Indiana 2022 Regular Session

Indiana House Bill HB1161 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1161
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-2.5-5.5.
7	7	Synopsis: Sales tax holiday. Defines "clothing", "backpack", "school
8	8	supply", and "computer". Provides a sales and use tax exemption period
9	9	beginning on August 1 through August 7 of each year for the following
10	10	items: (1) A backpack or school supply, if the backpack or school
11	11	supply is purchased for use by a student in a public or private
12	12	elementary or secondary school, and if the sales price of the backpack
13	13	or school supply does not exceed $100. (2) Certain articles of clothing,
14	14	if the sales price of the article of clothing does not exceed $100. (3) A
15	15	computer, if the computer is purchased for use by a student in a public
16	16	or private elementary or secondary school, and if the sales price of the
17	17	computer does not exceed $500.
18	18	Effective: July 1, 2022.
19	19	Campbell
20	20	January 6, 2022, read first time and referred to Committee on Ways and Means.
21	21	2022 IN 1161—LS 6084/DI 138 Introduced
22	22	Second Regular Session of the 122nd General Assembly (2022)
23	23	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
24	24	Constitution) is being amended, the text of the existing provision will appear in this style type,
25	25	additions will appear in this style type, and deletions will appear in this style type.
26	26	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
27	27	provision adopted), the text of the new provision will appear in this style type. Also, the
28	28	word NEW will appear in that style type in the introductory clause of each SECTION that adds
29	29	a new provision to the Indiana Code or the Indiana Constitution.
30	30	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
31	31	between statutes enacted by the 2021 Regular Session of the General Assembly.
32	32	HOUSE BILL No. 1161
33	33	A BILL FOR AN ACT to amend the Indiana Code concerning
34	34	taxation.
35	35	Be it enacted by the General Assembly of the State of Indiana:
36	36	1 SECTION 1. IC 6-2.5-5.5 IS ADDED TO THE INDIANA CODE
37	37	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
38	38	3 JULY 1, 2022]:
39	39	4 Chapter 5.5. Sales Tax Holiday
40	40	5 Sec. 1. (a) As used in this chapter, "backpack" means the
41	41	6 following:
42	42	7 (1) Messenger bags.
43	43	8 (2) Book bags.
44	44	9 (3) Packs with straps that a person wears on the person's
45	45	10 back, including a backpack with wheels if the backpack can
46	46	11 also be worn on the back.
47	47	12 (b) For purposes of this chapter, "backpack" does not include
48	48	13 the following:
49	49	14 (1) Items commonly considered luggage.
50	50	15 (2) Briefcases.
51	51	16 (3) Athletic bags.
52	52	17 (4) Duffle bags.
53	53	2022 IN 1161—LS 6084/DI 138 2
54	54	1 (5) Gym bags.
55	55	2 (6) Computer bags.
56	56	3 Sec. 2. The sale of a backpack is exempt from the state gross
57	57	4 retail tax if:
58	58	5 (1) the backpack is purchased for use by a student in a public
59	59	6 or private elementary or secondary school;
60	60	7 (2) the sales price of the article does not exceed one hundred
61	61	8 dollars ($100); and
62	62	9 (3) the sale takes place during the period:
63	63	10 (A) beginning at 12:01 a.m. on August 1; and
64	64	11 (B) ending at 11:59 p.m. on August 7;
65	65	12 of each year.
66	66	13 Sec. 3. (a) As used in this chapter, "clothing" means all human
67	67	14 wearing apparel suitable for general use, including the following:
68	68	15 (1) Aprons (household).
69	69	16 (2) Athletic socks.
70	70	17 (3) Baseball jerseys.
71	71	18 (4) Belts with attached buckles.
72	72	19 (5) Blouses.
73	73	20 (6) Boots (general purpose, cowboy, hiking).
74	74	21 (7) Bow ties.
75	75	22 (8) Bowling shirts.
76	76	23 (9) Bras.
