Indiana – Guidance Issued on New Aviation Fuel Excise Tax

SALT Report 2977 – The Indiana Department of Revenue issued guidance regarding the new aviation fuel excise tax, which replaced the state’s fuel sales tax.  The new excise tax rate of $0.10 per gallon applies to both aviation gasoline and jet fuel and was effective July 1, 2013.

Indiana jet fuel distributors will collect the tax by adding it to the selling price of the fuel, thereby passing it on to the consumer.  However, consumers who provide an exemption certificate to the retailer can purchase the fuel exempt 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, or
  • A common carrier of passengers or freight

Retailers who collect the aviation fuel excise tax must file and pay the tax online through INTax, by the 15th day of the month following the calendar month in which the sales occurred.

For Further Information

Indiana Department of Revenue – TaxTalk Blog

Indiana Commissioner’s Directive