Indiana Senate Bill SB0382 Amended / Bill

                    *SB0382.1*
January 26, 2022
SENATE BILL No. 382
_____
DIGEST OF SB 382 (Updated January 25, 2022 11:19 am - DI 129)
Citations Affected:  IC 4-23; IC 4-31; IC 4-33; IC 4-35; IC 4-38;
IC 6-2.5; IC 6-3; IC 6-3.6; IC 6-5.5; IC 6-7; IC 6-8.1; IC 6-9; IC 7.1-4;
noncode.
Synopsis:  Various tax matters. Allows certain corporations to make an
election to determine the corporation's state adjusted gross income tax
under specified provisions. Requires all wagering taxes to be reported
and remitted electronically through the department of state revenue
(department) online tax filing program. Amends the distribution date
for certain alcoholic beverage tax revenue and wagering tax and fee
revenue. Clarifies provisions regarding application of the sales tax to
transactions in which a person acquires an aircraft for rental or leasing
in the ordinary course of the person's business. Reorganizes and revises
provisions that apply to the sales tax exemption for nonprofit
organizations. Reorganizes and revises provisions regarding sales tax
exemptions for utilities. Amends sales tax provisions that apply to
wholesale sales. Clarifies that a marketplace facilitator is considered
the retail merchant for transactions it facilitates on its marketplace
regardless as to whether the marketplace facilitator has a contractual
relationship with the seller. Allows nonresident shareholders and
partners of a partnership to make an election to opt out of withholding
tax requirements in certain specified circumstances. Clarifies the
reporting process used for distribution of local income tax revenue to
conform to current practice. Amends due date provisions for returns,
refunds, assessments, or other submissions under the state income tax
and financial institutions tax. Provides that an election by a corporation
to make a consolidated return continues to apply following a corporate
reorganization or sale. Makes technical and clarifying changes to the
(Continued next page)
Effective:  Upon passage; January 1, 2020 (retroactive); July 1, 2021
(retroactive); July 1, 2022; January 1, 2023; July 1, 2023.
Holdman
January 11, 2022, read first time and referred to Committee on Tax and Fiscal Policy.
January 25, 2022, amended, reported favorably — Do Pass.
SB 382—LS 7170/DI 120 Digest Continued
procedures for reporting federal partnership audit adjustments.
Increases the number of years a local income tax (LIT) expenditure tax
rate for correctional facilities and rehabilitation facilities may be
imposed from 22 to 25 years in the case of a tax rate adopted after June
30, 2022. Adds procedures to allow the department to offset LIT
distributions to local units when an over distribution has been made
either in error or because a taxpayer refund is approved after the
distribution. Makes a technical correction to tax penalty provisions that
apply to pass through entities. Reduces the tax rate imposed on the
distribution of closed system cartridges beginning July 1, 2022, from
25% to 15% of the wholesale price. Requires remote sellers to collect
the tobacco product tax on taxable products. Provides a more specific
definition of "tobacco products" for purposes of the tobacco products
tax. Imposes a tax on the distribution of alternative nicotine products
in Indiana based on a rate of $0.40 per ounce of the product weight as
listed by the manufacturer. Defines "alternative nicotine products" for
purposes of the tax. Beginning January 1, 2023, provides for a $0.72
per cigar tobacco products tax cap for cigars with a wholesale price
exceeding $3 per cigar. Clarifies that, in the case of distributor to
distributor transactions, the tobacco products tax is imposed at the time
a distributor first receives the tobacco products in Indiana. Amends
provisions that apply to a refund of a tobacco products license fee when
a license is surrendered to the department before its expiration.
Imposes a penalty on retailers who purchase tobacco products or
cigarettes from a distributor who has not obtained a registration
certificate from the department (or whose registration certification is
revoked or suspended). Authorizes the department to revoke or suspend
a registration certificate for failure to comply with certain reporting
requirements. Provides the basis upon which the department may
refuse to issue or renew a registration certificate. Provides that the
department may require reporting of any information reasonably
necessary to determine alcoholic beverage excise tax liability. Clarifies
provisions that specify the effective date of an innkeeper's tax
ordinance and the subsequent tax collection duties of the department.
Adds similar provisions under the food and beverage tax. Requires the
budget agency to transfer $7,100,000 from the state general fund to the
Indiana geographic information office (office) to be used for the
purposes of funding the office and the implementation of the
geographic information system (GIS) for the department of revenue
local income tax purposes. Requires the budget agency to create a
report on the current GIS related contract costs for all state agencies
that could be eliminated in order to offset the required future state
appropriations needed to fund the office and submit the report to the
interim study committee on fiscal policy before November 1, 2022.
Makes conforming changes. Changes population parameters to reflect
the population count determined under the 2020 decennial census.
SB 382—LS 7170/DI 120SB 382—LS 7170/DI 120 January 26, 2022
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in  this  style  type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE BILL No. 382
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-23-7.3-23 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 23. (a) Before July 1, 2023, the budget
4 agency shall transfer seven million one hundred thousand dollars
5 ($7,100,000) from the state general fund to the Indiana geographic
6 information office to be used for the purposes of funding the office
7 and the implementation of the geographic information system
8 (GIS) for the department of state revenue local income tax
9 purposes.
10 (b) The budget agency shall identify and create a report on the
11 current GIS related contract costs for all state agencies that could
12 be eliminated in order to offset the required future state
13 appropriations needed to fund the Indiana geographic information
14 office. The report under this subsection shall be submitted to the
15 interim study committee on fiscal policy established by IC 2-5-1.3-4
SB 382—LS 7170/DI 120 2
1 before November 1, 2022.
2 (c) This section expires July 1, 2023.
3 SECTION 2. IC 4-31-9-3, AS AMENDED BY P.L.165-2021,
4 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2022]: Sec. 3. (a) At the close of each day on which a permit
6 holder or satellite facility operator conducts pari-mutuel wagering on
7 live racing or simulcasts at a racetrack or satellite facility, the permit
8 holder or satellite facility operator shall pay to the department of state
9 revenue a tax on the total amount of money wagered on that day as
10 follows:
11 (1) Two percent (2%) of the total amount of money wagered
12 under IC 4-31-7 at a permit holder's racetrack.
13 (2) Two and one-half percent (2.5%) of the total amount of money
14 wagered under IC 4-31-5.5-6 at a permit holder's satellite facility.
15 (b) The taxes collected under subsection (a) shall be paid from the
16 amounts withheld under section 1 of this chapter and shall be
17 distributed as follows:
18 (1) The first one hundred fifty thousand dollars ($150,000) of
19 taxes collected during each state fiscal year shall be deposited in
20 the veterinary school research account established by
21 IC 4-31-12-22.
22 (2) The remainder of the taxes collected during each state fiscal
23 year shall be paid into the Indiana horse racing commission
24 operating fund (IC 4-31-10).
25 (c) The tax imposed by this section is a listed tax for purposes of
26 IC 6-8.1-1.
27 (d) The payment of the tax under this section must be reported
28 and remitted electronically through the department's online tax
29 filing program.
30 SECTION 3. IC 4-31-9-10, AS AMENDED BY P.L.159-2021,
31 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2022]: Sec. 10. (a) At the close of each day on which
33 pari-mutuel wagering is conducted at a racetrack or satellite facility,
34 the permit holder or satellite facility operator shall pay the breakage
35 from each of the races on which wagers were taken on that day to the
36 department of state revenue for deposit in the appropriate breed
37 development fund as determined by the rules of the commission.
38 (b) Not later than March 15 of each year, each permit holder or
39 satellite facility operator shall pay to the commission the balance of the
40 outs tickets from the previous calendar year. The commission shall
41 distribute money received under this subsection to the appropriate
42 breed development fund as determined by the rules of the commission.
SB 382—LS 7170/DI 120 3
1 (c) The payment of the breakage under this section must be
2 reported and remitted electronically through the department's
3 online tax filing program.
4 SECTION 4. IC 4-33-12-4, AS AMENDED BY P.L.212-2018(ss),
5 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2022]: Sec. 4. (a) A licensed owner must report:
7 (1) the daily amount of admissions taxes imposed under section
8 1 of this chapter (before its repeal on July 1, 2018) and
9 supplemental wagering taxes imposed under section 1.5 of this
10 chapter to the department at the time the taxes are paid under
11 subsection (b); and
12 (2) gaming activity information to the commission daily on forms
13 prescribed by the commission.
14 This subsection expires June 30, 2018.
15 (b) A licensed owner shall pay the admissions taxes imposed under
16 section 1 of this chapter (before its repeal on July 1, 2018) and
17 supplemental wagering taxes imposed under section 1.5 of this chapter
18 to the department on the twenty-fourth calendar day of each month.
19 Any taxes collected during the month but after the day on which the
20 taxes are required to be paid to the department shall be paid to the
21 department at the same time the following month's taxes are due. This
22 subsection expires June 30, 2018.
23 (c) This subsection is effective July 1, 2018. A licensed owner must
24 report:
25 (1) the daily amount of supplemental wagering taxes imposed
26 under section 1.5 of this chapter to the department at the time the
27 taxes are paid under subsection (d); and
28 (2) gaming activity information to the commission daily on forms
29 prescribed by the commission.
30 (d) This subsection is effective July 1, 2018. A licensed owner shall
31 pay the supplemental wagering taxes imposed under section 1.5 of this
32 chapter to the department on the twenty-fourth calendar day of each
33 month. Any taxes collected during the month but after the day on which
34 the taxes are required to be paid to the department shall be paid to the
35 department at the same time the following month's taxes are due.
36 (e) The payment of the tax under this section must be on a form
37 prescribed by the department.
38 (f) (e) The payment of the tax under this section must be in a
39 manner prescribed by the department. reported and remitted
40 electronically through the department's online tax filing program.
41 SECTION 5. IC 4-33-13-1.5, AS AMENDED BY P.L.293-2019,
42 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
SB 382—LS 7170/DI 120 4
1 JULY 1, 2022]: Sec. 1.5. (a) This subsection applies only to a riverboat
2 that received at least seventy-five million dollars ($75,000,000) of
3 adjusted gross receipts during the preceding state fiscal year. A
4 graduated tax is imposed on the adjusted gross receipts received from
5 gambling games authorized under this article as follows:
6 (1) For state fiscal years ending before July 1, 2021, fifteen
7 percent (15%), and for state fiscal years beginning after June 30,
8 2021, ten percent (10%), of the first twenty-five million dollars
9 ($25,000,000) of adjusted gross receipts received during the
10 period beginning July 1 of each year and ending June 30 of the
11 following year.
12 (2) Twenty percent (20%) of the adjusted gross receipts in excess
13 of twenty-five million dollars ($25,000,000) but not exceeding
14 fifty million dollars ($50,000,000) received during the period
15 beginning July 1 of each year and ending June 30 of the following
16 year.
17 (3) Twenty-five percent (25%) of the adjusted gross receipts in
18 excess of fifty million dollars ($50,000,000) but not exceeding
19 seventy-five million dollars ($75,000,000) received during the
20 period beginning July 1 of each year and ending June 30 of the
21 following year.
22 (4) Thirty percent (30%) of the adjusted gross receipts in excess
23 of seventy-five million dollars ($75,000,000) but not exceeding
24 one hundred fifty million dollars ($150,000,000) received during
25 the period beginning July 1 of each year and ending June 30 of
26 the following year.
27 (5) Thirty-five percent (35%) of all adjusted gross receipts in
28 excess of one hundred fifty million dollars ($150,000,000) but not
29 exceeding six hundred million dollars ($600,000,000) received
30 during the period beginning July 1 of each year and ending June
31 30 of the following year.
32 (6) Forty percent (40%) of all adjusted gross receipts exceeding
33 six hundred million dollars ($600,000,000) received during the
34 period beginning July 1 of each year and ending June 30 of the
35 following year.
36 (b) This subsection applies only to a riverboat that received less than
37 seventy-five million dollars ($75,000,000) of adjusted gross receipts
38 during the preceding state fiscal year. A graduated tax is imposed on
39 the adjusted gross receipts received from gambling games authorized
40 under this article as follows:
41 (1) For state fiscal years ending before July 1, 2021, five percent
42 (5%), and for state fiscal years beginning after June 30, 2021, two
SB 382—LS 7170/DI 120 5
1 and one-half percent (2.5%), of the first twenty-five million
2 dollars ($25,000,000) of adjusted gross receipts received during
3 the period beginning July 1 of each year and ending June 30 of
4 the following year.
5 (2) For state fiscal years ending before July 1, 2021, twenty
6 percent (20%), and for state fiscal years beginning after June 30,
7 2021, ten percent (10%), of the adjusted gross receipts in excess
8 of twenty-five million dollars ($25,000,000) but not exceeding
9 fifty million dollars ($50,000,000) received during the period
10 beginning July 1 of each year and ending June 30 of the following
11 year.
12 (3) For state fiscal years ending before July 1, 2021, twenty-five
13 percent (25%), and for state fiscal years beginning after June 30,
14 2021, twenty percent (20%), of the adjusted gross receipts in
15 excess of fifty million dollars ($50,000,000) but not exceeding
16 seventy-five million dollars ($75,000,000) received during the
17 period beginning July 1 of each year and ending June 30 of the
18 following year.
19 (4) Thirty percent (30%) of the adjusted gross receipts in excess
20 of seventy-five million dollars ($75,000,000) but not exceeding
21 one hundred fifty million dollars ($150,000,000) received during
22 the period beginning July 1 of each year and ending June 30 of
23 the following year.
24 (5) Thirty-five percent (35%) of all adjusted gross receipts in
25 excess of one hundred fifty million dollars ($150,000,000) but not
26 exceeding six hundred million dollars ($600,000,000) received
27 during the period beginning July 1 of each year and ending June
28 30 of the following year.
29 (6) Forty percent (40%) of all adjusted gross receipts exceeding
30 six hundred million dollars ($600,000,000) received during the
31 period beginning July 1 of each year and ending June 30 of the
32 following year.
33 (c) The licensed owner or operating agent of a riverboat taxed under
34 subsection (b) shall pay an additional tax of two million five hundred
35 thousand dollars ($2,500,000) in any state fiscal year in which the
36 riverboat's adjusted gross receipts exceed seventy-five million dollars
37 ($75,000,000). The additional tax imposed under this subsection is due
38 before July 1 of the following state fiscal year.
39 (d) The licensed owner or operating agent shall:
40 (1) remit the daily amount of tax imposed by this chapter to the
41 department on the twenty-fourth calendar day of each month for
42 the wagering taxes collected that month; and
SB 382—LS 7170/DI 120 6
1 (2) report gaming activity information to the commission daily on
2 forms prescribed by the commission.
3 Any taxes collected during the month but after the day on which the
4 taxes are required to be paid to the department shall be paid to the
5 department at the same time the following month's taxes are due.
6 (e) The payment of the tax under this section must be in a manner
7 prescribed by the department. reported and remitted electronically
8 through the department's online tax filing program.
9 (f) If the department requires taxes to be remitted under this chapter
10 through electronic funds transfer, the department may allow the
11 licensed owner or operating agent to file a monthly report to reconcile
12 the amounts remitted to the department.
13 (g) The department may allow taxes remitted under this section to
14 be reported on the same form used for taxes paid under IC 4-33-12.
15 SECTION 6. IC 4-33-13-5, AS AMENDED BY P.L.238-2019,
16 SECTION 2, AND AS AMENDED BY P.L.108-2019, SECTION 73,
17 AND AS AMENDED BY P.L.293-2019, SECTION 31, IS
18 CORRECTED AND AMENDED TO READ AS FOLLOWS
19 [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) This subsection does not
20 apply to tax revenue remitted by an operating agent operating a
21 riverboat in a historic hotel district. After funds are appropriated under
22 section 4 of this chapter, each month the treasurer auditor of state shall
23 distribute the tax revenue deposited in the state gaming fund under this
24 chapter to the following:
25 (1) An amount equal to the following shall be set aside for
26 revenue sharing under subsection (e): (d):
27 (A) Before July 1, 2021, the first thirty-three million dollars
28 ($33,000,000) of tax revenues collected under this chapter
29 shall be set aside for revenue sharing under subsection (e). (d).
30 (B) After June 30, 2021, if the total adjusted gross receipts
31 received by licensees from gambling games authorized under
32 this article during the preceding state fiscal year is equal to or
33 greater than the total adjusted gross receipts received by
34 licensees from gambling games authorized under this article
35 during the state fiscal year ending June 30, 2020, the first
36 thirty-three million dollars ($33,000,000) of tax revenues
37 collected under this chapter shall be set aside for revenue
38 sharing under subsection (e). (d).
39 (C) After June 30, 2021, if the total adjusted gross receipts
40 received by licensees from gambling games authorized under
41 this article during the preceding state fiscal year is less than
42 the total adjusted gross receipts received by licensees from
SB 382—LS 7170/DI 120 7
1 gambling games authorized under this article during the state
2 year ending June 30, 2020, an amount equal to the first
3 thirty-three million dollars ($33,000,000) of tax revenues
4 collected under this chapter multiplied by the result of:
5 (i) the total adjusted gross receipts received by licensees
6 from gambling games authorized under this article during
7 the preceding state fiscal year; divided by
8 (ii) the total adjusted gross receipts received by licensees
9 from gambling games authorized under this article during
10 the state fiscal year ending June 30, 2020;
11 shall be set aside for revenue sharing under subsection (e). (d).
12 (2) Subject to subsection (c), twenty-five percent (25%) of the
13 remaining tax revenue remitted by each licensed owner shall be
paid:14
15 (A) to the city in which the riverboat is located or that is
16 designated as the home dock of the riverboat from which the
17 tax revenue was collected, in the case of:
18 (i) a city described in IC 4-33-12-6(b)(1)(A); or
19 (ii) a city located in a county having a population of more
20 than four hundred thousand (400,000) but and less than
21 seven hundred thousand (700,000); or
22 (iii) Terre Haute; or
23 (B) to the county that is designated as the home dock of the
24 riverboat from which the tax revenue was collected, in the case
25 of a riverboat that is not located in a city described in clause
26 (A) or whose home dock is not in a city described in clause
27 (A).
28 (3) Subject to subsection (d), The remainder of the tax revenue
29 remitted by each licensed owner shall be paid to the state general
30 fund. In each state fiscal year, the treasurer auditor of state shall
31 make the transfer required by this subdivision not later than the
32 last business day of the month in which the tax revenue is
33 remitted to the state on or before the fifteenth day of the month
34 based on revenue received during the preceding month for
35 deposit in the state gaming fund. However, if tax revenue is
36 received by the state on the last business day in a month,
37 Specifically, the treasurer auditor of state may transfer the tax
38 revenue received by the state in a month to the state general
39 fund in the immediately following month according to this
subdivision.40
41 (b) This subsection applies only to tax revenue remitted by an
42 operating agent operating a riverboat in a historic hotel district after
SB 382—LS 7170/DI 120 8
June 30, 2015. 2019. 1	After funds are appropriated under section 4 of
2 this chapter, each month the treasurer auditor of state shall distribute
3 the tax revenue remitted by the operating agent under this chapter as
4 follows:
5 (1) For state fiscal years beginning after June 30, 2019, but
6 ending before July 1, 2021, fifty-six and five-tenths percent
7 (56.5%) shall be paid to the state general fund.
8 (2) For state fiscal years beginning after June 30, 2021, fifty-six
9 and five-tenths percent (56.5%) shall be paid as follows:
10 (A) Sixty-six and four-tenths percent (66.4%) shall be paid to
11 the state general fund.
12 (B) Thirty-three and six-tenths percent (33.6%) shall be paid
13 to the West Baden Springs historic hotel preservation and
14 maintenance fund established by IC 36-7-11.5-11(b).
15 However, if:
16 (i) at any time the balance in that fund exceeds twenty-five
17 million dollars ($25,000,000); or
18 (ii) in any part of a state fiscal year in which the operating
19 agent has received at least one hundred million dollars
20 ($100,000,000) of adjusted gross receipts;
21 the amount described in this clause shall be paid to the state
22 general fund for the remainder of the state fiscal year.
23 (2) (3) Forty-three and five-tenths percent (43.5%) shall be paid
24 as follows:
25 (A) Twenty-two and four-tenths percent (22.4%) shall be paid
26 as follows:
27 (i) Fifty percent (50%) to the fiscal officer of the town of
28 French Lick.
29 (ii) Fifty percent (50%) to the fiscal officer of the town of
30 West Baden Springs.
31 (B) Fourteen and eight-tenths percent (14.8%) shall be paid to
32 the county treasurer of Orange County for distribution among
33 the school corporations in the county. The governing bodies
34 for the school corporations in the county shall provide a
35 formula for the distribution of the money received under this
36 clause among the school corporations by joint resolution
37 adopted by the governing body of each of the school
38 corporations in the county. Money received by a school
39 corporation under this clause must be used to improve the
40 educational attainment of students enrolled in the school
41 corporation receiving the money. Not later than the first
42 regular meeting in the school year of a governing body of a
SB 382—LS 7170/DI 120 9
1 school corporation receiving a distribution under this clause,
2 the superintendent of the school corporation shall submit to
3 the governing body a report describing the purposes for which
4 the receipts under this clause were used and the improvements
5 in educational attainment realized through the use of the
6 money. The report is a public record.
7 (C) Thirteen and one-tenth percent (13.1%) shall be paid to the
8 county treasurer of Orange County.
9 (D) Five and three-tenths percent (5.3%) shall be distributed
10 quarterly to the county treasurer of Dubois County for
11 appropriation by the county fiscal body after receiving a
12 recommendation from the county executive. The county fiscal
13 body for the receiving county shall provide for the distribution
14 of the money received under this clause to one (1) or more
15 taxing units (as defined in IC 6-1.1-1-21) in the county under
16 a formula established by the county fiscal body after receiving
17 a recommendation from the county executive.
18 (E) Five and three-tenths percent (5.3%) shall be distributed
19 quarterly to the county treasurer of Crawford County for
20 appropriation by the county fiscal body after receiving a
21 recommendation from the county executive. The county fiscal
22 body for the receiving county shall provide for the distribution
23 of the money received under this clause to one (1) or more
24 taxing units (as defined in IC 6-1.1-1-21) in the county under
25 a formula established by the county fiscal body after receiving
26 a recommendation from the county executive.
27 (F) Six and thirty-five hundredths percent (6.35%) shall be
28 paid to the fiscal officer of the town of Paoli.
29 (G) Six and thirty-five hundredths percent (6.35%) shall be
30 paid to the fiscal officer of the town of Orleans.
