February 20, 2007
HOUSE BILL No. 1622
_____
DIGEST OF HB 1622 (Updated February 19, 2007 3:39 pm - DI 114)
Citations
Affected: IC 6-2.5; noncode.
Synopsis: Sales tax on gasoline. Provides that the state gross retail tax may not be applied to the sale of: (1) gasoline after the pretax price of gasoline reaches $1.77 per gallon; or (2) special fuel after the pretax price of special fuel reaches $1.88 per gallon.
Effective: Upon passage; July 1, 2007.
Oxley, Crawford, Cheatham , GiaQuinta
January
23, 2007, read first time and referred to Committee on Ways and
Means.
February 19, 2007, amended,
reported _ Do Pass.
February 20, 2007
First Regular Session 115th General Assembly (2007)
PRINTING
CODE. Amendments: Whenever an existing statute (or a section of the
Indiana Constitution) is being amended, the text of the existing
provision will appear in this style type, additions will appear in
this style type, and deletions will appear in this
style type.
Additions: Whenever
a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this
style type. Also, the word NEW will appear in that style
type in the introductory clause of each SECTION that adds a new
provision to the Indiana Code or the Indiana Constitution.
Conflict
reconciliation: Text in a statute in this style type or this
style type reconciles
conflicts between statutes enacted by the 2006 Regular Session of the
General Assembly.
HOUSE BILL No. 1622
A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE:
IC 6-2.5-7-3; (07)HB1622.1.1. --> SECTION
1. IC 6-2.5-7-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2007]: Sec. 3. (a) Notwithstanding IC 6-2.5-2-2, with
respect to the sale of gasoline which that is
dispensed from a metered pump, a retail merchant shall collect, for
each unit of gasoline sold, state gross retail tax in an amount equal
to the product, rounded to the nearest one-tenth of one cent
($0.001), of:
(1)
the price per unit
before the addition
of state and
federal taxes; lesser of
the:
(A)
price per unit before the addition of state and federal taxes;
or
(B)
product of:
(i)
one dollar and seventy-seven cents ($1.77); multiplied
by
(ii)
the gallon conversion index;
rounded to the nearest one cent ($0.01); multiplied
by
(2) six percent
(6%).
The retail merchant shall collect the state gross retail tax
prescribed in
this section even if the transaction is exempt from taxation under
IC 6-2.5-5.
(b) Notwithstanding
IC 6-2.5-2-2, with respect to the sale of special fuel that is
dispensed from a metered pump, unless the purchaser provides an
exemption certificate in accordance with IC 6-2.5-8-8, a retail
merchant shall collect, for each unit of special fuel sold, state
gross retail tax in an amount equal to the product of, rounded to the
nearest one-tenth of one cent ($0.001):
(1)
the lesser of:
(A)
the price per unit before the addition of state and federal taxes;
or
(B)
the product of:
(i)
one dollar and eighty-eight cents ($1.88); multiplied
by
(ii)
the gallon conversion index;
rounded
to the nearest one cent ($0.01); multiplied by
(2)
six percent (6%).
Unless the exemption certificate is provided,
the retail merchant shall collect the state gross retail tax
prescribed in this section even if the transaction is exempt from
taxation under IC 6-2.5-5.
(b)
(c) With respect to the sale of special fuel
or kerosene which that is
dispensed from a metered pump, unless the purchaser provides an
exemption certificate in accordance with IC 6-2.5-8-8, a retail
merchant shall collect, for each unit of special
fuel or kerosene sold, state gross
retail tax in an amount equal to the product, rounded to the nearest
one-tenth of one cent ($0.001), of:
(1)
the price per unit before the addition of state and federal taxes;
multiplied by
(2)
six percent (6%).
Unless the exemption certificate is provided,
the retail merchant shall collect the state gross retail tax
prescribed in this section even if the transaction is exempt from
taxation under IC 6-2.5-5.
(d)
For purposes of this section, the gallon conversion index is the
following:
(1) One
(1), if the unit of measure by which gasoline or special fuel is sold
is a gallon.
(2)
Five-tenths (0.5), if the unit of measure by which gasoline or
special fuel is sold is one-half (1/2) gallon.
(3)
Twenty-six thousand four hundred seventeen one hundred thousandths
(0.26417), if the unit of measure by which gasoline or special fuel
is sold is a liter.
(4)
An equivalent gallon conversion index specified by the
department if the unit of measure by which gasoline or special fuel is sold is not described in subdivision (1), (2), or (3).
SOURCE: IC 6-2.5-7-14; (07)HB1622.1.2.
--> SECTION 2. IC 6-2.5-7-14, AS
AMENDED BY P.L.176-2006, SECTION 2, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 14. (a) Before June 10 and December 10
of each year, the department shall determine and provide
to:
(1) each
refiner and terminal operator and each qualified distributor known to
the department to be required to collect prepayments of the state
gross retail tax under this chapter; and
(2)
any other person that makes a request;
a notice of the prepayment
rate to be used during the following six (6) month period. The
department shall also have the prepayment rate published in the June
and December issues of the Indiana Register.
(b)
In determining the prepayment rate under this section, the department
shall use the most recent retail price of gasoline available to the
department.
(c) The prepayment rate per
gallon of gasoline determined by the department under this section is
the amount per gallon of gasoline determined under STEP FOUR of the
following formula:
STEP
ONE: Determine the statewide average retail price per gallon of
gasoline, excluding the Indiana and federal gasoline taxes and the
Indiana gross retail tax.
STEP
TWO: Determine the product of the following:
(A)
The lesser of the following:
(i)
The STEP ONE amount.
(ii) For prepayments made after June 30, 2007, one dollar and
seventy-seven cents ($1.77).
(B)
The Indiana gross retail tax rate.
(C)
Ninety percent (90%).
STEP
THREE: Determine the lesser of:
(A)
the STEP TWO result; or
(B)
the product of:
(i)
the prepayment rate in effect on the day immediately preceding the
day on which the prepayment rate is redetermined under this section;
multiplied by
(ii)
one hundred twenty-five percent (125%).
STEP
FOUR: Round the STEP THREE result to the nearest one-tenth of one
cent ($0.001).
SOURCE: ; (07)HB1622.1.3. --> SECTION
3. [EFFECTIVE UPON PASSAGE] (a) IC 6-2.5-7-3, as amended by
this act, applies to retail transactions that occur after June 30,
2007.
(b) As used in this SECTION,
"department" refers to the
department of state revenue.
(c) The
department may adopt temporary rules in the manner provided for the
adoption of emergency rules under IC 4-22-2-37.1 to implement
IC 6-2.5-7-3, as amended by this act. The temporary rules
must provide a method for providing a credit or a refund of any
difference between the prepayment amounts paid or deposited with the
department by any person on the purchase or shipment of gasoline in a
reporting period ending before July 1, 2007, and the gross retail
rate imposed by IC 6-2.5-7-3, as amended by this act, on the
retail sale of the gasoline in a reporting period beginning after
June 30, 2007.
(d) A rule adopted
under this SECTION expires on the earliest of the
following:
(1) The
date a rule is adopted by the department under IC 4-22-2 that
repeals, amends, or supersedes the temporary rule.
(2)
The date another temporary rule is adopted under this
SECTION.
(3) The
date specified in the temporary rule.
(4)
July 1, 2008.
SOURCE: ; (07)HB1622.1.4. --> SECTION 4. An emergency is declared for this act.