1. (a) A surcharge tax is imposed on the consumption of motor fuel by a carrier in its operations on highways in Indiana at the applicable rate specified in subsection (b). Beginning July 1, 2017, the surcharge tax that applies to special fuel that is not an alternative fuel shall be collected and remitted in the manner specified for the special fuel tax under IC 6-6-2.5 as required by the department. A carrier shall reconcile the amount owed under this section as part of the carrier's motor fuel use tax reconciliation under this chapter. However, for a carrier that has not paid any surcharge tax at the time of purchase, the tax shall be paid quarterly by the carrier to the department on or before the last day of the month immediately following the quarter.

2. (b) The surcharge tax described in subsection (a) is imposed at the following applicable rate per surcharge gallon:

   1. (1) Before July 1, 2017, eleven cents ($0.11) per surcharge gallon.

   2. (2) For July 1, 2017, through June 30, 2018, the lesser of:

      1. (A) the rate resulting from using the factors determined under IC 6-6-1.6-2 ; or
      2. (B) twenty-one cents ($0.21).

   3. (3) Beginning July 1, 2018, and each July 1 through July 1, 2024, the department shall determine an applicable rate equal to the product of:

      1. (A) the rate in effect on June 30; multiplied by

      2. (B) the factor determined under IC 6-6-1.6-3 .

         The rate shall be rounded to the nearest cent ($0.01). However, after June 30, 2018, the new applicable rate may not exceed the rate in effect on June 30 plus one cent ($0.01). The department shall publish the rate that will take effect on July 1 on the department's Internet web site not later than June 1.

3. (c) The amount of motor fuel consumed by a carrier in its operations on highways in Indiana is the total amount of motor fuel consumed in its entire operations within and without Indiana, multiplied by a fraction. The numerator of the fraction is the total number of miles traveled on highways in Indiana, and the denominator of the fraction is the total number of miles traveled within and without Indiana.
4. (d) The amount of tax that a carrier shall pay for a particular quarter under this section equals the product of the tax rate in effect for that quarter, multiplied by the amount of motor fuel consumed by the carrier in its operation on highways in Indiana.
5. (e) Subject to section 4.8 of this chapter, a carrier is entitled to a proportional use credit against the tax imposed under this section for that portion of motor fuel used to propel equipment mounted on a motor vehicle having a common reservoir for locomotion on the highway and the operation of this equipment as determined by rule of the commissioner. An application for a proportional use credit under this subsection shall be filed on a quarterly basis on a form prescribed by the department.

As added by P.L.59-1985, SEC.17. Amended by P.L.8-1988, SEC.4; P.L.69-1991, SEC.13; P.L.85-1995, SEC.32; P.L.222-1999, SEC.4; P.L.277-2013, SEC.13; P.L.218-2017, SEC.48.