Due to the passage of House Enrolled Act (HEA) 1002 during the 2017 Indiana legislative session, our fuel taxes went through an overhaul designed to pump an estimated $500 Million into our road funds starting this summer and an estimated $1.2 billion in new money annually into road infrastructure beginning in 2024. Almost $850 million of that annual income is designated to state highways, with local roads receiving nearly $350 million.
With the changes in the effective tax rates and the addition of the surcharge to the pump price, station owners will be required to complete the Fuel Inventory Report, Form IVT-1. This form must reflect the gallons of fuel held in storage as of the close of business on June 30, 2017.
Station Owners or fleets with storage tanks holding fuel as of July 1st, 2017, will be required to take inventory and make a onetime payment to the Indiana DOR as outlined below.
- Total Special Fuel Floor Stocks Tax is $0.31 per gallon, which represents the $0.10 increase in the special fuel excise tax rate plus the $0.21 per gallon surcharge.
- Total Gas Floor Stocks Tax is $0.10 per gallon, which represents the increase in the gasoline excise tax rate.
The form and corresponding payment must be postmarked on or before July 31, 20I7. IVT- 1 forms and payments postmarked after July 31, 2017 will be considered late and will be subject to penalties and interest.
Fleet operators will see these changes reflected in their bulk delivery billing statements and request refunds accordingly, as eligible. All forms will be on the DOR website as of Monday, June 3rd.
EXAMPLES OF EQUATION TO BE USED BY THOSE ELIGIBLE FOR REFUND:
Clear Diesel for trucks plated less than 26,000 pounds: diesel customers will now pay the excise and fuel surcharge tax when fuel is delivered to them, or when they purchase fuel at a gas station.
However, these customers can file form GA110L for the IFTA surcharge refund. They must have proof of purchase and can file anytime (once a week, once a year, etc.
Example of new diesel tax.
If fuel base price is $2.00:
Old tax rate: ($.16+$.244+$.14 sales tax) = $.544.
New taxes: ($.26 + $.244 + $.21 Ifta) = $.714
After Surcharge refund if they file: ($.26 + $.244) = $.504.