77	77	24 (10) Chef uniforms.
78	78	25 (11) Children's novelty costumes.
79	79	26 (12) Clerical vestments.
80	80	27 (13) Coats and wraps.
81	81	28 (14) Coveralls.
82	82	29 (15) Diapers (adult and baby, cloth and disposable).
83	83	30 (16) Dresses.
84	84	31 (17) Earmuffs (cold weather).
85	85	32 (18) Employee uniforms (unless rented).
86	86	33 (19) Football jerseys.
87	87	34 (20) Gloves (generally, dress, leather).
88	88	35 (21) Golf accessories (golf dresses, golf jackets and
89	89	36 windbreakers, golf shirts, golf skirts).
90	90	37 (22) Graduation caps and gowns.
91	91	38 (23) Gym suits and uniforms.
92	92	39 (24) Hats.
93	93	40 (25) Hooded shirts and hooded sweatshirts.
94	94	41 (26) Hosiery including support hosiery.
95	95	42 (27) Jackets.
96	96	2022 IN 1161—LS 6084/DI 138 3
97	97	1 (28) Jeans.
98	98	2 (29) Jogging apparel.
99	99	3 (30) Knitted caps or hats.
100	100	4 (31) Leg warmers.
101	101	5 (32) Leotards and tights.
102	102	6 (33) Masks and costumes.
103	103	7 (34) Neckwear, neckties, and ties.
104	104	8 (35) Painter pants.
105	105	9 (36) Pants.
106	106	10 (37) Panty hose.
107	107	11 (38) Raincoats and ponchos.
108	108	12 (39) Rain hats.
109	109	13 (40) Religious clothing.
110	110	14 (41) Robes.
111	111	15 (42) Safety shoes (adaptable for street wear).
112	112	16 (43) Scarves.
113	113	17 (44) Scout uniforms.
114	114	18 (45) Shawls and wraps.
115	115	19 (46) Shirts.
116	116	20 (47) Shirts (hooded).
117	117	21 (48) Shoes (generally, boat, cross trainers, dress, flip flops,
118	118	22 jellies, no cleat running, suitable for everyday safety, sandals,
119	119	23 slippers, sneakers, tennis, walking).
120	120	24 (49) Shorts.
121	121	25 (50) Skirts.
122	122	26 (51) Sleepwear, nightgowns, nightshirts, and pajamas.
123	123	27 (52) Slips.
124	124	28 (53) Soccer socks.
125	125	29 (54) Socks.
126	126	30 (55) Suits, slacks, and jackets.
127	127	31 (56) Support hosiery.
128	128	32 (57) Suspenders.
129	129	33 (58) Sweatshirts.
130	130	34 (59) Sweat suits.
131	131	35 (60) Sweaters.
132	132	36 (61) Swimming suits.
133	133	37 (62) Tennis accessories (tennis dresses, tennis shorts, tennis
134	134	38 skirts).
135	135	39 (63) Tights.
136	136	40 (64) Trousers.
137	137	41 (65) Underclothes.
138	138	42 (66) Underpants.
139	139	2022 IN 1161—LS 6084/DI 138 4
140	140	1 (67) Undershirts.
141	141	2 (68) Uniforms (school, work, nurse, waitress, military, postal,
142	142	3 police, fire).
143	143	4 (69) Vests (generally, noninflatable/nonflotation fishing,
144	144	5 hunting).
145	145	6 (70) Work clothes.
146	146	7 (71) Work uniforms.
147	147	8 (72) Workout clothes.
148	148	9 (b) For purposes of this chapter, "clothing" does not include the
149	149	10 following:
150	150	11 (1) Accessories (generally, barrettes, belt buckles sold
151	151	12 separately, bobby pins, briefcases, elastic ponytail holders,
152	152	13 hair bows, hair clips, handbags, handkerchiefs, headbands,
153	153	14 jewelry, key cases, purses, wallets, watch bands, watches).
