Aircraft License Excise Tax
Excise tax, due at the time of registration, is determined by weight, age, and type of aircraft. All excise taxes are distributed to the county where the aircraft is usually located when not in use.
Alcoholic Beverage Excise Tax
Per-gallon rates are as follows: beer = $0.115; liquor/wine (21% alcohol or more) = $2.68; wine (less than 21% alcohol) = $0.47; mixed beverages (15% or less) = $0.47; hard cider $0.115. Effective July 1, 2019, the malt excise tax has been repealed. These taxes are collected by the Indiana Department of Revenue’s Special Tax Division.
Auto Rental Excise Tax
A tax based on the gross retail income from the rental of a motor vehicle weighing not more than 11,000 pounds for less than a 30-day period at a rate of 4%.
Aviation Fuel Tax
Excise tax collected by retailers of aviation fuel purchased in Indiana at the rate of twenty cents ($0.20) per gallon. This tax is added to the selling price of the aviation fuel. The United States, its agencies or instrumentalities, the state of Indiana and Indiana Air National Guard, and common carriers of passengers or freight are exempt from tax.
Charity Gaming Excise Tax
A tax based on the sale of pull tabs, punchboards, and tip boards to qualified organizations licensed for charity gaming at a rate of 10% of the wholesale price. It is collected and remitted by the licensed distributor, not who sells to the end consumer.
Cigarette/Other Tobacco Tax
Rates are as follows: pack of 20 cigarettes = $0.995; pack of 25 cigarettes = $1.24375; other tobacco products excluding moist snuff = 24% of wholesale price; moist snuff = $0.40 per ounce. It is collected and remitted by the licensed distributor.
Corporate Adjusted Gross Income Tax
The adjusted gross income tax rate for periods July 1, 2012, was 8.5%. Beginning July 1, 2012, the rate reduces by 0.5% per year until July 1, 2015, when the rate will be 6.5%. Beginning July 1, 2016, the rate continues to reduce by 0.25% per year until July 1, 2020, when the rate will be 5.25%. Beginning July 1, 2021, the rate will be 4.9%.
County Innkeeper’s Tax (CIT)
Tax determined locally on the gross income derived from lodging income. Tax may be collected either by the department or locally through the county treasurer’s office. Effective July 1, 2019, tax owed by a marketplace facilitator shall be collected by the department even if the locality otherwise collects the tax.
Financial Institutions Tax
A tax based on the federal adjusted gross income at a rate of 8.5% for businesses that are engaged in extending credit, leasing (when it is the economic equivalent of extending credit), or credit card operations. Beginning Jan. 1, 2014, the rate reduces by 0.5% per year until Jan. 1, 2017, when the rate will be 6.5%. Beginning Jan. 1, 2019, the rate will be reduced to 6.25%, with further reductions to 6.0% in 2020, 5.5% in 2021, 5.0% in 2022, and 4.9% in 2023.
Food and Beverage Tax
Tax determined locally for purchases of food and beverages for immediate consumption at a rate of 1% of the retail sales price. The rate for Marion County and the Orange County Historic Hotel (West Baden) is 2%. In some cases, a county and a municipality in the county may both impose a 1% tax for a combined rate of 2%.
The gasoline tax is $0.30 per gallon for FY20 and $0.31 per gallon for FY21 for all invoiced gallons of gasoline collected by the licensed distributor and added to the selling price.
Gasoline Use Tax
This tax replaced the retail sales tax on gasoline purchases effective July 1, 2014. The gasoline use tax is imposed at the time a retail merchant takes delivery at a flat rate per gallon. The tax rate to be used is calculated each month.
Heavy Equipment Rental Excise Tax (New)
Effective January 1, 2019, a heavy equipment rental excise tax of 2.25% is imposed on the gross retail income received from rental of tangible personal property from a business in Indiana that primarily rents equipment described in NAICS code 532412. Rentals by government entities, subrentals when the heavy equipment rental excise tax has been imposed previously, and rentals of property for mining purposes are exempt from this tax.
Individual Adjusted Gross Income Tax
Individuals are taxed on federal adjusted gross income with numerous adjustments for individual residents, partners, stockholders in S corporations, trusts, estates, and nonresidents with Indiana income sources at a rate of 3.23%.
Local Income Tax (LIT)
For residents, individuals are subject to tax on their income subject to Indiana adjusted gross income tax based on their county of residence as of January 1. For most nonresidents, individuals are subject to tax on their income subject to Indiana adjusted gross income tax derived from the individual’s principal place of business or employment and based on the individual’s principal county of business or employment as of January 1. Nonresident sports team members and racing team members are subject to tax in all counties in which they perform services as a team member. The tax rate varies by county.
Marion County Admissions Tax
Specific to Lucas Oil Stadium, the Indiana Convention Center, Victory Field, and Bankers Life Fieldhouse in Indianapolis for any event at a rate of 10% of the admission price (does not include events sponsored by educational institutions or religious or charitable organizations).
