TAX NEWS - 2010

Indiana Tax: Reinstatement of E-85 Sales Tax Deduction

DEPARTMENT OF STATE REVENUE

REINSTATEMENT OF E-85 SALES TAX DEDUCTION


This document does not meet the definition of a "statement" required to be published in the Indiana Register under IC 4-22-2-7. The purpose of this notice is to provide retailers of E-85 fuel with notice that the E-85 sales tax deduction will be reinstated effective January 1, 2011, for the reporting periods beginning January 1, 2011, and ending March 31, 2011.

The Indiana State Budget Agency is required to estimate whether the sales tax deductions taken under IC 6-2.5-7-5 during the immediately preceding reporting period plus the deductions expected to be taken during the reporting period beginning January 1, 2011, and ending March 31, 2011, will exceed the available balance in the E-85 Deduction Reimbursement Fund established under IC 15-15-12-30.5. If the estimated deductions exceed the available balance in the E-85 Reimbursement Fund, IC 6-2.5-7-5 requires that no deductions may be allowed for the reporting period beginning January 1, 2011, and ending March 31, 2011.

The Indiana State Budget Agency finds that under IC 15-15-12-32.5, $500,000.00 was transferred to the State on July 1, 2010, for deposit into the E-85 Deduction Reimbursement Fund. Therefore, the Indiana State Budget Agency finds that deductions not to exceed $500,000.00 may be allowed during the reporting period beginning January 1, 2011, and ending March 31, 2011.