IC 6-2.5-4
Chapter 4. Retail Transactions of Retail Merchant
IC 6-2.5-4-1 Selling at retail
Sec. 1. (a) A person is a retail merchant making a retail
transaction when he engages in selling at retail.
(b) A person is engaged in selling at retail when, in the ordinary
course of his regularly conducted trade or business, he:
(1) acquires tangible personal property for the purpose of
resale; and
(2) transfers that property to another person for consideration.
(c) For purposes of determining what constitutes selling at retail,
it does not matter whether:
(1) the property is transferred in the same form as when it was
acquired;
(2) the property is transferred alone or in conjunction with other
property or services; or
(3) the property is transferred conditionally or otherwise.
(d) Notwithstanding subsection (b), a person is not selling at retail
if he is making a wholesale sale as described in section 2 of this
chapter.
(e) The gross retail income received from selling at retail is only
taxable under this article to the extent that the income represents:
(1) the price of the property transferred, without the rendition
of any service; and
(2) except as provided in subsection (g), any bona fide charges
which are made for preparation, fabrication, alteration,
modification, finishing, completion, delivery, or other service
performed in respect to the property transferred before its
transfer and which are separately stated on the transferor's
records.
For purposes of this subsection, a transfer is considered to have
occurred after delivery of the property to the purchaser.
(f) Notwithstanding subsection (e):
(1) in the case of retail sales of gasoline (as defined in
IC 6-6-1.1-103) and special fuel (as defined in IC 6-6-2.5-22),
the gross retail income received from selling at retail is the total
sales price of the gasoline or special fuel minus the part of that
price attributable to tax imposed under IC 6-6-1.1, IC 6-6-2.5,
or Section 4041(a) or Section 4081 of the Internal Revenue
Code; and
(2) in the case of retail sales of cigarettes (as defined in
IC 6-7-1-2), the gross retail income received from selling at
retail is the total sales price of the cigarettes including the tax
imposed under IC 6-7-1.
(g) Gross retail income does not include income that represents
charges for serving or delivering food and food ingredients
furnished, prepared, or served for consumption at a location, or on
equipment, provided by the retail merchant. However, the exclusion
under this subsection only applies if the charges for the serving or
delivery are stated separately from the price of the food and food
ingredients when the purchaser pays the charges. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.2-1987,
SEC.14; P.L.6-1987, SEC.5; P.L.277-1993(ss), SEC.40;
P.L.257-2003, SEC.19; P.L.81-2004, SEC.5.
IC 6-2.5-4-2 Wholesale sales; nonretail transactions
Sec. 2. (a) A person is a retail merchant making a retail
transaction when he is making wholesale sales.
(b) For purposes of this section, a person is making wholesale
sales when he:
(1) sells tangible personal property, other than capital assets or
depreciable property, to a person who purchases the property
for the purpose of reselling it without changing its form;
(2) sells tangible personal property to a person who purchases
the property for direct consumption as a material in the direct
production of other tangible personal property produced by the
person in his business of manufacturing, processing, refining,
repairing, mining, agriculture, or horticulture;
(3) sells tangible personal property to a person who purchases
the property for incorporation as a material or integral part of
tangible personal property produced by the person in his
business of manufacturing, assembling, constructing, refining,
or processing;
(4) sells drugs, medical or dental preparations, or other similar
materials to a person who purchases the materials for direct
consumption in professional use by a physician, hospital,
embalmer, funeral director, or tonsorial parlor;
(5) sells tangible personal property to a person who purchases
the property for direct consumption in his business of industrial
cleaning; or
(6) sells tangible personal property to a person who purchases
the property for direct consumption in the person's business in
the direct rendering of public utility service.
(c) Notwithstanding any provision of this article, a person is not
making a retail transaction when he:
(1) acquires tangible personal property owned by another
person;
(2) provides industrial processing or servicing, including
enameling or plating, on the property; and
(3) transfers the property back to the owner to be sold by that
owner either in the same form or as a part of other tangible
personal property produced by that owner in his business of
manufacturing, assembling, constructing, refining, or
processing. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.246-1985,
SEC.9. IC 6-2.5-4-3 Water softening and conditioning business
Sec. 3. (a) A person is a retail merchant making a retail
transaction when he regularly and occupationally engages in the
business of softening and conditioning water.
(b) For purposes of this section, the business of softening and
conditioning water includes the exchange of water softening and
conditioning tanks in the ordinary course of the business, but does
not include the preparatory plumbing and work necessary for the first
installation of tanks. As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-4-4 Renting or furnishing rooms, lodgings, or other accommodations
Sec. 4. (a) A person is a retail merchant making a retail
transaction when the person rents or furnishes rooms, lodgings, or
other accommodations, such as booths, display spaces, banquet
facilities, and cubicles or spaces used for adult relaxation, massage,
modeling, dancing, or other entertainment to another person:
(1) if those rooms, lodgings, or accommodations are rented or
furnished for periods of less than thirty (30) days; and
(2) if the rooms, lodgings, and accommodations are located in
a hotel, motel, inn, tourist camp, tourist cabin, gymnasium, hall,
coliseum, or other place, where rooms, lodgings, or
accommodations are regularly furnished for consideration.
(b) Each rental or furnishing by a retail merchant under subsection
(a) is a separate unitary transaction regardless of whether
consideration is paid to an independent contractor or directly to the
retail merchant.
(c) For purposes of this section, "consideration" includes a
membership fee charged to a customer.
(d) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction if:
(1) the person is a promoter that rents a booth or display space
to an exhibitor; and
(2) the booth or display space is located in a facility that:
(A) is described in subsection (a)(2); and
(B) is operated by a political subdivision (including a capital
improvement board established under IC 36-10-8 or
IC 36-10-9) or the state fair commission.