154	154	15 (2) Alterations.
155	155	16 (3) Aprons (welders).
156	156	17 (4) Backpacks (unless for use by elementary/secondary
157	157	18 students).
158	158	19 (5) Baseball accessories (cleats, gloves, or pants).
159	159	20 (6) Bathing caps.
160	160	21 (7) Belts for weight lifting.
161	161	22 (8) Bicycle shoes (cleated).
162	162	23 (9) Boots (cleated or spiked climbing, fishing, overshoes and
163	163	24 galoshes, rubber work boots, ski, waders).
164	164	25 (10) Bowling shoes (rented and sold).
165	165	26 (11) Buttons and zippers.
166	166	27 (12) Chest protectors.
167	167	28 (13) Cloth and lace, knitting yarns, and other fabrics.
168	168	29 (14) Clothing repair items such as thread, buttons, tapes, and
169	169	30 iron-on patches.
170	170	31 (15) Earmuffs (noise cancellation or noise canceling).
171	171	32 (16) Elbow pads.
172	172	33 (17) Fins (swim).
173	173	34 (18) Football accessories (pads, pants).
174	174	35 (19) Gloves (batting, bicycle, garden, hockey, rubber, surgical,
175	175	36 tennis, work).
176	176	37 (20) Goggles.
177	177	38 (21) Golf accessories (gloves, purses, shoes).
178	178	39 (22) Hair nets, bows, and clips.
179	179	40 (23) Hard hats.
180	180	41 (24) Helmets (bike, baseball, football, hockey, motorcycle,
181	181	42 sports).
182	182	2022 IN 1161—LS 6084/DI 138 5
183	183	1 (25) Insoles.
184	184	2 (26) Jewelry.
185	185	3 (27) Knee pads.
186	186	4 (28) Life jackets and vests.
187	187	5 (29) Masks (protective, welder, umpire, swim).
188	188	6 (30) Monogramming services.
189	189	7 (31) Overshoes and rubber shoes.
190	190	8 (32) Pads (football, hockey, soccer, elbow, knee, shoulder).
191	191	9 (33) Paint or dust respirators and incidental supplies.
192	192	10 (34) Patterns.
193	193	11 (35) Protective gloves.
194	194	12 (36) Protective masks.
195	195	13 (37) Rented clothing or footwear (including uniforms,
196	196	14 formalwear, and costumes).
197	197	15 (38) Repair clothing or footwear.
198	198	16 (39) Ribbons.
199	199	17 (40) Safety accessories (clothing normally worn in hazardous
200	200	18 occupations, nonprescription glasses, nonadaptable for street
201	201	19 wear shoes).
202	202	20 (41) Sewing patterns.
203	203	21 (42) Shin guards and padding.
204	204	22 (43) Shoe inserts.
205	205	23 (44) Shoelaces.
206	206	24 (45) Shoes (ballet, baseball cleats, cleated bicycle, bowling,
207	207	25 cleated or spiked, fishing boots/waders, football, golf, jazz and
208	208	26 dance, overshoes, cleated soccer, tap dance, track and cleats,
209	209	27 wading/water sport).
210	210	28 (46) Shoe repairs.
211	211	29 (47) Shoulder pads (for dresses, jackets).
212	212	30 (48) Shoulder pads (football, hockey, sports).
213	213	31 (49) Shower caps.
214	214	32 (50) Skates (ice and roller).
215	215	33 (51) Ski boots (snow).
216	216	34 (52) Ski suits (snow).
217	217	35 (53) Ski vests (snow).
218	218	36 (54) Sports helmets.
219	219	37 (55) Sports pads (football, hockey, soccer, knee, elbow,
220	220	38 shoulder).
221	221	39 (56) Sunglasses (except prescription).
222	222	40 (57) Sweatbands (arm, wrist, head).
223	223	41 (58) Swimming masks and goggles.
224	224	42 (59) Track shoes and cleats.