31 (H) Twenty-six and four-tenths percent (26.4%) shall be paid
32 to the Indiana economic development corporation established
33 by IC 5-28-3-1 for transfer as follows:
34 (i) Beginning after December 31, 2017, ten percent (10%)
35 of the amount transferred under this clause in each calendar
36 year shall be transferred to the South Central Indiana
37 Regional Economic Development Corporation or a
38 successor entity or partnership for economic development
39 for the purpose of recruiting new business to Orange County
40 as well as promoting the retention and expansion of existing
41 businesses in Orange County.
42 (ii) The remainder of the amount transferred under this
SB 382—LS 7170/DI 120 10
1 clause in each calendar year shall be transferred to Radius
2 Indiana or a successor regional entity or partnership for the
3 development and implementation of a regional economic
4 development strategy to assist the residents of Orange
5 County and the counties contiguous to Orange County in
6 improving their quality of life and to help promote
7 successful and sustainable communities.
8 To the extent possible, the Indiana economic development
9 corporation shall provide for the transfer under item (i) to be
10 made in four (4) equal installments. However, an amount
11 sufficient to meet current obligations to retire or refinance
12 indebtedness or leases for which tax revenues under this
13 section were pledged before January 1, 2015, by the Orange
14 County development commission shall be paid to the Orange
15 County development commission before making distributions
16 to the South Central Indiana Regional Economic Development
17 Corporation and Radius Indiana or their successor entities or
18 partnerships. The amount paid to the Orange County
19 development commission shall proportionally reduce the
20 amount payable to the South Central Indiana Regional
21 Economic Development Corporation and Radius Indiana or
22 their successor entities or partnerships.
23 (c) This subsection does not apply to tax revenue remitted by an
24 inland casino operating in Vigo County. For each city and county
25 receiving money under subsection (a)(2), the treasurer auditor of state
26 shall determine the total amount of money paid by the treasurer
27 auditor of state to the city or county during the state fiscal year 2002.
28 The amount determined is the base year revenue for the city or county.
29 The treasurer auditor of state shall certify the base year revenue
30 determined under this subsection to the city or county. The total
31 amount of money distributed to a city or county under this section
32 during a state fiscal year may not exceed the entity's base year revenue.
33 For each state fiscal year, the treasurer auditor of state shall pay that
34 part of the riverboat wagering taxes that:
35 (1) exceeds a particular city's or county's base year revenue; and
36 (2) would otherwise be due to the city or county under this
37 section;
38 to the state general fund instead of to the city or county.
39 (d) Each state fiscal year the treasurer of state shall transfer from
40 the tax revenue remitted to the state general fund under subsection
41 (a)(3) to the build Indiana fund an amount that when added to the
42 following may not exceed two hundred fifty million dollars
SB 382—LS 7170/DI 120 11
1 ($250,000,000):
2 (1) Surplus lottery revenues under IC 4-30-17-3.
3 (2) Surplus revenue from the charity gaming enforcement fund
4 under IC 4-32.3-7-5.
5 (3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
6 The treasurer of state shall make transfers on a monthly basis as
7 needed to meet the obligations of the build Indiana fund. If in any state
8 fiscal year insufficient money is transferred to the state general fund
9 under subsection (a)(3) to comply with this subsection, the treasurer
10 of state shall reduce the amount transferred to the build Indiana fund
11 to the amount available in the state general fund from the transfers
12 under subsection (a)(3) for the state fiscal year.
13 (e) (d) Except as provided in subsections (l) (k) and (m), (l), before
14 August 15 of each year, the treasurer auditor of state shall distribute
15 the wagering taxes set aside for revenue sharing under subsection
16 (a)(1) to the county treasurer of each county that does not have a
17 riverboat according to the ratio that the county's population bears to the
18 total population of the counties that do not have a riverboat. Except as
19 provided in subsection (h), (g), the county auditor shall distribute the
20 money received by the county under this subsection as follows:
21 (1) To each city located in the county according to the ratio the
22 city's population bears to the total population of the county.
23 (2) To each town located in the county according to the ratio the
24 town's population bears to the total population of the county.
25 (3) After the distributions required in subdivisions (1) and (2) are
26 made, the remainder shall be retained by the county.
27 (f) (e) Money received by a city, town, or county under subsection
28 (e) (d) or (h) (g) may be used for any of the following purposes:
29 (1) To reduce the property tax levy of the city, town, or county for
30 a particular year (a property tax reduction under this subdivision
31 does not reduce the maximum levy of the city, town, or county
32 under IC 6-1.1-18.5).
33 (2) For deposit in a special fund or allocation fund created under
34 IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and
35 IC 36-7-30 to provide funding for debt repayment.
36 (3) To fund sewer and water projects, including storm water
37 management projects.
38 (4) For police and fire pensions.
39 (5) To carry out any governmental purpose for which the money
40 is appropriated by the fiscal body of the city, town, or county.
41 Money used under this subdivision does not reduce the property
42 tax levy of the city, town, or county for a particular year or reduce
SB 382—LS 7170/DI 120 12
1 the maximum levy of the city, town, or county under
2 IC 6-1.1-18.5.
3 (g) (f) This subsection does not apply to an inland casino operating
4 in Vigo County. Before July 15 of each year, the treasurer auditor of
5 state shall determine the total amount of money distributed to an entity
6 under IC 4-33-12-6 or IC 4-33-12-8 during the preceding state fiscal
7 year. If the treasurer auditor of state determines that the total amount
8 of money distributed to an entity under IC 4-33-12-6 or IC 4-33-12-8
9 during the preceding state fiscal year was less than the entity's base
10 year revenue (as determined under IC 4-33-12-9), the treasurer auditor
11 of state shall make a supplemental distribution to the entity from taxes
12 collected under this chapter and deposited into the state general fund.
13 Except as provided in subsection (i), (h), the amount of an entity's
14 supplemental distribution is equal to:
15 (1) the entity's base year revenue (as determined under
16 IC 4-33-12-9); minus
17 (2) the sum of:
18 (A) the total amount of money distributed to the entity and
19 constructively received by the entity during the preceding state
20 fiscal year under IC 4-33-12-6 or IC 4-33-12-8; plus
21 (B) the amount of any admissions taxes deducted under
22 IC 6-3.1-20-7.
23 (h) (g) This subsection applies only to a county containing a
24 consolidated city. The county auditor shall distribute the money
25 received by the county under subsection (e) (d) as follows:
26 (1) To each city, other than a consolidated city, located in the
27 county according to the ratio that the city's population bears to the
28 total population of the county.
29 (2) To each town located in the county according to the ratio that
30 the town's population bears to the total population of the county.
31 (3) After the distributions required in subdivisions (1) and (2) are
32 made, the remainder shall be paid in equal amounts to the
33 consolidated city and the county.
34 (i) (h) This subsection does not apply to an inland casino operating
35 in Vigo County. This subsection applies to a supplemental distribution
36 made after June 30, 2017. The maximum amount of money that may be
37 distributed under subsection (g) (f) in a state fiscal year is equal to the
38 following:
39 (1) Before July 1, 2021, forty-eight million dollars ($48,000,000).
40 (2) After June 30, 2021, if the total adjusted gross receipts
41 received by licensees from gambling games authorized under this
42 article during the preceding state fiscal year is equal to or greater
SB 382—LS 7170/DI 120 13
1 than the total adjusted gross receipts received by licensees from
2 gambling games authorized under this article during the state
3 fiscal year ending June 30, 2020, the maximum amount is
4 forty-eight million dollars ($48,000,000).
5 (3) After June 30, 2021, if the total adjusted gross receipts
6 received by licensees from gambling games authorized under this
7 article during the preceding state fiscal year is less than the total
8 adjusted gross receipts received by licensees from gambling
9 games authorized under this article during the state fiscal year
10 ending June 30, 2020, the maximum amount is equal to the result
11 of:
12 (A) forty-eight million dollars ($48,000,000); multiplied by
13 (B) the result of:
14 (i) the total adjusted gross receipts received by licensees
15 from gambling games authorized under this article during
16 the preceding state fiscal year; divided by
17 (ii) the total adjusted gross receipts received by licensees
18 from gambling games authorized under this article during
the state fiscal year ending June 30, 2020.19
20 If the total amount determined under subsection (g) (f) exceeds the
21 maximum amount determined under this subsection, the amount
22 distributed to an entity under subsection (g) (f) must be reduced
23 according to the ratio that the amount distributed to the entity under
24 IC 4-33-12-6 or IC 4-33-12-8 bears to the total amount distributed
25 under IC 4-33-12-6 and IC 4-33-12-8 to all entities receiving a
26 supplemental distribution.
27 (j) (i) This subsection applies to a supplemental distribution, if any,
28 payable to Lake County, Hammond, Gary, or East Chicago under
29 subsections (g) (f) and (i). (h). Beginning in July 2016, the treasurer
30 auditor of state shall, after making any deductions from the
31 supplemental distribution required by IC 6-3.1-20-7, deduct from the
32 remainder of the supplemental distribution otherwise payable to the
33 unit under this section the lesser of:
34 (1) the remaining amount of the supplemental distribution; or
35 (2) the difference, if any, between:
36 (A) three million five hundred thousand dollars ($3,500,000);
37 minus
38 (B) the amount of admissions taxes constructively received by
the unit in the previous state fiscal year.39
40 The treasurer auditor of state shall distribute the amounts deducted
41 under this subsection to the northwest Indiana redevelopment authority
42 established under IC 36-7.5-2-1 for deposit in the development
SB 382—LS 7170/DI 120 14
1 authority revenue fund established under IC 36-7.5-4-1.
2 (k) (j) Money distributed to a political subdivision under subsection
3 (b):
4 (1) must be paid to the fiscal officer of the political subdivision
5 and may be deposited in the political subdivision's general fund
6 (in the case of a school corporation, the school corporation may
7 deposit the money into either the education fund (IC 20-40-2) or
8 the operations fund (IC 20-40-18)) or riverboat fund established
9 under IC 36-1-8-9, or both;
10 (2) may not be used to reduce the maximum levy under
11 IC 6-1.1-18.5 of a county, city, or town or the maximum tax rate
12 of a school corporation, but, except as provided in subsection
13 (b)(2)(B), (b)(3)(B), may be used at the discretion of the political
14 subdivision to reduce the property tax levy of the county, city, or
15 town for a particular year;
16 (3) except as provided in subsection (b)(2)(B), (b)(3)(B), may be
17 used for any legal or corporate purpose of the political
18 subdivision, including the pledge of money to bonds, leases, or
19 other obligations under IC 5-1-14-4; and
20 (4) is considered miscellaneous revenue.
21 Money distributed under subsection (b)(2)(B) (b)(3)(B) must be used
22 for the purposes specified in subsection (b)(2)(B). (b)(3)(B).
23 (l) (k) After June 30, 2020, the amount of wagering taxes that would
24 otherwise be distributed to South Bend under subsection (e) (d) shall
25 be deposited as being received from all riverboats whose supplemental
26 wagering tax, as calculated under IC 4-33-12-1.5(b), is over three and
27 five-tenths percent (3.5%). The amount deposited under this
28 subsection, in each riverboat's account, is proportionate to the
29 supplemental wagering tax received from that riverboat under
30 IC 4-33-12-1.5 in the month of July. The amount deposited under this
31 subsection must be distributed in the same manner as the supplemental
32 wagering tax collected under IC 4-33-12-1.5. This subsection expires
33 June 30, 2021.
34 (m) (l) After June 30, 2021, the amount of wagering taxes that
35 would otherwise be distributed to South Bend under subsection (e) (d)
36 shall be withheld and deposited in the state general fund.
37 SECTION 7. IC 4-35-8-1, AS AMENDED BY P.L.293-2019,
38 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2022]: Sec. 1. (a) A graduated slot machine wagering tax is
40 imposed as follows on ninety-nine percent (99%) of the adjusted gross
41 receipts received after June 30, 2012, and before July 1, 2013, on
42 ninety-one and five-tenths percent (91.5%) of the adjusted gross
SB 382—LS 7170/DI 120 15
1 receipts received after June 30, 2013, and before July 1, 2015, and on
2 eighty-eight percent (88%) of the adjusted gross receipts received after
3 June 30, 2015, from wagering on gambling games authorized by this
4 article:
5 (1) Twenty-five percent (25%) of the first one hundred million
6 dollars ($100,000,000) of adjusted gross receipts received during
7 the period beginning July 1 of each year and ending June 30 of
8 the following year.
9 (2) For periods:
10 (A) ending before July 1, 2021, thirty percent (30%) of the
11 adjusted gross receipts in excess of one hundred million
12 dollars ($100,000,000) but not exceeding two hundred million
13 dollars ($200,000,000) received during the period beginning
14 July 1 of each year and ending June 30 of the following year;
15 and
16 (B) beginning after June 30, 2021, thirty percent (30%) of the
17 adjusted gross receipts in excess of one hundred million
18 dollars ($100,000,000) received during the period beginning
19 July 1 of each year and ending June 30 of the following year.
20 (3) For periods ending before July 1, 2021, thirty-five percent
21 (35%) of the adjusted gross receipts in excess of two hundred
22 million dollars ($200,000,000) received during the period
23 beginning July 1 of each year and ending June 30 of the following
24 year.
25 (b) A licensee shall do the following:
26 (1) Remit the daily amount of tax imposed by this section to the
27 department on the twenty-fourth calendar day of each month. Any
28 taxes collected during the month but after the day on which the
29 taxes are required to be paid shall be paid to the department at the
30 same time the following month's taxes are due.
31 (2) Report gaming activity information to the commission daily
32 on forms prescribed by the commission.
33 (c) The payment of the tax under this section must be in a manner
34 prescribed by the department.
35 (d) If the department requires taxes to be remitted under this chapter
36 through electronic funds transfer, the department may allow the
37 licensee to file a monthly report to reconcile the amounts remitted to
38 the department.
39 (e) The payment of the tax under this section must be on a form
40 prescribed by the department. reported and remitted electronically
41 through the department's online tax filing program.
42 SECTION 8. IC 4-35-8.5-2, AS AMENDED BY P.L.255-2015,
SB 382—LS 7170/DI 120 16
1 SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 UPON PASSAGE]: Sec. 2. Before On or before the fifteenth day of
3 each month, the treasurer of state shall distribute any county gambling
4 game wagering fees received from a licensee during the previous
5 month to the county auditor of the county in which the licensee's
6 racetrack is located.
7 SECTION 9. IC 4-38-10-5, AS ADDED BY P.L.293-2019,
8 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2022]: Sec. 5. The payment of the tax under this chapter must
10 be on a form and in a manner prescribed by the department. reported
11 and remitted electronically through the department's online tax
12 filing program.
13 SECTION 10. IC 6-2.5-1-2 IS AMENDED TO READ AS
14 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) "Retail
15 transaction" means a transaction of a retail merchant that constitutes
16 selling at retail as described in IC 6-2.5-4-1 that constitutes making a
17 wholesale sale as described in IC 6-2.5-4-2, or that is described in any
18 other section of IC 6-2.5-4.
19 (b) "Retail unitary transaction" means a unitary transaction that is
20 also a retail transaction.
21 SECTION 11. IC 6-2.5-1-22.5 IS ADDED TO THE INDIANA
22 CODE AS A NEW SECTION TO READ AS FOLLOWS
23 [EFFECTIVE JULY 1, 2022]: Sec. 22.5. "Power subsidiary" means
24 a corporation which is owned or controlled by one (1) or more
25 public utilities that furnish or sell electrical energy, natural or
26 artificial gas, water, steam, or steam heat and which produces
27 power exclusively for the use of those public utilities.
28 SECTION 12. IC 6-2.5-1-25.5 IS ADDED TO THE INDIANA
29 CODE AS A NEW SECTION TO READ AS FOLLOWS
30 [EFFECTIVE JULY 1, 2022]: Sec. 25.5. "Public utility" means any
31 organization of any kind or nature that:
32 (1) sells electricity, gas, or water for consumption; and
33 (2) has the right of eminent domain or is otherwise subject to
34 governmental regulation in any phase of its operation.
35 SECTION 13. IC 6-2.5-3-4, AS AMENDED BY P.L.146-2020,
36 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2022]: Sec. 4. (a) The storage, use, and consumption of
38 tangible personal property in Indiana is exempt from the use tax if:
39 (1) the property was acquired in a retail transaction and the state
40 gross retail tax has been paid on the acquisition of that property;
41 or
42 (2) the property was acquired in a transaction that is wholly or
SB 382—LS 7170/DI 120 17
1 partially exempt from the state gross retail tax under any part of
2 IC 6-2.5-5 except IC 6-2.5-5-24(b), and the property is being
3 used, stored, or consumed for the purpose for which it was
4 exempted.
5 (b) If a person issues a state gross retail or use tax exemption
6 certificate for the acquisition of tangible personal property and
7 subsequently uses, stores, or consumes that property for a nonexempt
8 purpose, then the person shall pay the use tax.
9 SECTION 14. IC 6-2.5-4-1, AS AMENDED BY P.L.146-2020,
10 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2022]: Sec. 1. (a) A person is a retail merchant making a retail
12 transaction when the person engages in selling at retail.
13 (b) A person is engaged in selling at retail when, in the ordinary
14 course of the person's regularly conducted trade or business, the
15 person:
16 (1) acquires tangible personal property for the purpose of resale;
17 and
18 (2) transfers that property to another person for consideration.
19 (c) For purposes of determining what constitutes selling at retail, it
20 does not matter whether:
21 (1) the property is transferred in the same form as when it was
22 acquired;
23 (2) the property is transferred alone or in conjunction with other
24 property or services; or
25 (3) the property is transferred conditionally or otherwise.
26 (d) Notwithstanding subsection (b), a person is not selling at retail
27 if the person is making a wholesale sale as described in section 2 of this
28 chapter. However, in the case of sales of gasoline (as defined in
29 IC 6-6-1.1-103), a person shall collect the gasoline use tax as provided
30 in IC 6-2.5-3.5.
31 (d) Notwithstanding any provision of this article, a person is not
32 making a retail transaction when the person:
33 (1) acquires tangible personal property owned by another
34 person;
35 (2) provides industrial processing or servicing, including
36 enameling or plating, on the property; and
37 (3) transfers the property back to the owner to be sold by that
38 owner either in the same form or as a part of other tangible
39 personal property produced by that owner in the owner's
40 business of manufacturing, assembling, constructing, refining,
41 or processing.
SB 382—LS 7170/DI 120 18
1 SECTION 15. IC 6-2.5-4-2 IS REPEALED [EFFECTIVE JULY 1,
2 2022]. Sec. 2. (a) A person is a retail merchant making a retail
3 transaction when he is making wholesale sales.
4 (b) For purposes of this section, a person is making wholesale sales
5 when he:
6 (1) sells tangible personal property, other than capital assets or
7 depreciable property, to a person who purchases the property for
8 the purpose of reselling it without changing its form;
9 (2) sells tangible personal property to a person who purchases the
10 property for direct consumption as a material in the direct
11 production of other tangible personal property produced by the
12 person in his business of manufacturing, processing, refining,
13 repairing, mining, agriculture, or horticulture;
14 (3) sells tangible personal property to a person who purchases the
15 property for incorporation as a material or integral part of tangible
16 personal property produced by the person in his business of
17 manufacturing, assembling, constructing, refining, or processing;
18 (4) sells drugs, medical or dental preparations, or other similar
19 materials to a person who purchases the materials for direct
20 consumption in professional use by a physician, hospital,
21 embalmer, funeral director, or tonsorial parlor;
22 (5) sells tangible personal property to a person who purchases the
23 property for direct consumption in his business of industrial
24 cleaning; or
25 (6) sells tangible personal property to a person who purchases the
26 property for direct consumption in the person's business in the
27 direct rendering of public utility service.
28 (c) Notwithstanding any provision of this article, a person is not
29 making a retail transaction when he:
30 (1) acquires tangible personal property owned by another person;
31 (2) provides industrial processing or servicing, including
32 enameling or plating, on the property; and
33 (3) transfers the property back to the owner to be sold by that
34 owner either in the same form or as a part of other tangible
35 personal property produced by that owner in his business of
36 manufacturing, assembling, constructing, refining, or processing.
37 SECTION 16. IC 6-2.5-4-5, AS AMENDED BY P.L.288-2013,
38 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2022]: Sec. 5. (a) As used in this section, a "power subsidiary"
40 means a corporation which is owned or controlled by one (1) or more
41 public utilities that furnish or sell electrical energy, natural or artificial
SB 382—LS 7170/DI 120 19
1 gas, water, steam, or steam heat and which produces power exclusively
2 for the use of those public utilities.
3 (b) A power subsidiary or a person engaged as a public utility is a
4 retail merchant making a retail transaction when the subsidiary or
5 person furnishes or sells electrical energy, natural or artificial gas,
6 water, steam, or steam heating service to a person for commercial or
7 domestic consumption.
8 (c) Notwithstanding subsection (b), a power subsidiary or a person
9 engaged as a public utility is not a retail merchant making a retail
10 transaction in any of the following transactions:
11 (1) The power subsidiary or person provides, installs, constructs,
12 services, or removes tangible personal property which is used in
13 connection with the furnishing of the services or commodities
14 listed in subsection (b).
15 (2) The power subsidiary or person sells the services or
16 commodities listed in subsection (b) to another public utility or
17 power subsidiary described in this section or a person described
18 in section 6 of this chapter.
19 (3) The power subsidiary or person sells the services or
20 commodities listed in subsection (b) to a person for use in
21 manufacturing, mining, production, processing (after December
22 31, 2012), repairing (after December 31, 2012), refining,
23 recycling (as defined in IC 6-2.5-5-45.8), oil extraction, mineral
24 extraction, irrigation, agriculture, floriculture (after December 31,
25 2012), arboriculture (after December 31, 2012), or horticulture.
26 However, this exclusion for sales of the services and commodities
27 only applies if the services are consumed as an essential and
28 integral part of an integrated process that produces tangible
29 personal property and those sales are separately metered for the
30 excepted uses listed in this subdivision, or if those sales are not
31 separately metered but are predominately used by the purchaser
32 for the excepted uses listed in this subdivision.
33 (4) The power subsidiary or person sells the services or
34 commodities listed in subsection (b) and all the following
35 conditions are satisfied:
36 (A) The services or commodities are sold to a business that:
37 (i) relocates all or part of its operations to a facility; or
38 (ii) expands all or part of its operations in a facility;
39 located in a military base (as defined in IC 36-7-30-1(c)), a
40 military base reuse area established under IC 36-7-30, the part
41 of an economic development area established under
SB 382—LS 7170/DI 120 20
1 IC 36-7-14.5-12.5 that is or formerly was a military base (as
2 defined in IC 36-7-30-1(c)), or a qualified military base
3 enhancement area established under IC 36-7-34.
