IC 25-37
    ARTICLE 37. TRANSIENT MERCHANTS

IC 25-37-1
    Chapter 1. Regulation of Transient Merchants by LocalGovernmental Units

IC 25-37-1-1
Short title
    Sec. 1. This chapter shall be known as the "Transient MerchantLaw of Indiana."
(Formerly: Acts 1955, c.345, s.1.) As amended by Acts 1982,P.L.154, SEC.129.

IC 25-37-1-2
"Transient merchant" defined
    Sec. 2. "Transient merchant", when used in this chapter, includesall persons, firms, limited liability companies, and corporations, bothas principals and agents, who engage in, do, or transact anytemporary or transient business in this state, either in one (1) localityor in traveling from place to place in this state, offering for sale orselling goods, wares, or merchandise, and those who, for the purposeof carrying on such business, hire, lease, or occupy any permanent ormobile building, structure, or real estate for the exhibition by meansof samples, catalogues, photographs, and price lists or sale of suchgoods, wares, or merchandise. The term does not include thefollowing:
        (1) any person, individual, copartner, limited liability company,or corporation which grows the goods, wares, or merchandisethat is sold or offered for sale;
        (2) a person who makes crafts or items by hand and sells themor offers them for sale;
        (3) an auctioneer who is licensed under IC 25-6.1;
        (4) a resident of the county in which the sale takes place whoconducts a sale of tangible personal property for no more thanfour (4) days per calendar year;
        (5) an organization that is exempt from the Indiana gross retailtax under IC 6-2.5-5-26;
        (6) a person who:
            (A) sells merchandise;
            (B) offers to sell merchandise; and
            (C) provides proof that the sale is being conducted as part ofan activity sponsored by an organization described insubdivision (5);
        (7) a person who:
            (A) organizes;
            (B) sells merchandise at;
            (C) offers to sell merchandise at; or
            (D) exhibits at;
        a trade show or convention;        (8) except as provided in section 15 of this chapter, a personwho holds a registered retail merchant's certificate underIC 6-2.5-8.
(Formerly: Acts 1955, c.345, s.2.) As amended by Acts 1982,P.L.154, SEC.130; P.L.158-1986, SEC.1; P.L.11-1987, SEC.28;P.L.48-1991, SEC.72; P.L.8-1993, SEC.400; P.L.19-1994, SEC.15.

IC 25-37-1-3
Necessity for license
    Sec. 3. Except as provided in section 11 of this chapter, it shall beunlawful for any transient merchant to transact business in anycounty in this state unless such transient merchant and the owners ofany goods, wares or merchandise to be offered for sale or sold, ifsuch are not owned by the vendor, shall have first secured a licenseas herein provided and shall have complied with the otherrequirements of this chapter herein set forth.
(Formerly: Acts 1955, c.345, s.3.) As amended by Acts 1982,P.L.154, SEC.131; P.L.48-1991, SEC.73.

IC 25-37-1-4
Application for license; attached statements
    Sec. 4. Any transient merchant desiring to transact business in anycounty in this state shall file application for a license for that purposewith the auditor of the county in this state in which such transientmerchant desires to do business. The application shall state thefollowing facts:
    (a) The name, residence and post-office address of the person,firm, limited liability company, or corporation making theapplication, and if a firm, limited liability company, or corporation,the name and address of the members of the firm or limited liabilitycompany, or officers of the corporation, as the case may be.
    (b) If the applicant is a corporation or limited liability companythen there shall be stated on the application form the date ofincorporation or organization, the state of incorporation ororganization, and if the applicant is a corporation or limited liabilitycompany formed in a state other than the state of Indiana, the date onwhich such corporation or limited liability company qualified totransact business as a foreign corporation or foreign limited liabilitycompany in the state of Indiana.
    (c) A statement showing the kind of business proposed to beconducted, the length of time for which the applicant desires totransact business, and if for the purpose of transacting such businessany permanent or mobile building, structure or real estate is to beused for the exhibition by means of samples, catalogues, photographsand price lists or sale of goods, wares or merchandise, the locationof such proposed place of business.
    (d) A detailed inventory and description of such goods, wares, andmerchandise to be offered for sale or sold, the manner in which thesame is to be advertised for sale and the representations to be madein connection therewith, the names of the persons from whom the

