(c) When a taxpayer makes a partial payment on the taxpayer's tax liability, the department shall apply the partial payment in the following order:

1. (1) To any registration or transfer fee owed by the taxpayer.
2. (2) To any late penalty and interest on the late registration or excise tax owed by the taxpayer.
3. (3) To any excise tax owed by the taxpayer.
4. (4) To any late penalty and interest on gross retail or use tax owed by the taxpayer.

5. (5) To any gross retail or use tax owed by the taxpayer.

   Formerly: Acts 1975, P.L.68, SEC.1. As amended by Acts 1977, P.L.87, SEC.8; P.L.93-1983, SEC.9; P.L.65-1997, SEC.18.