4 (B) The business uses the services or commodities in the
5 facility described in clause (A) not later than five (5) years
6 after the operations that are relocated to the facility or
7 expanded in the facility commence.
8 (C) The sales of the services or commodities are separately
9 metered for use by the relocated or expanded operations.
10 (D) In the case of a business that uses the services or
11 commodities in a qualified military base enhancement area
12 established under IC 36-7-34-4(1), the business must satisfy at
13 least one (1) of the following criteria:
14 (i) The business is a participant in the technology transfer
15 program conducted by the qualified military base (as defined
16 in IC 36-7-34-3).
17 (ii) The business is a United States Department of Defense
18 contractor.
19 (iii) The business and the qualified military base have a
20 mutually beneficial relationship evidenced by a
21 memorandum of understanding between the business and
22 the United States Department of Defense.
23 (E) In the case of a business that uses the services or
24 commodities in a qualified military base enhancement area
25 established under IC 36-7-34-4(2), the business must satisfy at
26 least one (1) of the following criteria:
27 (i) The business is a participant in the technology transfer
28 program conducted by the qualified military base (as defined
29 in IC 36-7-34-3).
30 (ii) The business and the qualified military base have a
31 mutually beneficial relationship evidenced by a
32 memorandum of understanding between the business and
33 the qualified military base (as defined in IC 36-7-34-3).
34 However, this subdivision does not apply to a business that
35 substantially reduces or ceases its operations at another location
36 in Indiana in order to relocate its operations in an area described
37 in this subdivision, unless the department determines that the
38 business had existing operations in the area described in this
39 subdivision and that the operations relocated to the area are an
40 expansion of the business's operations in the area.
41 SECTION 17. IC 6-2.5-4-18, AS AMENDED BY P.L.146-2020,
SB 382—LS 7170/DI 120 21
1 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2022]: Sec. 18. (a) A marketplace facilitator shall be
3 considered the retail merchant of each retail transaction (including a
4 retail transaction under section 4 of this chapter) that is facilitated for
5 sellers on its marketplace, regardless as to whether the marketplace
6 facilitator has a contractual relationship with the seller, when it
7 does any of the following: on behalf of the seller:
8 (1) Collects the sales price or purchase price of the seller's
9 products.
10 (2) Provides access to payment processing services, either directly
11 or indirectly.
12 (3) Charges, collects, or otherwise receives fees or other
13 consideration for transactions made on its electronic marketplace.
14 (b) Regardless of whether a transaction under subsection (a) was
15 made by the marketplace facilitator on its own behalf or facilitated on
16 behalf of a seller, A marketplace facilitator is required to do the
17 following with each retail transaction made on its marketplace:
18 (1) Collect and remit the gross retail tax, even if a seller for whom
19 a transaction was facilitated:
20 (A) does not have a registered retail merchant certificate; or
21 (B) would not have been required to collect gross retail tax had
22 the transaction not been facilitated by the marketplace
23 facilitator.
24 (2) Comply with all applicable procedures and requirements
25 imposed under this article as the retail merchant in such
26 transaction.
27 (c) The gross retail income from a transaction under this section is
28 equal to the total amount of consideration paid by the purchaser,
29 including the payment of any fee, commission, or other charge by the
30 marketplace facilitator, except that the gross retail income does not
31 include any taxes on the transaction that are imposed directly on the
32 consumer other than taxes described under IC 6-2.5-1-5(c)(2).
33 SECTION 18. IC 6-2.5-5-5.1, AS AMENDED BY P.L.239-2017,
34 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2022]: Sec. 5.1. (a) As used in this section, "tangible personal
36 property" includes electrical energy, natural or artificial electricity,
37 gas, water, steam, and steam. heat.
38 (b) Transactions involving tangible personal property are exempt
39 from the state gross retail tax if the person acquiring the property
40 acquires it for direct consumption as a material to be consumed in the
41 direct production of other tangible personal property in the person's
SB 382—LS 7170/DI 120 22
1 business of manufacturing, mining, production, processing,
2 repairing, recycling (as defined in section 45.8 of this chapter),
3 refining, repairing, mining, oil extraction, mineral extraction,
4 irrigation, agriculture, floriculture, arboriculture, or horticulture.
5 floriculture, or arboriculture. This exemption includes transactions
6 involving acquisitions of tangible personal property used in
7 commercial printing.
8 (c) Transactions involving tangible personal property are exempt
9 from the state gross retail tax if the person acquiring that property:
10 (1) acquires it for the person's direct consumption as a material to
11 be consumed in an industrial processing service; and
12 (2) is an industrial processor.
13 (d) Transactions involving tangible personal property are exempt
14 from the state gross retail tax if the person acquiring the property:
15 (1) acquires it for the person's direct consumption as a material to
16 be consumed in:
17 (A) the direct application of fertilizers, pesticides, fungicides,
18 seeds, and other tangible personal property; or
19 (B) the direct extraction, harvesting, or processing of
20 agricultural commodities;
21 for consideration; and
22 (2) is occupationally engaged in providing the services described
23 in subdivision (1) on property that is:
24 (A) owned or rented by another person occupationally engaged
25 in agricultural production; and
26 (B) used for agricultural production.
27 (e) Transactions involving electricity, gas, water, and steam
28 delivered through a single meter provided by a public utility are
29 exempt if the electrical energy, natural or artificial gas, water,
30 steam, or steam heat is consumed for a purpose exempted pursuant
31 to this section and the electricity, gas, water, or steam is
32 predominately used by the purchaser for one (1) or more of the
33 purposes exempted by this section.
34 SECTION 19. IC 6-2.5-5-8, AS AMENDED BY P.L.156-2020,
35 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2022]: Sec. 8. (a) As used in this section, "new motor vehicle"
37 has the meaning set forth in IC 9-13-2-111.
38 (b) Except as provided in subsection (j), (e), transactions involving
39 tangible personal property other than a new motor vehicle are exempt
40 from the state gross retail tax if the person acquiring the property
41 acquires it for resale, rental, or leasing in the ordinary course of the
SB 382—LS 7170/DI 120 23
1 person's business without changing the form of the property.
2 (c) The following transactions involving a new motor vehicle are
3 exempt from the state gross retail tax:
4 (1) A transaction in which a person that has a franchise in effect
5 at the time of the transaction for the vehicle trade name, trade or
6 service mark, or related characteristics acquires a new motor
7 vehicle for resale, rental, or leasing in the ordinary course of the
8 person's business.
9 (2) A transaction in which a person that is a franchisee appointed
10 by a manufacturer or converter manufacturer licensed under
11 IC 9-23 (before July 1, 2013) or licensed under IC 9-32 (after
12 June 30, 2013) acquires a new motor vehicle that has at least one
13 (1) trade name, service mark, or related characteristic as a result
14 of modification or further manufacture by the manufacturer or
15 converter manufacturer for resale, rental, or leasing in the
16 ordinary course of the person's business.
17 (3) A transaction in which a person acquires a new motor vehicle
18 for rental or leasing in the ordinary course of the person's business
19 as a rental company (either as defined in IC 24-4-9-7).
20 IC 24-4-9-7 or as approved by the department).
21 (d) The rental or leasing of accommodations to a promoter by a
22 political subdivision (including a capital improvement board) or the
23 state fair commission is not exempt from the state gross retail tax, if the
24 rental or leasing of the property by the promoter is exempt under
25 IC 6-2.5-4-4.
26 (e) This subsection applies only to aircraft acquired after June 30,
27 2008. Except as provided in subsection (h), a transaction in which a
28 person acquires an aircraft for rental or leasing in the ordinary course
29 of the person's business is not exempt from the state gross retail tax
30 unless the person establishes, under guidelines adopted by the
31 department in the manner provided in IC 4-22-2-37.1 for the adoption
32 of emergency rules, that the annual amount of the gross lease revenue
33 derived from leasing or rental of the aircraft, which may include
34 revenue from related party transactions, is equal to or greater than
35 seven and five-tenths percent (7.5%) of the:
36 (1) book value of the aircraft, as published in the Vref Aircraft
37 Value Reference guide for the aircraft; or
38 (2) net acquisition price for the aircraft.
39 If a person acquires an aircraft below the Vref Aircraft Value
40 Reference guide book value, the person may appeal to the department
41 for a lower lease or rental threshold equal to the actual acquisition price
SB 382—LS 7170/DI 120 24
1 paid if the person demonstrates that the transaction was completed in
2 a commercially reasonable manner based on the aircraft's age,
3 condition, and equipment. The department may request the person to
4 submit to the department supporting documents showing the aircraft is
5 available for general public lease or rental, copies of business and
6 aircraft insurance policies, and other documents that assist the
7 department in determining if an aircraft is exempt from the state gross
8 retail tax.
9 (f) A person is required to meet the requirements of subsection (e)
10 until the earlier of the date the aircraft has generated sales tax on leases
11 or rental income that is equal to the amount of the original sales tax
12 exemption or the elapse of thirteen (13) years. If the aircraft is sold by
13 the person before meeting the requirements of this section and before
14 the sale the aircraft was exempt from gross retail tax under subsection
15 (e), the sale of the aircraft shall not result in the assessment or
16 collection of gross retail tax for the period from the date of acquisition
17 to the date of sale by the person.
18 (g) The person is required to remit the gross retail tax on taxable
19 lease and rental transactions no matter how long the aircraft is used for
20 lease and rental.
21 (h) This subsection applies only to aircraft acquired after December
22 31, 2007. A transaction in which a person acquires an aircraft to rent
23 or lease the aircraft to another person for predominant use in public
24 transportation by the other person or by an affiliate of the other person
25 is exempt from the state gross retail tax. The department may not
26 require a person to meet the revenue threshold in subsection (e) with
27 respect to the person's leasing or rental of the aircraft to receive or
28 maintain the exemption. To maintain the exemption provided under
29 this subsection, the department may require the person to submit only
30 annual reports showing that the aircraft is predominantly used to
31 provide public transportation.
32 (i) The exemptions allowed under subsections (e) and (h) apply
33 regardless of the relationship, if any, between the person or lessor and
34 the lessee or renter of the aircraft.
35 (j) (e) A person who purchases a motor vehicle for sharing through
36 a peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) is
37 not eligible for the exemption under this section.
38 SECTION 20. IC 6-2.5-5-8.2 IS ADDED TO THE INDIANA
39 CODE AS A NEW SECTION TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2022]: Sec. 8.2. (a) Except as provided in
41 subsection (f), a transaction in which a person acquires an aircraft
42 for rental or leasing in the ordinary course of the person's business
SB 382—LS 7170/DI 120 25
1 is not exempt from the state gross retail tax unless the person
2 establishes, under guidelines adopted by the department in the
3 manner provided in IC 4-22-2 (including the adoption of
4 emergency rules under IC 4-22-2-37.1), that the annual amount of
5 the gross lease revenue derived from leasing or rental of the
6 aircraft, which may include revenue from related party
7 transactions, is equal to or greater than seven and five-tenths
8 percent (7.5%) of the:
9 (1) book value of the aircraft, as published in the VREF
10 Aircraft Value Reference guide for the aircraft; or
11 (2) net acquisition price for the aircraft, which shall include
12 the value of any trade or exchange and excluding any sales
13 commissions paid to third parties.
14 (b) If a person acquires an aircraft below the VREF Aircraft
15 Value Reference guide book value as set forth in subsection (a)(1),
16 the person may appeal to the department for a lower lease or
17 rental threshold equal to the actual acquisition price paid if the
18 person demonstrates that the transaction was completed in a
19 commercially reasonable manner based on the aircraft's age,
20 condition, and equipment.
21 (c) For purposes of this section, the department may request the
22 person to submit to the department supporting documents showing
23 that the aircraft is available for general public lease or rental,
24 copies of business and aircraft insurance policies, and other
25 documents that assist the department in determining if an aircraft
26 is exempt from the state gross retail tax.
27 (d) A person is required to meet the requirements of subsection
28 (a) until the earlier of the date the aircraft has generated sales tax
29 on leases or rental income that is equal to the amount of the
30 original sales tax exemption, the elapse of thirteen (13) years, or
31 the date the aircraft is sold. No additional sales or use tax is due
32 from the seller on the seller's original purchase when the aircraft
33 is sold if the person has met the terms of this section for all periods
34 prior to the sale.
35 (e) A person is required to remit the gross retail tax on taxable
36 lease and rental transactions the entire time the aircraft is used for
37 lease and rental, even if the aircraft is used for lease and rental
38 beyond a thirteen (13) year period.
39 (f) A transaction in which a person acquires an aircraft to rent
40 or lease the aircraft to another person for predominant use in
41 public transportation (as provided for in section 27 of this chapter)
42 by the other person or by an affiliate of the other person is exempt
SB 382—LS 7170/DI 120 26
1 from the state gross retail tax. The department may not require a
2 person to meet the revenue threshold in subsection (a) with respect
3 to the person's leasing or rental of the aircraft to receive or
4 maintain the exemption. To maintain the exemption provided
5 under this subsection, the department may require the person to
6 submit annual reports showing that the aircraft is predominantly
7 used to provide public transportation.
8 (g) The exemptions allowed under subsections (a) and (f) apply
9 regardless of the relationship, if any, between the person or lessor
10 and the lessee or renter of the aircraft.
11 SECTION 21. IC 6-2.5-5-8.5 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2022]: Sec. 8.5. Transactions involving
14 electrical energy, natural or artificial gas, water, steam, or steam
15 heating service sold or furnished by a power subsidiary or a person
16 engaged as a public utility are exempt from the state gross retail
17 tax when:
18 (1) the power subsidiary or person provides, installs,
19 constructs, services, or removes tangible personal property
20 which is used in connection with the furnishing of the services
21 or commodities listed in IC 6-2.5-4-5;
22 (2) the power subsidiary or person sells the services or
23 commodities listed in IC 6-2.5-4-5 to another public utility or
24 power subsidiary or a person described in IC 6-2.5-4-6; or
25 (3) the power subsidiary or person sells the services or
26 commodities listed in IC 6-2.5-4-5 and all of the following
27 conditions are satisfied:
28 (A) The services or commodities are sold to a business
29 that:
30 (i) relocates all or part of its operations to a facility; or
31 (ii) expands all or part of its operations in a facility;
32 located in a military base (as defined in IC 36-7-30-1(c)), a
33 military base reuse area established under
34 IC 36-7-14.5-12.5 that is or formerly was a military base
35 (as defined in IC 36-7-30-1(c)), or a qualified military base
36 enhancement area established under IC 36-7-34.
37 (B) The business uses the services or commodities in the
38 facility described in clause (A) not later than five (5) years
39 after the operation that relocated to the facility, or
40 expanded in the facility, commence.
41 (C) The sales of the services or commodities are separately
42 metered for use by the relocated or expanded operations.
SB 382—LS 7170/DI 120 27
1 (D) In the case of a business that uses the services or
2 commodities in a qualified military base enhancement area
3 established under IC 36-7-34-4(1), the business must satisfy
4 at least one (1) of the following criteria:
5 (i) The business is a participant in the technology
6 transfer program conducted by the qualified military
7 base (as defined in IC 36-7-34-3).
8 (ii) The business is a United States Department of
9 Defense contractor.
10 (iii) The business and the qualified military base have a
11 mutually beneficial relationship evidenced by a
12 memorandum of understanding between the business
13 and the United States Department of Defense.
14 (E) In the case of a business that uses the services and
15 commodities in a qualified military base enhancement area
16 established under IC 36-7-34-4(2), the business must satisfy
17 at least one (1) of the following criteria:
18 (i) The business is a participant in the technology
19 transfer program conducted by the qualified military
20 base (as defined in IC 36-7-34-3).
21 (ii) The business and the qualified miliary base have a
22 mutually beneficial relationship evidenced by a
23 memorandum of understanding between the business
24 and the qualified military base (as defined in
25 IC 36-7-34-3).
26 However, this subdivision does not apply to a business that
27 substantially reduces or ceases its operations at another
28 location in Indiana in order to relocate its operations in an
29 area described in this subdivision, unless the department
30 determines that the business had existing operations in the
31 area described in this subdivision and that the operations
32 relocated to the area are an expansion of the business's
33 operations in the area.
34 SECTION 22. IC 6-2.5-5-10 IS AMENDED TO READ AS
35 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 10. Transactions
36 involving tangible personal property are exempt from the state gross
37 retail tax, if:
38 (1) the property is classified as production plant or power
39 production expenses, according to the uniform system of accounts
40 which was adopted and prescribed for the utility by the Indiana
41 utility regulatory commission; and
42 (2) the person acquiring the property is:
SB 382—LS 7170/DI 120 28
1 (A) a public utility that furnishes or sells electrical energy,
2 steam, or steam heat in a retail transaction described in
3 IC 6-2.5-4-5; or
4 (B) a power subsidiary (as defined in IC 6-2.5-4-5(a))
5 IC 6-2.5-1-22.5) that furnishes or sells electrical energy,
6 steam, or steam heat to a public utility described in clause (A).
7 SECTION 23. IC 6-2.5-5-10.5, AS ADDED BY P.L.159-2021,
8 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2022]: Sec. 10.5. (a) Transactions occurring on or after May
10 1, 2021, involving tangible personal property are exempt from the state
11 gross retail tax, if:
12 (1) the property is classified as a utility scale battery energy
13 storage system as defined in subsection (b);
14 (2) the person acquiring the property is:
15 (A) a public utility that furnishes or sells electrical energy; or
16 (B) a power subsidiary (as defined in IC 6-2.5-4-5(a))
17 IC 6-2.5-1-22.5) that furnishes or sells electrical energy to a
18 public utility described in clause (A); and
19 (3) the person acquiring the property uses the property to store
20 electrical energy in-front of the customer's meter.
21 (b) As used in this section, a "utility scale battery energy storage
22 system" means a system capable of storing and releasing greater than
23 1MW of electrical energy for a minimum of one (1) hour utilizing an
24 AC inverter and DC storage, or equipment which receives, stores, and
25 delivers energy using batteries, compressed air, pumped hydropower,
26 hydrogen storage (including hydrolysis), thermal energy storage,
27 regenerative fuel cells, flywheels, capacitors, and superconducting
28 magnets, but does not include foundations or property used to directly
29 or indirectly connect the AC inverter or DC storage of such system to
30 electrical energy production equipment or the customer's meter.
31 SECTION 24. IC 6-2.5-5-21, AS AMENDED BY P.L.293-2013(ts),
32 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2022]: Sec. 21. (a) For purposes of this section, "private
34 benefit or gain" does not include reasonable compensation paid to an
35 employee for work or services actually performed.
36 (b) Sales of food and food ingredients are exempt from the state
37 gross retail tax if:
38 (1) the seller meets the filing requirements under subsection (d)
39 and is any of the following:
40 (A) A fraternity, a sorority, or a student cooperative housing
41 organization that is connected with and under the supervision
SB 382—LS 7170/DI 120 29
1 of a postsecondary educational institution if no part of its
2 income is used for the private benefit or gain of any member,
3 trustee, shareholder, employee, or associate.
4 (B) Any:
5 (i) institution;
6 (ii) trust;
7 (iii) group;
8 (iv) united fund;
9 (v) affiliated agency of a united fund;
10 (vi) nonprofit corporation;
11 (vii) cemetery association; or
12 (viii) organization;
13 that is organized and operated exclusively for religious,
14 charitable, scientific, literary, educational, or civic purposes if
15 no part of its income is used for the private benefit or gain of
16 any member, trustee, shareholder, employee, or associate.
17 (C) A group, an organization, or a nonprofit corporation that
18 is organized and operated for fraternal or social purposes, or
19 as a business league or association, and not for the private
20 benefit or gain of any member, trustee, shareholder, employee,
21 or associate.
22 (D) A:
23 (i) hospital licensed by the state department of health;
24 (ii) shared hospital services organization exempt from
25 federal income taxation by Section 501(c)(3) or 501(e) of
26 the Internal Revenue Code;
27 (iii) labor union;
28 (iv) church;
29 (v) monastery;
30 (vi) convent;
31 (vii) school that is a part of the Indiana public school
32 system;
33 (viii) parochial school regularly maintained by a recognized
34 religious denomination; or
35 (ix) trust created for the purpose of paying pensions to
36 members of a particular profession or business who created
37 the trust for the purpose of paying pensions to each other;
38 if the taxpayer is not organized or operated for private profit or
39 gain; an organization described in section 25(a)(1) of this
40 chapter;
41 (2) the purchaser is a person confined to the purchaser's home
SB 382—LS 7170/DI 120 30
1 because of age, sickness, or infirmity;
2 (3) the seller delivers the food and food ingredients to the
3 purchaser; and
4 (4) the delivery is prescribed as medically necessary by a
5 physician licensed to practice medicine in Indiana.
6 (c) Sales of food and food ingredients are exempt from the state
7 gross retail tax if the seller is an organization described in subsection
8 (b)(1), section 25(a)(1) of this chapter, and the purchaser is a patient
9 in a hospital operated by the seller.
10 (d) To obtain the exemption provided by this section, a taxpayer
11 must file an application for exemption with the department not later
12 than one hundred twenty (120) days after the taxpayer's formation. In
13 addition, the taxpayer must file an annual report with the department
14 on or before the fifteenth day of the fifth month following the close of
15 each taxable year. If a taxpayer fails to file the report, the department
16 shall notify the taxpayer of the failure. If within sixty (60) days after
17 receiving such notice the taxpayer does not provide the report, the
18 taxpayer's exemption shall be canceled. However, the department may
19 reinstate the taxpayer's exemption if the taxpayer shows by petition that
20 the failure was due to excusable neglect. follow the procedures set
21 forth in section 25(c) of this chapter.
22 SECTION 25. IC 6-2.5-5-22 IS AMENDED TO READ AS
23 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 22. (a) Sales of school
24 meals are exempt from the state gross retail tax if:
25 (1) the seller is a school containing students in any grade, one (1)
26 through twelve (12);
27 (2) the purchaser is one (1) of those students or a school
28 employee; and
29 (3) the school furnishes the food and food ingredients on its
30 premises.
31 (b) Sales of food and food ingredients by not-for-profit colleges or
32 universities are exempt from the state gross retail tax, if the purchaser
33 is a student at the college or university.
34 (c) Sales of meals after December 31, 1976, by a fraternity, sorority,
35 or student cooperative housing organization described in section
36 21(b)(1)(A) 25(a)(1)(A) of this chapter are exempt from the state gross
37 retail tax, if the purchaser:
38 (1) is a member of the fraternity, sorority, or student cooperative
39 housing organization; and
40 (2) is enrolled in the college, university, or educational institution
41 with which the fraternity, sorority, or student cooperative housing
SB 382—LS 7170/DI 120 31
1 organization is connected and by which it is supervised.
