Aircraft License Excise Tax
The aircraft license excise tax is imposed on all aircrafts, due at the time of registration, and is determined by weight, age, and type of aircraft. The tax rate is set by IC 6-6-6.5-13. All excise taxes are distributed to the county where the aircraft is usually located when not in use. It is collected at the time of annual registration or not later than 31 days after the purchased date. The tax is distributed on a quarterly basis to the county.
Alcoholic Beverage Excise Tax
The alcoholic beverage excise tax is imposed on all alcoholic beverages at a per-gallon rate paid by Brewers, Wholesalers and Permittees in Indiana. The per-gallon rates are as follows: beer = $0.115; liquor/wine (21% alcohol or more) = $2.68; wine (less than 21% alcohol) = $0.47; mixed beverages (15% or less) = $0.47; hard cider $0.115. These taxes are collected by DOR’s Special Tax Division. Fifty percent of the collected tax is distributed to the state general fund, post-war construction fund, ATC enforcement and administration fund, addiction services fund, pension relief fund. The other 50% is distributed to cities and towns using a population-based formula.
Auto Rental Excise Tax
The auto rental excise tax is imposed on the gross retail income from the rental of a motor vehicle weighing not more than 11,000 pounds for less than a 30-day period at a rate of 4%. It is collected at the point of rental, in a similar manner as sales tax. The tax is distributed semi-annually on May 20th and November 20th to the county treasurer. The tax revenue is distributed to the taxing units of that taxing district in the same manner as property taxes are distributed.
Aviation Fuel Tax
The aviation fuel tax is imposed on the selling price of the aviation fuel. The excise tax is collected by retailers of aviation fuel purchased in Indiana at the rate of twenty cents ($0.20) per gallon. The tax is collected and remitted to DOR by the 15th day of the following calendar month. The United States, its agencies or instrumentalities, the state of Indiana and Indiana Air National Guard, and common carriers of passengers or freight are exempt from tax. The tax is distributed to the state general fund and the airport development grant fund.
Charity Gaming Card Excise Tax
The charity gaming card excise tax is imposed on the sale of pull tabs, punchboards and tip boards to qualified organizations licensed for charity gaming. The tax rate is 10% of the wholesale price. It is collected and remitted by the licensed distributor, not who sells to the end consumer. The tax is a distribution to the Gaming Commission for deposit into the charity gaming enforcement fund.
Cigarette Tax
The cigarette tax is imposed on the sale of cigarettes and the rate is set by IC 6-7-1. The rates are as follows: pack of 20 cigarettes = $0.995; pack of 25 cigarettes = $1.24375. It is collected and remitted by the licensed distributor to DOR. The tax is distributed to the cigarette tax fund, mental health centers fund, state general fund, Healthy Indiana Plan trust fund and state retiree health benefit trust fund.
Corporate Adjusted Gross Income Tax
The corporate adjusted gross income tax is imposed on a corporation’s adjusted gross income. The rate changes each fiscal year. The adjusted gross income tax rate is 5.25% as of July 1, 2020. In July 2019, the corporate adjusted gross income tax rate was 5.5%. Beginning July 1, 2021, the rate will be 4.9%. The tax is due in quarterly estimated payments due if the estimated quarterly liability exceeds $2,500. Payments are due to DOR the 20th day of April, June, September and December with an annual return due April 15 for a calendar year taxpayer. This tax is deposited into the state general fund.
County Innkeeper’s Tax (CIT)
The county innkeeper’s tax is imposed on the price charged for lodging, excluding rentals for longer than 30 days. The tax rate is determined locally on the gross income derived from lodging income. The authority for localities to create a CIT is found in IC 6-9. Tax may be collected either by DOR or locally through the county treasurer’s office. The CIT owed by a marketplace facilitator shall be collected by DOR even if the locality otherwise collects the tax.
Financial Institutions Tax (FIT)
The financial institutions tax is imposed on the federal adjusted gross income at the rate of 6.0% in 2020 for businesses that are engaged in extending credit, leasing (when it is the economic equivalent of extending credit) or credit card operations. The rate will be 5.5% in 2021, 5.0% in 2022, and 4.9% in 2023. This tax is collected by DOR and deposited to local units of government, and the rest is deposited into the state general fund.
