Pilots touching down recently to refuel in Indiana have seen a major change in fuel prices. The aviation fuel sales tax of 60 cents per gallon has been replaced by an aviation fuel excise tax of 10 cents per gallon.
The Indiana General Assembly passed a law that established the new fuel excise tax, which went into effect July 1. As a result, pilots fueling at any of Indiana’s 100 public-use airports can expect to save a 50 cents per gallon as compared to before July 1, according to officials with the Indiana Department of Revenue.
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 pay online through Indiana’s online reporting and payment platform, INTax, by the 16th day of the month following the calendar month in which the sales occurred.
Retailers who file and pay the tax on time keep 1.6% of the tax collected. Retailers who do not file and pay the tax on time are subject to a penalty of 100% of the uncollected tax plus the amount of tax due, state officials note.
For more information, see the Indiana Department of Revenue Directive #49.