This subsection does not exempt from the state gross retail tax the
renting of accommodations by a political subdivision or the state fair
commission to a promoter or an exhibitor. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.93-1987,
SEC.1; P.L.85-1989, SEC.1; P.L.20-1990, SEC.7.
IC 6-2.5-4-4.5
Repealed
(Repealed by P.L.81-2004, SEC.59.) IC 6-2.5-4-5 Power subsidiaries of public utilities
Sec. 5. (a) As used in this section, a "power subsidiary" means a
corporation which is owned or controlled by one (1) or more public
utilities that furnish or sell electrical energy, natural or artificial gas,
water, steam, or steam heat and which produces power exclusively
for the use of those public utilities.
(b) A power subsidiary or a person engaged as a public utility is
a retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a
person engaged as a public utility is not a retail merchant making a
retail transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs,
constructs, services, or removes tangible personal property
which is used in connection with the furnishing of the services
or commodities listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, refining, oil extraction,
mineral extraction, irrigation, agriculture, or horticulture.
However, this exclusion for sales of the services and
commodities only applies if the services are consumed as an
essential and integral part of an integrated process that produces
tangible personal property and those sales are separately
metered for the excepted uses listed in this subdivision, or if
those sales are not separately metered but are predominately
used by the purchaser for the excepted uses listed in this
subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the
part of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), a military base recovery site
designated under IC 6-3.1-11.5, or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as
defined in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
(E) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(2), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as
defined in IC 36-7-34-3).
(ii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the qualified military base (as defined in IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
(5) The power subsidiary or person sells services or
commodities that:
(A) are referred to in subsection (b); and
(B) qualify as home energy (as defined in IC 6-2.5-5-16.5);
to a person who acquires the services or commodities after June
30, 2006, and before July 1, 2009, through home energy
assistance (as defined in IC 6-2.5-5-16.5). As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.48-1984,
SEC.1; P.L.71-1993, SEC.4; P.L.81-2004, SEC.19; P.L.190-2005,
SEC.1; P.L.203-2005, SEC.3; P.L.162-2006, SEC.21; P.L.180-2006,
SEC.3; P.L.1-2007, SEC.51; P.L.32-2007, SEC.1.
IC 6-2.5-4-6 Taxation of telecommunication services; aggregation of taxable
and nontaxable services on customer bills
Sec. 6. (a) A person is a retail merchant making a retail
transaction when the person:
(1) furnishes or sells an intrastate telecommunication service;
and
(2) receives gross retail income from billings or statements
rendered to customers.
(b) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when:
(1) the person furnishes or sells telecommunication services to
another person described in this section or in section 5 of this
chapter;
(2) the person furnishes telecommunications services to another
person who is providing prepaid calling services or prepaid
wireless calling services in a retail transaction to customers who
access the services through the use of an access or authorization
number or card as described in section 13 of this chapter;
(3) the person furnishes intrastate mobile telecommunications
service (as defined in IC 6-8.1-15-7) to a customer with a place
of primary use that is not located in Indiana (as determined
under IC 6-8.1-15); or
(4) the person furnishes or sells value added nonvoice data
services in a retail transaction to a customer.
(c) Subject to IC 6-2.5-12 and IC 6-8.1-15, and notwithstanding
subsections (a) and (b), if charges for telecommunication services,
ancillary services, Internet access, audio services, or video services
that are not taxable under this article are aggregated with and not
separately stated from charges subject to taxation under this article,
the charges for nontaxable telecommunication services, ancillary
services, Internet access, audio services, or video services are subject
to taxation unless the service provider can reasonably identify the
charges not subject to the tax from the service provider's books and
records kept in the regular course of business. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.71-1993,
SEC.5; P.L.8-1996, SEC.3; P.L.8-1998, SEC.1; P.L.104-2002,
SEC.1; P.L.5-2004, SEC.1; P.L.145-2007, SEC.7.
IC 6-2.5-4-7
Repealed
(Repealed by P.L.71-1993, SEC.28.)
IC 6-2.5-4-8 Governmental entities; private or proprietary activities
Sec. 8. An Indiana governmental entity, agency, instrumentality,
or political subdivision (including a state college or university) is a
retail merchant making a retail transaction when it performs private
or proprietary activities that would constitute retail transactions
under this article if those activities were performed by a retail
merchant. However, this section does not apply to a political
subdivision that performs an activity that is related to an annual
festival, carnival, fair, or similar event. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.93-1987,
SEC.2.
IC 6-2.5-4-9 Sale of property to be added to structures or facilities; exemption
Sec. 9. (a) A person is a retail merchant making a retail
transaction when the person sells tangible personal property which:
(1) is to be added to a structure or facility by the purchaser; and
(2) after its addition to the structure or facility, would become
a part of the real estate on which the structure or facility is
located.
(b) Notwithstanding subsection (a), a transaction described in
subsection (a) is not a retail transaction, if the ultimate purchaser or
recipient of the property to be added to the structure or facility would
be exempt from the state gross retail and use taxes if that purchaser
or recipient had directly purchased the property from the supplier for
addition to the structure or facility. As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-4-10 Rental or leasing of personal property; sale of property rented or
leased in course of business; exclusion
Sec. 10. (a) A person, other than a public utility, is a retail
merchant making a retail transaction when he rents or leases tangible
personal property to another person other than for subrent or
sublease.
(b) A person is a retail merchant making a retail transaction when
the person sells any tangible personal property which has been rented
or leased in the regular course of the person's rental or leasing
business.
(c) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when the person rents or leases
motion picture film, audio tape, or video tape to another person.
However, this exclusion only applies if:
(1) the person who pays to rent or lease the film charges
admission to those who view the film; or
(2) the person who pays to rent or lease the film or tape
broadcasts the film or tape for home viewing or listening. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.257-2003,
SEC.20.
IC 6-2.5-4-11 Cable television service; satellite television or radio service
Sec. 11. (a) A person is a retail merchant making a retail
transaction when the person furnishes cable television or radio
service or satellite television or radio service that terminates in
Indiana.