Food and Beverage Tax (FAB)
The food and beverage tax is determined locally and is imposed on purchases of food and beverages for immediate consumption at a rate of 1% of the retail sales price. The authority for localities to create a food and beverage tax is found in IC 6-9. The rate for Marion County and the Orange County Historic Hotel (West Baden) is 2%. In some cases, a county and a municipality in the county may both impose a 1% tax for a combined rate of 2%. The tax is collected at the point of sale to the final consumer. It is distributed locally to the county or municipality in which the food or beverage was purchased. For Boone, Hamilton, Hancock, Hendricks, Johnson and Shelby Counties, a portion is diverted to the Marion County Capital Improvement Board of Managers (Lucas Oil Stadium).
Gasoline Tax
The gasoline tax is imposed on all invoiced gallons of gasoline other than that at a taxable marine facility collected by the licensed distributor at the rate of thirty cents($0.30) per gallon for FY20, thirty-one cents ($0.31) per gallon for FY21 and thirty-three cents ($0.33) per gallon for FY22 and is added to the selling price. This tax is calculated monthly. Find an updated rate. Taxes collected on gasoline are deposited into the fish and wildlife fund. Other gasoline taxes collected are deposited 75% into the motor fuel tax fund of the motor vehicle highway account and 25% into the highway, road and street fund.
Gasoline Use Tax
The gasoline use tax is imposed at the time a retail merchant takes delivery at a flat rate per gallon. The tax is for all consumers of gasoline at the rate of 7%. The tax rate to be used is calculated and posted monthly. The tax is distributed to the motor vehicle highway account, the local road and bridge matching account, special transportation flexibility fund, state highway fund and state general fund.
Heavy Equipment Rental Excise Tax
The heavy equipment rental excise tax is imposed on the gross retail income received from the rental of tangible personal property from a business in Indiana that primarily rents equipment described in NAICS code 53242 at a rate of 2.25%. Rentals by government entities, subrentals when the heavy equipment rental excise tax has been imposed previously and rentals of property for mining purposes are exempt from this tax. This tax is imposed at the point of rental and is collected and remitted by the distributor. The tax is deposited into a special account of the state general fund called the heavy equipment rental excise tax account and in turn, is distributed to the county treasurer where the sale occurred. The county treasurer will distribute the monies to the various taxing districts.
Hendricks County Admissions Tax
The Hendricks County admissions tax is specifically imposed on amusement parks at a rate of $1 on the admission price for any event (does not include events sponsored by educational institutions or religious or charitable organizations). Authority for this tax is found in IC 6-9-28. This tax is collected at the point of purchase and remitted to DOR. The tax is distributed to the county treasurer for approved uses found in IC 6-9-28-7.
Individual Adjusted Gross Income Tax
The individual adjusted gross income tax is imposed on individuals’ federal adjusted gross income. Individuals are taxed on federal adjusted gross income with numerous adjustments for individual residents, partners, stockholders in S corporations, trusts, estates and nonresidents with Indiana income sources at a rate of 3.23%. This tax is imposed annually through filing Form IT-40 with DOR. The tax is collected by employers and generally remitted by the 30th day after the end of the month or quarterly depending on the total tax withheld from the employees’ wages. Withholdings are reconciled by taxpayers against annual amount due on annual return. This tax is deposited into the state general fund.
Local Income Tax (LIT)
Local income tax is imposed on resident and nonresident individuals. For residents, individuals are subject to tax on their income subject to Indiana adjusted gross income tax based on their county of residence as of January 1. For most nonresidents, individuals are subject to tax on their income subject to Indiana adjusted gross income tax derived from the individual’s principal place of business or employment and based on the individual’s principal county of business or employment as of January 1. Nonresident sports team members and racing team members not otherwise subject to LIT are subject to tax in all counties in which they perform services as a team member. The tax rate, a combination of property tax relief, expenditure and special purpose, varies by county and is collected annually in the same way as individual income tax.
Marion County Admissions Tax
The Marion County admissions tax is specific to Lucas Oil Stadium, the Indiana Convention Center, Victory Field and Bankers Life Fieldhouse in Indianapolis and is imposed at a rate of 10% of the admission price for any event (does not include events sponsored by educational institutions or religious or charitable organizations). This tax is collected at the point of purchase and is distributed to the Capital Improvement Board of Managers of Marion County.
