Section 45IAC12-2-5. Time considered received; withdrawal from in-state refinery or terminal

   (a) Except as otherwise provided, gasoline withdrawn from an in-state terminal or refinery, for delivery or transportation to or for the account of a person who does not hold a valid distributor's license is received by the owner at the time the gasoline is withdrawn.

  (b) Except as otherwise provided, gasoline withdrawn from an in-state terminal or refinery, for delivery or transportation to or for the account of a licensed distributor is received by the licensed distributor to whom or for whose account the gasoline is delivered or transported at the time the gasoline is withdrawn.

EXAMPLES

(1) Taxpayer A, who holds a valid Indiana gasoline distributor's license, owns gasoline stored in an in-state terminal. Taxpayer B intends to purchase gasoline from Taxpayer A and place the gasoline in storage in Indiana, at a place other than another in-state refinery or terminal. Taxpayer B does not hold a valid Indiana gasoline distributor's license. The gasoline is received by Taxpayer A at the time it is withdrawn for Taxpayer B's account. Taxpayer A must charge Taxpayer B a per gallon gasoline tax as provided in section 201 of this chapter [45 IAC 12-2-1 through 45 IAC 12-2-3].

(2) Taxpayer A is the owner-operator of an Indiana refinery and holds a valid gasoline distributor's license. Taxpayer A withdraws gasoline from his refinery for the account of Taxpayer B, another licensed distributor. The gasoline is delivered, by common carrier, to Taxpayer B's storage facility in Indiana. The gasoline is considered received by Taxpayer B. Taxpayer A may not charge Taxpayer B the per gallon gasoline tax as provided in section 201 [45 IAC 12-2-1 through 45 IAC 12-2-3] since Taxpayer A did not receive the gasoline.

(3) Taxpayer A is the owner-operator of a gasoline refinery located in Indiana and holds a valid Indiana gasoline distributor's license. Taxpayer B operates a service station located outside the state of Indiana and does not hold a valid Indiana gasoline distributor's license. Taxpayer B contracts to purchase gasoline from Taxpayer A and such contract specifies the title passes from Taxpayer A to Taxpayer B at the time of withdrawal from Taxpayer A's Indiana refinery. Taxpayer B intends to export the gasoline from Indiana and advises Taxpayer A of this intention. The gasoline is then exported from Indiana via transport and is unloaded at Taxpayer B's service station. Since the gasoline is withdrawn from the refinery and since Taxpayer A transfers the gasoline to a destination in this state (the place at which title passes from Taxpayer A to Taxpayer B) to a person other than a licensed gasoline distributor the gasoline is received by Taxpayer A at the time the gasoline is withdrawn from the refinery. Therefore, Taxpayer A must charge Taxpayer B the per gallon gasoline tax provided in section 201 [45 IAC 12-2-1 through 45 IAC 12-2-3] (see Indiana Regulation 6-6-1.1-202(020)(1) [45 IAC 12-2-5(a)]).

(4) Same facts as in example (3) except that the contract provides that title to the gasoline passes from Taxpayer A to Taxpayer B at Taxpayer B's service station located outside Indiana. Since the gasoline is withdrawn from the refinery and since Taxpayer A transfers the gasoline to a destination other than a destination in this state, the gasoline has not been received. Therefore, Taxpayer A may not charge Taxpayer B the per gallon tax provided in section 201 [45 IAC 12-2-1 through 45 IAC 12-2-3] (see Indiana Regulation 6-6-1.1-202(020)(2) [45 IAC 12-2-5(b)]).

(Department of State Revenue; Reg 6-6-1.1-202(020); filed Sep 19, 1983, 2:23 pm: 6 IR 2314; errata, 7 IR 579)