Marion County Supplemental Auto Rental Excise Tax
A tax based on the gross retail income from the rental in Marion County of a motor vehicle or truck weighing no more than 11,000 pounds for less than a 30-day period at a rate of 6%. Revenue from the tax is paid to the Capital Improvement Board of Managers.
Motor Carrier Fuel Tax
The per-gallon rate for FY20 is $0.49 for all special fuel and $0.30 for gasoline used by commercial motor carriers operating on Indiana highways. For FY21, these rates increase to $0.51 and $0.31, respectively.
Motor Vehicle Excise Tax
The Indiana Department of Revenue’s compliance program is aimed at locating vehicles owned by Indiana residents and registered illegally out of state, thus avoiding state vehicle excise tax. It is based on the age and class of the vehicle, plus penalty and interest for the time period the vehicle is illegally registered. (Except for this program, the motor vehicle excise tax is collected by the Bureau of Motor Vehicles.)
Pari-Mutuel Wagering Tax
A 2% levy is imposed on the total amount of money wagered on live races and simulcasts conducted at a permit holder’s racetrack. The tax is 2.5% of the total amount of money wagered on simulcasts from satellite facilities.
Petroleum Severance Tax
A tax levied against producers or owners of crude oil or natural gas and imposed at the time these products are removed from the ground at a rate equal to the greater of either 1% of the petroleum value or $0.03 per 1,000 cubic feet for natural gas and $0.24 per barrel of oil.
Public Utility Tax (Railroad Car Companies/Railroads)
A tax based on assessments by the Indiana Department of Local Government Finance on the indefinite location distributable property of a railroad company that provides service within a commuter transportation district.
Riverboat Wagering Tax
If a licensed riverboat does not have flexible scheduling (dockside gaming), a tax of 22.5% is levied against its adjusted gross receipts (total wagers, less payouts, less uncollected gaming receivables). If the boat has implemented flexible scheduling, the tax rate is graduated and ranges from 15% to 40%, depending on the amount of adjusted gross receipts. Indiana law allows gaming licensees to deduct AGR attributable to free-play wagering at any time during the year. The total amount deducted by a licensee for free-play may not exceed $7 million annually.
Beginning in FY 2014, the lowest tax bracket of 15% can change to 5% if the riverboat had less than $75 million of AGR during the preceding state fiscal year. An additional tax of $2.5 million is imposed if the riverboat taxed under the alternative schedule receives AGR exceeding $75 million in a particular state fiscal year.
RVs and Truck Campers Excise Tax
The RV Excise Tax must be paid when the RV or truck camper is required to be registered. Payment is made to a license branch in the vehicle owner’s county of residence. When an RV or truck camper is acquired after the annual registration date, the excise tax is reduced by 8.33% for each calendar month after the registration date.
Sales and Use Tax
A tax imposed on retail transactions collected at the retail level at a rate of 7% on the purchase or rental of tangible personal property, accommodations, public utility service, and other services per IC 6-2.5-4.
Slot Machine Wagering Tax
A pari-mutuel racetrack owner who conducts slot machine gaming at the owner’s racetrack is responsible for this and is subject to a graduated tax on 88% of its adjusted gross receipts from 25% to 35%. Indiana law allows gaming licensees to deduct AGR attributable to free-play wagering at any time during the year. The total amount deducted by a licensee for free-play may not exceed $7 million annually.
Special Fuel Tax
A license tax of $0.49 per gallon for FY20 and $0.51 per gallon for FY21 is imposed on all special fuel sold or used in producing or generating power for propelling motor vehicles.
Sports Wagering Tax (New)
Effective September 1, 2019, a tax of 9.5% is imposed on the adjusted gross receipts received from authorized sports wagering. The tax is due monthly on the 24th day of the month based on a specific wagering tax schedule.
Supplemental Wagering Tax
Effective July 1, 2018, all riverboat casinos (other than French Lick casino), are subject to a supplemental wagering tax. The tax rate is based on fiscal year 2017 riverboat admissions taxes divided by fiscal year 2017 adjusted gross receipts for each casino. However, the tax rate cannot exceed 4% (3.5% effective July 1, 2019).
Type II Gaming (Taverns)
An excise tax is imposed on the distribution of gambling games in the amount of 10% of the price paid by the retailer that purchases the games. The entity distributing the pull tabs, punchboards, or tip boards is liable for the tax.
Utility Services Use Tax
The utility services use tax is an excise tax imposed on the retail consumption of utility services in Indiana. The rate for 2020 is 1.4% and is imposed if the utility service provider is not subject to the utility receipts tax. After 2020, the rate will change annually with the revised rate published before September 1 of the preceding year.
Utility Receipts Tax
An imposed tax of 1.4% on gross receipts from retail utility sales for 2020. After 2020, the rate will change annually with the revised rate published before September 1 of the preceding year.
Vehicle Sharing Tax
Effective January 1, 2020, a new vehicle sharing excise tax is imposed. This is a tax based on the gross retail income from the sharing of a passenger motor vehicle or truck for less than a 30-day period at a rate of 2%.