Marion County Supplemental Auto Rental Excise Tax
The Marion County supplemental auto rental excise tax is imposed on the gross retail income from the rental in Marion County of a motor vehicle or truck weighing no more than 11,000 pounds for less than a 30-day period at a rate of 6%. The tax is collected at the point of payment for the rental from the retail merchant. Revenue from the tax is paid to the Marion County Capital Improvement Board of Managers.
Motor Carrier Fuel Tax
The motor carrier fuel tax is imposed on commercial motor carriers operating on Indiana highways at a per-gallon rate for FY20 is forty-nine cents ($0.49) for all special fuel and thirty cents ($0.30) for gasoline. For FY21, these rates increase to fifty-one cents ($0.51) and thirty-one cents ($0.31), respectively. The rate is collected at the point of purchase to the consumer by the distributor or refiner and remitted quarterly to DOR. The carrier files quarterly return encompassing all fuel purchased in all jurisdictions and receive a credit on the return for any fuel purchased in Indiana for which they have already paid tax at the pump. This tax is distributed into the state highway fund.
Motor/Commercial Vehicle Excise Tax (MVET/CVET)
Motor/Commercial Vehicle Excise tax is collected by both the Bureau of Motor Vehicles (BMV) and DOR based upon the class/type of vehicle being registered. The rates vary according to the vehicle. MVET is based upon the value and age of the vehicle while CVET is determined annually in accordance with a statutory formula. Both types of taxes are collected at the time of annual registration. The tax is allocated to the taxing district in which the registrant resides, and the revenues are then distributed to the taxing units of that taxing district in the same manner as property taxes are distributed.
Other Tobacco Products Tax
The other tobacco products tax is imposed on the distribution of tobacco products that are not cigarettes and the rate is set by IC 6-7-2. The rates are as follows: 24% of the wholesale price of tobacco products other than moist snuff; and forty cents ($0.40) per ounce for moist snuff. DOR shall deposit 25% in the affordable housing and community development fund and the remainder shall be deposited in the same manner as the cigarette tax.
Pari-Mutuel Wagering Tax
The pari-mutuel wagering tax is imposed on horse races conducted in Indiana. The rate is 2% of the total amount of money wagered at the permit holder’s racetrack or 2.5% of the total amount of money wagered on simulcasts from satellite facilities. The tax rate is found at IC 4-31-9-3(a)(2). The tax is collected and remitted at the close of each day. The first $150,000 collected each state fiscal year is deposited in the veterinary school research account. The balance is then paid into the Build Indiana Fund.
Petroleum Severance Tax
The petroleum severance tax is imposed on producers or owners of crude oil or natural gas at the time these products are removed from the ground at a rate equal to the greater of either 1% of the petroleum value or three cents ($0.03) per 1,000 cubic feet for natural gas and twenty-four cents ($0.24) per barrel of oil. It is collected by DOR. The tax is distributed to the oil and gas fund.
Public Utility Tax (Railroad Car Companies/Railroads)
The public utility tax is imposed on railroad car companies or railroads. It is based on assessments by the Indiana Department of Local Government Finance (DLGF) on the indefinite location distributable property of a railroad company that provides service within a commuter transportation district. The tax rates change based on the assessments made by DLGF. The tax is distributed to the electric rail service fund.
Riverboat Wagering Tax
The riverboat wagering tax is imposed on riverboats in Indiana. If a licensed riverboat that does not have flexible scheduling (dockside gaming), a tax of 22.5% is levied against its adjusted gross receipts (total wagers, fewer payouts, less uncollected gaming receivables). If the riverboat has implemented flexible scheduling, the tax rate is graduated and ranges from 15% to 40%, depending on the amount of adjusted gross receipts. Indiana law allows gaming licensees to deduct adjusted gross revenue attributable to free-play wagering at any time during the year. The total amount deducted by a licensee for free-play may not exceed $7 million annually. The lowest tax bracket of 15% can change to 5% if the riverboat had less than $75 million of adjusted gross revenue during the preceding state fiscal year. An additional tax of $2.5 million is imposed if the riverboat taxed under the alternative schedule receives adjusted gross revenue exceeding $75 million in a particular state fiscal year. The tax is distributed pursuant to IC 4-33-13.
RVs and Truck Campers Excise Tax (RVET)
The RV or truck camper excise tax is imposed on recreational vehicles and truck campers. The rate schedule is based upon the value and age of the vehicle. The RVET must be paid when the RV or truck camper is required to be registered. Payment is made to a BMV license branch in the vehicle owner’s county of residence. When an RV or truck camper is acquired after the annual registration date, the excise tax is prorated by 8.33% for each calendar month after the registration date.
