Sec. 14.5. (a) The International Fuel Tax Agreement and any other agreement authorized under IC 6-6, IC 6-8.1, or IC 9-28 shall be limited to the following matters:

(1) Determining the base state for users.

(2) Specifying records requirements for users.

(3) Specifying audit procedures.

(4) Exchanging information.

(5) Defining persons eligible for tax licensing.

(6) Defining qualified motor vehicles.

(7) Determining if bonding is required.

(8) Specifying reporting requirements and periods, including the following:

(A) Establishing uniform penalties and interest rates for late reporting.

(B) Determining methods for collecting and forwarding motor fuel taxes, special fuel taxes, and penalties to another state or jurisdiction.

(9) Any other provisions designed to facilitate the administration of the agreement.

(b) The International Fuel Tax Agreement and any other agreement authorized under IC 6-6, IC 6-8.1, or IC 9-28 do not limit the authority of the general assembly to do any of the following:

(1) Determine whether to impose a tax.

(2) Determine tax rates.

(3) Define tax exemptions or deductions.

(4) Determine what constitutes a taxable event that results in the imposition of a tax.

(5) Determine any other matters related to the powers described in subdivisions (1) through (4).

(c) If:

(1) Indiana becomes a member of the International Fuel Tax Agreement;

(2) another member jurisdiction of the International Fuel Tax Agreement nets all of its International Fuel Tax Agreement returns received in a month according to the terms of the International Fuel Tax Agreement; and

(3) the overall result of the netting is that:

(A) more of the tax prescribed in section 4 of this chapter or section 4.5 of this chapter (before its repeal) was collected and will be transmitted to the department; or

(B) more of the tax prescribed in IC 6-6-1.1 or IC 6-6-2.5 must be refunded to carriers and will be transmitted from the department;

the transmittal described in subdivision (3) shall be done through the International Fuel Tax Agreement Clearinghouse or its successor program according to the terms of the International Fuel Tax Agreement.

(d) The funds received or requested as part of a transmittal described in subsection (c) shall be deposited or credited in the following manner:

(1) A transmittal to the department from a member jurisdiction of the International Fuel Tax Agreement of a collection of the tax prescribed in section 4 of this chapter or section 4.5 of this chapter (before its repeal) from carriers based in that member jurisdiction shall be deposited in the manner prescribed in section 5 of this chapter.

(2) A request to the department from a member jurisdiction of the International Fuel Tax Agreement of amounts of the tax prescribed in IC 6-6-1.1 or IC 6-6-2.5 to be refunded to carriers based in that member jurisdiction shall be credited in the manner prescribed in IC 6-6-1.1-803.

As added by P.L.129-2001, SEC.12. Amended by P.L.185-2018, SEC.15.