(b) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when the person provides,
installs, constructs, services, or removes tangible personal property
which is used in connection with the furnishing of cable television
or radio service or satellite television or radio service. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.81-2004,
SEC.6; P.L.2-2005, SEC.20.
IC 6-2.5-4-12 Auction sales; exceptions
Sec. 12. (a) A person is a retail merchant making a retail
transaction when he sells tangible personal property at auction.
(b) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when:
(1) he makes isolated or occasional sales of tangible personal
property at auction;
(2) the sales occur on the premises of the owner of the tangible
personal property; and
(3) the owner of the tangible personal property did not
originally acquire that property for resale. As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-4-13 Definition of retail merchant making retail transaction
Sec. 13. A person is a retail merchant making a retail transaction
when a person sells:
(1) a prepaid telephone calling card at retail;
(2) a prepaid telephone authorization number at retail;
(3) the reauthorization of a prepaid telephone calling card; or
(4) the reauthorization of a prepaid telephone authorization
number. As added by P.L.8-1998, SEC.2.
IC 6-2.5-4-14 Notice; proposed public vendors; identification of delinquent
taxpayers
Sec. 14. The department of administration and each purchasing
agent for a state educational institution shall provide the department
with a list of every person who desires to enter into a contract to sell
tangible personal property to an agency (as defined in IC 4-13-2-1)
or a state educational institution. The department shall notify the
department of administration or the purchasing agent of the state
educational institution if a person on the list does not have a
registered retail merchant certificate or is delinquent in remitting or
paying amounts due to the department under this article. As added by P.L.254-2003, SEC.4. Amended by P.L.2-2007,
SEC.118; P.L.211-2007, SEC.11.
IC 6-2.5-4-15 Bundled transactions
Sec. 15. (a) This section applies to retail transactions occurring
after December 31, 2007.
(b) A person is a retail merchant making a retail transaction when
the person sells tangible personal property as part of a bundled
transaction. As added by P.L.153-2006, SEC.4.
IC 6-2.5-4-16
Repealed
(Repealed by P.L.1-2009, SEC.174.)
IC 6-2.5-4-16.2 Aircraft leasing or renting and flight instruction services
Sec. 16.2. (a) This section applies to transactions occurring after
June 30, 2008.
(b) A person is a retail merchant making a retail transaction when
the person:
(1) leases or rents an aircraft to another person; and
(2) provides flight instruction services to the lessee or renter
during the term of the lease or rental.
(c) The amount of the gross retail income attributable to a retail
transaction described in subsection (b) is the amount charged by the
retail merchant for the lease or rental of the aircraft used in
conjunction with the flight instruction services provided to the lessee
or renter. As added by P.L.1-2009, SEC.47.
IC 6-2.5-4-16.4 Specified digital products
Sec. 16.4. (a) As used in this section, "end user" does not include
a person who receives by contract a product transferred
electronically for further commercial broadcast, rebroadcast,
transmission, retransmission, licensing, relicensing, distribution,
redistribution, or exhibition of the product, in whole or in part, to
another person or persons.
(b) A person is a retail merchant making a retail transaction when
the person:
(1) electronically transfers specified digital products to an end
user; and
(2) grants to the end user the right of permanent use of the
specified digital products that is not conditioned upon continued
payment by the purchaser.
(c) The sale of a digital code that may be used to obtain a product
transferred electronically shall be taxed in the same manner as the
product transferred electronically. As used in this subsection, a
digital code means a method that permits a purchaser to obtain at a
later date a product transferred electronically. As added by P.L.1-2009, SEC.48. Amended by P.L.113-2010,
SEC.48.
IC 6-2.5-4-17 Computer software maintenance contracts
Sec. 17. A person is a retail merchant making a retail transaction
when the person enters into a computer software maintenance
contract to provide future updates or upgrades to computer software. As added by P.L.113-2010, SEC.49.
IC 6-2.5-4
Chapter 4. Retail Transactions of Retail Merchant
IC 6-2.5-4-1 Selling at retail
Sec. 1. (a) A person is a retail merchant making a retail
transaction when he engages in selling at retail.
(b) A person is engaged in selling at retail when, in the ordinary
course of his regularly conducted trade or business, he:
(1) acquires tangible personal property for the purpose of
resale; and
(2) transfers that property to another person for consideration.
(c) For purposes of determining what constitutes selling at retail,
it does not matter whether:
(1) the property is transferred in the same form as when it was
acquired;
(2) the property is transferred alone or in conjunction with other
property or services; or
(3) the property is transferred conditionally or otherwise.
(d) Notwithstanding subsection (b), a person is not selling at retail
if he is making a wholesale sale as described in section 2 of this
chapter.
(e) The gross retail income received from selling at retail is only
taxable under this article to the extent that the income represents:
(1) the price of the property transferred, without the rendition
of any service; and
(2) except as provided in subsection (g), any bona fide charges
which are made for preparation, fabrication, alteration,
modification, finishing, completion, delivery, or other service
performed in respect to the property transferred before its
transfer and which are separately stated on the transferor's
records.
For purposes of this subsection, a transfer is considered to have
occurred after delivery of the property to the purchaser.
(f) Notwithstanding subsection (e):
(1) in the case of retail sales of gasoline (as defined in
IC 6-6-1.1-103) and special fuel (as defined in IC 6-6-2.5-22),
the gross retail income received from selling at retail is the total
sales price of the gasoline or special fuel minus the part of that
price attributable to tax imposed under IC 6-6-1.1, IC 6-6-2.5,
or Section 4041(a) or Section 4081 of the Internal Revenue
Code; and
(2) in the case of retail sales of cigarettes (as defined in
IC 6-7-1-2), the gross retail income received from selling at
retail is the total sales price of the cigarettes including the tax
imposed under IC 6-7-1.
