Bill Text: IN HB1375 | 2013 | Regular Session | Introduced
Bill Title: Repeal of petroleum severance tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-22 - First reading: referred to Committee on Ways and Means [HB1375 Detail]
Download: Indiana-2013-HB1375-Introduced.html
Citations Affected: IC 6-8-1; IC 6-8.1; IC 14-37; IC 35-31.5-2;
IC 35-44.2-5; IC 35-51-6-1.
Synopsis: Repeal of petroleum severance tax. Repeals the petroleum
severance tax with respect to petroleum severed from the land after
June 30, 2013. Moves civil and criminal penalties concerning the
petroleum severance tax to the criminal law. Provides that the penalty
provisions apply to taxes imposed on petroleum severed from the land
before July 1, 2013. Provides that the penalty provisions expire July 1,
2017. Requires the treasurer of state to transfer the balance of the oil
and gas fund to the oil and gas environmental fund (OGEF). Provides
that certain permit fees are paid into the OGEF rather than the oil and
gas fund. Provides that research and administrative expenses may be
paid from the OGEF. Removes the $1,500,000 cap on the balance of
the OGEF. Annually appropriates money in the OGEF.
Effective: July 1, 2013.
January 22, 2013, read first time and referred to Committee on Ways and Means.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
carrier fuel tax (IC 6-6-4.1); a motor fuel tax collected under a
reciprocal agreement under IC 6-8.1-3; the motor vehicle excise tax
(IC 6-6-5); the commercial vehicle excise tax (IC 6-6-5.5); the excise
tax imposed on recreational vehicles and truck campers (IC 6-6-5.1);
the hazardous waste disposal tax (IC 6-6-6.6); the cigarette tax
(IC 6-7-1); the beer excise tax (IC 7.1-4-2); the liquor excise tax
(IC 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider excise tax
(IC 7.1-4-4.5); the malt excise tax (IC 7.1-4-5); the petroleum
severance tax (IC 6-8-1) (repealed); the various innkeeper's taxes
(IC 6-9); the various food and beverage taxes (IC 6-9); the county
admissions tax (IC 6-9-13 and IC 6-9-28); the regional transportation
improvement income tax (IC 8-24-17); the oil inspection fee
(IC 16-44-2); the emergency and hazardous chemical inventory form
fee (IC 6-6-10); the penalties assessed for oversize vehicles (IC 9-20-3
and IC 9-30); the fees and penalties assessed for overweight vehicles
(IC 9-20-4 and IC 9-30); the underground storage tank fee (IC 13-23);
the solid waste management fee (IC 13-20-22); and any other tax or fee
that the department is required to collect or administer.
(1) Administer and enforce the following:
(A) Gasoline tax (IC 6-6-1.1).
(B) Special fuel tax (IC 6-6-2.5).
(C) Motor carrier fuel tax (IC 6-6-4.1).
(D) Hazardous waste disposal tax (IC 6-6-6.6).
(E) Cigarette tax (IC 6-7-1).
(F) Tobacco products tax (IC 6-7-2).
(G) Alcoholic beverage tax (IC 7.1-4).
(H) Petroleum severance tax (IC 6-8-1) (repealed).
(I) Any other tax the commissioner designates.
(2) Upon the commissioner's request, conduct studies of the department's operations and recommend whatever changes seem advisable.
(3) Annually audit a statistical sampling of the returns filed for the taxes administered by the division.
(4) Annually audit a statistical sampling of registrants with the bureau of motor vehicles, international registration plan division.
(5) Review federal tax returns and other data that may be helpful in performing the division's function.
(6) Furnish, at the commissioner's request, information that the commissioner requires.
(7) Conduct audits requested by the commissioner or the commissioner's designee.
(8) Administer the statutes providing for motor carrier regulation (IC 8-2.1).
(1) The due date of the return.
(2) In the case of a return filed for the state gross retail or use tax, the gasoline tax, the special fuel tax, the motor carrier fuel tax, the oil inspection fee, or the petroleum severance tax (repealed), the end of the calendar year which contains the taxable period for which the return is filed.
