What is Gasoline Use Tax?
The Gasoline Use Tax on gasoline and gasohol fuels is considered the equivalent of the 7% sales tax that would be collected by a retail merchant and replaces the obligation of the retail merchant to collect the sales tax on the sale of gasoline.
Indiana Code (IC) 6-2.5-3.5 provides for the collection of a Gasoline Use Tax effective for gasoline purchases on or after July 1, 2014. The gross retail tax otherwise imposed under IC 6-2.5 is not imposed on gasoline sales. Exemptions available to taxpayers under IC 6-2.5-5 (other than the sale for resale exemption under IC 6-2.5-5-8) are also available to taxpayers for Gasoline Use Tax.
The Gasoline Use Tax does not affect Form MF-360, and licensed gasoline distributors will need to continue to report and file the gasoline tax return. In addition, the tax does not affect collecting, remitting, or reporting Indiana’s per-gallon gasoline excise tax and per-gallon oil inspection fee.
- How is Gasoline Use Tax rate calculated?
DOR will determine the Gasoline Use Tax rate by calculating monthly the statewide average retail price per gallon of gasoline from the 16th day of the previous month to the 15th day of the current month (excluding tax), multiplied by 7%. Due to the calculation process, the gasoline use tax rate may change on a monthly basis depending on the average Indiana retail price of gasoline.
- How will I know what the Gasoline Use Tax rate is each month?
DOR publishes the Gasoline Use Tax rate monthly in Departmental Notice #2, which will be published before the 22nd of the month. Subscribe to Departmental Notices to receive an email or text notification each time the Gasoline Use Tax notice is updated. To subscribe, click on the "Subscribe for Email Updates" button at the top on the webpage and enter your information.
- When is Gasoline Use Tax collected?
The Gasoline Use Tax will be collected when a qualified distributor sells gasoline to a nonqualified distributor. The tax will not be collected when a qualified distributor sells to a qualified distributor or exports the gasoline to another state. The qualified distributor must collect and remit the tax from the nonqualified distributor to the Indiana Department of Revenue (DOR).
- How does a retail station recover the tax?
Retail stations should include the gasoline use tax in the pump price of gasoline. Retail stations are reimbursed for the gasoline use tax in the same way they are reimbursed for gasoline or special fuel taxes included in the pump price.
Gasoline Use Tax Permit
- Who needs to register for a Gasoline Use Tax permit?
Distributors, refiners, and terminal operators that want to receive gas in Indiana without paying Gasoline Use Tax and distributors importing gasoline into Indiana must have a valid permit from DOR to collect Gasoline Use Tax payments from purchasers and recipients of gasoline.
- If I am already a registered gasoline distributor, do I still need to file the FT-1 and register for Gasoline Use tax?
Registered gasoline distributors still need to complete Form FT-1 (Fuel Tax License Application) and register for a Gasoline Use Tax permit.
- How do I register for a Gasoline Use Tax permit?
To register for the Gasoline Use Tax permit, visit DOR’s e-services portal, INTIME, locate the “Registration” panel, and select “New tax registration.” During the registration process, you will be required to submit the following:
- $100 application fee
- Bond in the minimum amount of $2,000 or three-month gasoline use tax liability, whichever is greater
- Current financial statements
The option to manually complete Form FT-1 (Fuel Tax License Application) remains available.
- How do I calculate my three-month average Gasoline Use Tax liability?
Estimate your average gallons of gasoline for three months and multiply the total by the average Gasoline Use Tax rate for the most recent three months available in Departmental Notice #2.
- Are there any exceptions to the Gasoline Use Tax bond requirement?
A new gasoline use tax bond may not be required for established distributors who are current and compliant with all fuel and listed taxes and who have had their Gasoline Distributor’s bonds requirement released due to good standing with DOR.
Qualified gasoline distributors must report and remit the Gasoline Use Tax due using INTIME. Customers submitting files larger than 10 MB must upload via Bulk SFTP (Secure File Transfer Protocol). More information is available in the INTIME User Guide for Fuel Tax Customers.
Form GT-103 and informational Form GT-103DR, Schedule 1: Receipts, and Schedule 2: Disbursements are available for preview on the Fuel Tax Forms webpage.
Form GT-103 must be filed semimonthly to remit the Gasoline Use Tax as follows:
- Transactions from the 1st to the 15th of the month are due on the 25th of the month.
- Transactions from the 16th to the end of the month are due on the 10th of the following month.
Form GT-103DR, Recap of Gasoline Use Tax by Distributors, must be filed before the end of each month for the taxes owed and the gallons of gasoline sold or shipped during the preceding month using INTIME. Customers submitting files larger than 10 MB must upload via Bulk SFTP (Secure File Transfer Protocol). A Gasoline Use Tax (GT-103DR) Electronic Filing Technical Requirements guide is available.
The form must include:
- The number of gallons of gasoline sold or shipped during the preceding month (from the first day to the last day of the month), identifying each purchaser or receiver
- The amount of tax paid by each purchaser or recipient
- Any other information reasonably required by DOR
Customers can file and pay Gasoline Use Tax via INTIME. INTIME will accept file sizes under 10 MB or data can be manually entered.
Bulk File via SFTP
Customers and gasoline distributors have the option of using DOR’s bulk secure file transfer protocol (SFTP) to submit files containing large numbers within a transaction.
Gasoline distribution files, such as the GT-103DR monthly recap, that are larger than 10 MB must be uploaded via Bulk SFTP. There is no file size limitation to file using SFTP.
