Sales Tax on Corn Sold to Central Indiana Ethanol  

Corn purchased by Central Indiana Ethanol from both farmers and elevators is exempt from sales tax as per Section 45 IAC 2.2-5-12 of the Indiana Administrative Code.  A portion of that section is shown below for your convenience.  Central Indiana Ethanol, LLC will be providing Indiana Sales Tax Exemption Certificates to all who sell corn to our plant. 

Sales and Use Tax

45 IAC 2.2-5-12 Sales of tangible personal property directly consumed in manufacturing, processing, refining or mining   

Sub part (c) The state gross retail tax does not apply to purchases of materials to be directly consumed in the production process or in mining, provided that such materials are directly used in the production process; i.e., they have an immediate effect on the article being produced.  The property has an immediate on the article being produced if it is an essential and integral part of an integrated process which produces tangible personal property. 

The entire Sales and Use Tax section of the Indiana Administrative Code can be found at  

http://www.in.gov/legislative/iac/T00450/A00022.PDF