Indiana roadways and bridges are a crucial part of Indiana’s economic success. Access to major highways, minimal traffic congestion, increased highway safety and lower auto repair costs are often a business priority. To address these issues, Indiana Governor Eric Holcomb signed Indiana House Bill 1002 which impacts motor fuel storage businesses, motor carrier operations and any persons having a title to a motor vehicle in Indiana.
Below is a summary of how you or your business may be impacted by this legislation:
- An inventory tax is now imposed on all entities having motor fuel in storage and held for sale each time there is an increase in the excise tax rate. Most urgently, you must have an inventory of the quantity of fuel on hand at June 30, 2017, and remit a tax of $0.21 cents per gallon. Use Indiana form IVT-1 which must be post marked on or before July 31, 2017.
- Motor carriers face increased registration fees determined by their apportioned mileage on Indiana roadways.
- Indiana residents who own a plated vehicle will see an increase of approximately $15 in their annual plate fees and an average increase in fuel costs of $6 per month at the pump.
- Vehicles over 26,000 pounds will no longer be charged the Transportation Infrastructure Improvement fee rather those under 26,000 pounds will now be charged.
- The Indiana State Excise Tax on gasoline and gasohol will be increased from $0.18 per gallon to $0.28 per gallon. Tax on diesel and other special fuels will be increased to $0.26 per gallon.
- A surcharge tax will be added to each gallon sold in addition to the Indiana State Excise Tax. The 7% sales tax on diesel and special fuels will be eliminated.
- Off road diesel will be exempt from state excise tax, surcharge tax and sales tax.
The Indiana Department of Transportation is compiling a list of the necessary road upgrades and maintenance projects. Finally, Indiana will have adequate funding for safer roads.
Contact your Somerset advisor at 317-472-2200, or email us at , to discuss this topic further.