |
Multiplied by 80%: | x 0.8 | |
| 0.16766 | |
| | |
Rounded to the nearest one-tenth of one cent: | 0.168 | |
| | |
Step 2 | | |
Previous 6-month prepayment rate: | 0.177 | |
Multiplied by 125%: | x 1.25 | |
| 0.22125 | |
| | |
Rounded to the nearest $0.001: | 0.221 | |
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 January 1, 2014, is sixteen and eight-tenths cents ($0.168) per gallon.
_________________________
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 |
| January 1, 2014 | to | June 30, 2014 | 16.8 cents |
Posted: 12/25/2013 by Legislative Services Agency
DIN: 20131225-IR-045130556NRA
Composed: Apr 25,2024 6:30:40AM EDT
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