Bulk File Requirements
Guidance on bulk file requirements is available in the Bulk Upload Guide.
More Bulk Filing Resources
Bulk File Technical Contacts
For more information on bulk filing technical requirements for the recap form, contact the Electronic Services team.
- What product codes do I need to report?
You will need to report product codes for all gasoline and gasoline blends:
Product codes 061 and 065 will be combined and reported as gasoline.
Product codes E01–E99 and M01–M99 will be combined and reported as gasohol. This includes E85 which is a taxable gasoline blend as defined in the Indiana gasoline tax code 6-6-1.1-103.
- Is the schedule information required on Form GT-103DR the same information that’s provided on Forms MF360 and SF-401?
No. Although the schedule information required on Form GT-103DR looks similar to the schedule information on the Forms MF-360 and SF-401, the information is different. Form GT-103DR schedules report whether the transactions are subject to or exempt from the gasoline use tax. The transactions reported on Form MF-360 are specific to the per gallon state excise tax and oil inspection fee. Form SF-401 provides information about where the fuel was received and delivered, not about tax collection.
The exemptions provided in IC 6-2.5-5 apply to the Gasoline Use Tax. Transactions exempt from Gasoline Use Tax include:
- The sale of gasoline from a refiner or terminal operator to a qualified distributor
- The sale of gasoline from a qualified distributor to another qualified distributor
- A shipment of gasoline from Indiana to a location outside of Indiana (exported gasoline)
- The sale of gasoline that meets the sales tax exemption criteria as set forth in IC 6-2.5-5, other than the sale for resale exemption under IC 6-2.5-5-8.
Purchasers who want to claim an exemption must use Form GT-105, the Gasoline Use Tax Exemption Certificate. Form ST-105 is no longer used to claim Gasoline Use Tax exemptions. If an exemption or purchaser is not listed on Form GT-105, the purchaser must remit Gasoline Use Tax and request a refund.
In addition, a qualified distributor shall be allowed to make an adjustment on Form GT-103 to reflect any Gasoline Use Tax imposed on purchases by the qualified distributor when the qualified distributor purchases gasoline from another distributor that has previously paid Gasoline Use Tax on the gallons sold to the qualified distributor. Any information related to the payment of the Gasoline Use Tax on gasoline purchased by the qualified distributor must be provided to DOR.
- Who can file a claim for refund?
- A distributor that has paid Gasoline Use Tax and has not been reimbursed because the gasoline is sold to an exempt purchaser may file a claim for refund.
- If a gasoline sale is exempt from gasoline use tax, the purchaser who pays the tax to a retail merchant may file a claim for refund.
- How do I file a claim for refund?
Qualified taxpayers can request a refund via INTIME or submit Form GA-110L, Claim for Refund. Supporting documentation must be uploaded via INTIME—or must accompany Form GA-110L—to show gasoline use taxes have been paid. Begin by selecting the “Submit refund request” hyperlink in the “Refund for tax on purchases” panel on the INTIME landing page (no login required).
More information on requesting a refund for tax on purchases is available in the INTIME User Guide for Business Customers.
- What is gasoline?
“Gasoline” means all products commonly or commercially known or sold as gasoline, including casinghead and absorption or natural gasoline, regardless of their classifications or uses. Gasoline also means any liquid, which when subjected to distillation of gasoline, naphtha, kerosene, and similar petroleum products with American Society for Testing Materials Designation D-86, shows not less than 10% distilled (recovered) below 347 degrees Fahrenheit or 175 degrees Celsius, and not less than 95% distilled (recovered) below 464 degrees Fahrenheit or 240 degrees Celsius.
However, the term "gasoline" does not include liquefied gases which would not exist as liquids at a temperature of 60 degrees Fahrenheit or 16 degrees Celsius, and a pressure of 14.7 pounds per square inch absolute, or denatured, wood, or ethyl alcohol, ether, turpentine, or acetates, unless such product is used as an additive in the manufacture, compounding, or blending of a liquid described in the preceding sentence or is otherwise blended with a liquid described in the preceding sentence (including ethanol used in E85), in which event only the quantity so used is considered gasoline. In addition, "gasoline" does not include those liquids which meet these specifications, but which are especially designated for use other than as a fuel for internal combustion engines.
- What is a distributor?
A distributor is the first purchaser of gasoline from a refiner, terminal operator, or supplier regardless of the purchase location.
- What is a refiner?
A refiner manufactures or produces gasoline by any process involving substantially more than the blending of gasoline.
- What is a terminal operator?
A terminal operator stores gasoline in tanks and equipment used in receiving and storing gasoline from pipelines pending bulk wholesale reshipment. A terminal operator may store gasoline at a boat terminal transfer that is a dock, a tank, or equipment contiguous to a dock or tank, including equipment used in unloading gasoline from a ship or barge, transferring the gasoline to a tank pending wholesale bulk reshipment.
- What is a qualified distributor?
A qualified distributor is licensed under Indiana Code (IC) 6-6-1.1 and holds a valid Gasoline Use Tax permit issued under the Gasoline Use Tax code IC 6-2.5-3.5-17.
For more information about Gasoline Use Tax, contact DOR by email or by phone at 317-615-2630.
For file-specific questions, file errors or upload issues, contact DOR’s Electronic Services Team via INTIME’s secure messaging so that we can assist you more efficiently. Select “bulk filer” in the message options and provide details of your issue.
You may also contact DOR’s Electronic Services team by email.