Indiana Announces Prepayment Rate for Sales Tax on Gas
- Sales Tax News
- Nov 26, 2012 | Gail Cole
In Indiana, certain refiners, terminal operators, and qualified distributers are required to collect prepayments of sales tax on gasoline. The prepayment rate for the following sixth-month periods must be published each June and December in the Indiana Register. Effective periods are January 1 through June 30, and July 1 through December 31.
The prepayment rate for sales tax on gasoline for the period January 1, 2013 through June 30, 2013 is eighteen and three-tenths ($0.183) per gallon. This figure was calculated pursuant to IC 6-2.5-7-1 and IC 6-2.5-7-14, using the August statewide average price per gallon of gasoline (retail), which was $3.259.
The prepayment rate is determined by:
"Step 1: Take the product of:
- The statewide average retail price per gallon of gasoline (excluding all taxes); multiplied by
- The state gross retail tax (7%); multiplied by
- Eighty percent (80%); and then
- Rounded to the nearest one-tenth of one cent ($0.001).
Step 2: Determine the lesser of the results in step one or
- 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
- Round the result to the nearest one-tenth of one cent ($0.001)."