2 SECTION 26. IC 6-2.5-5-24 IS AMENDED TO READ AS
3 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 24. (a) Transactions are
4 exempt from the state gross retail tax to the extent that the gross retail
5 income from those transactions is derived from gross receipts that are:
6 (1) derived from sales to the United States government, to the
7 extent the state is prohibited by the Constitution of the United
8 States; from taxing that gross income;
9 (2) derived from commercial printing that results in printed
10 materials, excluding the business of photocopying, that are
11 shipped, mailed, or delivered outside Indiana;
12 (3) United States or Indiana taxes received or collected as a
13 collecting agent explicitly designated as a collecting agent for a
14 tax by statute for the state or the United States;
15 (4) collections by a retail merchant of a retailer's excise tax
16 imposed by the United States if:
17 (A) the tax is imposed solely on the sale at retail of tangible
18 personal property;
19 (B) the tax is remitted to the appropriate taxing authority; and
20 (C) the retail merchant collects the tax separately as an
21 addition to the price of the property sold;
22 (5) collections of a manufacturer's excise tax imposed by the
23 United States on motor vehicles, motor vehicle bodies and
24 chassis, parts and accessories for motor vehicles, tires, tubes for
25 tires, or tread rubber and laminated tires, if the excise tax is
26 separately stated by the collecting taxpayer as either an addition
27 to or an inclusion in the price of the property sold; or
28 (6) amounts represented by an encumbrance of any kind on
29 tangible personal property received by a retail merchant in
30 reciprocal exchange for tangible personal property of like kind.
31 (b) Transactions are exempt from the state gross retail tax to the
32 extent that the gross retail income from those transactions is derived
33 from gross receipts that are:
34 (1) interest or other earnings paid on bonds or other securities
35 issued by the United States, to the extent the Constitution of the
36 United States prohibits the taxation of that gross income; or
37 (2) derived from business conducted in commerce between the
38 state and either another state or a foreign country, to the extent the
39 state is prohibited from taxing that gross income by the
40 Constitution of the United States.
41 SECTION 27. IC 6-2.5-5-25, AS AMENDED BY P.L.293-2013(ts),
SB 382—LS 7170/DI 120 32
1 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2022]: Sec. 25. (a) Transactions involving tangible personal
3 property, accommodations, or service are exempt from the state gross
4 retail tax, if the person acquiring the property, accommodations, or
5 service:
6 (1) is an organization described in section 21(b)(1) of this
7 chapter; any of the following types of organizations:
8 (A) A fraternity, a sorority, or a student cooperative
9 housing organization that is connected with and under the
10 supervision of a postsecondary educational institution if no
11 part of its income is used for the private benefit or gain of
12 any member, trustee, shareholder, employee, or associate.
13 (B) Any:
14 (i) institution;
15 (ii) trust;
16 (iii) group;
17 (iv) united fund;
18 (v) affiliated agency of a united fund;
19 (vi) nonprofit corporation;
20 (vii) cemetery association; or
21 (viii) organization;
22 that is organized and operated exclusively for religious,
23 charitable, scientific, literary, educational, or civic
24 purposes if no part of its income is used for the private
25 benefit or gain of any member, trustee, shareholder,
26 employee, or associate.
27 (C) A group, an organization, or a nonprofit corporation
28 that is organized and operated for fraternal or social
29 purposes, or as a business league or association, and not
30 for the private benefit or gain of any member, trustee,
31 shareholder, employee, or associate.
32 (D) A:
33 (i) hospital licensed by the state department of health;
34 (ii) shared hospital services organization exempt from
35 federal income taxation by Section 501(c)(3) or 501(e) of
36 the Internal Revenue Code;
37 (iii) labor union;
38 (iv) church;
39 (v) monastery;
40 (vi) convent;
41 (vii) school that is a part of the Indiana public school
SB 382—LS 7170/DI 120 33
1 system;
2 (viii) parochial school regularly maintained by a
3 recognized religious denomination; or
4 (ix) trust created for the purpose of paying pensions to
5 members of a particular profession or business who
6 created the trust for the purpose of paying pensions to
7 each other;
8 if the taxpayer is not organized or operated for private
9 profit or gain;
10 (2) primarily uses the property, accommodations, or service to
11 carry on or to raise money to carry on its not-for-profit purpose;
12 and
13 (3) is not an organization operated predominantly for social
14 purposes.
15 (b) Transactions involving tangible personal property or service are
16 exempt from the state gross retail tax, if the person acquiring the
17 property or service:
18 (1) is a fraternity, sorority, or student cooperative housing
19 organization described in section 21(b)(1)(A) of this chapter;
20 subsection (a)(1)(A); and
21 (2) uses the property or service to carry on its ordinary and usual
22 activities and operations as a fraternity, sorority, or student
23 cooperative housing organization.
24 (c) To obtain the exemption provided by this section, a taxpayer
25 must file an application for exemption with the department not
26 later than one hundred twenty (120) days after the taxpayer's
27 formation. In addition, the taxpayer must file a report with the
28 department on or before the fifteenth day of the fifth month every
29 five (5) years following the date of its formation. The report must
30 be filed electronically with the department in the manner
31 determined by the department. If a taxpayer fails to file the report,
32 the department shall notify the taxpayer of the failure. If within
33 sixty (60) days after receiving such notice the taxpayer does not
34 provide the report, the taxpayer's exemption shall be canceled.
35 However, the department may reinstate the taxpayer's exemption
36 if the taxpayer shows by petition that the failure was due to
37 reasonable cause.
38 (d) For purposes of subsection (c), a taxpayer filing a report on
39 or before December 31, 2022, will not be required to file a
40 subsequent report until December 31, 2027. This subsection expires
41 January 1, 2030.
42 SECTION 28. IC 6-2.5-5-26, AS AMENDED BY P.L.214-2018(ss),
SB 382—LS 7170/DI 120 34
1 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2022]: Sec. 26. (a) Sales of tangible personal property by an
3 organization described in section 25(a)(1) of this chapter are exempt
4 from the state gross retail tax, if:
5 (1) the seller is an organization that is described in section
6 21(b)(1) of this chapter;
7 (2) (1) the organization makes the sale to make money to carry on
8 a not-for-profit purpose; and
9 (3) (2) the organization does not make those sales during more
10 than thirty (30) days twenty thousand dollars ($20,000) in sales
11 in a calendar year.
12 Once sales of an organization exceed the amount described in
13 subdivision (2), the organization is required to collect state gross
14 retail tax on sales on an ongoing basis for the remainder of the
15 calendar year.
16 (b) For purposes of subsection (a), the sales of an organization
17 include sales made by all units operating under the organization's
18 registration pursuant to section 25(c) of this chapter.
19 (b) (c) If the qualifications of subsection (a) are not met, sales of
20 tangible personal property by an organization described in section
21 25(a)(1) of this chapter are exempt from the state gross retail tax, if:
22 (1) the seller is an organization described in section 21(b)(1) of
23 this chapter;
24 (2) (1) the seller organization is not operated predominantly for
25 social purposes;
26 (3) (2) the property sold is designed and intended primarily either
27 for the organization's educational, cultural, or religious purposes,
28 or for improvement of the work skills or professional
29 qualifications of the organization's members; and
30 (4) (3) the property sold is not designed or intended primarily for
31 use in carrying on a private or proprietary business.
32 (c) (d) Sales of tangible personal property by a public library, or a
33 charitable organization described in section 21(b)(1) 25(a)(1) of this
34 chapter formed to support a public library, are exempt from the state
35 gross retail tax if the property sold consists of:
36 (1) items in the library's circulated and publicly available
37 collections, including items from the library's holdings; or
38 (2) items that would typically be included in the library's
39 circulated and publicly available collections and that are donated
40 by individuals or organizations to a public library or to a
41 charitable organization described in section 21(b)(1) 25(a)(1) of
SB 382—LS 7170/DI 120 35
1 this chapter formed to support a public library.
2 The exemption provided by this subsection does not apply to any other
3 sales of tangible personal property by a public library.
4 (d) (e) The exemption provided by this section does not apply to an
5 accredited college or university's sales of books, stationery,
6 haberdashery, supplies, or other property.
7 (f) To obtain the exemption provided by this section, a taxpayer
8 must follow the procedures set forth in section 25(c) of this chapter.
9 SECTION 29. IC 6-2.5-8-8, AS AMENDED BY P.L.159-2021,
10 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2022]: Sec. 8. (a) A person, authorized under subsection (b),
12 who makes a purchase in a transaction which is exempt from the state
13 gross retail and use taxes, may issue an exemption certificate to the
14 seller instead of paying the tax. Except as provided in subsection (c),
15 the person shall issue the certificate on forms and in the manner
16 prescribed by the department on the department's Internet web site.
17 A seller accepting a proper exemption certificate under this section has
18 no duty to collect or remit the state gross retail or use tax on that
19 purchase.
20 (b) The following are the only persons authorized to issue
21 exemption certificates:
22 (1) Retail merchants, wholesalers, and manufacturers, who are
23 registered with the department under this chapter.
24 (2) Organizations which are exempt from the state gross retail tax
25 under IC 6-2.5-5-21, IC 6-2.5-5-25, or IC 6-2.5-5-26 and which
26 are registered with the department under this chapter.
27 (3) (2) Persons who are exempt from the state gross retail tax
28 under IC 6-2.5-4-5 and who receive an exemption certificate from
29 the department.
30 (4) (3) Other persons who are exempt from the state gross retail
31 tax with respect to any part of their purchases.
32 (c) Organizations that are exempt from the state gross retail tax
33 under IC 6-2.5-5-21, IC 6-2.5-5-25, or IC 6-2.5-5-26 and that are
34 registered with the department pursuant to IC 6-2.5-5-25(c) shall
35 be electronically issued an exemption certificate by the department.
36 (c) (d) The department may also allow a person to issue a blanket
37 exemption certificate to cover exempt purchases over a stated period
38 of time. The department may impose conditions on the use of the
39 blanket exemption certificate and restrictions on the kind or category
40 of purchases that are exempt.
41 (d) (e) A seller that accepts an incomplete exemption certificate
SB 382—LS 7170/DI 120 36
1 under subsection (a) is not relieved of the duty to collect gross retail or
2 use tax on the sale unless the seller obtains:
3 (1) a fully completed exemption certificate; or
4 (2) the relevant data to complete the exemption certificate;
5 within ninety (90) days after the sale.
6 (e) (f) If a seller has accepted an incomplete exemption certificate
7 under subsection (a) and the department requests that the seller
8 substantiate the exemption, within one hundred twenty (120) days after
9 the department makes the request the seller shall:
10 (1) obtain a fully completed exemption certificate; or
11 (2) prove by other means that the transaction was not subject to
12 state gross retail or use tax.
13 (f) (g) A power subsidiary (as defined in IC 6-2.5-4-5)
14 IC 6-2.5-1-22.5) or a person selling the services or commodities listed
15 in IC 6-2.5-4-5(b) IC 6-2.5-4-5 who accepts an exemption certificate
16 issued by the department to a person who is exempt from the state
17 gross retail tax under IC 6-2.5-4-5 is relieved from the duty to collect
18 state gross retail or use tax on the sale of the services or commodities
19 listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 until notified by the department
20 that the exemption certificate has expired or has been revoked. If the
21 department notifies a power subsidiary or a person selling the services
22 or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 that a person's
23 exemption certificate has expired or has been revoked, the power
24 subsidiary or person selling the services or commodities listed in
25 IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall begin collecting state gross retail tax
26 on the sale of the services or commodities listed in IC 6-2.5-4-5(b)
27 IC 6-2.5-4-5 to the person whose exemption certificate has expired or
28 been revoked not later than thirty (30) days after the date of the
29 department's notice. An exemption certificate issued by the department
30 to a person who is exempt from the state gross retail tax under
31 IC 6-2.5-4-5 remains valid for that person regardless of any subsequent
32 one (1) for one (1) meter number changes with respect to that person
33 that are required, made, or initiated by a power subsidiary or a person
34 selling the services or commodities listed in IC 6-2.5-4-5(b),
35 IC 6-2.5-4-5, unless the department revokes the exemption certificate.
36 Within thirty (30) days after the final day of each calendar year quarter,
37 a power subsidiary or a person selling the services or commodities
38 listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall report to the department any
39 meter number changes made during the immediately preceding
40 calendar year quarter and distinguish between the one (1) for one (1)
41 meter changes and the one (1) for multiple meter changes made during
SB 382—LS 7170/DI 120 37
1 the calendar year quarter. A power subsidiary or a person selling the
2 services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall
3 maintain records sufficient to document each one (1) to one (1) meter
4 change. A person may request the department to reissue an exemption
5 certificate with a new meter number in the event of a one (1) to one (1)
6 meter change. Except for a person to whom a blanket utility exemption
7 applies, any meter number changes not involving a one (1) to one (1)
8 relationship will no longer be exempt and will require the person to
9 submit a new utility exemption application for the new meters. Until an
10 application for a new meter is approved, the new meter is subject to the
11 state gross retail tax and the power subsidiary or the person selling the
12 services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 is
13 required to collect the state gross retail tax from the date of the meter
14 change.
15 SECTION 30. IC 6-3-2-1.7 IS ADDED TO THE INDIANA CODE
16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
17 1, 2022]: Sec. 1.7. (a) For purposes of this section:
18 (1) "Distributor" means a person or entity located in this state
19 that purchases tangible personal property from an eligible
20 corporation for purposes of resale. For purposes of this
21 section, a distributor is not a person or entity that has a
22 relationship described in Section 267(b) of the Internal
23 Revenue Code with the eligible corporation.
24 (2) "Eligible corporation" means a corporation otherwise
25 subject to tax under section 1(b) of this chapter. An eligible
26 corporation shall not include a corporation described in
27 IC 6-3-2-2.8(2) or a corporation subject to tax under IC 6-5.5.
28 (3) "Qualifying distribution sale" means a sale of tangible
29 personal property by an eligible corporation to a distributor
30 that:
31 (A) is a purchase for resale by the distributor as defined in
32 IC 6-2.5-5-8; and
33 (B) for which the sourcing of the sale of the property to an
34 ultimate customer outside Indiana is agreed to by the
35 department and the eligible corporation, or, in the absence
36 of an agreement, sourced by the ratio of the population of
37 Indiana compared to the population of all states in which
38 the qualified distribution sales are sold to an ultimate
39 customer.
40 For purposes of this section, a qualifying distribution sale
41 shall not include any sale for which the distributor does not
42 issue an exemption certificate in the manner provided by the
SB 382—LS 7170/DI 120 38
1 department under IC 6-2.5-8-8 or a purchase by the
2 distributor for the distributor's own use other than for resale.
3 A qualifying distribution sale shall not include any sale made
4 by a pass through entity that would otherwise be attributable
5 under this article to the eligible corporation.
6 (4) "Ultimate customer" means a purchaser of tangible
7 personal property who purchases the tangible personal
8 property without an intent of future resale of property.
9 (b) If an eligible corporation has greater than one billion dollars
10 ($1,000,000,000) of tangible personal property sales that otherwise
11 would be sourced to this state under IC 6-3-2-2(e), and would have
12 an apportionment percentage under IC 6-3-2-2 of greater than ten
13 percent (10%) prior to application of this section the eligible
14 corporation may elect to determine its tax as follows:
15 STEP ONE: Determine the apportionment percentage under
16 IC 6-3-2-2 and IC 6-3-3-2.2, treating qualifying distribution
17 sales as if they were not receipts for purposes of the
18 apportionment numerator, but treating the portion where the
19 ultimate customer would be located in Indiana as part of the
20 receipts numerator.
21 STEP TWO: Determine Indiana adjusted gross income in the
22 manner otherwise provided in this article, applying the
23 apportionment percentage in STEP ONE. For purposes of this
24 STEP, any adjusted gross income arising from qualified
25 distribution sales shall be treated as business income of the
26 eligible corporation.
27 STEP THREE: Determine the tax due under this chapter on
28 the amount computed in STEP TWO, reduced by any
29 nonrefundable credits under IC 6-3-3 or IC 6-3.1, but not less
30 than zero (0). For purposes of this article, any application of
31 a credit under this STEP shall reduce the amount available
32 for carryforward in the same manner as otherwise provided
33 under IC 6-3-3 or IC 6-3.1.
34 STEP FOUR:
35 (A) If the eligible corporation's qualified distribution sales
36 are not in excess of two billion dollars ($2,000,000,000),
37 determine one-half of one percent (0.5%) of the qualified
38 distribution sales.
39 (B) If the eligible corporation's qualified distribution sales
40 are in excess of two billion dollars ($2,000,000,000) but not
41 in excess of three billion dollars ($3,000,000,000),
42 determine three-eighths of one percent (0.375%) of the
SB 382—LS 7170/DI 120 39
1 qualified distribution sales in excess of two billion dollars
2 ($2,000,000,000) plus ten million dollars ($10,000,000).
3 (C) If the eligible corporation's qualified distribution sales
4 are in excess of three billion dollars ($3,000,000,000) but
5 not in excess of four billion dollars ($4,000,000,000),
6 determine one-fourth of one percent (0.25%) of the
7 qualified distribution sales in excess of three billion dollars
8 ($3,000,000,000) plus thirteen million seven hundred fifty
9 thousand dollars ($13,750,000).
10 (D) If the eligible corporation's qualified distribution sales
11 are in excess of four billion dollars ($4,000,000,000),
12 determine one-eighth of one percent (0.125%) of the
13 qualified distribution sales in excess of four billion dollars
14 ($4,000,000,000) plus sixteen million two hundred fifty
15 thousand dollars ($16,250,000).
16 STEP FIVE: Add the amounts determined under STEP
17 THREE and STEP FOUR.
18 (c) Notwithstanding any other provision of this section, for an
19 eligible corporation that makes an election:
20 (1) if the tax for a taxable year covered by the election as
21 computed under subsection (b) is less than twenty-six million
22 dollars ($26,000,000), the tax shall be twenty-six million
23 dollars ($26,000,000); and
24 (2) if the tax for the taxable year covered by an election as
25 computed under subsection (b) is greater than the amount
26 specified in clauses (A) through (C), the amount of tax shall be
27 the following amounts:
28 (A) For a taxable year ending after December 31, 2018,
29 and before January 1, 2025, forty million dollars
30 ($40,000,000).
31 (B) For a taxable year ending after December 31, 2024, and
32 before January 1, 2026, forty-two million dollars
33 ($42,000,000).
34 (C) For each taxable year ending after December 31, 2025,
35 forty-two million dollars ($42,000,000) plus one million
36 dollars ($1,000,000) for each taxable year ending after
37 December 31, 2025.
38 For purposes of this subsection, the tax for a taxable year under
39 this section shall be determined after application of any credit
40 allowable under IC 6-3-3 and IC 6-3.1.
41 (d) If an eligible corporation makes an election under this
42 section, the following apply:
SB 382—LS 7170/DI 120 40
1 (1) The eligible corporation shall be subject to the election for
2 the taxable year of the election and each taxable year
3 thereafter until the first taxable year ending ten (10) years
4 after the first year in which an election is made under this
5 section, even if the corporation would not be an eligible
6 corporation for a taxable year after the taxable year in which
7 the election is made, and shall be binding on any successor
8 corporation or group of corporations to the eligible
9 corporation.
10 (2) After the period of the initial election under subdivision
11 (1), the department may permit a taxpayer to make an
12 election under this section for each subsequent taxable year
13 after the election expires under subdivision (1). However:
14 (A) an election under this subdivision is only permitted for
15 one (1) taxable year; and
16 (B) if an eligible corporation does make an election for a
17 taxable year, the eligible corporation may only make a new
18 election if the new election is subject to the terms of
19 subdivision (1).
20 (e) If two (2) or more eligible corporations are part of a
21 consolidated return or combined return, the computation under
22 STEP FOUR of subsection (b) shall be determined separately for
23 each corporation.
24 (f) For purposes of computing net operating losses for the
25 taxable year under IC 6-3-2-2.6 and the deduction allowable
26 against adjusted gross income under IC 6-3-2-2.6, the loss for the
27 taxable year or deduction allowable shall be computed pursuant to
28 STEP TWO of subsection (b).
29 (g) An election under this section shall be in the form and
30 manner prescribed by the department. The election must be
31 completed and filed with the department on or before the date of
32 filing of the original return for a taxable year to be effective
33 beginning with that taxable year. In addition, if an eligible
34 corporation files a consolidated return or combined return for the
35 first taxable year of the election, or for any year subsequent to the
36 first taxable year of the election, the eligible corporation and the
37 department shall enter into an agreement regarding issues specific
38 to consolidated or combined returns. In the absence of such an
39 agreement, any such issues shall be treated in a manner prescribed
40 by the department and published in the Indiana Register. If the
41 original return for a taxable year is filed after the due date for the
42 original return, including any extensions, an election will not be
SB 382—LS 7170/DI 120 41
1 allowed for that taxable year or any subsequent year to which the
2 election otherwise would apply. However, the eligible corporation
3 may file an election for subsequent taxable years, provided the
4 eligible corporation otherwise meets the requirements of this
5 section.
6 SECTION 31. IC 6-3-4-3, AS AMENDED BY P.L.212-2018(ss),
7 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JANUARY 1, 2023]: Sec. 3. (a) Returns required to be made pursuant
9 to section 1 of this chapter shall be filed with the department on or
10 before the later of the following:
11 (1) The 15th day of the fourth month following the close of the
12 taxable year.
13 (2) For a corporation whose federal tax return is due on or after
14 the date set forth in subdivision (1), as determined without regard
15 to any extensions, weekends, Saturdays, Sundays, or holidays
16 recognized by the Internal Revenue Service, the 15th day of the
17 fifth month following the due date of the federal tax return. close
18 of the taxable year.
19 (b) However, If the due date for a federal income tax return is
20 extended by the Internal Revenue Service to a date that is later than the
21 date specified in subdivision (1) or (2) subsection (a)(1) or (a)(2) (as
22 applicable), the department may extend the due date of a return
23 required to be made under section 1 of this chapter to reflect the due
24 date permitted for the federal income tax return.
25 (c) If the due date for a federal income tax return in the Internal
26 Revenue Code, as determined without regard to any extensions,
27 Saturdays, Sundays, or holidays recognized by the Internal
28 Revenue Service, is later than the date provided in subsection (a),
29 the due date for the return made pursuant to section 1 of this
30 chapter shall be the later of the due date for the federal income tax
31 return or the due date provided under this section.