goods, wares, and merchandise so to be advertised or representedwere obtained, the date of receipt of such goods, wares, andmerchandise by the applicant for the license, the place from whichthe same were last taken, and any and all details necessary to locateand identify all goods, wares and merchandise to be sold.
    (e) Attached to the application shall be a receipt showing thatpersonal property taxes on the goods, wares and merchandise to beoffered for sale or sold have been paid.
    (f) Attached to the application shall be a copy of a notice, whichten (10) days before said application has been filed, shall have beenmailed by registered mail by the applicant to the department of staterevenue. The said notice shall state the precise period of time andlocation from which said applicant intends to transact business, theapproximate value of the goods, wares, and merchandise to beoffered for sale or sold, and such other information as the departmentof state revenue of the state of Indiana or its successor may requestor by regulation require.
    (g) Said application shall be verified.
(Formerly: Acts 1955, c.345, s.4.) As amended by P.L.8-1993,SEC.401; P.L.192-2002(ss), SEC.166.

IC 25-37-1-5
Surety bond; agent for service of process; action upon bond
    Sec. 5. (a) Except as provided in section 5.5 of this chapter, at thetime of filing the application, the applicant shall also file and depositwith the county auditor a bond with sureties to be approved by thecounty auditor in the penal sum of seven hundred fifty dollars ($750)or three (3) times the value of the goods, wares, and merchandise tobe offered for sale or sold as shown by the inventory filed, whicheversum is greater, running to the state. The bond shall be forfeited andused for the benefit of:
        (1) any purchaser of goods, wares, or merchandise sold by theapplicant, if the purchaser is awarded a judgment as a result ofa cause of action against the applicant that was commencedwithin one (1) year of and that arose out of the sale;
        (2) the operating budget of the county's prosecuting attorney, ifthe applicant is found by a court to have violated section 9 ofthis chapter, although the amount forfeited under thissubdivision may not exceed one-third (1/3) of the bond;
        (3) the state, any of its departments or subdivisions, or any unitof local government, if the applicant fails to pay all taxes duefrom the applicant to that governmental entity; or
        (4) a court in payment or partial payment of any fines that maybe assessed by the court against the applicant, its agents, oremployees for violation of this chapter.
However, the aggregate liability of the surety for all taxes, fines,disbursements, and causes of action may not exceed the amount ofsuch bond. There shall be no limitation of liability against thetransient merchant or the applicant for the license.
    (b) In such bond, the applicant and surety shall appoint the auditor

of the county in which the bond is filed, the agent of the applicant,and the surety for the service of process. In the event of such serviceof process, the agent on whom such service is made shall, within five(5) days after the service, mail by ordinary mail a true copy of theprocess served upon him to each party for whom he has been served,addressed to the last known address of such party. Failure to mail thecopy shall not, however, affect the court's jurisdiction.
    (c) The state or any department or subdivision, municipal orotherwise, thereof or any person having a cause of action arisingfrom or out of any sale or sales of goods, wares, or merchandise oragainst the applicant may join the applicant and the surety on suchbond in the same action or may sue either such applicant or thesurety alone.
(Formerly: Acts 1955, c.345, s.5.) As amended by Acts 1982,P.L.154, SEC.132; P.L.158-1986, SEC.2; P.L.221-1993, SEC.1.

