Departmental Notice #2
June 2012
Prepayment of Sales Tax on Gasoline
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.
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%); and then
4) rounded
to the nearest one-tenth of one cent ($0.001)
Step 2
1)
determine the lesser of the results in step one 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%); and then
3) round
the result to the nearest one-tenth of one cent ($0.001).
...Based upon the above calculations, Step 1 will be used in determining the prepayment rate. The prepayment rate of sales tax on gasoline for the six (6) month period beginning July 1, 2012, is sixteen and three-tenths ($0.163) per gallon.
See the full notice here:
