1. (a) Except as provided in subsection (b), fees for the inspection of gasoline or kerosene shall be at the rate of fifty cents ($0.50) per barrel (fifty (50) gallons) on all gasoline or kerosene received in Indiana less deductions provided in this section.

2. (b) A fee for inspection of gasoline or kerosene may not be charged for the following:

   1. (1) On transport or tank car shipments direct to the federal government.
   2. (2) On gasoline or kerosene received and subsequently exported from Indiana or returned to refineries or marine or pipeline terminals in Indiana.

3. (c) Fees shall be paid to the state department by the person receiving gasoline or kerosene in Indiana at the time gasoline or kerosene products are received, unless the person receiving the gasoline or kerosene is licensed as a distributor under the gasoline tax law ( IC 6-6-1.1 ). In that case, the person in receipt of the gasoline or kerosene shall do the following:

   1. (1) Include in the person's monthly gasoline tax report a statement of all gasoline and kerosene received during the preceding calendar month on which inspection fees are due.
   2. (2) Remit the amount of the inspection fees at the same time the monthly motor fuel tax report is due.

4. (d) A refiner or other person supplying gasoline or kerosene to the first receiver in Indiana may elect to pay the fees monthly on all gasoline or kerosene supplied to persons in Indiana not licensed as distributors under the gasoline tax law ( IC 6-6-1.1 ). If the supplier is not licensed as a distributor under the gasoline tax law of Indiana ( IC 6-6-1.1 ), the supplier shall, as a condition precedent to such election, file with the state department a corporate surety bond that meets the following conditions:

   1. (1) Is in the form and amount that the state department determines, not to exceed two thousand dollars ($2,000).

   2. (2) Is conditioned that the supplier does the following:

      1. (A) Reports all gasoline and kerosene supplied by the supplier to persons in Indiana not licensed as distributors under the gasoline tax law ( IC 6-6-1.1 ).
      2. (B) Pays inspection fees monthly on or before the twenty-fifth day of each calendar month for the preceding calendar month.
5. (e) A person taking credit for gasoline or kerosene exported or returned to a refinery or terminal shall substantiate that credit in the manner that the state department reasonably requires by rule.

6. (f) A distributor who fails to file a monthly report and pay the tax due as required by this chapter is subject to a penalty of five percent (5%) of the amount of unpaid tax due and interest on the unpaid tax and penalty at the rate of eight percent (8%) annually. However, if a delay not exceeding ten (10) days is due to a mistake, an accident, or an oversight without intent to avoid payment, the administrator may waive the penalty and interest.

   [Pre-1993 Recodification Citation: 16-6-11-9.]

As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993, SEC.16; P.L.28-1997, SEC.29; P.L.214-2005, SEC.60.