IC 25-37-1-5.5
Reduction and waiver of surety bond
    Sec. 5.5. (a) Notwithstanding section 5 of this chapter, a countylegislative body (as defined in IC 36-1-2-9) may annually:
        (1) set the amount of the bond required under section 5 of thischapter in any amount that is not greater than the amountrequired in section 5 of this chapter; or
        (2) waive the bond required under section 5 of this chapter.
    (b) A county legislative body that reduces or waives the bondunder subsection (a) must inform the auditor of the county of thefollowing:
        (1) Whether a bond is required to be filed with an applicationwith the auditor for a transient merchant license.
        (2) The amount of the bond if a bond is required.
    (c) An applicant filing for a transient merchant license must do thefollowing:
        (1) If filing for a transient merchant license with a countyauditor who has been informed of a reduced bond undersubsection (b), the applicant must file:
            (A) an application; and
            (B) the bond;
        with the county auditor.
        (2) If filing for a transient merchant license with a countyauditor who has been informed that a bond has been waivedunder subsection (b), the applicant must file only anapplication.
    (d) A bond required under subsection (a)(1), although not in theamount required under section 5 of this chapter, will for all otherpurposes be treated like a bond issued under section 5 of this chapter.
As added by P.L.221-1993, SEC.2.

IC 25-37-1-6
License fee
    Sec. 6. Except as provided in section 6.5 of this chapter, the

applicant desiring to file an application with the auditor for atransient merchant license shall pay to the treasurer of the county inwhich the application is made a license fee of one hundred dollars($100) for each six (6) month period in which the applicant proposesto transact business. The applicant shall thereupon file the treasurer'sreceipt for such payment with the auditor of the county with whomthe application is filed.
(Formerly: Acts 1955, c.345, s.6.) As amended by P.L.158-1986,SEC.3; P.L.221-1993, SEC.3.

IC 25-37-1-6.5
Reduction and waiver of license fee
    Sec. 6.5. (a) Notwithstanding section 6 of this chapter, a countylegislative body (as defined in IC 36-1-2-9) may annually:
        (1) set the county license fee required under section 6 of thischapter in any amount that is not greater than the amountrequired in section 6 of this chapter; or
        (2) waive the county license fee required under section 6 of thischapter.
    (b) A county legislative body that reduces or waives the countylicense fee under subsection (a) must inform:
        (1) the treasurer of the county; and
        (2) the auditor of the county;
whether a license fee is required to be filed with an application withthe auditor for a transient merchant license and the amount of thelicense fee if a license fee is required.
    (c) A treasurer who is informed of a fee change under subsection(b) shall:
        (1) require each applicant to submit the lesser fee set by thecounty legislative body; and
        (2) issue a receipt to the applicant.
    (d) An applicant filing for a transient merchant license must dothe following:
        (1) If filing for a transient merchant license with a countyauditor who has been informed of a reduced license fee undersubsection (b), the applicant must file:
            (A) an application; and
            (B) a receipt from the county treasurer.
        (2) If filing for a transient merchant license with a countyauditor who has been informed that a license fee has beenwaived under subsection (b), the applicant must file only anapplication.
As added by P.L.221-1993, SEC.4.

IC 25-37-1-7
Issuance of license; transferability; use and validity of license;record of licenses
    Sec. 7. (a) Upon the filing of such application and after theapplicant has established that he has fully complied with all theprovisions of this chapter, the auditor of said county may issue to the

applicant a license authorizing the said applicant to transact businessas proposed in said application. Such license shall not be transferableand shall be valid only in the county where issued and shall not bevalid in any town or city which has enacted an ordinance licensingtransient merchants, unless a license from such city or town is alsoobtained. No license shall be good for more than one (1) person,unless such persons shall be copartners or employees of a firm,limited liability company, or corporation obtaining such license. Nolicense shall be good for more than one (1) location in said county,if said transient merchant is transacting business in a building orstructure in said county.
    (b) The auditor shall keep a record of such license in a bookprovided for that purpose, which shall at all times be open to publicinspection.
    (c) No particular form of license shall be required to be issued bysaid auditor. However, any license issued shall state the name of theperson, firm, limited liability company, or corporation which islicensed, and the number of days for which the license is issued.
(Formerly: Acts 1955, c.345, s.7.) As amended by Acts 1982,P.L.154, SEC.133; P.L.8-1993, SEC.402.