(b) If a person files a utility receipts tax return (IC 6-2.3), an adjusted gross income tax (IC 6-3), supplemental net income tax (IC 6-3-8) (repealed), county adjusted gross income tax (IC 6-3.5-1.1), county option income tax (IC 6-3.5-6), or financial institutions tax (IC 6-5.5) return that understates the person's income, as that term is defined in the particular income tax law, by at least twenty-five percent (25%), the proposed assessment limitation is six (6) years instead of the three (3) years provided in subsection (a).
(c) In the case of the motor vehicle excise tax (IC 6-6-5), the tax shall be assessed as provided in IC 6-6-5-5 and IC 6-6-5-6 and shall include the penalties and interest due on all listed taxes not paid by the due date. A person that fails to properly register a vehicle as required by IC 9-18 and pay the tax due under IC 6-6-5 is considered to have failed to file a return for purposes of this article.
(d) In the case of the commercial vehicle excise tax imposed under IC 6-6-5.5, the tax shall be assessed as provided in IC 6-6-5.5 and shall include the penalties and interest due on all listed taxes not paid by the due date. A person that fails to properly register a commercial vehicle as required by IC 9-18 and pay the tax due under IC 6-6-5.5 is considered to have failed to file a return for purposes of this article.
(e) In the case of the excise tax imposed on recreational vehicles and truck campers under IC 6-6-5.1, the tax shall be assessed as provided in IC 6-6-5.1 and must include the penalties and interest due on all listed taxes not paid by the due date. A person who fails to
properly register a recreational vehicle as required by IC 9-18 and pay
the tax due under IC 6-6-5.1 is considered to have failed to file a return
for purposes of this article. A person who fails to pay the tax due under
IC 6-6-5.1 on a truck camper is considered to have failed to file a return
for purposes of this article.
(f) If a person files a fraudulent, unsigned, or substantially blank
return, or if a person does not file a return, there is no time limit within
which the department must issue its proposed assessment.
(g) If any part of a listed tax has been erroneously refunded by the
department, the erroneous refund may be recovered through the
assessment procedures established in this chapter. An assessment
issued for an erroneous refund must be issued:
(1) within two (2) years after making the refund; or
(2) within five (5) years after making the refund if the refund was
induced by fraud or misrepresentation.
(h) If, before the end of the time within which the department may
make an assessment, the department and the person agree to extend
that assessment time period, the period may be extended according to
the terms of a written agreement signed by both the department and the
person. The agreement must contain:
(1) the date to which the extension is made; and
(2) a statement that the person agrees to preserve the person's
records until the extension terminates.
The department and a person may agree to more than one (1) extension
under this subsection.
(i) If a taxpayer's federal income tax liability for a taxable year is
modified due to the assessment of a federal deficiency or the filing of
an amended federal income tax return, then the date by which the
department must issue a proposed assessment under section 1 of this
chapter for tax imposed under IC 6-3 is extended to six (6) months after
the date on which the notice of modification is filed with the
department by the taxpayer.
(1) The due date of the return.
(2) The date of payment.
For purposes of this section, the due date for a return filed for the state gross retail or use tax, the gasoline tax, the special fuel tax, the motor carrier fuel tax, the oil inspection fee, or the petroleum severance tax (repealed) is the end of the calendar year which contains the taxable period for which the return is filed. The claim must set forth the amount of the refund to which the person is entitled and the reasons that the person is entitled to the refund.
(b) After considering the claim and all evidence relevant to the claim, the department shall issue a decision on the claim, stating the part, if any, of the refund allowed and containing a statement of the reasons for any part of the refund that is denied. The department shall mail a copy of the decision to the person who filed the claim. If the person disagrees with a part of the decision, the person may file a protest and request a hearing with the department. The department shall mail a copy of the decision to the person who filed the protest. If the department allows the full amount of the refund claim, a warrant for the payment of the claim is sufficient notice of the decision.