32 SECTION 32. IC 6-3-4-12, AS AMENDED BY P.L.85-2017,
33 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2022]: Sec. 12. (a) Every partnership shall, at the time that the
35 partnership pays or credits amounts to any of its nonresident partners
36 on account of their distributive shares of partnership income, for a
37 taxable year of the partnership, deduct and retain therefrom the amount
38 prescribed in the withholding instructions referred to in section 8 of
39 this chapter. Such partnership so paying or crediting any nonresident
40 partner:
41 (1) shall be liable to the state of Indiana for the payment of the tax
42 required to be deducted and retained under this section and shall
SB 382—LS 7170/DI 120 42
1 not be liable to such partner for the amount deducted from such
2 payment or credit and paid over in compliance or intended
3 compliance with this section; and
4 (2) shall make return of and payment to the department monthly
5 whenever the amount of tax due under IC 6-3 and IC 6-3.6
6 exceeds an aggregate amount of fifty dollars ($50) per month with
7 such payment due on the thirtieth day of the following month,
8 unless an earlier date is specified by section 8.1 of this chapter.
9 Where the aggregate amount due under IC 6-3 and IC 6-3.6 does not
10 exceed fifty dollars ($50) per month, then such partnership shall make
11 return and payment to the department quarterly, on such dates and in
12 such manner as the department shall prescribe, of the amount of tax
13 which, under IC 6-3 and IC 6-3.6, it is required to withhold.
14 (b) Every partnership shall, at the time of each payment made by it
15 to the department pursuant to this section, deliver to the department a
16 return upon such form as shall be prescribed by the department
17 showing the total amounts paid or credited to its nonresident partners,
18 the amount deducted therefrom in accordance with the provisions of
19 this section, and such other information as the department may require.
20 Every partnership making the deduction and retention provided in this
21 section shall furnish to its nonresident partners annually, but not later
22 than the fifteenth day of the third month after the end of its taxable
23 year, a record of the amount of tax deducted and retained from such
24 partners on forms to be prescribed by the department.
25 (c) All money deducted and retained by the partnership, as provided
26 in this section, shall immediately upon such deduction be the money of
27 the state of Indiana and every partnership which deducts and retains
28 any amount of money under the provisions of IC 6-3 shall hold the
29 same in trust for the state of Indiana and for payment thereof to the
30 department in the manner and at the times provided in IC 6-3. Any
31 partnership may be required to post a surety bond in such sum as the
32 department shall determine to be appropriate to protect the state of
33 Indiana with respect to money deducted and retained pursuant to this
34 section.
35 (d) The provisions of IC 6-8.1 relating to additions to tax in case of
36 delinquency and penalties shall apply to partnerships subject to the
37 provisions of this section, and for these purposes any amount deducted,
38 or required to be deducted and remitted to the department under this
39 section, shall be considered to be the tax of the partnership, and with
40 respect to such amount it shall be considered the taxpayer.
41 (e) Amounts deducted from payments or credits to a nonresident
42 partner during any taxable year of the partnership in accordance with
SB 382—LS 7170/DI 120 43
1 the provisions of this section shall be considered to be in part payment
2 of the tax imposed on such nonresident partner for the nonresident
3 partner's taxable year within or with which the partnership's taxable
4 year ends. A return made by the partnership under subsection (b) shall
5 be accepted by the department as evidence in favor of the nonresident
6 partner of the amount so deducted for the nonresident partner's
7 distributive share.
8 (f) This section shall in no way relieve any nonresident partner from
9 the nonresident partner's obligations of filing a return or returns at the
10 time required under IC 6-3 or IC 6-3.6, and any unpaid tax shall be paid
11 at the time prescribed by section 5 of this chapter.
12 (g) Instead of the reporting periods required under subsection (a),
13 the department may permit a partnership to file one (1) return and
14 payment each year if the partnership pays or credits amounts to its
15 nonresident partners only one (1) time each year. The return and
16 payment are due on or before the fifteenth day of the fourth month after
17 the end of the year. However, if a partnership is permitted an extension
18 to file its income tax return under IC 6-8.1-6-1, the return and payment
19 due under this subsection shall be allowed the same treatment as an
20 extended income tax return with respect to due dates, interest, and
21 penalties under IC 6-8.1-6-1.
22 (h) If a partnership fails to withhold and pay any amount of tax
23 required to be withheld under this section and thereafter the tax is paid
24 by the partners, the amounts of tax as paid by the partners shall not be
25 collected from the partnership but it may not be relieved from liability
26 for interest or penalty otherwise due in respect to the failure to
27 withhold under IC 6-8.1-10.
28 (i) A partnership shall file a composite adjusted gross income tax
29 return on behalf of all nonresident partners. The composite return must
30 include each nonresident partner regardless of whether or not the
31 nonresident partner has other Indiana source income.
32 (j) If a partnership does not include all nonresident partners in the
33 composite return, the partnership is subject to the penalty imposed
34 under IC 6-8.1-10-2.1(j).
35 (k) For taxable years beginning after December 31, 2013, the
36 department may not impose a late payment penalty on a partnership for
37 the failure to file a return, pay the full amount of the tax shown on the
38 partnership's return, or pay the deficiency of the withholding taxes due
39 under this section if the partnership pays the department before the
40 fifteenth day of the fourth month after the end of the partnership's
41 taxable year at least:
42 (1) eighty percent (80%) of the withholding tax due for the
SB 382—LS 7170/DI 120 44
1 current year; or
2 (2) one hundred percent (100%) of the withholding tax due for the
3 preceding year.
4 (l) Notwithstanding subsection (a) or (i), a pass through entity
5 partnership is not required to withhold tax or file a composite adjusted
6 gross income tax return for a nonresident member partner if the entity:
7 partnership:
8 (1) is a publicly traded partnership as defined by Section 7704(b)
9 of the Internal Revenue Code;
10 (2) meets the exception for partnerships under Section 7704(c) of
11 the Internal Revenue Code; and
12 (3) has agreed to file an annual information return reporting the
13 name, address, taxpayer identification number, and other
14 information requested by the department of each unit holder.
15 The department may issue written guidance explaining circumstances
16 under which limited partnerships or limited liability companies owned
17 by a publicly traded partnership may be excluded from the withholding
18 requirements of this section.
19 (m) Notwithstanding subsection (k), a partnership is subject to a late
20 payment penalty for the failure to file a return, pay the full amount of
21 the tax shown on the partnership's return, or pay the deficiency of the
22 withholding taxes due under this section for any amounts of
23 withholding tax, including any interest under IC 6-8.1-10-1, reported
24 or paid after the due date of the return, as adjusted by any extension
25 under IC 6-8.1-6-1.
26 (n) For purposes of this section, a "nonresident partner" is:
27 (1) an individual who does not reside in Indiana;
28 (2) a trust that does not reside in Indiana;
29 (3) an estate that does not reside in Indiana;
30 (4) a partnership not domiciled in Indiana;
31 (5) a C corporation not domiciled in Indiana; or
32 (6) an S corporation not domiciled in Indiana.
33 SECTION 33. IC 6-3-4-14, AS AMENDED BY P.L.136-2018,
34 SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2022]: Sec. 14. (a) An affiliated group of corporations shall
36 have the privilege of making a consolidated return with respect to the
37 taxes imposed by IC 6-3. The making of a consolidated return shall be
38 upon the condition that all corporations which at any time during the
39 taxable year have been members of the affiliated group consent to all
40 of the provisions of this section including all provisions of the
41 consolidated return regulations prescribed pursuant to Section 1502 of
SB 382—LS 7170/DI 120 45
1 the Internal Revenue Code and incorporated in this section by reference
2 and all regulations promulgated by the department implementing this
3 section prior to the last day prescribed by law for the filing of such
4 return. The making of a consolidated return shall be considered as such
5 consent. In the case of a corporation which is a member of the affiliated
6 group for a fractional part of the year, the consolidated return shall
7 include the income of such corporation for such part of the year as it is
8 a member of the affiliated group.
9 (b) For the purposes of this section the term "affiliated group" shall
10 mean an "affiliated group" as defined in Section 1504 of the Internal
11 Revenue Code with the exception that the affiliated group shall not
12 include any corporation which does not have adjusted gross income
13 derived from sources within the state of Indiana.
14 (c) For purposes of IC 6-3-1-3.5(b), the determination of "taxable
15 income," as defined in Section 63 of the Internal Revenue Code, of any
16 affiliated group of corporations making a consolidated return and of
17 each corporation in the group, both during and after the period of
18 affiliation, shall be determined pursuant to the regulations prescribed
19 under Section 1502 of the Internal Revenue Code.
20 (d) Any credit against the taxes imposed by IC 6-3 which is
21 available to any corporation which is a member of an affiliated group
22 of corporations making a consolidated return shall be applied against
23 the tax liability of the affiliated group.
24 (e) For purposes of this section, the following rules shall apply:
25 (1) In the case of the sale of a corporation, the filing status of
26 the remaining members of the consolidated group shall
27 continue absent an election by those consolidated members to
28 file separately or on a combined basis.
29 (2) In the case of a merger, the previous filing status of the
30 surviving corporation shall continue. If the surviving
31 corporation is part of an affiliated group that filed a
32 consolidated return in the immediately preceding taxable
33 year, the surviving corporation shall be considered to be part
34 of the consolidated return, provided that the surviving
35 corporation would otherwise be part of the affiliated group
36 under subsection (b).
37 (3) In the case of an acquisition of a corporation, the filing
38 status of the acquiring group shall continue absent an election
39 by the corporations to file separately or on a combined basis.
40 (4) In the case of a corporation that was previously part of a
41 consolidated return but ceased to be part of a consolidated
42 return for any other reason, the election to be part of a
SB 382—LS 7170/DI 120 46
1 consolidated return shall be considered to continue for all
2 corporations.
3 Provided, however, that if a consolidated election is discontinued
4 as a result of sale, merger, acquisition, or any other reason, nothing
5 in this section shall be construed to prevent a new election to file a
6 consolidated return under this section.
7 SECTION 34. IC 6-3-4-15.1, AS ADDED BY P.L.159-2021,
8 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2022]: Sec. 15.1. For purposes of IC 6-3-4-12, IC 6-3-4-13,
10 and IC 6-3-4-15, the department may:
11 (1) prescribe procedures by which a pass through entity remits tax
12 on behalf of partners, shareholders, and beneficiaries who are
13 considered residents for purposes of those sections in the same
14 manner as tax is remitted for partners, shareholders, and
15 beneficiaries who are considered nonresidents for purposes of
16 those sections, provided that such procedures do not relieve filing
17 requirements otherwise applicable to partners, shareholders, and
18 beneficiaries who are considered residents for purposes of those
19 sections;
20 (2) prescribe special procedures for persons or entities that are
21 otherwise subject to withholding under those sections but who
22 may have circumstances such that a standard tax computation
23 may result in excess withholding;
24 (3) prescribe procedures for individuals and trusts that are
25 residents for part of the taxable year and nonresidents for part of
26 the taxable year; and
27 (4) prescribe procedures by which an entity subject to those
28 sections may request alternative withholding arrangements,
29 provided that such arrangements do not jeopardize the tax
30 otherwise due under IC 6-3 or IC 6-5.5; and
31 (5) prescribe procedures and guidelines by which a partner,
32 shareholder, or beneficiary may elect to not be subject to
33 withholding, in whole or in part, provided that:
34 (A) the election by the partner, shareholder, or beneficiary
35 lists the conditions of the election and that the election is
36 signed under penalty of perjury prior to the due date for
37 the pass through entity to remit tax for the taxable year;
38 (B) the election states that partner, shareholder, or
39 beneficiary has adequate funds to remit any tax due under
40 this article or IC 6-5.5;
41 (C) the election provides any periods for which
42 withholding is not required or is reduced;
SB 382—LS 7170/DI 120 47
1 (D) the election provides that the partner, shareholder, or
2 beneficiary agree to be subject to the jurisdiction of the
3 state of Indiana and shall be liable to file any returns
4 otherwise due under this article or IC 6-5.5, including any
5 composite and withholding returns, and to remit any tax
6 otherwise due, including any interest or penalties due on
7 any tax due;
8 (E) the election provides that the election is subject to
9 department approval and that the department may revoke
10 the election at any time for any reason; and
11 (F) the election is attached to the returns of the pass
12 through entity and of the partner, shareholder, or
13 beneficiary required under this article or IC 6-5.5.
14 A failure by the pass through entity to obtain an election for
15 a taxable year or to attach the election to the pass through
16 entity's return for a taxable year shall be treated as if the
17 election was not made for the taxable year.
18 SECTION 35. IC 6-3-4.5-1, AS ADDED BY P.L.159-2021,
19 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2021 (RETROACTIVE)]: Sec. 1. The following definitions
21 apply throughout this chapter:
22 (1) "Adjustment year" means the partnership taxable year
23 described in Section 6225(d)(2) of the Internal Revenue Code.
24 (2) "Administrative adjustment request" means an administrative
25 adjustment request filed by a partnership under Section 6227 of
26 the Internal Revenue Code.
27 (3) "Affected year" means any taxable year for a taxpayer that is
28 affected by an adjustment under this chapter, regardless of
29 whether the partnership has received an adjustment for that
30 taxable year.
31 (4) "Audited partnership" means a partnership subject to a
32 partnership level audit resulting in a federal adjustment.
33 (5) "Corporate partner" means a partner that is subject to the state
34 adjusted gross income tax under IC 6-3-2-1(b) or the financial
35 institutions tax under IC 6-5.5-2-1. In the case of a partner that is
36 a corporation described in IC 6-3-2-2.8(2) that also is subject to
37 tax under IC 6-3-2-1(b), the corporation is a corporate partner
38 only to the extent that its income is subject to tax under
39 IC 6-3-2-1(b).
40 (6) "Direct partner" means a partner that holds an interest directly
41 in a partnership or pass through entity.
42 (7) "Exempt partner" means a partner that is exempt from the
SB 382—LS 7170/DI 120 48
1 adjusted gross income tax under IC 6-3-2-2.8(1) or the financial
2 institutions tax under IC 6-5.5-2-7(4), except to the extent of
3 unrelated business taxable income.
4 (8) "Federal adjustment" means a change to an item or amount
5 determined under the Internal Revenue Code or a change to any
6 other tax attribute that is used by a taxpayer to compute state
7 adjusted gross income taxes or financial institutions tax owed,
8 whether that change results from action by the Internal Revenue
9 Service, including a partnership level audit, or the filing of an
10 amended federal return, a federal refund claim, or an
11 administrative adjustment request by the taxpayer. A federal
12 adjustment is positive to the extent that it increases state adjusted
13 gross income as determined under IC 6-3 or IC 6-5.5 and is
14 negative to the extent that it decreases state adjusted gross income
15 as determined under IC 6-3 or IC 6-5.5.
16 (9) "Federal adjustment reports" includes methods or forms
17 required by the department for use by a taxpayer to report final
18 federal adjustments for purposes of this chapter, including an
19 amended Indiana tax return, information return, or uniform
20 multistate report.
21 (10) "Federal partnership representative" means a person the
22 partnership designates for the taxable year as the partnership's
23 representative, or the person the Internal Revenue Service has
24 appointed to act as the federal partnership representative,
25 pursuant to Section 6223(a) of the Internal Revenue Code.
26 (11) "Final determination date" means the following:
27 (A) Except as provided in clause (B) or (C), if the federal
28 adjustment arises from an Internal Revenue Service audit or
29 other action by the Internal Revenue Service, the final
30 determination date is the date on which the federal adjustment
31 is a final determination under IC 6-3-4-6(d).
32 (B) For federal adjustments arising from an Internal Revenue
33 Service audit or other action by the Internal Revenue Service,
34 if the taxpayer filed as a member of a consolidated tax return
35 filed under IC 6-3-4-14, a combined return filed under
36 IC 6-3-2-2 or IC 6-5.5-5-1, or a return combined by the
37 department under IC 6-3-2-2(p), the final determination date
38 means the first date on which no related federal adjustments
39 arising from that audit remain to be finally determined, as
40 described in clause (A), for the entire group.
41 (C) If the federal adjustment results from filing an amended
42 federal return, a federal refund claim, or an administrative
SB 382—LS 7170/DI 120 49
1 adjustment request, the final determination date means the day
2 on which the amended return, refund claim, administrative
3 adjustment request, or other similar report was filed.
4 (12) "Final federal adjustment" means a federal adjustment after
5 the final determination date for that federal adjustment has
6 passed.
7 (13) "Indirect partner" means a partner in a partnership or pass
8 through entity that itself holds an interest directly, or through
9 another indirect partner, in a partnership or pass through entity.
10 (14) "Internal Revenue Code" has the meaning set forth in
11 IC 6-3-1-11.
12 (15) "Nonresident partner" has the meaning provided in
13 IC 6-3-4-12(n).
14 (16) "Partner" means a person or entity that holds an interest
15 directly or indirectly in a partnership or other pass through entity.
16 (17) "Partner level adjustments report" means a report provided
17 by a partnership to its partners as a result of a department action
18 with regard to the partnership. A partner level adjustments report
19 does not include an amended statement provided by a partnership
20 or other entity as a result of an adjustment reported by the
21 partnership.
22 (18) "Partnership" has the meaning set forth in IC 6-3-1-19.
23 (19) "Partnership level audit" means an examination by the
24 Internal Revenue Service at the partnership level under Sections
25 6221 through 6241 of the Internal Revenue Code, as enacted by
26 the Bipartisan Budget Act of 2015, Public Law 114-74, which
27 results in federal adjustments.
28 (20) "Partnership return" means a return required to be filed by a
29 partnership pursuant to IC 6-3-4-10. In the case of a partnership
30 that is required to withhold tax or file a composite return pursuant
31 to IC 6-3-4-12 or IC 6-5.5-2-8, the term also includes the returns
32 or schedules required for tax withholding or composite filing.
33 (21) "Pass through entity" means an entity defined in IC 6-3-1-35,
34 other than a partnership, that is not subject to tax under IC 6-3.
35 (22) "Reallocation adjustment" means a federal adjustment
36 resulting from a partnership level audit or an administrative
37 adjustment request that changes the shares of one (1) or more
38 items of partnership income, gain, loss, expense, or credit
39 allocated to direct partners. A positive reallocation adjustment
40 means the portion of a reallocation adjustment that would
41 increase federal adjusted gross income or federal taxable income
SB 382—LS 7170/DI 120 50
1 for one (1) or more direct partners, and a negative reallocation
2 adjustment means the portion of a reallocation adjustment that
3 would decrease federal adjusted gross income or federal taxable
4 income for one (1) or more direct partners, according to Section
5 6225 of the Internal Revenue Code and the regulations under that
6 section.
7 (23) "Resident partner" means a partner that is not a nonresident
8 partner.
9 (24) "Review year" means the taxable year of a partnership that
10 is subject to a partnership level audit that results in federal
11 adjustments.
12 (25) "Statement" means a form or schedule prescribed by the
13 department through which a partnership or pass through entity
14 reports tax attributes to its owners or beneficiaries.
15 (26) "Tax attribute" means any item of income, deduction, credit,
16 receipts for apportionment, or other amount or status that
17 determines a partner's liability under IC 6-3, IC 6-3.6, or IC 6-5.5.
18 (27) "Taxable year" means, in the case of a partnership, the year
19 or partial year for which a partnership files a return for state and
20 federal purposes and, in the case of a partner, the taxable year in
21 which the partner reports tax attributes from the partnership.
22 (28) "Taxpayer" has the meaning set forth in IC 6-3-1-15 (in the
23 case of the adjusted gross income tax) and IC 6-5.5-1-17 (in the
24 case of the financial institutions tax) and, unless the context
25 clearly indicates otherwise, includes a partnership subject to a
26 partnership level audit or a partnership that has made an
27 administrative adjustment request, as well as a tiered partner of
28 that partnership.
29 (29) "Tiered partner" means any partner that is a partnership or
30 pass through entity.
31 (30) "Unrelated business taxable income" has the meaning set
32 forth in Section 512 of the Internal Revenue Code.
33 SECTION 36. IC 6-3-4.5-2, AS ADDED BY P.L.159-2021,
34 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2021 (RETROACTIVE)]: Sec. 2. The following apply for
36 purposes of this chapter:
37 (1) If a taxpayer has not filed a return under IC 6-3 or IC 6-5.5 for
38 a taxable year, review year, or adjustment year, any reference to
39 an amended return shall be a reference to an original return that
40 includes any adjustments under this chapter.
41 (2) If a taxpayer is a partnership or pass through entity and has
SB 382—LS 7170/DI 120 51
1 not issued a statement to its owners or beneficiaries, any reference
2 to an amended statement shall be a reference to an original
3 statement that includes any adjustment under this chapter.
4 (3) Any reference to tax shall include interest under IC 6-8.1-10-1
5 and penalties under IC 6-8.1.
6 (4) In the case of an adjustment for a review year that is required
7 to be paid or otherwise reported for federal purposes in an
8 adjustment year, the adjustment shall be treated as:
9 (A) occurring in the review year, if any tax, interest, or
10 penalties are based on the review year for federal purposes; or
11 (B) occurring in:
12 (i) the adjustment year, if the item is required to be reported
13 for federal purposes on the federal tax return or in any other
14 manner for the adjustment year; or
15 (ii) any other year, if the item is required to be reported for
16 federal purposes on the federal tax return or in any other
17 manner for such other year;
18 and is not described in clause (A).
19 (5) In the case of a state adjustment, the change shall be treated
20 as occurring in the taxable year to which the state adjustment
21 relates, unless the adjustment is treated as occurring in a different
22 year as a result of subdivision (4).
23 (6) For taxable years beginning before January 1, 2017, any
24 reference to IC 6-3.6 shall be construed to include IC 6-3.5-1.1,
25 IC 6-3.5-6, and IC 6-3.5-7, prior to their repeal.
26 (7) With respect to partnerships and tiered partners:
27 (A) a partner that is a partnership that receives a report of
28 partnership adjustments, receives a final federal adjustment, or
29 files an amended return is considered a tier one (1) entity;
30 (B) a tiered partner that is a direct partner of a tier one (1)
31 entity is considered a tier two (2) entity; and
32 (C) each tiered partner that is an owner, beneficiary, or partner
33 of an entity that is a tier two (2) entity or higher shall be
34 assigned a tier number that is one (1) tier higher and is
35 considered an entity in that tier.
36 If, after application of this subdivision, a tiered partner is assigned
37 to more than one (1) tier, the tiered partner shall be treated as
38 being assigned to the highest numerical tier to which the tiered
39 partner could be assigned.