IC 25-37-1-8
Inventory of goods sold
    Sec. 8. Within ten (10) days after said license expires the holderthereof shall file in duplicate with the county auditor an inventory ofall goods, wares and merchandise sold and the price receivedtherefor, which inventory shall be verified by the person who filedthe application for the license with the said auditor. The countyauditor shall immediately after receiving such report and inventoryforward a copy thereof to the Indiana department of state revenue ofthe state of Indiana or its successor.
(Formerly: Acts 1955, c.345, s.8.)

IC 25-37-1-9
Violations
    Sec. 9. A transient merchant who:
        (1) transacts business without having first obtained a licenseunder this chapter; or
        (2) knowingly advertises, offers for sale, or sells any goods,wares, or merchandise contrary to this chapter;
commits a Class B infraction for each day a violation occurs.
(Formerly: Acts 1955, c.345, s.9.) As amended by Acts 1978, P.L.2,SEC.2564; P.L.158-1986, SEC.4.

IC 25-37-1-10
Exceptions
    Sec. 10. The provisions of this chapter shall not apply to salesmade to dealers by commercial travelers or selling agents in the usualcourse of business nor to bona fide sale of goods, wares ormerchandise by sample for future delivery, or to sheriffs, constable

or other public officers selling goods, wares and merchandiseaccording to law, nor to bona fide assignees or receivers appointedin this state selling goods, wares and merchandise for the benefit ofcreditors.
(Formerly: Acts 1955, c.345, s.10.) As amended by Acts 1982,P.L.154, SEC.134.

IC 25-37-1-11
Municipal authority over transient merchants
    Sec. 11. (a) Towns and cities may tax, license, and regulatetransient merchants and charge a fee for the transaction of businessby them. Towns and cities may provide for punishment of violators,subject to the limitations of IC 36-1-3.
    (b) This subsection does not apply to a county having aconsolidated city. A city or town license may not be in lieu of acounty license. This chapter does not supersede any ordinanceregulating transient merchants.
    (c) This subsection applies to a county having a consolidated city.A transient merchant is not required to obtain a county transientmerchant license under this chapter. A transient merchant may nottransact business in a municipality located wholly or partially withinthe county unless the transient merchant and the owner of theproperty to be offered for sale (or sold if the property is not ownedby the vendor) have first obtained a license from the fiscal officer ofthe municipality under this chapter.
(Formerly: Acts 1955, c.345, s.11.) As amended by Acts 1978, P.L.2,SEC.2565; Acts 1981, P.L.11, SEC.131; P.L.158-1986, SEC.5;P.L.48-1991, SEC.74.

IC 25-37-1-12
Use and disposition of receipts
    Sec. 12. All fees collected by a county, city, or town under thischapter shall be paid into the general fund of the county, city, ortown.
(Formerly: Acts 1955, c.345, s.12.) As amended by Acts 1982,P.L.154, SEC.135; P.L.158-1986, SEC.6.

IC 25-37-1-13
Temporary association or partnership
    Sec. 13. A temporary association or partnership with a personexcluded from the definition of transient merchant under section 2 ofthis chapter does not relieve a transient merchant from complyingwith this chapter.
As added by P.L.158-1986, SEC.7.

IC 25-37-1-14
Veterans; license fees; counties having consolidated cities
    Sec. 14. (a) This section applies to a county having a consolidatedcity.
    (b) A veteran who holds an honorable discharge from the armed

forces of the United States is exempt from the payment of a fee fora transient merchant license issued under this chapter by amunicipality located wholly or partially within the county.
    (c) Upon the presentation of the veteran's certificate and papers ofdischarge and proof of the veteran's identity, the official designatedby the municipality shall issue a transient merchant license to theveteran. A person licensed under this section shall comply with allordinances of the county or municipality governing transientmerchants.
As added by P.L.48-1991, SEC.75.

IC 25-37-1-15
Holders of registered retail merchant's certificates
    Sec. 15. A county having a population of more than seventeenthousand (17,000) but less than seventeen thousand five hundred(17,500) may require that the holder of a registered retail merchant'scertificate under IC 6-2.5-8 obtain a transient merchant license.
As added by P.L.19-1994, SEC.16. Amended by P.L.170-2002,SEC.129.