CHAPTER 3. BUSINESS TRANSACTION RULES
IC 6-5.5-3
Chapter 3. Business Transaction Rules
IC 6-5.5-3-1
Transacting business within state
Sec. 1. For the purposes of this article, a taxpayer is transactingbusiness within Indiana in a taxable year only if the taxpayer:
(1) maintains an office in Indiana;
(2) has an employee, representative, or independent contractorconducting business in Indiana;
(3) regularly sells products or services of any kind or nature tocustomers in Indiana that receive the product or service inIndiana;
(4) regularly solicits business from potential customers inIndiana;
(5) regularly performs services outside Indiana that areconsumed within Indiana;
(6) regularly engages in transactions with customers in Indianathat involve intangible property, including loans, but notproperty described in section 8(5) of this chapter, and result inreceipts flowing to the taxpayer from within Indiana;
(7) owns or leases tangible personal or real property located inIndiana; or
(8) regularly solicits and receives deposits from customers inIndiana.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-2
Maintains office
Sec. 2. For purposes of this chapter, a taxpayer is considered tomaintain an office wherever the taxpayer has established a regular,continuous, and fixed place of business.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-3
Conducting business
Sec. 3. An employee, representative, or independent contractor isconsidered to be conducting business in Indiana if:
(1) the employee, representative, or independent contractor isregularly engaged in the business of the taxpayer in Indiana;
(2) the office from which the employee's, representative's, orindependent contractor's activities are directed or controlled islocated in Indiana and a majority of the employee's,representative's, or independent contractor's service is notperformed in any other taxing jurisdiction; or
(3) a contribution to the Indiana employment security fund isrequired under IC 22-4-2 with respect to compensation paid tothe employee.
As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,SEC.27.
IC 6-5.5-3-4
Regularly solicit business; presumption
Sec. 4. A person is presumed, subject to rebuttal, to regularlysolicit business within Indiana if:
(1) the person conducts activities described in section 1(3),1(5), and 1(6) of this chapter with twenty (20) or morecustomers within Indiana during the taxable year; or
(2) the sum of the person's assets, including the assets arisingfrom loan transactions, and the absolute value of the person'sdeposits attributable to Indiana equal at least five milliondollars ($5,000,000).
As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,SEC.28; P.L.68-1991, SEC.10.
IC 6-5.5-3-5
Tangible assets, intangible assets, and deposits attributable to state
Sec. 5. For purposes of this chapter, tangible assets areattributable to this state if they are located in Indiana. Intangibleassets are attributable to this state if the income earned on thoseassets is attributable to this state under this article. Deposits areattributed to this state if they are deposits made by this state orresidents, political subdivisions, or agencies and instrumentalities ofthis state regardless of whether the deposits are accepted ormaintained by the taxpayer at locations within Indiana.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-6
Tangible property; located in state
Sec. 6. Except as otherwise provided in section 7 of this chapter,tangible property, including leased property, is considered to belocated in Indiana if the property is physically situated in Indiana.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-7
Moving property; located in state
Sec. 7. For purposes of this article, tangible personal property thatis characteristically moving property, such as motor vehicles, rollingstock, aircraft, vessels, and mobile equipment, is considered to belocated in Indiana if:
(1) the operation of the property is entirely in Indiana; or
(2) the operation of the property is not entirely in Indiana and:
(A) the operation outside Indiana is occasional andincidental to the operation in Indiana;
(B) the principal base of operations from which the propertyis sent out is in Indiana; or
(C) Indiana is the commercial domicile of the lessee or otheruser of the property and there is no principal base ofoperations.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-8
Events not considered transacting business in state
Sec. 8. Notwithstanding any other provision of this chapter, ataxpayer, except for a trust company formed under IC 28-1-4, is notconsidered to be transacting business in Indiana if the only activitiesof the taxpayer in Indiana are or are in connection with any of thefollowing:
(1) Maintaining or defending an action or suit.
(2) Filing, modifying, renewing, extending, or transferring amortgage, deed of trust, or security interest.
(3) Acquiring, foreclosing, or otherwise conveying property inIndiana as a result of a default under the terms of a mortgage,deed of trust, or other security instrument relating to theproperty.
(4) Selling tangible personal property, if taxation under thisarticle is precluded by 15 U.S.C. 381 through 384.
(5) Owning an interest in the following types of property,including those activities within Indiana that are reasonablyrequired to evaluate and complete the acquisition or dispositionof the property, the servicing of the property or the income fromthe property, the collection of income from the property, or theacquisition or liquidation of collateral relating to the property:
(A) An interest in a real estate mortgage investment conduit,a real estate investment trust, or a regulated investmentcompany (as those terms are defined in the Internal RevenueCode).
(B) An interest in a loan backed security representingownership or participation in a pool of promissory notes orcertificates of interest that provide for payments in relationto payments or reasonable projections of payments on thenotes or certificates.
(C) An interest in a loan or other asset from which theinterest is attributed in IC 6-5.5-4-4, IC 6-5.5-4-5, andIC 6-5.5-4-6 and in which the payment obligations weresolicited and entered into by a person that is independent andnot acting on behalf of the owner.
(D) An interest in the right to service or collect income froma loan or other asset from which interest on the loan or otherasset is attributed in IC 6-5.5-4-4, IC 6-5.5-4-5, andIC 6-5.5-4-6 and in which the payment obligations weresolicited and entered into by a person that is independent andnot acting on behalf of the owner.
(E) An amount held in an escrow or a trust account withrespect to property described in this subdivision.
(6) Acting:
(A) as an executor of an estate;
(B) as a trustee of a benefit plan;
(C) as a trustee of an employees' pension, profit sharing, orother retirement plan;
(D) as a trustee of a testamentary or inter vivos trust or
corporate indenture; or
(E) in any other fiduciary capacity, including holding title toreal property in Indiana.
As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991,SEC.11.