(c) If the person disagrees with any part of the department's decision, the person may appeal the decision, regardless of whether or not the person protested the tax payment or whether or not the person has accepted a refund. The person must file the appeal with the tax court. The tax court does not have jurisdiction to hear a refund appeal suit, if:
(1) the appeal is filed more than ninety (90) days after the later of the date the department mails:
(A) the decision of denial of the claim to the person; or
(B) the decision made on the protest filed under subsection (b); or
(2) the appeal is filed both before the decision is issued and before the one hundred eighty-first day after the date the person files the claim for refund with the department.
(d) The tax court shall hear the appeal de novo and without a jury, and after the hearing may order or deny any part of the appealed refund. The court may assess the court costs in any manner that it feels is equitable. The court may enjoin the collection of any of the listed taxes under IC 33-26-6-2. The court may also allow a refund of taxes, interest, and penalties that have been paid to and collected by the department.
(e) With respect to the motor vehicle excise tax, this section applies only to penalties and interest paid on assessments of the motor vehicle excise tax. Any other overpayment of the motor vehicle excise tax is subject to IC 6-6-5.
(f) If a taxpayer's federal income tax liability for a taxable year is modified by the Internal Revenue Service, and the modification would result in a reduction of the tax legally due, the due date by which the taxpayer must file a claim for refund with the department is the later of:
(1) the date determined under subsection (a); or
(2) the date that is one hundred eighty (180) days after the date on which the taxpayer is notified of the modification by the Internal Revenue Service.
(g) If an agreement to extend the assessment time period is entered into under IC 6-8.1-5-2(h), the period during which a person may file a claim for a refund under subsection (a) is extended to the same date to which the assessment time period is extended.
(1) A bond under IC 14-37-6.
(2) A permit fee of two hundred fifty dollars ($250) payable to the department. However, a person may apply for an expedited review of the application for a permit, except for a Class II or noncommercial well, by submitting a permit fee of seven hundred fifty dollars ($750).
(b) Permit fees collected under this section must be deposited in the oil and gas environmental fund established by
(1) Annual fees for oil and gas wells received under IC 14-37-5.
(2) Accrued interest and other investment earnings of the fund.
(3) Civil penalties collected under IC 14-37-13-3.
(4) Bonds forfeited under IC 14-37-13-2.
(5) Gifts, grants, donations, or appropriations from any source.
(6) Petroleum severance taxes collected after June 30, 2013.
(7) Permit fees collected under IC 14-37-4-6.
(b)
established by IC 6-8-1-27. The fund must maintain a balance of at
least five hundred thousand dollars ($500,000) as a surety fund for
operators who are not required to execute a bond under IC 14-37-6-1.
Expenditures that would reduce the fund below five hundred thousand
dollars ($500,000) must be approved by the budget agency.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(d) If the fund is abolished, all money in the fund is transferred to
the state general fund.
(e) The expenses of administering the fund shall be paid from
money in the fund. However, the department may not expend more
than five percent (5%) of the money in the fund for administering the
fund each state fiscal year.
(1) To supplement the cost required to abandon a well that has had a permit revoked under IC 14-37-13-1.
(2) To cover the costs of remedial plugging and repairing of wells under IC 14-37-8, including the expenses of remedial action under IC 14-37-8-15.
(3) To cover the cost to:
(A) mitigate environmental damage; or
(B) protect public safety against harm;
caused by a well regulated under this article.
(4) Pipeline safety.
(5) To administer this article.
(6) To conduct research pertaining to the exploration for, development of, and wise use of petroleum resources in Indiana.
(b) The director may make expenditures from the fund for emergency purposes under section 6 of this chapter without the prior approval of the budget agency or the governor. An expenditure under this subsection may not exceed fifty thousand dollars ($50,000).
(c) The director may establish a program to reimburse an applicant for the reasonable expenses of remedial action incurred under IC 14-37-8-15. The director may make expenditures from the fund for this purpose and may establish any necessary guidelines and procedures to administer the program.
(b) "Person", for purposes of IC 35-43-6, has the meaning set forth in IC 35-43-6-7.
(c) "Person", for purposes of IC 35-43-9, has the meaning set forth in IC 35-43-9-2.
(d) "Person", for purposes of IC 35-44.2-5, has the meaning set forth in IC 35-44.2-5-3.
Chapter 5. Petroleum Severance Tax Administration
Sec. 1. This chapter applies to taxes imposed with respect to petroleum severed from the land before July 1, 2013.