40 (8) In the case of a partnership or tiered partner that is assigned a
41 numerical tier, the applicable deadline for purposes of this chapter
SB 382—LS 7170/DI 120 52
1 is:
2 (A) in the case of a tier one (1) entity receiving a report of
3 partnership adjustments, ninety (90) days from the date the
4 report of partnership adjustments is final;
5 (B) in the case of a tier one (1) entity that has received a final
6 federal determination, one hundred eighty (180) days from the
7 final determination date;
8 (C) in the case of a tier one (1) entity that has filed an
9 amended return under this chapter other than an amended
10 return resulting from a final federal determination, zero (0)
11 days; and
12 (D) in the case of a tiered partner that has received
13 adjustments resulting from a tier one (1) partnership, a number
14 of days equal to:
15 (i) the number of days described in clauses (A) through (C),
16 as applicable; plus
17 (ii) thirty (30) multiplied by the tier number assigned to the
18 tiered partner; minus
19 (iii) thirty (30).
20 However, if a tiered partner receives an adjustment reported on a
21 partnership audit tracking report under Section 6226 of the
22 Internal Revenue Code, the time period applicable for the tiered
23 partner is the longer of the time period described in clause (D) or
24 ninety (90) days from the date prescribed in Section
25 6226(b)(4)(B) of the Internal Revenue Code, and any other
26 applicable deadlines under this subdivision or subdivision (9).
27 (9) In the case of a direct partner or indirect partner that is not a
28 tiered partner, the applicable deadline for purposes of this chapter
29 is ninety (90) days after the applicable deadline that is determined
30 for the partnership or tiered partner under subdivision (8). If a
31 direct partner or indirect partner described in this subdivision is
32 subject to more than one (1) applicable deadline, the applicable
33 deadline is the latest date determined under this subdivision.
34 SECTION 37. IC 6-3-4.5-3, AS ADDED BY P.L.159-2021,
35 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2021 (RETROACTIVE)]: Sec. 3. (a) If the department
37 conducts an audit or investigation of a partnership, and the department
38 determines that the partnership:
39 (1) did not correctly report any tax attribute for a taxable year; or
40 (2) did not correctly allocate any tax attribute for a taxable year;
41 the department may adjust or reallocate the tax attribute. If the
SB 382—LS 7170/DI 120 53
1 department makes an adjustment or reallocation to one (1) or more tax
2 attributes, the department shall provide a report of proposed
3 partnership adjustments for the taxable year to the partnership.
4 (b) The preliminary report of proposed partnership adjustments
5 shall list:
6 (1) the department's adjustments to tax attributes; and
7 (2) the allocation of the department's adjustments to all affected
8 direct partners.
9 (c) If the preliminary report of proposed partnership adjustments for
10 a taxable year results in either:
11 (1) a potential increase in tax to one (1) or more direct partners;
12 or
13 (2) if the partnership reported tax attributes that would result in a
14 refund of tax to one (1) or more partners, a reduction in that
15 refund;
16 such report shall be treated as a proposed assessment under IC 6-8.1-5
17 to the partnership.
18 (d) If the result for partnership adjustments for a taxable year results
19 in:
20 (1) no direct increase in tax to any direct partner; and
21 (2) a change in tax attributes to one (1) or more direct partners
22 that would result in a refund in excess of any refund claimed;
23 the department shall issue a report of proposed partnership adjustments
24 to the partnership reflecting such adjustments. Any refund arising from
25 a report of proposed partnership adjustments shall be issued to the
26 partners, subject to the partner claiming the refund and any statute of
27 limitations on such refunds. In the case of partnership adjustments
28 otherwise described in this subsection that result from a partnership
29 adjustment described in subsection (c), all such partnership
30 adjustments shall be treated as adjustments to which subsection (c)
31 applies.
32 SECTION 38. IC 6-3-4.5-5, AS ADDED BY P.L.159-2021,
33 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2021 (RETROACTIVE)]: Sec. 5. (a) For purposes of this
35 chapter, a report of proposed partnership adjustments for a taxable
36 year is considered a final report of final partnership adjustments upon
37 the latest of:
38 (1) the last day a protest of the report of proposed partnership
39 adjustments could have been filed by the partnership, if no protest
40 is filed;
41 (2) if a protest is filed, but no original tax appeal is filed pursuant
SB 382—LS 7170/DI 120 54
1 to IC 6-8.1-5, the last day on which an original tax appeal could
2 have been filed;
3 (3) if an original tax appeal has been filed, the last day on which
4 no further appeal may be taken from a decision requested; or
5 (4) the date set in subsection (b).
6 (b) If, upon protest or appeal, an adjustment in a report of proposed
7 partnership adjustments is determined to be incorrect, the department
8 shall issue a report of final partnership adjustments consistent with the
9 determination not more than one hundred eighty (180) days after the
10 determination is otherwise determined to be final under subsection
11 (a)(1) through (a)(3). If the report of final partnership adjustments is
12 not issued within one hundred eighty (180) days, one (1) day for each
13 day that the report of final partnership adjustments is issued after the
14 one hundred eighty (180) day deadline is added to the deadline for
15 which a partnership or tiered partner may act without being subject to
16 assessment under section 18 of this chapter. In the case of a partnership
17 with multiple tiers, this extension applies to each tier.
18 (c) Notwithstanding subsection (a), if the partnership and the
19 department enter into a settlement agreement under IC 6-8.1-3-17 to
20 resolve all matters related to the report of proposed partnership
21 adjustments for a taxable year, the report of final partnership
22 adjustments for that taxable year reflected in the agreement shall be
23 issued final one hundred eighty (180) days after the date of the
24 signature of the last party required to sign the agreement.
25 SECTION 39. IC 6-3-4.5-9, AS ADDED BY P.L.159-2021,
26 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2021 (RETROACTIVE)]: Sec. 9. (a) Partnerships and
28 partners shall report final federal adjustments arising from a
29 partnership level audit or an administrative adjustment request and
30 make payments as required under this section.
31 (b) Final federal adjustments subject to the requirements of this
32 section, except those subject to a properly made election under
33 subsection (c), shall be reported as follows:
34 (1) Not later than the applicable deadline, the partnership shall:
35 (A) file an amended partnership return for the review year and
36 any other taxable year affected by the final federal adjustments
37 with the department as provided in section 8 of this chapter
38 and provide any other information required by the department;
39 (B) notify each of its direct partners of their distributive share
40 of the final federal adjustments as provided in section 8 of this
41 chapter for all affected taxable years for which the partnership
SB 382—LS 7170/DI 120 55
1 filed an amended partnership return by an amended statement
2 or a report in the form and manner prescribed by the
3 department; and
4 (C) file an amended composite return for direct partners and
5 an amended withholding return for direct partners for the
6 review year and any affected taxable years as otherwise
7 required by IC 6-3-4-12 or IC 6-5.5-2-8 and pay any tax due
8 for the taxable years.
9 (2) Each direct partner that is subject to tax under IC 6-3,
10 IC 6-3.6, or IC 6-5.5 shall, on or before the applicable deadline:
11 (A) file an amended return as provided in section 8 of this
12 chapter reporting their distributive share of the adjustments
13 reported to them under subdivision (1)(B) for the taxable year
14 in which affected taxable year attributes would be reported by
15 the direct partner as provided in section 8 of this chapter; and
16 (B) pay any additional amount of tax due as if final federal
17 partnership adjustments had been properly reported, less any
18 credit for related amounts paid or withheld and remitted on
19 behalf of the direct partner.
20 (3) Each tiered partner shall treat any final federal partnership
21 adjustments under this section in a manner consistent with the
22 treatment of tiered partners under section 8 of this chapter.
23 (c) Except as provided in subsection (d), an audited partnership
24 making an election under this subsection shall:
25 (1) not later than the applicable deadline, file an amended
26 partnership return for the review year and for any other affected
27 taxable year elected by the audited partnership, including
28 information as required by the department, and notify the
29 department that it is making the election under this subsection;
30 and
31 (2) not later than ninety (90) days after the applicable deadline,
32 pay an amount, determined as follows, in lieu of taxes owed by its
33 direct or indirect partners:
34 (A) Exclude from final federal adjustments the distributive
35 share of these adjustments reported to a direct exempt partner
36 that is not unrelated business income.
37 (B) For the total distributive shares of the remaining final
38 federal adjustments reported to direct corporate partners and
39 to direct exempt partners, apportion and allocate such
40 adjustments as provided under IC 6-3-2-2 or IC 6-3-2-2.2 (in
41 the case of the adjusted gross income tax) or IC 6-5.5-4 (in the
SB 382—LS 7170/DI 120 56
1 case of the financial institutions tax), and multiply the
2 resulting amount by the tax rate for the taxable year under
3 IC 6-3-2-1(b), IC 6-3-2-1.5, or IC 6-5.5-2-1, as applicable.
4 (C) For the total distributive shares of the remaining final
5 federal adjustments reported to nonresident direct partners
6 other than tiered partners or corporate partners, determine
7 the amount of such adjustments which is Indiana source
8 income under IC 6-3-2-2 or IC 6-3-2-2.2, and multiply the
9 resulting amount by the tax rate under IC 6-3-2-1(a), and if
10 applicable IC 6-3.6. If a partnership is unable to determine
11 whether a nonresident is subject to tax under IC 6-3.6, or to
12 determine in what county the nonresident is subject to tax
13 under IC 6-3.6, tax shall also be imposed at the highest rate for
14 which a county imposes a tax under IC 6-3.6 for the taxable
15 year.
16 (D) For the total distributive shares of the remaining final
17 federal adjustments reported to tiered partners:
18 (i) determine the amount of any adjustment that is of a type
19 that it would be subject to sourcing in Indiana under
20 IC 6-3-2-2, IC 6-3-2-2.2, or IC 6-5.5-4, as applicable, and
21 determine the portion of this amount that would be sourced
22 to Indiana;
23 (ii) determine the amount of any adjustment that is of a type
24 that it would not be subject to sourcing to Indiana by a
25 nonresident partner under IC 6-3-2-2, IC 6-3-2-2.2, or
26 IC 6-5.5-4, as applicable;
27 (iii) determine the portion of the amount determined under
28 item (ii) that can be established, as prescribed by the
29 department by rule under IC 4-22-2, to be properly allocable
30 to nonresident indirect partners or other partners not subject
31 to tax on the adjustments; and
32 (iv) multiply the sum of the amounts determined in items (i)
33 and (ii) reduced by the amount determined in item (iii) by
34 the highest combined rate for the review taxable year under
35 IC 6-3-2-1(a) and IC 6-3.6 for any county, the rate under
36 IC 6-3-2-1(b), or the rate under 6-5.5-2-1 for the taxable
37 year, whichever is highest.
38 (E) For the total distributive shares of the remaining final
39 federal adjustments reported to resident individual, estate, or
40 trust direct partners, multiply that amount by the tax rate under
41 IC 6-3-2-1(a) and IC 6-3.6. If a partnership does not
42 reasonably ascertain the county of residence for an individual
SB 382—LS 7170/DI 120 57
1 direct partner, the rate under IC 6-3.6 for that partner shall be
2 treated as the highest rate imposed in any county under
3 IC 6-3.6 for the taxable year.
4 (F) Add an amount equal to any credit reduction under
5 IC 6-3-3, IC 6-3.1, and IC 6-5.5 attributable as a result of
6 final federal adjustments.
7 (F) (G) Add the amounts determined in clauses (B), (C),
8 (D)(iv), and (E), and (F). For purposes of determining interest
9 and penalties, the due date of payment shall be the due date of
10 the partnership's return under IC 6-3-4-10 for the taxable year,
11 determined without regard to any extensions.
12 If a partnership has made an election under this chapter to report and
13 remit all tax otherwise due at the partnership level for a taxable year,
14 the partnership shall be considered to have made a timely election
15 under this subsection with regard to any changes arising from an
16 amended return under this section for that taxable year.
17 (d) Final federal adjustments subject to an election under subsection
18 (c) shall not include:
19 (1) the distributive share of final federal adjustments that would
20 constitute income derived from a partnership to any direct or
21 indirect partner that is a corporation taxable under IC 6-3-2-1(b),
22 IC 6-3-2-1.5, or IC 6-5.5-2-1 and is considered unitary to the
23 partnership;
24 (2) any final federal adjustments resulting from an administrative
25 adjustment request; or
26 (3) any other circumstances that the department determines would
27 result in avoidance or evasion of any tax otherwise due from one
28 (1) or more partners under IC 6-3 or IC 6-5.5.
29 (e) Notwithstanding IC 6-3-4-11, an audited partnership not
30 otherwise subject to any reporting or payment obligations to Indiana
31 that makes an election under subsection (c) consents to be subject to
32 Indiana law related to reporting, assessment, payment, and collection
33 of Indiana tax calculated under the election.
34 SECTION 40. IC 6-3-4.5-14, AS ADDED BY P.L.159-2021,
35 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2021 (RETROACTIVE)]: Sec. 14. For purposes of this
37 chapter and IC 6-8.1-5-2, an assessment may not be issued against a
38 direct or indirect partner or partnership with regard to changes related
39 to a proposed or report of final partnership adjustments if the report of
40 proposed partnership adjustments is issued by the department to a
41 partnership after the latest of:
SB 382—LS 7170/DI 120 58
1 (1) three (3) years after the due date of the partnership's return,
2 including any valid extension granted under IC 6-8.1-6-1;
3 (2) three (3) years after the date the partnership's return is filed
4 with the department;
5 (3) in the case of the partnership's underreporting of its adjusted
6 gross income by more than twenty-five percent (25%), the periods
7 provided in subdivisions (1) and (2) shall be six (6) years;
8 (4) if the partnership fails to file a return required under
9 IC 6-3-4-10, files a fraudulent return, or files a substantially blank
10 return, no time limit;
11 (5) in the case of a report of proposed partnership adjustments
12 arising from final federal adjustments:
13 (A) one hundred eighty (180) days after the date on which the
14 department receives the final federal adjustments from the
15 partnership in the manner prescribed by the department; or
16 (B) December 31, 2021;
17 whichever is later; or
18 (6) in the case of a report of proposed partnership adjustments
19 issued to a tiered partner that is a partnership as a direct or
20 indirect result of another partnership's report of final partnership
21 adjustments, final federal adjustments, or an amended return, one
22 hundred eighty (180) days after the applicable deadline for the
23 tiered partner or the date otherwise determined under this section
24 for the partnership, whichever is later.
25 SECTION 41. IC 6-3-4.5-15, AS ADDED BY P.L.159-2021,
26 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2021 (RETROACTIVE)]: Sec. 15. (a) If the department
28 receives the partner level adjustments report, amended statement, or
29 similar report required to be provided under section 6 of this chapter
30 and the department determines that a taxpayer has not reported the
31 correct amount of tax to the department for a taxable year of the
32 taxpayer affected by the partner level adjustments report, the
33 department shall issue a proposed assessment to the taxpayer not later
34 than:
35 (1) one hundred eighty (180) days after the department receives
36 the partner level adjustments report or amended statement arising
37 from the partner level adjustments report from the entity required
38 to provide the report or statement to the department;
39 (2) one hundred eighty (180) days after the applicable deadline
40 for the taxpayer; or
41 (3) the period during which the taxpayer could otherwise be
SB 382—LS 7170/DI 120 59
1 issued a proposed assessment under IC 6-8.1-5-2;
2 whichever is latest.
3 (b) If a taxpayer receives multiple partner level adjustments reports
4 or amended statements relating to the same final report of final
5 partnership adjustments, the last day for issuing a proposed assessment
6 to the taxpayer is the latest time for which the department could issue
7 an assessment for any partner level adjustments report or amended
8 statement arising from the report of partnership adjustments as
9 determined under this section.
10 (c) The taxpayer may protest or appeal the proposed assessment or
11 refund denial in the same manner as prescribed in IC 6-8.1-5 or
12 IC 6-8.1-9-1, whichever is applicable. However, any adjustments made
13 pursuant to a final report of final partnership adjustments shall be
14 considered final as to the taxpayer.
15 SECTION 42. IC 6-3-4.5-17, AS ADDED BY P.L.159-2021,
16 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2021 (RETROACTIVE)]: Sec. 17. (a) If the department
18 determines that a taxpayer reported a tax attribute in an inconsistent
19 manner with the partnership's reporting of the tax attribute and the
20 taxpayer does not disclose the inconsistent reporting in a manner
21 prescribed by the department, the department may issue a proposed
22 assessment against the taxpayer as a result of the inconsistent reporting
23 not later than:
24 (1) three (3) years after the due date of the partnership's return,
25 including any valid extensions granted under IC 6-8.1-6-1;
26 (2) three (3) years after the partnership's return is filed with the
27 department;
28 (3) in the case of the partnership's underreporting of its adjusted
29 gross income by more than twenty-five percent (25%), the periods
30 provided in subdivisions (1) and (2) shall be six (6) years;
31 (4) if the partnership fails to file a return required under
32 IC 6-3-4-10, files a fraudulent return, or files a substantially blank
33 return, no time limit; or
34 (5) the latest date for which the taxpayer could be assessed under
35 IC 6-8.1-5-2;
36 whichever date is latest.
37 (b) For purposes of this section:
38 (1) if a partnership is required to file a return under IC 6-3-4-10
39 and fails to file such return or fails to provide the partner with a
40 statement setting forth the tax attributes from the partnership, the
41 taxpayer will be considered to have reported all tax attributes
SB 382—LS 7170/DI 120 60
1 from the partnership in an inconsistent manner with the
2 partnership's reporting of the tax attributes;
3 (2) in the case of a partner who owns a direct or indirect
4 interest in a partnership that has made a valid election under
5 Section 6221(b) of the Internal Revenue Code and has
6 received a final federal adjustment with regard to an item of
7 the partnership:
8 (A) the partner shall be considered to have reported items
9 consistently with the partnership only if the partner
10 properly reports the federal adjustment in a manner
11 consistent with the federal treatment of such adjustment;
12 and
13 (B) for purposes of this chapter, IC 6-8.1-5-2, and
14 IC 6-8.1-9-1, the federal adjustment shall be considered a
15 final federal adjustment with regard to such partner; and
16 (3) for purposes of any protest or appeal with regard to a proposed
17 assessment under this section, any reporting by the partnership
18 shall be considered conclusive with regard to the direct or indirect
19 partners of the partnership, provided that the reporting by the
20 partnership is determined to be neither fraudulent nor in bad faith.
21 SECTION 43. IC 6-3-4.5-18, AS ADDED BY P.L.159-2021,
22 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2021 (RETROACTIVE)]: Sec. 18. (a) If a partnership or
24 tiered partner is required to issue a report, issue an amended statement,
25 or issue other information to a partner, owner, or beneficiary under this
26 chapter, and does not issue such report, statement, or information
27 within the period such issuance is required under this chapter, the
28 partnership or tiered partner shall be liable for any tax that otherwise
29 may be due from the partner, owner, or beneficiary, notwithstanding
30 any other provision in IC 6-3 or IC 6-5.5. The tax rate under this
31 section shall be computed at the highest rate for the taxable year under:
32 (1) IC 6-3-2-1(a), plus the highest rate imposed in any county
33 under IC 6-3.6;
34 (2) IC 6-3-2-1(b); or
35 (3) IC 6-5.5-2-1;
36 unless the partnership or tiered partner can establish that a lower rate
37 should apply, the partnership or tiered partner has made an election to
38 be subject to tax under sections 6, 8, or 9 of this chapter, or to the
39 extent the partnership, tiered partner, or the department can determine
40 that the tax was otherwise properly reported and remitted. Such tax
41 shall be considered to be due on the due date of the partnership's or
42 tiered partner's return for the taxable year, determined without regard
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1 to extensions.
2 (b) If a partnership or tiered partner issues the report, amended
3 statement, or other information:
4 (1) to an address that the partnership or tiered partner knows or
5 reasonably should know is incorrect; or
6 (2) if the report, amended statement, or other information not
7 described in subdivision (1) is returned and the partnership or
8 tiered partner:
9 (A) fails to take reasonable steps to determine a proper address
10 for reissuance within thirty (30) days after the report, amended
11 statement, or other information is returned; or
12 (B) takes such steps and fails to reissue the report, amended
13 statement, or other information to a proper address within
14 thirty (30) days after the report, amended statement, or other
15 information is returned;
16 such report, amended statement, or other information shall be
17 considered to have not been issued for purposes of this section.
18 (c) The department may issue a proposed assessment under this
19 section not later than three (3) years after the department receives a
20 return or amended return from the partnership or tiered partner for
21 which the partnership or tiered partner fails to issue reports, amended
22 statements, or other information, or from the date a partnership is
23 required to issue partner level adjustments reports to its partners.
24 (d) If:
25 (1) a direct or indirect partner files and remits the tax otherwise
26 due under this section, the assessment to the partnership or tiered
27 partner under this section shall be reduced by the portion of the
28 tax attributable to the direct or indirect partner; and
29 (2) a partnership or tiered partner files and remits the tax under
30 this section, such tax shall be treated as payment of tax to the
31 direct or indirect partners. However, in no event shall the direct
32 or indirect partners be permitted a refund of tax paid by a
33 partnership or tiered partner under this section unless otherwise
34 permitted under this chapter or IC 6-8.1-9-1.
35 (e) Nothing in this section shall be construed to relieve a partnership
36 or tiered partner from any duty to issue a report, amended statement, or
37 other information otherwise required under this chapter or under any
38 other provision of IC 6-3 or IC 6-5.5. If a partnership or tiered partner
39 issues a report, amended statement, or other information provided
40 under this chapter after the date otherwise required for issuance, the
41 department may grant relief to any tiered partner, direct partner, or
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1 indirect partner affected by the late issuance, including extension of
2 applicable deadlines.
3 SECTION 44. IC 6-3-4.5-20, AS ADDED BY P.L.159-2021,
4 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2021 (RETROACTIVE)]: Sec. 20. (a) Notwithstanding any
6 other provision of this chapter or IC 6-8.1, if, before the end of the time
7 period within which the department may take an action under this
8 chapter:
9 (1) in the case of a partnership or tiered partner that has more than
10 ten thousand (10,000) direct owners, the department shall extend
11 the time period one (1) time by sixty (60) days upon written
12 request of the partnership or tiered partner, regardless of whether
13 the department signs the extension;
14 (2) in the case of an action required to be taken with regard to a
15 partnership under this chapter, the department and the partnership
16 agree to extend that period, the period may be extended according
17 to the terms of a written agreement signed by both the department
18 and the partnership; and
19 (3) in the case of an action required to be taken with regard to a
20 tiered partner, direct partner, or indirect partner under this
21 chapter, the department and the tiered partner, direct partner, or
22 indirect partner, as applicable, agree to extend that period, the
23 period may be extended according to the terms of a written
24 agreement signed by both the department and the tiered partner,
25 direct partner, or indirect partner, as appropriate.