225	225	2022 IN 1161—LS 6084/DI 138 6
226	226	1 (60) Umbrellas.
227	227	2 (61) Vests (bulletproof, flotation, scuba).
228	228	3 (62) Water ski vests.
229	229	4 (63) Wet and dry suits.
230	230	5 (64) Wrist bands.
231	231	6 Sec. 4. The sale of an article of clothing is exempt from the state
232	232	7 gross retail tax if:
233	233	8 (1) the sales price of the article does not exceed one hundred
234	234	9 dollars ($100); and
235	235	10 (2) the sale takes place during the period:
236	236	11 (A) beginning at 12:01 a.m. on August 1; and
237	237	12 (B) ending at 11:59 p.m. on August 7;
238	238	13 of each year.
239	239	14 Sec. 5. (a) As used in this chapter, "computer" means an
240	240	15 electronic device that accepts information in digital or similar form
241	241	16 and manipulates it for a result based on a sequence of instructions.
242	242	17 The term includes laptop computers.
243	243	18 (b) For purposes of this chapter, "computer" does not include
244	244	19 the following:
245	245	20 (1) Video game consoles.
246	246	21 (2) Computer storage media.
247	247	22 (3) Handheld electronic schedulers.
248	248	23 (4) Cellular phones.
249	249	24 (5) Personal digital assistants.
250	250	25 Sec. 6. The sale of a computer is exempt from the state gross
251	251	26 retail tax if:
252	252	27 (1) the computer is purchased for use by a student in a public
253	253	28 or private elementary or secondary school;
254	254	29 (2) the sales price of the article does not exceed five hundred
255	255	30 dollars ($500); and
256	256	31 (3) the sale takes place during the period:
257	257	32 (A) beginning at 12:01 a.m. on August 1; and
258	258	33 (B) ending at 11:59 p.m. on August 7;
259	259	34 of each year.
260	260	35 Sec. 7. As used in this chapter, "school supply" means:
261	261	36 (1) Binders.
262	262	37 (2) Book bags.
263	263	38 (3) Calculators.
264	264	39 (4) Cellophane tape.
265	265	40 (5) Blackboard chalk.
266	266	41 (6) Compasses.
267	267	42 (7) Composition books.
268	268	2022 IN 1161—LS 6084/DI 138 7
269	269	1 (8) Crayons.
270	270	2 (9) Erasers.
271	271	3 (10) Folders (expandable, pocket, plastic, and manila).
272	272	4 (11) Glue, paste, and paste sticks.
273	273	5 (12) Highlighters.
274	274	6 (13) Index cards.
275	275	7 (14) Index card boxes.
276	276	8 (15) Legal pads.
277	277	9 (16) Lunch boxes.
278	278	10 (17) Markers.
279	279	11 (18) Notebooks.
280	280	12 (19) Paper (loose leaf ruled notebook paper, copy paper,
281	281	13 graph paper, tracing paper, manila paper, colored paper,
282	282	14 poster board, and construction paper).
283	283	15 (20) Pencil boxes and other school supply boxes.
284	284	16 (21) Pencil sharpeners.
285	285	17 (22) Pencils.
286	286	18 (23) Pens.
287	287	19 (24) Protractors.
288	288	20 (25) Rulers.
289	289	21 (26) Scissors.
290	290	22 (27) Writing tablets.
291	291	23 Sec. 8. The sale of a school supply is exempt from the state gross
292	292	24 retail tax if:
293	293	25 (1) the school supply is purchased for use by a student in a
294	294	26 public or private elementary or secondary school;
295	295	27 (2) the sales price of the article does not exceed one hundred
296	296	28 dollars ($100); and
297	297	29 (3) the sale takes place during the period:
298	298	30 (A) beginning at 12:01 a.m. on August 1; and
299	299	31 (B) ending at 11:59 p.m. on August 7;
300	300	32 of each year.
301	301	2022 IN 1161—LS 6084/DI 138