Indianas fuel rate says $00 .16 and then surchage if $00.11 what does that mean? Does mean the rate for indiana is $00.27 or am I way off?
Trying to understand indiana fuel tax rate need help?
Discussion in 'Trucker Taxes and Truck Financing' started by SimD, Jun 5, 2013.
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Yup. KY & VA do the same too.
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The $.11 is a surtax that is not refundable. It is calculated the same way as the state fuel taxes. It is possible to buy enough fuel to cancel out any fuel taxes that you may owe, on $.16 a gallon, but the $.11 is not refundable like the $.16 is. When calculating your taxes use $.27
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You can't cancel it out if you only buy in Indiana. The way to cancel it out would to buy only in high tax states like ILL.
If you buy and drive only in Indiana, you would owe the .11 cents per gallon on all the fuel you buy. Indiana does this to show the price on the pump as low and it makes up for the sales tax they don't charge big rigs but do charge pickups. Also they do this as to not have to give refunds.
Think of it as your only paying half the tax due at the pump. Indiana was the first to do this and the highest. Ky also does this but I think theirs is only 3 cents surcharge. -
Indiana charges $0.16 a gallons to everyone purchasing diesel unless it is exempt. If you drive a subject vehicle (26,000 lbs. +) there is an additional $0.11 surcharge. Subject vehicles pay more than non. For any fuel purchased in Indiana there is a $0.16 credit given but the tax due is calculated using $0.27. For the most part, buying fuel in Indiana will result in under payment of taxes and amounts due on the return.
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When pricing if it is good to buy fuel in IN just use the $0.16 as the tax rate. Forget the $0.11 surcharge as it is not part of IFTA, much like the OR mileage tax. Once or twice I have found the fuel price to be favorable in IN after you deduct the fuel tax but 9/10 it's been better to buy fuel elsewhere like IL.
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Your missing the point....when you buy fuel in IN you just minus the .16 to get your after tax price. Some people add .16 and .11 together and then deduct that from the pump price. This is incorrect. Although the .11 is paid with the quarterly IFTA return it is not part of the IFTA fund pool, as 100% of the .11 goes to IN. So since it can't be credited towards your IFTA pool to be distributed amongst other states and is a surcharge much like the OR mileage tax, it is not part of IFTA.
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