26 (b) If an extension is entered into under subsection (a), the request
27 for automatic extension or agreement must contain:
28 (1) the date to which the extension is made; and
29 (2) a statement that the person or entity agrees to preserve the
30 person's or entity's records until the extension terminates.
31 (c) If an extension is entered into under subsection (a), the
32 applicable deadlines and statute of limitations for any actions arising
33 from an action required by a partnership, tiered partner, direct partner,
34 or indirect partner shall be extended in a manner consistent with the
35 extension under subsection (a)(1) or (a)(2). (a).
36 (d) The department and a partnership, tiered partner, direct partner,
37 or indirect partner may enter into more than one (1) extension
38 agreement under this section.
39 (e) The department may, by rules adopted under IC 4-22-2 or by
40 guidelines published in the Indiana Register, provide for automatic
41 extensions or relief from liability and reporting for certain situations.
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1 The following apply:
2 (1) In the case of an automatic extension, the extension shall be
3 considered signed by both the department and the partnership,
4 tiered partner, direct partner, or indirect partner before the time
5 the department may take an action under this section. In addition,
6 the partnership, tiered partner, direct partner, or indirect partner
7 shall preserve the person's or entity's records until the automatic
8 extension terminates.
9 (2) In the case of relief from liability, such relief shall be granted
10 only under the situations specifically granted by the rules or
11 guidelines.
12 (3) The department may adopt rules or guidelines to establish a de
13 minimis amount upon which a taxpayer shall not be required to
14 comply with specified provisions of this chapter.
15 SECTION 45. IC 6-3.6-6-2.7, AS AMENDED BY P.L.257-2019,
16 SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2022]: Sec. 2.7. (a) A county fiscal body may adopt an
18 ordinance to impose a tax rate for correctional facilities and
19 rehabilitation facilities in the county. The tax rate must be in
20 increments of one-hundredth of one percent (0.01%) and may not
21 exceed two-tenths of one percent (0.2%). The tax rate may not be in
22 effect for more than:
23 (1) twenty-two (22) years, in the case of a tax rate imposed in
24 an ordinance adopted before July 1, 2022; or
25 (2) twenty-five (25) years, in the case of a tax rate imposed in
26 an ordinance adopted after June 30, 2022.
27 If an ordinance is adopted after June 30, 2019, to impose a tax rate
28 under this section, not more than twenty percent (20%) of the revenue
29 from the tax rate under this section may be used for operating expenses
30 for correctional facilities and rehabilitation facilities in the county.
31 (b) The revenue generated by a tax rate imposed under this section
32 must be distributed directly to the county before the remainder of the
33 expenditure rate revenue is distributed. The revenue shall be
34 maintained in a separate dedicated county fund and used by the county
35 only for paying for correctional facilities and rehabilitation facilities in
36 the county.
37 SECTION 46. IC 6-3.6-9-4, AS AMENDED BY P.L.165-2021,
38 SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2022]: Sec. 4. Revenue derived from the imposition of the tax
40 shall, in the manner prescribed by this chapter, be distributed to the
41 county that imposed it. The amount that is to be distributed to a county
SB 382—LS 7170/DI 120 64
1 during an ensuing calendar year equals the amount of tax revenue that
2 the budget agency determines has been:
3 (1) received from attributed to that county for a taxable year
4 ending in a calendar year preceding the calendar year in which the
5 determination is made; and
6 (2) reported on an annual return or amended return filed by or for
7 a county taxpayer and processed by the department in the state
8 fiscal year ending before July 1, or for a federal income tax
9 deadline set after July 1, a date set by the department for a period
10 of not more than sixty (60) days beyond the federal deadline, of
11 the calendar year in which the determination is made.
12 as adjusted for refunds of tax made in the state fiscal year.
13 SECTION 47. IC 6-5.5-6-2, AS AMENDED BY P.L.239-2017,
14 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JANUARY 1, 2023]: Sec. 2. (a) Annual returns required by this
16 chapter shall be filed with the department on or before the later of the
17 following:
18 (1) the fifteenth day of the fourth fifth month following the close
19 of the taxpayer's taxable year.
20 (2) For a taxpayer whose federal tax return is due on or after the
21 date set forth in subdivision (1), as determined without regard to
22 any extensions, weekends, or holidays, the fifteenth day of the
23 month following the due date of the federal tax return.
24 However, if a taxpayer receives an extension of time from the United
25 States Internal Revenue Service for the filing of its federal income tax
26 return for a taxable year, the department shall grant a similar an
27 extension of time to the taxpayer for the filing of a return required by
28 this chapter for that taxable year to the date otherwise provided by
29 IC 6-8.1-6-1. In addition, the department may grant an additional
30 reasonable extension of time for filing a return required by this chapter
31 as provided by IC 6-8.1-6-1.
32 (b) If the due date for a federal income tax return is extended by
33 the Internal Revenue Service to a date that is later than the date
34 specified in subsection (a), the department may extend the due date
35 of a return required to be made under this chapter to reflect the
36 due date permitted for the federal income tax return.
37 (c) If the due date for a federal income tax return in the Internal
38 Revenue Code, as determined without regard to any extensions,
39 Saturdays, Sundays, or holidays, is later than the date provided in
40 subsection (a), the due date for the return made pursuant to this
41 section shall be the later of the due date for the federal income tax
SB 382—LS 7170/DI 120 65
1 return or the due date provided under this section.
2 SECTION 48. IC 6-7-1-2, AS AMENDED BY P.L.191-2016,
3 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2022]: Sec. 2. Unless the context requires otherwise,
5 "cigarette" shall mean and include any roll for smoking or heating
6 made wholly or in part of tobacco, irrespective of size or shape and
7 irrespective of tobacco being flavored, adulterated, or mixed with any
8 other ingredient, where such roll has a wrapper or cover made of paper
9 or any other material not containing tobacco. Provided the definition
10 in this section shall not be construed to include cigars (as defined in
11 IC 6-7-2-0.3). Excepting where context clearly shows that cigarettes
12 alone are intended, the term "cigarettes" shall mean and include
13 cigarettes upon which a tax is imposed by sections 12 and 13 of this
14 chapter.
15 SECTION 49. IC 6-7-1-15 IS AMENDED TO READ AS
16 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 15. (a) The department
17 is the official agent of the state for the administration and enforcement
18 of this chapter. A sufficient sum to pay salaries and expenses is
19 appropriated to the department out of the monies received by virtue of
20 this chapter.
21 (b) The department may issue registration certificates, upon the
22 terms and conditions provided in this chapter, and may revoke or
23 suspend the same upon the violation of this chapter or a violation of
24 IC 24-3-5.4-17 by the holder of such a certificate.
25 (c) The department may apply for membership in the National
26 Tobacco Tax Association.
27 (d) The department may design and have printed or manufactured
28 stamps of sizes and denominations to be affixed to each individual
29 package. The stamps shall be firmly affixed on each individual package
30 in such a manner that the stamps can not be removed without being
31 mutilated or destroyed; however, the department may by regulation
32 designate some other manner for cancelation cancellation of stamps.
33 In addition to the stamps, the department may by rules and regulations
34 authorize distributors to use metered stamping machines or other
35 devices which will imprint distinctive indicia evidencing the payment
36 of the tax upon each individual package. The machines shall be
37 constructed in such a manner as will accurately record or meter the
38 number of impressions or tax stamps made. The tax meter machines or
39 other devices shall be kept available at all reasonable times for
40 inspection by the department, and the machines shall be maintained in
41 proper operating condition. A person who knowingly tampers with the
42 printing or recording mechanism of such a machine commits a Class
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1 B misdemeanor.
2 SECTION 50. IC 6-7-1-38 IS ADDED TO THE INDIANA CODE
3 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4 1, 2022]: Sec. 38. A retailer who purchases cigarettes from a
5 distributor who has not obtained a registration certificate required
6 under section 16 of this chapter or whose registration certificate
7 has been suspended or revoked by the department is subject to a
8 penalty not to exceed the greater of:
9 (1) one hundred percent (100%) of the retail value of the
10 cigarettes described in this section; or
11 (2) five thousand dollars ($5,000);
12 on each such purchase.
13 SECTION 51. IC 6-7-2-0.1 IS ADDED TO THE INDIANA CODE
14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
15 1, 2023]: Sec. 0.1. As used in this chapter:
16 (1) "actual cost" means the price paid by a remote seller for
17 an individual tobacco product; and
18 (2) "actual cost list" means an annual list (prepared,
19 maintained, and certified by each remote seller) of the cost of
20 each individual tobacco product. For purposes of this
21 subdivision, the actual cost for each individual product in a
22 cost list shall be the average of the actual price paid by a
23 remote seller for the individual product over the twelve (12)
24 calendar months prior to January 1 of the year in which the
25 sale by the remote seller occurs.
26 SECTION 52. IC 6-7-2-0.2 IS ADDED TO THE INDIANA CODE
27 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
28 1, 2023]: Sec. 0.2. As used in this chapter, "alternative nicotine
29 product" means a noncombustible product containing nicotine that
30 is intended for human consumption, whether chewed, absorbed,
31 dissolved, or ingested by any means. The term does not include
32 cigarettes (as defined in IC 6-7-1-2), tobacco products, closed
33 system cartridges, consumable material, open system containers
34 (as defined in IC 6-7-4-5), vapor products (as defined in
35 IC 6-7-4-8), or any product regulated as a drug or device by the
36 United States Food and Drug Administration under 21 U.S.C. 351
37 to 360fff-7.
38 SECTION 53. IC 6-7-2-0.3 IS ADDED TO THE INDIANA CODE
39 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
40 1, 2023]: Sec. 0.3. As used in this chapter, "cigar" means a tobacco
41 product that is a roll of tobacco wrapped in leaf tobacco or in any
42 substance containing tobacco (other than any roll of tobacco that
SB 382—LS 7170/DI 120 67
1 is a cigarette within the meaning of IC 6-7-1-2). The term includes
2 tobacco products commonly known as "little cigars", which are
3 cigars with an integrated cellulose acetate filter and that are
4 wrapped in a substance containing tobacco.
5 SECTION 54. IC 6-7-2-2, AS AMENDED BY P.L.165-2021,
6 SECTION 103, IS AMENDED TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2023]: Sec. 2. used in this chapter, "distributor"
8 means a person who:
9 (1) manufactures, sells, barters, exchanges, or distributes taxable
10 products or alternative nicotine products in Indiana to retail
11 dealers for the purpose of resale;
12 (2) purchases taxable products or alternative nicotine products
13 directly from a manufacturer of taxable products; or
14 (3) purchases for resale taxable products or alternative nicotine
15 products from a wholesaler, jobber, or distributor outside of
16 Indiana who is not a distributor holding a license issued under this
17 chapter.
18 SECTION 55. IC 6-7-2-3.1 IS ADDED TO THE INDIANA CODE
19 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
20 1, 2023]: Sec. 3.1. As used in this chapter, "pipe tobacco" means a
21 tobacco product that, because of its appearance, type, packaging,
22 or labeling, is suitable and likely to be smoked in a pipe.
23 SECTION 56. IC 6-7-2-3.3 IS ADDED TO THE INDIANA CODE
24 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
25 1, 2023]: Sec. 3.3. As used in this chapter, "remote seller" means a
26 retail dealer that meets one (1) or both of the economic thresholds
27 under IC 6-2.5-2-1(d) and sells tobacco products to an ultimate
28 consumer under either of the following circumstances:
29 (1) By means of a telephone or other method of voice
30 transmission, the mail, or the Internet or other electronic
31 service.
32 (2) When the taxable products are delivered to the consumer
33 by common carrier, private delivery service, or other method
34 of delivery.
35 SECTION 57. IC 6-7-2-4, AS AMENDED BY P.L.165-2021,
36 SECTION 105, IS AMENDED TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2023]: Sec. 4. As used in this chapter, "retail
38 dealer" means a person engaged in the business of selling taxable
39 products to ultimate consumers, including a retail merchant that
40 meets one (1) or both of the economic thresholds under
41 IC 6-2.5-2-1(d).
SB 382—LS 7170/DI 120 68
1 SECTION 58. IC 6-7-2-5, AS AMENDED BY P.L.172-2011,
2 SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 5. (a) As used in this chapter, "tobacco product"
4 means
5 (1) any product made from tobacco, other than a cigarette (as
6 defined in IC 6-7-1-2), that is made for smoking, chewing, or
7 both; or
8 (2) snuff, including moist snuff.
9 any product containing, made, or derived from tobacco, or that
10 contains nicotine whether natural or synthetic, that is intended for
11 human consumption, or is likely to be consumed, whether chewed,
12 smoked, heated, absorbed, dissolved, inhaled, snorted, sniffed, or
13 ingested by any other means, or any component, part, or accessory
14 of a tobacco product.
15 (b) The term includes, but is not limited to:
16 (1) cigars;
17 (2) pipe tobacco;
18 (3) chewing tobacco;
19 (4) moist snuff;
20 (5) snus; and
21 (6) other similar kinds and forms of tobacco.
22 (c) The term does not include:
23 (1) cigarettes (as defined in IC 6-7-1-2);
24 (2) closed system cartridges;
25 (3) consumable material;
26 (4) open system containers (as defined in IC 6-7-4-5);
27 (5) vapor products (as defined in IC 6-7-4-8); or
28 (6) any drugs, devices, or combination products authorized
29 for sale by the United States Food and Drug Administration
30 and defined in the Federal Food, Drug, and Cosmetic Act.
31 SECTION 59. IC 6-7-2-7, AS AMENDED BY P.L.165-2021,
32 SECTION 107, IS AMENDED TO READ AS FOLLOWS
33 [EFFECTIVE JULY 1, 2022]: Sec. 7. (a) A tax is imposed on the
34 distribution of tobacco products in Indiana at the rate of: following
35 rates:
36 (1) Twenty-four percent (24%) of the wholesale price of tobacco
37 products other than:
38 (A) moist snuff; and
39 (B) beginning after December 31, 2022, cigars. or
40 (2) For moist snuff, forty cents ($0.40) per ounce, and a
41 proportionate tax at the same rate on all fractional parts of an
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1 ounce. If the tax calculated for a fractional part of an ounce
2 carried to the third decimal place results in the numeral in the
3 third decimal place being greater than four (4), the amount of the
4 tax shall be rounded to the next additional cent.
5 (3) Beginning after December 31, 2022, for cigars:
6 (A) twenty-four percent (24%) of the wholesale price of a
7 cigar for cigars having a wholesale price not exceeding
8 three dollars ($3) per cigar; or
9 (B) seventy-two cents ($0.72) per cigar for cigars having a
10 wholesale price exceeding three dollars ($3) per cigar.
11 (b) A tax is imposed on the distribution of alternative nicotine
12 products in Indiana at a rate of forty cents ($0.40) per ounce,
13 calculated based upon the product weight as listed by the
14 manufacturer.
15 (b) (c) The distributor of the tobacco products or alternative
16 nicotine products, including a person that sells tobacco products or
17 alternative nicotine products through an Internet web site, is liable
18 for the tax imposed under subsection subsections (a) and (b). The tax
19 is imposed at the time the distributor:
20 (1) brings or causes tobacco products or alternative nicotine
21 products to be brought into Indiana for distribution;
22 (2) manufactures tobacco products or alternative nicotine
23 products in Indiana for distribution; or
24 (3) transports tobacco products or alternative nicotine products
25 to retail dealers in Indiana for resale by those retail dealers; or
26 (4) first receives the tobacco products or alternative nicotine
27 products in Indiana in the case of a distributor or distributor
28 transactions.
29 (c) (d) The Indiana general assembly finds that the tax rate on
30 smokeless tobacco should reflect the relative risk between such
31 products and cigarettes.
32 (d) (e) A consumer who purchases untaxed tobacco products or
33 alternative nicotine products from a distributor or retailer, including
34 through an Internet web site, a catalog, or other similar means, is liable
35 for the tax imposed under subsection subsections (a) and (b).
36 SECTION 60. IC 6-7-2-7.5, AS ADDED BY P.L.165-2021,
37 SECTION 108, IS AMENDED TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2022]: Sec. 7.5. (a) A tax is imposed on the
39 distribution of closed system cartridges in Indiana at the rate of
40 twenty-five percent (25%) fifteen percent (15%) of the wholesale
41 price of the closed system cartridge.
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1 (b) The distributor of closed system cartridges, including a person
2 that sells closed system cartridges through an Internet web site, is liable
3 for the tax imposed under subsection (a). The tax is imposed at the time
4 the distributor:
5 (1) brings or causes closed system cartridges to be brought into
6 Indiana for distribution;
7 (2) manufactures closed system cartridges in Indiana for
8 distribution; or
9 (3) transports closed system cartridges to retail dealers in Indiana
10 for resale by those retail dealers.
11 (c) A consumer who purchases untaxed closed system cartridges
12 from a distributor or retailer, including closed system cartridges
13 purchased through an Internet web site, a catalog, or other similar
14 means, is liable for the tax imposed under subsection (a).
15 SECTION 61. IC 6-7-2-7.7 IS ADDED TO THE INDIANA CODE
16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
17 1, 2023]: Sec. 7.7. (a) The tax imposed under sections 7(a)(1) and
18 7.5(a) of this chapter shall also be imposed on the sale of taxable
19 tobacco products in Indiana by remote sellers, and shall be
20 calculated based on one (1) of the following methods:
21 (1) For remote sellers using an actual cost method, the tax
22 shall be calculated by applying the rate to the actual cost of
23 each individual product.
24 (2) For remote sellers using an actual cost list method, the tax
25 shall be calculated by applying the rate to the cost established
26 for each individual product in the remote seller's actual cost
27 list.
28 (b) The tax imposed under section 7(b) of this chapter shall also
29 be imposed on the sale of taxable alternative nicotine products in
30 Indiana by remote sellers.
31 (c) The remote seller of taxable products, including a person
32 that sells taxable products through an Internet web site, is liable
33 for the tax imposed under section 7(a)(1) or 7.5(a) of this chapter.
34 (d) The tax under this section shall be imposed at the time of
35 purchase by an ultimate consumer.
36 SECTION 62. IC 6-7-2-8, AS AMENDED BY P.L.165-2021,
37 SECTION 109, IS AMENDED TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2023]: Sec. 8. (a) A distributor, including a
39 person that sells taxable products or alternative nicotine products
40 through an Internet web site, must obtain a license under this section
41 before it distributes taxable products or alternative nicotine products
SB 382—LS 7170/DI 120 71
1 in Indiana. The department shall issue licenses to applicants that
2 qualify under this section. A license issued under this section is valid
3 for one (1) year unless revoked or suspended by the department and is
4 not transferable.
5 (b) An applicant for a license under this section must submit proof
6 to the department of the appointment of an agent for service of process
7 in Indiana if the applicant is:
8 (1) an individual whose principal place of residence is outside
9 Indiana; or
10 (2) a person, other than an individual, that has its principal place
11 of business outside Indiana.
12 (c) To obtain or renew a license under this section, a person must:
13 (1) submit, for each location where it intends to distribute taxable
14 products or alternative nicotine products, an application that
15 includes all information required by the department;
16 (2) pay a fee of twenty-five dollars ($25) at the time of
17 application; and
18 (3) at the time of application, post a bond, issued by a surety
19 company approved by the department, in an amount not less than
20 one thousand dollars ($1,000) and conditioned on the applicant's
21 compliance with this chapter.
22 (d) If business is transacted at two (2) or more places by one (1)
23 distributor, a separate license must be obtained for each place of
24 business.
25 (e) Each license must be numbered, show the name and address of
26 the distributor, and be posted in a conspicuous place at the place of
27 business for which it is issued.
28 (f) If the department determines that a bond provided by a licensee
29 is inadequate, the department may require a new bond in the amount
30 necessary to fully protect the state.
31 SECTION 63. IC 6-7-2-8.5 IS ADDED TO THE INDIANA CODE
32 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
33 1, 2023]: Sec. 8.5. (a) A remote seller, including a person that sells
34 taxable products through an Internet web site, must obtain a
35 license under this section before a remote seller can sell taxable
36 products in Indiana. The department shall issue licenses to
37 applicants that qualify under this section. A license issued under
38 this section is valid for one (1) year unless revoked or suspended by
39 the department and is not transferable.
40 (b) An applicant for a license under this section must submit
41 proof to the department of the appointment of an agent for service
SB 382—LS 7170/DI 120 72
1 of process in Indiana if the applicant is:
2 (1) an individual whose principal place of residence is outside
3 Indiana; or
4 (2) a person, other than an individual, that has its principal
5 place of business outside Indiana.
6 (c) To obtain or renew a license under this section, a person
7 must:
8 (1) submit an application that includes all information
9 required by the department;
10 (2) meet one (1) or both of the economic thresholds under
11 IC 6-2.5-2-1(d) and obtain a registered retail merchant
12 certificate;
13 (3) attest that the person uses third party age verification
14 technology as described in subsection (d);
15 (4) pay a fee of twenty-five dollars ($25) at the time of
16 application; and
17 (5) at the time of application, post a bond, issued by a surety
18 company approved by the department, in an amount not less
19 than one thousand dollars ($1,000) and conditioned on the
20 applicant's compliance with this chapter.
21 (d) A remote seller must use age verification through an
22 independent, third party age verification service that compares:
23 (1) information available from a commercially available data
24 base (or aggregate of data bases) that are regularly used by
25 government agencies and businesses for the purpose of age
26 and identity verification; and
27 (2) personal information entered by the individual during the
28 ordering process;
29 that establishes that the individual is of the required minimum age.
30 (e) A remote seller that collects the tax imposed under section
31 7.7 of this chapter using the actual cost list method to calculate the
32 tax must provide to the department a certified actual cost list for
33 each individual product offered for sale in the subsequent calendar
34 year. The actual cost list shall be updated annually as new products
35 are added to a remote seller's inventory. New products must be
36 added to the actual cost list using the actual cost first paid for each
37 individual product.
38 (f) If a business owns multiple entities that qualify as a remote
39 seller, a separate license must be obtained for each remote seller.
40 (g) Each license must be numbered, show the name and address
41 of the remote seller, and be kept at the place of business for which
42 it is issued.
SB 382—LS 7170/DI 120 73
1 (h) If the department determines that a bond provided by a
2 licensee is inadequate, the department may require a new bond in
3 the amount necessary to fully protect the state.
