Indiana’s new aviation fuel excise tax
Sept. 9, 2013 – TaxTalk Blog
Did you know Indiana has more than 100 public use airports and more than 100 various aviation related businesses? Indiana was also home to one of the highest aviation fuel sales tax in the country, which often discouraged pilots from filling their tanks in the state.
But, pilots recently touching down to refuel at any of Indiana’s 100 public-use airports have seen a major change in fuel prices due to Indiana’s new aviation fuel excise tax.
The new excise tax replaces Indiana’s fuel sales tax, saving pilots hundreds of dollars at the pump and transforming Indiana from a “fly-over” state to an aviation destination.
This tax of 10 cents per gallon includes both aviation gasoline and jet fuel. Indiana jet fuel distributers collect the tax by adding it to the selling price of the fuel, passing the tax along to consumers.
Consumers are exempt from paying the tax if the fuel will be placed into the supply tank of an aircraft owned by:
- The United States or its instrumentalities
- The state of Indiana
- The Indiana Air National Guard
- A common carrier of passengers or freight
To be exempt, the consumer needs to show an exemption certificate to the retailer.
Retailers who collect the aviation fuel excise tax file and pay online through Indiana’s online reporting and payment platform, INTax, by the 15th day of the month following the calendar month in which the sales occurred.
For more information about the aviation fuel excise tax, see Commissioner’s Directive #49.
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