Sales Tax
The sales tax is imposed on retail transactions collected at the retail level at a rate of 7% on the purchase or rental of tangible personal property, accommodations, public utility service and other services per IC 6-2.5-4. It is collected at the point of sale by the retail merchant and is distributed into the state general fund, industrial rail service fund and commuter rail service fund.
Slot Machine Wagering Tax
The slot machine wagering tax is imposed on 88% of adjusted gross receipts at a rate between 25%-35%. A pari-mutuel racetrack owner who conducts slot machine gaming at the owner’s racetrack is subject to this graduated tax. The tax is remitted at the end of each day. Indiana law allows gaming licensees to deduct adjusted gross revenue attributable to free-play wagering at any time during the year. The total amount deducted by a licensee for free-play may not exceed $7 million annually. The tax is distributed into the state general fund.
Special Fuel Tax
The special fuel tax is a license tax imposed on all special fuel sold or used in producing or generating power for propelling motor vehicles and the rate of forty-nine cents ($0.49) per gallon for FY20, fifty-one cents ($0.51) per gallon for FY21 and fifty-five cents ($0.55) per gallon for FY22. This tax is initially paid by the distributor and subsequently built into the price of special fuel at the pump. The refiner or terminal operator remits the tax collected from distributors. The tax is distributed to the motor vehicle highway account and the highway, road and street fund.
Sports Wagering Tax
This tax is imposed on the adjusted gross receipts received from authorized sports wagering in Indiana at the rate of 9.5%. This includes athletic and sporting events involving human competitors, not fantasy sports or e-sports. The tax is due monthly on the 24th day of the month based on a specific wagering tax schedule.
Supplemental Wagering Tax
The supplemental wagering tax is imposed on all riverboat casinos (other than French Lick casino). The tax rate is based on the fiscal year 2017 riverboat admissions taxes divided by fiscal year 2017 adjusted gross receipts for each casino. However, the tax rate cannot exceed 3.5%. The tax is remitted monthly based on a specific wagering tax schedule. The tax is distributed to the state general fund.
Type II Gaming (Taverns)
The Type II gaming tax is an excise tax imposed on the distribution of gambling at the rate of 10% of the price paid by the retailer that purchases the games. The entity distributing the pull tabs, punchboards or tip boards is liable for the tax. The tax is placed into the state general fund and is remitted on the 15th of every month.
Use Tax
The use tax is a special excise tax, complementary to sales tax, imposed on retail transactions collected at the consumer level at the rate of 7% on the purchase or rental of tangible personal property on the purchase of tangible personal property purchased for use in an Indiana jurisdiction where a lower (or no) sales tax was collected on the purchase. The tax is distributed into the state general fund, industrial rail service fund and commuter rail service fund.
Utility Services Use Tax
The utility services use tax is an excise tax imposed on the retail consumption of utility services in Indiana. The rate for 2022 is 1.46% and is imposed on the purchaser if the utility services are purchased from a utility purchaser that is not subject to the utility receipts tax. After 2022, the rate will change annually with the revised rate published before September 1 of the preceding year. The tax is distributed into the state general fund.
Utility Receipts Tax
The utility receipts tax is imposed on gross receipts from retail utility sales. The rate for 2021 is 1.4%. The rate for 2022 is 1.46%. After 2022, the rate will change annually with the revised rate published before September 1 of the preceding year. The tax is distributed into the state general fund.
Vanderburgh County Supplemental Auto Rental Excise Tax
The Vanderburgh County supplemental auto rental excise tax is imposed on the gross retail income from the rental in Vanderburgh County of a motor vehicle or truck weighing no more than 11,000 pounds for less than a 30-day period at a rate of 2%. The tax is collected at the point of payment for the rental. Authority for this tax is found in IC 6-6-9.5. Revenue from the tax is paid to the legislative body for capital improvements that promote conventions, tourism or recreation.
Vehicle Sharing Tax
This tax is imposed on the gross retail income from the sharing of a passenger motor vehicle or truck less than 11,000 pounds for less than a 30-day period at a rate of 2%. A monthly return must be filed by the retail merchant and remitted to DOR. The tax is deposited into a special account of the state general fund for distribution to local governments based on vehicle registration or, for vehicles not registered in Indiana.