(g) Gross retail income does not include income that represents
charges for serving or delivering food and food ingredients
furnished, prepared, or served for consumption at a location, or on
equipment, provided by the retail merchant. However, the exclusion
under this subsection only applies if the charges for the serving or
delivery are stated separately from the price of the food and food
ingredients when the purchaser pays the charges. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.2-1987,
SEC.14; P.L.6-1987, SEC.5; P.L.277-1993(ss), SEC.40;
P.L.257-2003, SEC.19; P.L.81-2004, SEC.5.
IC 6-2.5-4-2 Wholesale sales; nonretail transactions
Sec. 2. (a) A person is a retail merchant making a retail
transaction when he is making wholesale sales.
(b) For purposes of this section, a person is making wholesale
sales when he:
(1) sells tangible personal property, other than capital assets or
depreciable property, to a person who purchases the property
for the purpose of reselling it without changing its form;
(2) sells tangible personal property to a person who purchases
the property for direct consumption as a material in the direct
production of other tangible personal property produced by the
person in his business of manufacturing, processing, refining,
repairing, mining, agriculture, or horticulture;
(3) sells tangible personal property to a person who purchases
the property for incorporation as a material or integral part of
tangible personal property produced by the person in his
business of manufacturing, assembling, constructing, refining,
or processing;
(4) sells drugs, medical or dental preparations, or other similar
materials to a person who purchases the materials for direct
consumption in professional use by a physician, hospital,
embalmer, funeral director, or tonsorial parlor;
(5) sells tangible personal property to a person who purchases
the property for direct consumption in his business of industrial
cleaning; or
(6) sells tangible personal property to a person who purchases
the property for direct consumption in the person's business in
the direct rendering of public utility service.
(c) Notwithstanding any provision of this article, a person is not
making a retail transaction when he:
(1) acquires tangible personal property owned by another
person;
(2) provides industrial processing or servicing, including
enameling or plating, on the property; and
(3) transfers the property back to the owner to be sold by that
owner either in the same form or as a part of other tangible
personal property produced by that owner in his business of
manufacturing, assembling, constructing, refining, or
processing. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.246-1985,
SEC.9. IC 6-2.5-4-3 Water softening and conditioning business
Sec. 3. (a) A person is a retail merchant making a retail
transaction when he regularly and occupationally engages in the
business of softening and conditioning water.
(b) For purposes of this section, the business of softening and
conditioning water includes the exchange of water softening and
conditioning tanks in the ordinary course of the business, but does
not include the preparatory plumbing and work necessary for the first
installation of tanks. As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-4-4 Renting or furnishing rooms, lodgings, or other accommodations
Sec. 4. (a) A person is a retail merchant making a retail
transaction when the person rents or furnishes rooms, lodgings, or
other accommodations, such as booths, display spaces, banquet
facilities, and cubicles or spaces used for adult relaxation, massage,
modeling, dancing, or other entertainment to another person:
(1) if those rooms, lodgings, or accommodations are rented or
furnished for periods of less than thirty (30) days; and
(2) if the rooms, lodgings, and accommodations are located in
a hotel, motel, inn, tourist camp, tourist cabin, gymnasium, hall,
coliseum, or other place, where rooms, lodgings, or
accommodations are regularly furnished for consideration.
(b) Each rental or furnishing by a retail merchant under subsection
(a) is a separate unitary transaction regardless of whether
consideration is paid to an independent contractor or directly to the
retail merchant.
(c) For purposes of this section, "consideration" includes a
membership fee charged to a customer.
(d) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction if:
(1) the person is a promoter that rents a booth or display space
to an exhibitor; and
(2) the booth or display space is located in a facility that:
(A) is described in subsection (a)(2); and
(B) is operated by a political subdivision (including a capital
improvement board established under IC 36-10-8 or
IC 36-10-9) or the state fair commission.
This subsection does not exempt from the state gross retail tax the
renting of accommodations by a political subdivision or the state fair
commission to a promoter or an exhibitor. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.93-1987,
SEC.1; P.L.85-1989, SEC.1; P.L.20-1990, SEC.7.
IC 6-2.5-4-4.5
Repealed
(Repealed by P.L.81-2004, SEC.59.) IC 6-2.5-4-5 Power subsidiaries of public utilities
Sec. 5. (a) As used in this section, a "power subsidiary" means a
corporation which is owned or controlled by one (1) or more public
utilities that furnish or sell electrical energy, natural or artificial gas,
water, steam, or steam heat and which produces power exclusively
for the use of those public utilities.
(b) A power subsidiary or a person engaged as a public utility is
a retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a
person engaged as a public utility is not a retail merchant making a
retail transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs,
constructs, services, or removes tangible personal property
which is used in connection with the furnishing of the services
or commodities listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, refining, oil extraction,
mineral extraction, irrigation, agriculture, or horticulture.
However, this exclusion for sales of the services and
commodities only applies if the services are consumed as an
essential and integral part of an integrated process that produces
tangible personal property and those sales are separately
metered for the excepted uses listed in this subdivision, or if
those sales are not separately metered but are predominately
used by the purchaser for the excepted uses listed in this
subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the
part of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), a military base recovery site
designated under IC 6-3.1-11.5, or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as
defined in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
(E) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(2), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as
defined in IC 36-7-34-3).
(ii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the qualified military base (as defined in IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
(5) The power subsidiary or person sells services or
commodities that:
(A) are referred to in subsection (b); and
(B) qualify as home energy (as defined in IC 6-2.5-5-16.5);
to a person who acquires the services or commodities after June
30, 2006, and before July 1, 2009, through home energy
assistance (as defined in IC 6-2.5-5-16.5). As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.48-1984,
SEC.1; P.L.71-1993, SEC.4; P.L.81-2004, SEC.19; P.L.190-2005,
SEC.1; P.L.203-2005, SEC.3; P.L.162-2006, SEC.21; P.L.180-2006,
SEC.3; P.L.1-2007, SEC.51; P.L.32-2007, SEC.1.
