Ind. Code ch. 6-8-1

Ind. Code ch. 6-8-1
in effect

Ind. Code § 6-8-1-1 "Person" defined

Sec. 1. As used in this chapter, "person" means any individual, assignee, receiver, commissioner, fiduciary, trustee, executor, administrator, institution, national bank, bank, consignee, firm, partnership, joint venture, pool, syndicate, bureau, association, corporation, limited liability company, estate, trust, or any other group or combination acting as a unit. Formerly: Acts 1947, c.278, s.1. As amended by P.L.2-1988, SEC.33; P.L.109-1988, SEC.5; P.L.8-1993, SEC.102; P.L.128-2026, SEC.53.

Ind. Code § 6-8-1-2 "Department" defined

Sec. 2. As used in this chapter, "department" refers to the department of state revenue. Formerly: Acts 1947, c.278, s.2. As amended by P.L.2-1988, SEC.34; P.L.109-1988, SEC.6.

Ind. Code § 6-8-1-3 "Taxpayer" defined

Sec. 3. As used in this chapter, "taxpayer" means any person by whom a tax is payable under this article. Formerly: Acts 1947, c.278, s.3. As amended by P.L.2-1988, SEC.35; P.L.109-1988, SEC.7.

Ind. Code § 6-8-1-4 "Value" defined

Sec. 4. As used in this chapter, "value" means the price paid or offered to be paid for petroleum of a like grade or gravity in the field or pool in which such well is located, and, if no such price be paid or offered, then as determined pursuant to the rules of the department. Formerly: Acts 1947, c.278, s.4. As amended by P.L.109-1988, SEC.8.

Ind. Code § 6-8-1-5 "Petroleum", "natural gas", "oil", and "barrel of oil" defined

Sec. 5. (a) As used in this chapter, "petroleum" means all hydrocarbons produced at a well in a liquid or gaseous state. (b) As used in this chapter, "natural gas" means petroleum that maintains a gaseous state at atmospheric conditions. (c) As used in this chapter, "oil" means petroleum that maintains a liquid state at atmospheric conditions. (d) As used in this chapter, "barrel of oil" means forty-two (42) U.S. gallons of oil at sixty degrees Fahrenheit (60° F). Formerly: Acts 1947, c.278, s.5. As amended by P.L.109-1988, SEC.9.

Ind. Code § 6-8-1-5.5 "Petroleum gatherer" defined

Sec. 5.5. As used in this chapter, "petroleum gatherer" means the following: (1) A person that purchases petroleum products. (2) A person that gathers and transports petroleum products in which the person does not have the right, title, or interest. (3) A person that possesses petroleum products upon which the petroleum severance tax has not been paid. As added by P.L.128-2026, SEC.54.

Ind. Code § 6-8-1-6 "Producer" defined

Sec. 6. As used in this chapter, "producer" means a person engaged in severing petroleum directly from the land. Formerly: Acts 1947, c.278, s.6. As amended by P.L.109-1988, SEC.10; P.L.128-2026, SEC.55.

Ind. Code § 6-8-1-6.5 "Purchaser" defined

Sec. 6.5. As used in this chapter, "purchaser" means any person engaged in the purchase of petroleum products. The term includes pipelines, refineries, and any other form of petroleum purchasers for resale or use. As added by P.L.128-2026, SEC.56.

Ind. Code § 6-8-1-7 "Owner" defined

Sec. 7. As used in this chapter, "owner" means a person receiving or entitled to receive a proportionate share of petroleum or a proportionate share of the proceeds of the sale of petroleum after production by an operator. The term includes, but is not limited to, the owners of royalties, excess royalty, overriding royalty, mineral rights, or working interest. Formerly: Acts 1947, c.278, s.7. As amended by P.L.109-1988, SEC.11; P.L.128-2026, SEC.57.

Ind. Code § 6-8-1-8 Tax imposed; rate of taxation; responsibility to report tax; contents of report; certain events nontaxable

Sec. 8. (a) Except as provided in subsection (f), a tax is imposed on the privilege of severing petroleum from the land and producing petroleum from a well. (b) The tax described in subsection (a) is imposed at a rate equal to the greater of: (1) one percent (1%) of the value of the petroleum; (2) three cents ($0.03) per one thousand (1,000) cubic feet (MCF) for natural gas; or (3) twenty-four cents ($0.24) per barrel for oil; at the time of the severance of petroleum from the land upon all producers and owners of such petroleum. (c) The person purchasing petroleum products or having petroleum products in the person's possession is responsible for reporting and remitting the tax at the time of sale or delivery from the place of production. The responsibility is imposed upon all purchasers and those having possession of petroleum products after severance from the ground, including petroleum gatherers. (d) Each purchaser or petroleum gatherer shall file a report on or before the last day of the month immediately following the preceding monthly period. The person shall remit the tax due under this section in conjunction with the filing of the monthly report. The reporting and remittance is to be made upon forms prescribed by the department. (e) The purchaser or petroleum gatherer must report the severance of petroleum products from the land and the payment of the tax. The report must show: (1) the total monthly amount of petroleum products severed from the land; (2) the amount and computation of the tax; (3) the names and addresses of all owners or producers or interest holders participating in the production of petroleum products; (4) the amounts paid to the various owners or producers as their interest may be; and (5) any other information the department may reasonably require. (f) The following shall not be considered taxable events under this section: (1) Petroleum produced from any well that is used to pump or treat petroleum. (2) Petroleum piped to a landowner's private buildings for the landowner's own use. Formerly: Acts 1947, c.278, s.8. As amended by P.L.109-1988, SEC.12; P.L.128-2026, SEC.58.

