1. (a) Persons having title to motor fuel in storage and held for sale to a carrier in the carrier's operations on highways in Indiana on the effective date of an increase in the surcharge tax rate imposed under section 4.5 of this chapter are subject to an inventory tax based on the surcharge gallons in storage as of the close of the business day preceding the effective date of the increased surcharge tax rate.

2. (b) Persons subject to the tax imposed under this section shall:

   1. (1) take an inventory to determine the surcharge gallons in storage for purposes of determining the inventory tax;
   2. (2) report the surcharge gallons listed in subdivision (1) on forms provided by the commissioner; and

   3. (3) pay the tax due not more than thirty (30) days after the prescribed inventory date.

      In determining the amount of surcharge tax due under this section, the person may exclude the amount of motor fuel that will not be pumped out of the storage tank because the motor fuel is below the mouth of the draw pipe. For this purpose, the person may deduct two hundred (200) surcharge gallons for a storage tank with a capacity of less than ten thousand (10,000) surcharge gallons, and four hundred (400) surcharge gallons for a storage tank with a capacity that exceeds ten thousand (10,000) surcharge gallons.

3. (c) The amount of the inventory tax is equal to the inventory tax rate times the surcharge gallons in storage as determined under subsection (b). The inventory tax rate is equal to the difference of the increased surcharge tax rate minus the previous surcharge tax rate.
4. (d) The inventory tax shall be considered a listed tax for the purposes of IC 6-8.1 .

As added by P.L.218-2017, SEC.47.