IC 6-2.5-4-6 Taxation of telecommunication services; aggregation of taxable
and nontaxable services on customer bills
Sec. 6. (a) A person is a retail merchant making a retail
transaction when the person:
(1) furnishes or sells an intrastate telecommunication service;
and
(2) receives gross retail income from billings or statements
rendered to customers.
(b) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when:
(1) the person furnishes or sells telecommunication services to
another person described in this section or in section 5 of this
chapter;
(2) the person furnishes telecommunications services to another
person who is providing prepaid calling services or prepaid
wireless calling services in a retail transaction to customers who
access the services through the use of an access or authorization
number or card as described in section 13 of this chapter;
(3) the person furnishes intrastate mobile telecommunications
service (as defined in IC 6-8.1-15-7) to a customer with a place
of primary use that is not located in Indiana (as determined
under IC 6-8.1-15); or
(4) the person furnishes or sells value added nonvoice data
services in a retail transaction to a customer.
(c) Subject to IC 6-2.5-12 and IC 6-8.1-15, and notwithstanding
subsections (a) and (b), if charges for telecommunication services,
ancillary services, Internet access, audio services, or video services
that are not taxable under this article are aggregated with and not
separately stated from charges subject to taxation under this article,
the charges for nontaxable telecommunication services, ancillary
services, Internet access, audio services, or video services are subject
to taxation unless the service provider can reasonably identify the
charges not subject to the tax from the service provider's books and
records kept in the regular course of business. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.71-1993,
SEC.5; P.L.8-1996, SEC.3; P.L.8-1998, SEC.1; P.L.104-2002,
SEC.1; P.L.5-2004, SEC.1; P.L.145-2007, SEC.7.
IC 6-2.5-4-7
Repealed
(Repealed by P.L.71-1993, SEC.28.)
IC 6-2.5-4-8 Governmental entities; private or proprietary activities
Sec. 8. An Indiana governmental entity, agency, instrumentality,
or political subdivision (including a state college or university) is a
retail merchant making a retail transaction when it performs private
or proprietary activities that would constitute retail transactions
under this article if those activities were performed by a retail
merchant. However, this section does not apply to a political
subdivision that performs an activity that is related to an annual
festival, carnival, fair, or similar event. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.93-1987,
SEC.2.
IC 6-2.5-4-9 Sale of property to be added to structures or facilities; exemption
Sec. 9. (a) A person is a retail merchant making a retail
transaction when the person sells tangible personal property which:
(1) is to be added to a structure or facility by the purchaser; and
(2) after its addition to the structure or facility, would become
a part of the real estate on which the structure or facility is
located.
(b) Notwithstanding subsection (a), a transaction described in
subsection (a) is not a retail transaction, if the ultimate purchaser or
recipient of the property to be added to the structure or facility would
be exempt from the state gross retail and use taxes if that purchaser
or recipient had directly purchased the property from the supplier for
addition to the structure or facility. As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-4-10 Rental or leasing of personal property; sale of property rented or
leased in course of business; exclusion
Sec. 10. (a) A person, other than a public utility, is a retail
merchant making a retail transaction when he rents or leases tangible
personal property to another person other than for subrent or
sublease.
(b) A person is a retail merchant making a retail transaction when
the person sells any tangible personal property which has been rented
or leased in the regular course of the person's rental or leasing
business.
(c) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when the person rents or leases
motion picture film, audio tape, or video tape to another person.
However, this exclusion only applies if:
(1) the person who pays to rent or lease the film charges
admission to those who view the film; or
(2) the person who pays to rent or lease the film or tape
broadcasts the film or tape for home viewing or listening. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.257-2003,
SEC.20.
IC 6-2.5-4-11 Cable television service; satellite television or radio service
Sec. 11. (a) A person is a retail merchant making a retail
transaction when the person furnishes cable television or radio
service or satellite television or radio service that terminates in
Indiana.
(b) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when the person provides,
installs, constructs, services, or removes tangible personal property
which is used in connection with the furnishing of cable television
or radio service or satellite television or radio service. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.81-2004,
SEC.6; P.L.2-2005, SEC.20.
IC 6-2.5-4-12 Auction sales; exceptions
Sec. 12. (a) A person is a retail merchant making a retail
transaction when he sells tangible personal property at auction.
(b) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when:
(1) he makes isolated or occasional sales of tangible personal
property at auction;
(2) the sales occur on the premises of the owner of the tangible
personal property; and
(3) the owner of the tangible personal property did not
originally acquire that property for resale. As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-4-13 Definition of retail merchant making retail transaction
Sec. 13. A person is a retail merchant making a retail transaction
when a person sells:
(1) a prepaid telephone calling card at retail;
(2) a prepaid telephone authorization number at retail;
(3) the reauthorization of a prepaid telephone calling card; or
(4) the reauthorization of a prepaid telephone authorization
number. As added by P.L.8-1998, SEC.2.
IC 6-2.5-4-14 Notice; proposed public vendors; identification of delinquent
taxpayers
Sec. 14. The department of administration and each purchasing
agent for a state educational institution shall provide the department
with a list of every person who desires to enter into a contract to sell
tangible personal property to an agency (as defined in IC 4-13-2-1)
or a state educational institution. The department shall notify the
department of administration or the purchasing agent of the state
educational institution if a person on the list does not have a
registered retail merchant certificate or is delinquent in remitting or
paying amounts due to the department under this article. As added by P.L.254-2003, SEC.4. Amended by P.L.2-2007,
SEC.118; P.L.211-2007, SEC.11.
IC 6-2.5-4-15 Bundled transactions
Sec. 15. (a) This section applies to retail transactions occurring
after December 31, 2007.
(b) A person is a retail merchant making a retail transaction when
the person sells tangible personal property as part of a bundled
transaction. As added by P.L.153-2006, SEC.4.
