INDIANAPOLIS - An Indiana Senate committee is looking into changing how the state collects sales tax on gasoline, Network Indiana reports. Currently, a 7% sales tax is included in the pump price, but retailers have to calculate what part of every shipment will be sold at what price, prepay the tax, and follow up with paperwork correcting any differences.
That cumbersome process can cause some gasoline stations to make honest mistakes, said state Sen. Greg Walker, who also is an accountant for local Circle K locations. His bill would move the tax collection to the gasoline distributors when they refuel stations.
Motorists would not see a difference in price, and the state shouldn€™t see any changes in revenue from the sales tax, either. "The retailer has to make those calculations and say, 'Well, I€™ve paid about 80% maybe of what the formulary said would be ultimately due, and now I€™ve got to submit a tax return that takes that credit," said Walker.
Walker also points out that Indiana would save on administrative costs by processing tax payments from 360 distributors instead of thousands of gasoline stations. The state would be able to asses the tax on each gallon, rather than estimating a pump price.