Sec. 2. As used in this chapter, "department" refers to the department of state revenue.
Sec. 3. As used in this chapter, "person" means any individual, assignee, receiver, commissioner, fiduciary, trustee, executor, administrator, firm, partnership, joint venture, pool, syndicate, association, corporation, limited liability company, estate, trust, or any other group or combination acting as a unit.
Sec. 4. Any person charging against or deducting from any payment due to any other person any amount being or represented as being a tax levied by IC 6-8-1 (before its repeal) or receiving money or credits as or purporting to be such a tax is a trustee of the amounts so charged, deducted, or received. A trustee who fails to pay any of those amounts to the department when due, with intent to evade payment of the tax, commits a Class D felony.
Sec. 5. (a) It is a Class C infraction for a person subject to taxation under IC 6-8-1 (before its repeal) to fail to keep and preserve such records, books, or accounts as may be necessary to determine the amount for which the person is liable.
(b) It is a Class C infraction for a person described in subsection (a) to fail to keep and preserve the records described in subsection (a) for a period of three (3) years, or to fail to keep them open for
examination at any time by the department or its authorized
agents.
(c) It is a Class B misdemeanor for a person to make false
entries in the person's books, or to keep more than one (1) set of
books, with intent to defraud the state or evade the payment of the
tax, or any part thereof, imposed by IC 6-8-1 (before its repeal).
Sec. 6. (a) It is a Class B misdemeanor for a person to fail to
make any return required to be made under IC 6-8-1 (before its
repeal), or to make any false return, with intent to defraud the
state or to evade the payment of the tax, or any part thereof,
imposed by this chapter.
(b) It is a Class B misdemeanor for a person to recklessly fail to
permit the examination of any book, paper, account, record, or
other data by the department or its authorized agents, as required
by IC 6-8-1 (before its repeal), to recklessly fail to permit the
inspection or appraisal of any property by the department or its
authorized agents, or to knowingly fail to offer testimony or
produce any record as required in this chapter.
(c) A person who makes a false statement, with intent to defraud
the state or to evade the payment of the tax imposed under IC 6-8-1
(before its repeal), commits a Class D felony.
Sec. 7. This chapter expires July 1, 2017.
IC 6-1.1-5.5-10 (Concerning sales disclosure forms).
IC 6-1.1-37-1 (Concerning officers of the state or local government).
IC 6-1.1-37-2 (Concerning officials or representatives of the department of local government finance).
IC 6-1.1-37-3 (Concerning property tax returns, statements, or documents).
IC 6-1.1-37-4 (Concerning property tax deductions).
IC 6-1.1-37-5 (Concerning false statements on a report or application).
IC 6-1.1-37-6 (Concerning general assessments).
IC 6-2.3-5.5-12 (Concerning utility taxes).
IC 6-2.3-7-1 (Concerning taxes).
IC 6-2.3-7-2 (Concerning taxes).
IC 6-2.3-7-3 (Concerning taxes).
IC 6-2.3-7-4 (Concerning taxes).
IC 6-2.5-9-1 (Concerning taxes).
IC 6-2.5-9-2 (Concerning taxes).
IC 6-2.5-9-3 (Concerning taxes).
IC 6-2.5-9-6 (Concerning taxes).
IC 6-2.5-9-7 (Concerning retail sales).
IC 6-2.5-9-8 (Concerning taxes).
IC 6-3-3-9 (Concerning taxes).
IC 6-3-4-8 (Concerning taxes).
IC 6-3-6-10 (Concerning taxes).
IC 6-3-6-11 (Concerning taxes).
IC 6-3-7-5 (Concerning taxes).
IC 6-3.5-4-16 (Concerning taxes).
IC 6-4.1-12-12 (Concerning taxes).
IC 6-5.5-7-3 (Concerning taxes).
IC 6-5.5-7-4 (Concerning taxes).
IC 6-6-1.1-1307 (Concerning taxes).
IC 6-6-1.1-1308 (Concerning taxes).
IC 6-6-1.1-1309 (Concerning taxes).