IC 6-2.5-4-16
Repealed
(Repealed by P.L.1-2009, SEC.174.)
IC 6-2.5-4-16.2 Aircraft leasing or renting and flight instruction services
Sec. 16.2. (a) This section applies to transactions occurring after
June 30, 2008.
(b) A person is a retail merchant making a retail transaction when
the person:
(1) leases or rents an aircraft to another person; and
(2) provides flight instruction services to the lessee or renter
during the term of the lease or rental.
(c) The amount of the gross retail income attributable to a retail
transaction described in subsection (b) is the amount charged by the
retail merchant for the lease or rental of the aircraft used in
conjunction with the flight instruction services provided to the lessee
or renter. As added by P.L.1-2009, SEC.47.
IC 6-2.5-4-16.4 Specified digital products
Sec. 16.4. (a) As used in this section, "end user" does not include
a person who receives by contract a product transferred
electronically for further commercial broadcast, rebroadcast,
transmission, retransmission, licensing, relicensing, distribution,
redistribution, or exhibition of the product, in whole or in part, to
another person or persons.
(b) A person is a retail merchant making a retail transaction when
the person:
(1) electronically transfers specified digital products to an end
user; and
(2) grants to the end user the right of permanent use of the
specified digital products that is not conditioned upon continued
payment by the purchaser.
(c) The sale of a digital code that may be used to obtain a product
transferred electronically shall be taxed in the same manner as the
product transferred electronically. As used in this subsection, a
digital code means a method that permits a purchaser to obtain at a
later date a product transferred electronically. As added by P.L.1-2009, SEC.48. Amended by P.L.113-2010,
SEC.48.
IC 6-2.5-4-17 Computer software maintenance contracts
Sec. 17. A person is a retail merchant making a retail transaction
when the person enters into a computer software maintenance
contract to provide future updates or upgrades to computer software. As added by P.L.113-2010, SEC.49.
IC 6-2.5-4
Chapter 4. Retail Transactions of Retail Merchant
IC 6-2.5-4-1 Selling at retail
Sec. 1. (a) A person is a retail merchant making a retail
transaction when he engages in selling at retail.
(b) A person is engaged in selling at retail when, in the ordinary
course of his regularly conducted trade or business, he:
(1) acquires tangible personal property for the purpose of
resale; and
(2) transfers that property to another person for consideration.
(c) For purposes of determining what constitutes selling at retail,
it does not matter whether:
(1) the property is transferred in the same form as when it was
acquired;
(2) the property is transferred alone or in conjunction with other
property or services; or
(3) the property is transferred conditionally or otherwise.
(d) Notwithstanding subsection (b), a person is not selling at retail
if he is making a wholesale sale as described in section 2 of this
chapter.
(e) The gross retail income received from selling at retail is only
taxable under this article to the extent that the income represents:
(1) the price of the property transferred, without the rendition
of any service; and
(2) except as provided in subsection (g), any bona fide charges
which are made for preparation, fabrication, alteration,
modification, finishing, completion, delivery, or other service
performed in respect to the property transferred before its
transfer and which are separately stated on the transferor's
records.
For purposes of this subsection, a transfer is considered to have
occurred after delivery of the property to the purchaser.
(f) Notwithstanding subsection (e):
(1) in the case of retail sales of gasoline (as defined in
IC 6-6-1.1-103) and special fuel (as defined in IC 6-6-2.5-22),
the gross retail income received from selling at retail is the total
sales price of the gasoline or special fuel minus the part of that
price attributable to tax imposed under IC 6-6-1.1, IC 6-6-2.5,
or Section 4041(a) or Section 4081 of the Internal Revenue
Code; and
(2) in the case of retail sales of cigarettes (as defined in
IC 6-7-1-2), the gross retail income received from selling at
retail is the total sales price of the cigarettes including the tax
imposed under IC 6-7-1.
(g) Gross retail income does not include income that represents
charges for serving or delivering food and food ingredients
furnished, prepared, or served for consumption at a location, or on
equipment, provided by the retail merchant. However, the exclusion
under this subsection only applies if the charges for the serving or
delivery are stated separately from the price of the food and food
ingredients when the purchaser pays the charges. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.2-1987,
SEC.14; P.L.6-1987, SEC.5; P.L.277-1993(ss), SEC.40;
P.L.257-2003, SEC.19; P.L.81-2004, SEC.5.
IC 6-2.5-4-2 Wholesale sales; nonretail transactions
Sec. 2. (a) A person is a retail merchant making a retail
transaction when he is making wholesale sales.
(b) For purposes of this section, a person is making wholesale
sales when he:
(1) sells tangible personal property, other than capital assets or
depreciable property, to a person who purchases the property
for the purpose of reselling it without changing its form;
(2) sells tangible personal property to a person who purchases
the property for direct consumption as a material in the direct
production of other tangible personal property produced by the
person in his business of manufacturing, processing, refining,
repairing, mining, agriculture, or horticulture;
(3) sells tangible personal property to a person who purchases
the property for incorporation as a material or integral part of
tangible personal property produced by the person in his
business of manufacturing, assembling, constructing, refining,
or processing;
(4) sells drugs, medical or dental preparations, or other similar
materials to a person who purchases the materials for direct
consumption in professional use by a physician, hospital,
embalmer, funeral director, or tonsorial parlor;
(5) sells tangible personal property to a person who purchases
the property for direct consumption in his business of industrial
cleaning; or
(6) sells tangible personal property to a person who purchases
the property for direct consumption in the person's business in
the direct rendering of public utility service.
(c) Notwithstanding any provision of this article, a person is not
making a retail transaction when he:
(1) acquires tangible personal property owned by another
person;
(2) provides industrial processing or servicing, including
enameling or plating, on the property; and
(3) transfers the property back to the owner to be sold by that
owner either in the same form or as a part of other tangible
personal property produced by that owner in his business of
manufacturing, assembling, constructing, refining, or
processing. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.246-1985,
SEC.9. IC 6-2.5-4-3 Water softening and conditioning business
Sec. 3. (a) A person is a retail merchant making a retail
transaction when he regularly and occupationally engages in the
business of softening and conditioning water.