Ind. Code § 6-8-1-9 Tax liens; purchaser personally liable for tax; right to reimbursement; refund

Sec. 9. (a) The tax imposed under this chapter is a lien upon such petroleum from the time of its severance from the land until such tax, plus any penalties and interest attributable to those taxes, is fully paid. The responsibility for the lien follows such petroleum products in the hands of the purchaser or the petroleum gatherer. (b) Any person purchasing or receiving possession of petroleum upon which tax (including any penalties and interest attributable to the tax) has not been paid becomes personally liable for the lien from the time of its severance from the land and must report and pay the tax imposed under this chapter, plus any penalties and interest attributable to the tax, to the state. (c) If the purchaser or the person having possession of petroleum products pays the amount of the petroleum severance tax, the purchaser or person shall be entitled to reimbursement from the owners or producers. By paying the petroleum severance tax, these purchasers or possessors of petroleum products are not subject to any suit or action for recovery by the owners or producers of petroleum products. Any remedy of such owners or producers is exclusively by way of claim for refund and litigation upon such claim for refund with the department. (d) If a person responsible for paying this tax fails to do so in a timely fashion, that person shall be subject to standard penalties and interest under IC 6-8.1-10. Formerly: Acts 1947, c.278, s.9. As amended by P.L.109-1988, SEC.13; P.L.128-2026, SEC.59.

Ind. Code § 6-8-1-11 Payment of tax; right of reimbursement

Sec. 11. A person reporting and paying a tax levied under this chapter is entitled to be reimbursed by the owner or owners immediately upon payment of the tax and shall deduct the amount of the payment from anything due to the owners. A person paying and deducting the tax is not subject to any suit or action for recovery by any person, but the remedy of that person shall be exclusively by claim or suit for refund under the terms of this chapter. Formerly: Acts 1947, c.278, s.11. As amended by P.L.2-1988, SEC.36; P.L.109-1988, SEC.14; P.L.128-2026, SEC.61.

Ind. Code § 6-8-1-12 Duties of department

Sec. 12. The department shall administer the tax imposed under this chapter. Any forms, returns, or reports required to be filed under this chapter shall contain the information as the department may reasonably require for the administration of this chapter. Formerly: Acts 1947, c.278, s.12. As amended by Acts 1980, P.L.61, SEC.14; P.L.109-1988, SEC.15; P.L.128-2026, SEC.62.

Ind. Code § 6-8-1-18 Tax additional to all other taxes

Sec. 18. The tax imposed by this chapter shall be in addition to all other taxes, excises, and fees levied under any other statute. Formerly: Acts 1947, c.278, s.18. As amended by P.L.2-1988, SEC.37; P.L.109-1988, SEC.16.

Ind. Code § 6-8-1-19 Amount collected from tax; failure of collecting trustee to pay; offense

Sec. 19. 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 this chapter or receiving money or credits as or purporting to be 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 Level 6 felony. Formerly: Acts 1947, c.278, s.19. As amended by Acts 1978, P.L.2, SEC.650; P.L.158-2013, SEC.104; P.L.128-2026, SEC.63.

Ind. Code § 6-8-1-19.5 Application for refund; form

Sec. 19.5. A taxpayer may apply for a refund on forms prescribed by the department by identifying the amount and date of the alleged overpayment and the area in which the petroleum products were produced. The application for refund must include any supporting documentation as is reasonably requested by the department. As added by P.L.128-2026, SEC.64.

Ind. Code § 6-8-1-23 Record keeping violations; offenses

Sec. 23. (a) Every taxpayer shall keep and maintain proper books and records sufficient to adequately reflect the severance of all petroleum products and their value for a period of three (3) years from the date of the filing of the return and the payment of the tax for each taxable period. (b) It is a Class C infraction for a person subject to taxation under this chapter to fail to keep and preserve records, books, or accounts as may be necessary to determine the amount for which the person is liable. It is a Class C infraction for a person to fail to keep and preserve records 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 this chapter. Formerly: Acts 1947, c.278, s.23. As amended by Acts 1978, P.L.2, SEC.651; P.L.128-2026, SEC.65.

Ind. Code § 6-8-1-24 Evasion of tax; offenses

Sec. 24. It is a Class B misdemeanor for a person to fail to make any return required to be made under this chapter, 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. 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 this chapter, 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. A person who makes a false statement, with intent to defraud the state or to evade the payment of the tax imposed under this chapter, commits a Level 6 felony. Formerly: Acts 1947, c.278, s.24. As amended by Acts 1978, P.L.2, SEC.652; P.L.158-2013, SEC.105.

Ind. Code § 6-8-1-27 Disposition of revenues

Sec. 27. (a) Money received under this chapter shall be paid by the department into a fund to be kept by the treasurer of state and known as the oil and gas fund. (b) Money paid into this fund shall be devoted to the following purposes upon appropriation: (1) To the expenses of administering this chapter. (2) To the division of reclamation of the department of natural resources for the purpose of administering IC 14-37. (3) To research pertaining to exploration for, development of, and wise use of petroleum resources in Indiana. Formerly: Acts 1947, c.278, s.27. As amended by Acts 1982, P.L.63, SEC.1; P.L.109-1988, SEC.17; P.L.1-1995, SEC.53; P.L.127-2022, SEC.1.

Ind. Code § 6-8-1-28 Reversion of oil and gas fund

Sec. 28. No part of the oil and gas fund reverts to the general fund of the state at the close of any fiscal year. As added by P.L.109-1988, SEC.18.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026

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