IC 6-6-1.1-1310 (Concerning taxes).
IC 6-6-1.1-1311 (Concerning taxes).
IC 6-6-1.1-1312 (Concerning taxes).
IC 6-6-1.1-1313 (Concerning taxes).
IC 6-6-1.1-1316 (Concerning taxes).
IC 6-6-2.5-28 (Concerning taxes).
IC 6-6-2.5-40 (Concerning fuel).
IC 6-6-2.5-56.5 (Concerning fuel).
IC 6-6-2.5-62 (Concerning fuel).
IC 6-6-2.5-63 (Concerning taxes).
IC 6-6-2.5-71 (Concerning taxes).
IC 6-6-5-11 (Concerning taxes).
IC 6-6-5.1-25 (Concerning taxes).
IC 6-6-6-10 (Concerning taxes).
IC 6-6-11-27 (Concerning taxes).
IC 6-7-1-15 (Concerning tobacco taxes).
IC 6-7-1-21 (Concerning tobacco taxes).
IC 6-7-1-22 (Concerning tobacco taxes).
IC 6-7-1-23 (Concerning tobacco taxes).
IC 6-7-1-24 (Concerning tobacco taxes).
IC 6-7-1-36 (Concerning tobacco taxes).
IC 6-7-2-18 (Concerning tobacco taxes).
IC 6-7-2-19 (Concerning tobacco taxes).
IC 6-7-2-20 (Concerning tobacco taxes).
IC 6-7-2-21 (Concerning tobacco taxes).
IC 6-8.1-3-21.2 (Concerning taxes).
IC 6-8.1-7-3 (Concerning taxes).
IC 6-8.1-8-2 (Concerning taxes).
IC 6-8.1-10-4 (Concerning taxes).
IC 6-9-2-5 (Concerning innkeeper's taxes).
IC 6-9-2.5-8 (Concerning innkeeper's taxes).
IC 6-9-4-8 (Concerning innkeeper's taxes).
IC 6-9-6-8 (Concerning innkeeper's taxes).
IC 6-9-7-8 (Concerning innkeeper's taxes).
IC 6-9-10-8 (Concerning innkeeper's taxes).
IC 6-9-10.5-12 (Concerning innkeeper's taxes).
IC 6-9-11-8 (Concerning innkeeper's taxes).
IC 6-9-14-8 (Concerning innkeeper's taxes).
IC 6-9-15-8 (Concerning innkeeper's taxes).
IC 6-9-16-8 (Concerning innkeeper's taxes).
IC 6-9-17-8 (Concerning innkeeper's taxes).
IC 6-9-18-8 (Concerning innkeeper's taxes).
IC 6-9-19-8 (Concerning innkeeper's taxes).
IC 6-9-29-2 (Concerning innkeeper's taxes).
IC 6-9-32-8 (Concerning innkeeper's taxes).
IC 6-9-37-8 (Concerning innkeeper's taxes).
(b) As used in this SECTION, "petroleum" means all hydrocarbons produced at a well in a liquid or gaseous state.
(c) As used in this SECTION, "producer" means a person engaged in severing petroleum from the land direct.
(d) Petroleum severed from the land before July 1, 2013, is:
(1) subject to taxation under IC 6-8-1 (as in effect on January 1, 2013); and
(2) not affected by the repeal of IC 6-8-1 by this act.
(e) With respect to petroleum severed from the land before July 1, 2013, an owner or producer has the same rights and duties
granted or imposed by IC 6-8-1 (as in effect on January 1, 2013).
(f) With respect to petroleum severed from the land before July
1, 2013, the department of state revenue has the same powers and
duties granted or imposed by IC 6-8-1 (as in effect on January 1,
2013).
(g) Notwithstanding subsection (f), the department of state
revenue shall deposit any petroleum severance taxes collected after
June 30, 2013, in the oil and gas environmental fund established by
IC 14-37-10-2.
(h) This SECTION expires January 1, 2017.
(b) On July 1, 2013, the treasurer of state shall transfer any balance remaining in the fund to the oil and gas environmental fund established by IC 14-37-10-2.
(c) This SECTION expires January 1, 2014.
