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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

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 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   

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 January 1, 2014, is sixteen and eight-tenths cents ($0.168) 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 
  January 1, 2014  to  June 30, 2014  16.8 cents 

Posted: 12/25/2013 by Legislative Services Agency

DIN: 20131225-IR-045130556NRA
Composed: Dec 18,2014 4:37:17AM EST
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