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Motor carriers wishing to purchase special fuel to be put in their own storage tanks, and used only to fuel the carrier's motor vehicles, have the choice of paying the special fuel tax due by one of two methods.
Carriers can apply to become a special fuel user by filing an application, paying a fee, submitting a financial statement, and providing a bond, cash deposit, or letter of credit with the Indiana Department of Revenue. Upon receiving their special fuel user's license, carriers will be required to file monthly reports showing number of gallons used in a taxable manner as well as total gallons consumed. The tax due on the taxable gallons must be submitted with the monthly report. A licensed special fuel user may NOT sell special fuel, it can only be pumped into the licensee's vehicles.
The other option available to the carrier, is for them to enter into a Special Fuel Tax Collection Agreement with their supplier of special fuel and the Department of Revenue. Carriers would be assigned an “AUU” number by the Department of Revenue, but would not be required to file monthly reports, or provide a surety bond. This option allows the carrier to pay the tax due to the supplier when the fuel is delivered, and the supplier is then required to remit all tax collected to the Department of Revenue.
Carriers with their own storage tanks, and wishing to sell special fuel, in addition to fueling their own vehicles, must apply for a Special Fuel Dealer license. They must file an application, together with the fee, financial statement, and a bond, cash deposit or letter of credit, with the Department of Revenue. When the Special Fuel Dealer's license is issued, the carrier will be liable for filing monthly tax reports with the Department detailing the number of gallons of special fuel sold (both taxable and nontaxable), and the number of gallons placed in licensee's motor vehicles. Any tax due on sales or use of the special fuel must be submitted with the monthly report.
It should be noted that motor carriers having their own special fuel storage -whether they be a user or a dealer - are required to keep records of all transactions on their bulk storage for a period of three years, plus the current year. Such records must be made available to the Department of Revenue upon request.