(b) For purposes of this section, the business of softening and
conditioning water includes the exchange of water softening and
conditioning tanks in the ordinary course of the business, but does
not include the preparatory plumbing and work necessary for the first
installation of tanks. As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-4-4 Renting or furnishing rooms, lodgings, or other accommodations
Sec. 4. (a) A person is a retail merchant making a retail
transaction when the person rents or furnishes rooms, lodgings, or
other accommodations, such as booths, display spaces, banquet
facilities, and cubicles or spaces used for adult relaxation, massage,
modeling, dancing, or other entertainment to another person:
(1) if those rooms, lodgings, or accommodations are rented or
furnished for periods of less than thirty (30) days; and
(2) if the rooms, lodgings, and accommodations are located in
a hotel, motel, inn, tourist camp, tourist cabin, gymnasium, hall,
coliseum, or other place, where rooms, lodgings, or
accommodations are regularly furnished for consideration.
(b) Each rental or furnishing by a retail merchant under subsection
(a) is a separate unitary transaction regardless of whether
consideration is paid to an independent contractor or directly to the
retail merchant.
(c) For purposes of this section, "consideration" includes a
membership fee charged to a customer.
(d) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction if:
(1) the person is a promoter that rents a booth or display space
to an exhibitor; and
(2) the booth or display space is located in a facility that:
(A) is described in subsection (a)(2); and
(B) is operated by a political subdivision (including a capital
improvement board established under IC 36-10-8 or
IC 36-10-9) or the state fair commission.
This subsection does not exempt from the state gross retail tax the
renting of accommodations by a political subdivision or the state fair
commission to a promoter or an exhibitor. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.93-1987,
SEC.1; P.L.85-1989, SEC.1; P.L.20-1990, SEC.7.
IC 6-2.5-4-4.5
Repealed
(Repealed by P.L.81-2004, SEC.59.) IC 6-2.5-4-5 Power subsidiaries of public utilities
Sec. 5. (a) As used in this section, a "power subsidiary" means a
corporation which is owned or controlled by one (1) or more public
utilities that furnish or sell electrical energy, natural or artificial gas,
water, steam, or steam heat and which produces power exclusively
for the use of those public utilities.
(b) A power subsidiary or a person engaged as a public utility is
a retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a
person engaged as a public utility is not a retail merchant making a
retail transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs,
constructs, services, or removes tangible personal property
which is used in connection with the furnishing of the services
or commodities listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, refining, oil extraction,
mineral extraction, irrigation, agriculture, or horticulture.
However, this exclusion for sales of the services and
commodities only applies if the services are consumed as an
essential and integral part of an integrated process that produces
tangible personal property and those sales are separately
metered for the excepted uses listed in this subdivision, or if
those sales are not separately metered but are predominately
used by the purchaser for the excepted uses listed in this
subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the
part of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), a military base recovery site
designated under IC 6-3.1-11.5, or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as
defined in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
(E) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(2), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as
defined in IC 36-7-34-3).
(ii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the qualified military base (as defined in IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
(5) The power subsidiary or person sells services or
commodities that:
(A) are referred to in subsection (b); and
(B) qualify as home energy (as defined in IC 6-2.5-5-16.5);
to a person who acquires the services or commodities after June
30, 2006, and before July 1, 2009, through home energy
assistance (as defined in IC 6-2.5-5-16.5). As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.48-1984,
SEC.1; P.L.71-1993, SEC.4; P.L.81-2004, SEC.19; P.L.190-2005,
SEC.1; P.L.203-2005, SEC.3; P.L.162-2006, SEC.21; P.L.180-2006,
SEC.3; P.L.1-2007, SEC.51; P.L.32-2007, SEC.1.
IC 6-2.5-4-6 Taxation of telecommunication services; aggregation of taxable
and nontaxable services on customer bills
Sec. 6. (a) A person is a retail merchant making a retail
transaction when the person:
(1) furnishes or sells an intrastate telecommunication service;
and
(2) receives gross retail income from billings or statements
rendered to customers.
(b) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when:
(1) the person furnishes or sells telecommunication services to
another person described in this section or in section 5 of this
chapter;
(2) the person furnishes telecommunications services to another
person who is providing prepaid calling services or prepaid
wireless calling services in a retail transaction to customers who
access the services through the use of an access or authorization
number or card as described in section 13 of this chapter;
(3) the person furnishes intrastate mobile telecommunications
service (as defined in IC 6-8.1-15-7) to a customer with a place
of primary use that is not located in Indiana (as determined
under IC 6-8.1-15); or
(4) the person furnishes or sells value added nonvoice data
services in a retail transaction to a customer.
(c) Subject to IC 6-2.5-12 and IC 6-8.1-15, and notwithstanding
subsections (a) and (b), if charges for telecommunication services,
ancillary services, Internet access, audio services, or video services
that are not taxable under this article are aggregated with and not
separately stated from charges subject to taxation under this article,
the charges for nontaxable telecommunication services, ancillary
services, Internet access, audio services, or video services are subject
to taxation unless the service provider can reasonably identify the
charges not subject to the tax from the service provider's books and
records kept in the regular course of business. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.71-1993,
SEC.5; P.L.8-1996, SEC.3; P.L.8-1998, SEC.1; P.L.104-2002,
SEC.1; P.L.5-2004, SEC.1; P.L.145-2007, SEC.7.
IC 6-2.5-4-7
Repealed
(Repealed by P.L.71-1993, SEC.28.)
IC 6-2.5-4-8 Governmental entities; private or proprietary activities
Sec. 8. An Indiana governmental entity, agency, instrumentality,
or political subdivision (including a state college or university) is a
retail merchant making a retail transaction when it performs private
or proprietary activities that would constitute retail transactions
under this article if those activities were performed by a retail
merchant. However, this section does not apply to a political
subdivision that performs an activity that is related to an annual
festival, carnival, fair, or similar event. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.93-1987,
SEC.2.
IC 6-2.5-4-9 Sale of property to be added to structures or facilities; exemption
Sec. 9. (a) A person is a retail merchant making a retail
transaction when the person sells tangible personal property which:
(1) is to be added to a structure or facility by the purchaser; and
(2) after its addition to the structure or facility, would become
a part of the real estate on which the structure or facility is
located.
(b) Notwithstanding subsection (a), a transaction described in
subsection (a) is not a retail transaction, if the ultimate purchaser or
recipient of the property to be added to the structure or facility would
be exempt from the state gross retail and use taxes if that purchaser
or recipient had directly purchased the property from the supplier for
addition to the structure or facility. As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-4-10 Rental or leasing of personal property; sale of property rented or
leased in course of business; exclusion
Sec. 10. (a) A person, other than a public utility, is a retail
merchant making a retail transaction when he rents or leases tangible
personal property to another person other than for subrent or
sublease.
(b) A person is a retail merchant making a retail transaction when
the person sells any tangible personal property which has been rented
or leased in the regular course of the person's rental or leasing
business.
(c) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when the person rents or leases
motion picture film, audio tape, or video tape to another person.
However, this exclusion only applies if:
(1) the person who pays to rent or lease the film charges
admission to those who view the film; or
(2) the person who pays to rent or lease the film or tape
broadcasts the film or tape for home viewing or listening. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.257-2003,
SEC.20.
IC 6-2.5-4-11 Cable television service; satellite television or radio service
Sec. 11. (a) A person is a retail merchant making a retail
transaction when the person furnishes cable television or radio
service or satellite television or radio service that terminates in
Indiana.
(b) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when the person provides,
installs, constructs, services, or removes tangible personal property
which is used in connection with the furnishing of cable television
or radio service or satellite television or radio service. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.81-2004,
SEC.6; P.L.2-2005, SEC.20.
IC 6-2.5-4-12 Auction sales; exceptions
Sec. 12. (a) A person is a retail merchant making a retail
transaction when he sells tangible personal property at auction.
(b) Notwithstanding subsection (a), a person is not a retail
merchant making a retail transaction when:
(1) he makes isolated or occasional sales of tangible personal
property at auction;
(2) the sales occur on the premises of the owner of the tangible
personal property; and
(3) the owner of the tangible personal property did not
originally acquire that property for resale. As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-4-13 Definition of retail merchant making retail transaction
Sec. 13. A person is a retail merchant making a retail transaction
when a person sells:
(1) a prepaid telephone calling card at retail;
(2) a prepaid telephone authorization number at retail;
(3) the reauthorization of a prepaid telephone calling card; or
(4) the reauthorization of a prepaid telephone authorization
number. As added by P.L.8-1998, SEC.2.
IC 6-2.5-4-14 Notice; proposed public vendors; identification of delinquent
taxpayers
Sec. 14. The department of administration and each purchasing
agent for a state educational institution shall provide the department
with a list of every person who desires to enter into a contract to sell
tangible personal property to an agency (as defined in IC 4-13-2-1)
or a state educational institution. The department shall notify the
department of administration or the purchasing agent of the state
educational institution if a person on the list does not have a
registered retail merchant certificate or is delinquent in remitting or
paying amounts due to the department under this article. As added by P.L.254-2003, SEC.4. Amended by P.L.2-2007,
SEC.118; P.L.211-2007, SEC.11.
IC 6-2.5-4-15 Bundled transactions
Sec. 15. (a) This section applies to retail transactions occurring
after December 31, 2007.
(b) A person is a retail merchant making a retail transaction when
the person sells tangible personal property as part of a bundled
transaction. As added by P.L.153-2006, SEC.4.
IC 6-2.5-4-16
Repealed
(Repealed by P.L.1-2009, SEC.174.)
IC 6-2.5-4-16.2 Aircraft leasing or renting and flight instruction services
Sec. 16.2. (a) This section applies to transactions occurring after
June 30, 2008.
(b) A person is a retail merchant making a retail transaction when
the person:
(1) leases or rents an aircraft to another person; and
(2) provides flight instruction services to the lessee or renter
during the term of the lease or rental.
(c) The amount of the gross retail income attributable to a retail
transaction described in subsection (b) is the amount charged by the
retail merchant for the lease or rental of the aircraft used in
conjunction with the flight instruction services provided to the lessee
or renter. As added by P.L.1-2009, SEC.47.
IC 6-2.5-4-16.4 Specified digital products
Sec. 16.4. (a) As used in this section, "end user" does not include
a person who receives by contract a product transferred
electronically for further commercial broadcast, rebroadcast,
transmission, retransmission, licensing, relicensing, distribution,
redistribution, or exhibition of the product, in whole or in part, to
another person or persons.
(b) A person is a retail merchant making a retail transaction when
the person:
(1) electronically transfers specified digital products to an end
user; and
(2) grants to the end user the right of permanent use of the
specified digital products that is not conditioned upon continued
payment by the purchaser.
(c) The sale of a digital code that may be used to obtain a product
transferred electronically shall be taxed in the same manner as the
product transferred electronically. As used in this subsection, a
digital code means a method that permits a purchaser to obtain at a
later date a product transferred electronically. As added by P.L.1-2009, SEC.48. Amended by P.L.113-2010,
SEC.48.
IC 6-2.5-4-17 Computer software maintenance contracts
Sec. 17. A person is a retail merchant making a retail transaction
when the person enters into a computer software maintenance
contract to provide future updates or upgrades to computer software. As added by P.L.113-2010, SEC.49.