4 (i) A license issued under this section does not permit the remote
5 seller to sell cigarettes, vapor products, or other products subject
6 to tax under IC 6-7-1 or IC 6-7-4.
7 SECTION 64. IC 6-7-2-9 IS AMENDED TO READ AS FOLLOWS
8 [EFFECTIVE JULY 1, 2023]: Sec. 9. A distributor or remote seller
9 that changes its place of business shall return its license, and the
10 department shall issue, free of charge, a new license for the new place
11 of business.
12 SECTION 65. IC 6-7-2-10 IS AMENDED TO READ AS
13 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 10. A license issued
14 under this chapter may be surrendered to the department at any time
15 before its expiration, and the department shall refund an amount of
16 money that bears the same proportion to the fee originally paid as the
17 unexpired period of the permit bears to one (1) year. No refund may be
18 allowed if a license is suspended or revoked. and no refund may be
19 made that is:
20 (1) greater than seventy-five dollars ($75); or
21 (2) less than twenty-five dollars ($25).
22 SECTION 66. IC 6-7-2-11 IS AMENDED TO READ AS
23 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 11. The department:
24 (1) may revoke or suspend a license issued under this chapter for
25 any violation of this chapter, or IC 6-7-1-18, or IC 24-3-5.4-17 by
26 the licensee; and
27 (2) may not issue a license under this chapter to an applicant
28 within six (6) months after the revocation of that applicant's
29 license.
30 SECTION 67. IC 6-7-2-11.5 IS ADDED TO THE INDIANA CODE
31 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
32 1, 2022]: Sec. 11.5. (a) The department may refuse to issue or
33 renew a license issued under this chapter if:
34 (1) the application is filed by a person whose license has
35 previously been canceled for cause (including a similar license
36 issued by another state);
37 (2) the application is not filed in good faith, as determined by
38 the department;
39 (3) the application is filed by a person as a subterfuge for the
40 real person in interest whose license has previously been
41 canceled for cause;
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1 (4) the applicant has been convicted of fraud,
2 misrepresentation, or any other offense that indicates the
3 applicant may not comply with this chapter if issued a license;
4 (5) the applicant has an outstanding listed tax liability; or
5 (6) the applicant has not complied with a filing requirement
6 of the department.
7 (b) Before being denied a license as a distributor, the applicant
8 is entitled to a hearing with five (5) days written notice. At the
9 hearing the applicant may appear in person or by counsel and
10 present testimony.
11 SECTION 68. IC 6-7-2-12, AS AMENDED BY P.L.165-2021,
12 SECTION 110, IS AMENDED TO READ AS FOLLOWS
13 [EFFECTIVE JANUARY 1, 2023]: Sec. 12. Before the fifteenth day
14 of each month, each distributor (and remote seller beginning July 1,
15 2023) liable for a tax imposed by this chapter shall:
16 (1) file a return with the department that includes all information
17 required by the department including, but not limited to:
18 (A) name of distributor (or remote seller beginning July 1,
19 2023);
20 (B) address of distributor (or remote seller beginning July 1,
21 2023);
22 (C) license number of distributor (or remote seller beginning
23 July 1, 2023);
24 (D) invoice date;
25 (E) invoice number;
26 (F) name and address of person from whom taxable products
27 or alternative nicotine products were purchased or name and
28 address of person to whom taxable products were sold (except
29 in the case of sales to an end consumer beginning July 1,
30 2023);
31 (G) the wholesale price for tobacco products other than moist
32 snuff and cigars (or the actual cost in the case of remote
33 sellers beginning July 1, 2023);
34 (H) for moist snuff, the weight of the moist snuff; and
35 (I) for cigars, the wholesale price of the cigars;
36 (J) for alternative nicotine products, the weight of the
37 alternative nicotine products; and
38 (I) (K) for closed system cartridges, the wholesale price of
39 closed system cartridges sold; and
40 (2) pay the taxes for which it is liable under this chapter for the
41 preceding month minus the amount specified in section 13 of this
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1 chapter.
2 All returns required to be filed and taxes required to be paid under this
3 chapter must be made in an electronic format prescribed by the
4 department.
5 SECTION 69. IC 6-7-2-13, AS AMENDED BY P.L.165-2021,
6 SECTION 111, IS AMENDED TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2023]: Sec. 13. A distributor or remote seller
8 that files a complete return and pays the taxes due within the time
9 specified in section 12 of this chapter is entitled to deduct and retain
10 from the tax a collection allowance of seven-thousandths (0.007) of the
11 amount due. If a distributor or remote seller files an incomplete report,
12 the department may reduce the collection allowance by an amount that
13 does not exceed the lesser of:
14 (1) ten percent (10%) of the collection allowance; or
15 (2) fifty dollars ($50).
16 SECTION 70. IC 6-7-2-14, AS AMENDED BY P.L.165-2021,
17 SECTION 112, IS AMENDED TO READ AS FOLLOWS
18 [EFFECTIVE JULY 1, 2023]: Sec. 14. The department shall credit or
19 refund to a distributor or remote seller the taxes paid under this
20 chapter on taxable products or alternative nicotine products that are:
21 (1) shipped outside Indiana;
22 (2) returned to the manufacturer; or
23 (3) destroyed by the distributor in the presence of an employee or
24 agent of the department.
25 SECTION 71. IC 6-7-2-20 IS AMENDED TO READ AS
26 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 20. A distributor or
27 remote seller who does not comply with the requirements of
28 IC 6-8.1-5-4 commits a Class B misdemeanor.
29 SECTION 72. IC 6-7-2-21, AS AMENDED BY P.L.165-2021,
30 SECTION 118, IS AMENDED TO READ AS FOLLOWS
31 [EFFECTIVE JULY 1, 2023]: Sec. 21. (a) A distributor or remote
32 seller who knowingly:
33 (1) acts as a distributor or remote seller without a license;
34 (2) makes a false statement in a report under this chapter; or
35 (3) does not pay a tax for which the distributor or remote seller
36 is liable under this chapter;
37 commits a Class B misdemeanor. However, the offense is a Level 6
38 felony if it is committed with intent to evade the tax imposed by this
39 chapter or to defraud the state.
40 (b) Violations of this chapter described in subsection (a) may be
41 reported to the department or the office of the attorney general.
SB 382—LS 7170/DI 120 76
1 SECTION 73. IC 6-7-2-24 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2022]: Sec. 24. A retailer (except a remote seller that is required
4 to remit tax imposed by this chapter) who purchases a tobacco
5 product or alternative nicotine product from a distributor who has
6 not obtained a license required under section 8 of this chapter or
7 whose license has been suspended or revoked by the department is
8 subject to a penalty not to exceed the greater of:
9 (1) one hundred percent (100%) of the retail value of the
10 tobacco product or alternative nicotine product; or
11 (2) five thousand dollars ($5,000);
12 on the purchase.
13 SECTION 74. IC 6-8.1-1-9 IS ADDED TO THE INDIANA CODE
14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
15 JANUARY 1, 2023]: Sec. 9. (a) If any due date or date required for
16 a particular act by the taxpayer or the department falls on
17 Saturday, Sunday, a national legal holiday recognized by the
18 federal government, or a statewide holiday, the act by the taxpayer
19 or the department that must be performed by that date is timely if
20 performed by the next succeeding day that is not a Saturday, a
21 Sunday, or one of those holidays.
22 (b) If the due date of a particular act is later than the date
23 otherwise provided for the act as a result to the due date falling on
24 Saturday, Sunday, a national legal holiday recognized by the
25 federal government, or a statewide holiday, the last date on which
26 a proposed assessment or demand notice must be issued or the last
27 day on which a refund claim may be filed shall be determined
28 without regard to the original due date (including allowable
29 extensions) falling on a Saturday, Sunday, or holiday.
30 SECTION 75. IC 6-8.1-1-10 IS ADDED TO THE INDIANA CODE
31 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
32 JANUARY 1, 2020 (RETROACTIVE)]: Sec. 10. (a) This section
33 applies for purposes of determining:
34 (1) the last date on which a proposed assessment can be issued
35 under IC 6-8.1-5;
36 (2) the date by which withholding payments were required to
37 be made to meet the safe harbor requirements under
38 IC 6-3-4-12 or IC 6-3-4-13;
39 (3) the date by which ninety percent (90%) of tax reasonably
40 expected to be due under IC 6-8.1-6-1 is required to be paid;
41 (4) the last date on which a demand notice or tax warrant can
42 be issued under IC 6-8.1-8;
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1 (5) the last date on which a refund claim can be filed under
2 IC 6-8.1-9-1;
3 (6) the first date on which interest can accrue on refunds
4 under IC 6-8.1-9-2;
5 (7) the first date on which interest can be assessed under
6 IC 6-8.1-10-1; and
7 (8) the due date for a return or payment under IC 6-2.3-6-1,
8 IC 6-3-4-4.1, IC 6-5.5-6-3, or IC 6-8.1-10-2.1.
9 (b) For an estimated tax payment under IC 6-2.3-6-1,
10 IC 6-3-4-4.1, or IC 6-5.5-6-3 that otherwise was due after March
11 23, 2020, and before July 15, 2020, the due date of the payment
12 shall be treated as July 15, 2020.
13 (c) For a return or other tax payment under IC 6-2.3, IC 6-3, or
14 IC 6-5.5, that otherwise was due after March 23, 2020, and before
15 May 1, 2020, the due date of the return or tax payment shall be
16 treated as July 15, 2020.
17 (d) For a return or other tax payment under IC 6-3 or IC 6-5.5
18 that otherwise was due after April 30, 2020, and before July 16,
19 2020, the due date of the return or tax payment shall be treated as:
20 (1) August 15, 2020, to the extent an action is determined
21 without regard to a Saturday; or
22 (2) August 17, 2020, to the extent an action is permitted to be
23 delayed due to a Saturday.
24 (e) A due date for payment determined under subsection (c) or
25 (d) shall be treated as the due date by which a tax payment is
26 required by meet minimum payment requirements for penalty
27 deferment under:
28 (1) IC 6-3-4-12(k);
29 (2) IC 6-3-4-13(l); and
30 (3) IC 6-8.1-6-1(d).
31 (f) For a return or payment with regard to individual adjusted
32 gross income tax under IC 6-3 for taxable years ending December
33 31, 2020, the due date shall be treated as:
34 (1) May 15, 2021, to the extent an action is determined
35 without regard to a Saturday; or
36 (2) May 17, 2021, to the extent an action is permitted to be
37 delayed due to a Saturday.
38 (g) This section expires December 31, 2024.
39 SECTION 76. IC 6-8.1-3-28 IS ADDED TO THE INDIANA CODE
40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
41 1, 2022]: Sec. 28. (a) If the department determines that an amount
SB 382—LS 7170/DI 120 78
1 of a listed tax has been distributed to a county, taxing district, or
2 taxing unit in error or determines that all or part of the
3 distribution was refunded subsequent to the distribution, the
4 department shall notify the county treasurer and the county
5 auditor of the excess distribution and request that the excess
6 distribution be repaid to the department or that the department be
7 permitted to offset the excess distribution against listed taxes. The
8 notification under this section shall consist of:
9 (1) the listed tax for which the excess distribution occurred;
10 (2) the period to which the excess distribution relates; and
11 (3) the county, taxing district, or taxing unit that received the
12 excess distribution.
13 (b) If the department is unable to obtain repayment from the
14 county or obtain an agreement to offset against other listed taxes
15 after a request by the department is made under subsection (a), the
16 department may offset distributions of that listed tax or other
17 listed taxes distributable to that county upon notification of:
18 (1) the listed tax from which the offset will be applied;
19 (2) in the case of an offset applied against local income tax, the
20 particular share from which the offset will be obtained; and
21 (3) the amount of the repayment to be obtained.
22 The department may recover any excess distribution over a period
23 of multiple distributions.
24 (c) The department shall attempt to apply any offset against the
25 same listed tax as the over distribution or other listed taxes
26 otherwise distributable to the county, taxing district, or taxing unit
27 as closely as possible. If the department determines that such an
28 offset is not practicable, the department shall offset the distribution
29 against the local income tax distributions otherwise required under
30 IC 6-3.6 and the state budget agency shall adjust the distributions
31 of local income tax for the calendar year in which the offset occurs
32 or will occur to reflect such distribution.
33 SECTION 77. IC 6-8.1-6-1, AS AMENDED BY P.L.190-2014,
34 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JANUARY 1, 2023]: Sec. 1. (a) This subsection does not apply to a
36 person's Indiana adjusted gross income tax return or a person's financial
37 institutions tax return. If a person responsible for filing a tax return is
38 unable to file the return by the appropriate due date, the person may
39 petition the department, before that due date, for a filing extension.
40 When the department receives the petition, the department shall grant
41 the person a sixty (60) day extension.
42 (b) If a person responsible for filing a tax return has received an
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1 extension of the due date and is still unable to file the return by the
2 extended due date, the person may petition the department for another
3 extension. The person must include in the petition a statement of the
4 reasons for the person's inability to file the return by the due date. If the
5 department finds that the person's petition is proper and that the person
6 has good cause for requesting the extension, the department may
7 extend the person's due date for any period that the department deems
8 reasonable under the circumstances. The department may allow
9 additional, successive extensions if the person properly petitions for the
10 extension before the end of the person's current extension period.
11 (c) The following apply only to a person's Indiana adjusted gross
12 income tax return or a person's financial institutions tax return:
13 (1) If the Internal Revenue Service allows a person an extension
14 on the person's federal income tax return, the corresponding due
15 dates for the person's Indiana income tax returns are automatically
16 extended for the same period to the last day as the federal
17 extension, plus thirty (30) days. one (1) month. For purposes of
18 this subdivision, if the last day of the federal extension is a
19 Saturday, Sunday, a national legal holiday recognized by the
20 federal government, or a statewide holiday, the last day of the
21 federal extension shall be determined without regard to
22 Saturdays, Sundays, or holidays.
23 (2) If a person petitions the department for a filing extension for
24 the person's Indiana adjusted gross income tax return or financial
25 institutions tax return without obtaining an extension for filing the
26 person's federal income tax return, the department shall extend
27 the person's due date for the person's Indiana adjusted gross
28 income tax return or financial institutions tax return for the same
29 period that the person would have been allowed under subdivision
30 (1) if the person had been granted an extension by the Internal
31 Revenue Service. For purposes of this subdivision, if a person
32 files an extension request for the person's federal income tax
33 return for a taxable year but the extension is denied by the
34 Internal Revenue Service, the department shall consider the
35 person to have filed an extension under this subsection for
36 that taxable year, provided that the person did not have a
37 previous extension request denied by the Internal Revenue
38 Service for that taxable year.
39 (d) A person submitting a petition for an extension under this
40 section is not required to include any payment of tax with the petition.
41 However, a person obtaining an extension under this section must pay
42 at least ninety percent (90%) of the tax that is reasonably expected to
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1 be due on the original due date by that due date, or the person may be
2 subject to the penalties imposed for failure to pay the tax. This
3 subsection does not apply to payments required under
4 IC 6-3-4-12(k) and IC 6-3-4-13(l).
5 (e) Any tax that remains unpaid during an extension period accrues
6 interest at a rate established under IC 6-8.1-10-1 from the original due
7 date, but that tax will not accrue any late payment penalties until the
8 extension period has ended. Any penalties must be determined based
9 on the amount of tax not paid on or before the end of the extension
10 period after application of payments provided under IC 6-8.1-8-1.5 and
11 determined as of the deadline of the extension period.
12 SECTION 78. IC 6-8.1-6-2 IS REPEALED [EFFECTIVE
13 JANUARY 1, 2023]. Sec. 2. If any due date falls on a Saturday, a
14 Sunday, a national legal holiday recognized by the federal government,
15 or a statewide holiday, the act that must be performed by that date is
16 timely if performed by the next succeeding day that is not a Saturday,
17 a Sunday, or one of those holidays.
18 SECTION 79. IC 6-8.1-7-1, AS AMENDED BY P.L.159-2021,
19 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2022]: Sec. 1. (a) This subsection does not apply to the
21 disclosure of information concerning a conviction on a tax evasion
22 charge. Unless in accordance with a judicial order or as otherwise
23 provided in this chapter, the department, its employees, former
24 employees, counsel, agents, or any other person may not divulge the
25 amount of tax paid by any taxpayer, terms of a settlement agreement
26 executed between a taxpayer and the department, investigation records,
27 investigation reports, or any other information disclosed by the reports
28 filed under the provisions of the law relating to any of the listed taxes,
29 including required information derived from a federal return, except to
30 any of the following when it is agreed that the information is to be
31 confidential and to be used solely for official purposes:
32 (1) Members and employees of the department.
33 (2) The governor.
34 (3) A member of the general assembly or an employee of the
35 house of representatives or the senate when acting on behalf of a
36 taxpayer located in the member's legislative district who has
37 provided sufficient information to the member or employee for
38 the department to determine that the member or employee is
39 acting on behalf of the taxpayer.
40 (4) An employee of the legislative services agency to carry out the
41 responsibilities of the legislative services agency under
42 IC 2-5-1.1-7 or another law.
SB 382—LS 7170/DI 120 81
1 (5) The attorney general or any other legal representative of the
2 state in any action in respect to the amount of tax due under the
3 provisions of the law relating to any of the listed taxes.
4 (6) Any authorized officers of the United States.
5 (b) The information described in subsection (a) may be revealed
6 upon the receipt of a certified request of any designated officer of the
7 state tax department of any other state, district, territory, or possession
8 of the United States when:
9 (1) the state, district, territory, or possession permits the exchange
10 of like information with the taxing officials of the state; and
11 (2) it is agreed that the information is to be confidential and to be
12 used solely for tax collection purposes.
13 (c) The information described in subsection (a) relating to a person
14 on public welfare or a person who has made application for public
15 welfare may be revealed to the director of the division of family
16 resources, and to any director of a county office of the division of
17 family resources located in Indiana, upon receipt of a written request
18 from either director for the information. The information shall be
19 treated as confidential by the directors. In addition, the information
20 described in subsection (a) relating to a person who has been
21 designated as an absent parent by the state Title IV-D agency shall be
22 made available to the state Title IV-D agency upon request. The
23 information shall be subject to the information safeguarding provisions
24 of the state and federal Title IV-D programs.
25 (d) The name, address, Social Security number, and place of
26 employment relating to any individual who is delinquent in paying
27 educational loans owed to a postsecondary educational institution may
28 be revealed to that institution if it provides proof to the department that
29 the individual is delinquent in paying for educational loans. This
30 information shall be provided free of charge to approved postsecondary
31 educational institutions (as defined by IC 21-7-13-6(a)). The
32 department shall establish fees that all other institutions must pay to the
33 department to obtain information under this subsection. However, these
34 fees may not exceed the department's administrative costs in providing
35 the information to the institution.
36 (e) The information described in subsection (a) relating to reports
37 submitted under IC 6-6-1.1-502 concerning the number of gallons of
38 gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
39 gallons of special fuel sold by a supplier and the number of gallons of
40 special fuel exported by a licensed exporter or imported by a licensed
41 transporter may be released by the commissioner upon receipt of a
42 written request for the information.
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1 (f) The information described in subsection (a) may be revealed
2 upon the receipt of a written request from the administrative head of a
3 state agency of Indiana when:
4 (1) the state agency shows an official need for the information;
5 and
6 (2) the administrative head of the state agency agrees that any
7 information released will be kept confidential and will be used
8 solely for official purposes.
9 (g) The information described in subsection (a) may be revealed
10 upon the receipt of a written request from the chief law enforcement
11 officer of a state or local law enforcement agency in Indiana when it is
12 agreed that the information is to be confidential and to be used solely
13 for official purposes.
14 (h) The name and address of retail merchants, including township,
15 as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
16 purposes to township assessors and county assessors.
17 (i) The department shall notify the appropriate innkeeper's tax
18 board, bureau, or commission that a taxpayer is delinquent in remitting
19 innkeepers' taxes under IC 6-9.
20 (j) All information relating to the delinquency or evasion of the
21 vehicle excise tax may be disclosed to the bureau of motor vehicles in
22 Indiana and may be disclosed to another state, if the information is
23 disclosed for the purpose of the enforcement and collection of the taxes
24 imposed by IC 6-6-5.
25 (k) All information relating to the delinquency or evasion of
26 commercial vehicle excise taxes payable to the bureau of motor
27 vehicles in Indiana may be disclosed to the bureau and may be
28 disclosed to another state, if the information is disclosed for the
29 purpose of the enforcement and collection of the taxes imposed by
30 IC 6-6-5.5.
31 (l) All information relating to the delinquency or evasion of
32 commercial vehicle excise taxes payable under the International
33 Registration Plan may be disclosed to another state, if the information
34 is disclosed for the purpose of the enforcement and collection of the
35 taxes imposed by IC 6-6-5.5.
36 (m) All information relating to the delinquency or evasion of the
37 excise taxes imposed on recreational vehicles and truck campers that
38 are payable to the bureau of motor vehicles in Indiana may be disclosed
39 to the bureau and may be disclosed to another state if the information
40 is disclosed for the purpose of the enforcement and collection of the
41 taxes imposed by IC 6-6-5.1.
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1 (n) This section does not apply to:
2 (1) the beer excise tax, including brand and packaged type
3 (IC 7.1-4-2);
4 (2) the liquor excise tax (IC 7.1-4-3);
5 (3) the wine excise tax (IC 7.1-4-4);
6 (4) the hard cider excise tax (IC 7.1-4-4.5);
7 (5) the vehicle excise tax (IC 6-6-5);
8 (6) the commercial vehicle excise tax (IC 6-6-5.5); and
9 (7) the fees under IC 13-23.
10 (o) The name and business address of retail merchants within each
11 county that sell tobacco products may be released to the division of
12 mental health and addiction and the alcohol and tobacco commission
13 solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
14 (p) The name and business address of a person licensed by the
15 department under IC 6-6 or IC 6-7, or issued a registered retail
16 merchant's certificate under IC 6-2.5, may be released for the purpose
17 of reporting the status of the person's license or certificate.
18 (q) The department may release information concerning total
19 incremental tax amounts under:
20 (1) IC 5-28-26;
21 (2) IC 36-7-13;
22 (3) IC 36-7-26;
23 (4) IC 36-7-27;
24 (5) IC 36-7-31;
25 (6) IC 36-7-31.3; or
26 (7) any other statute providing for the calculation of incremental
27 state taxes that will be distributed to or retained by a political
28 subdivision or other entity;
29 to the fiscal officer of the political subdivision or other entity that
30 established the district or area from which the incremental taxes were
31 received if that fiscal officer enters into an agreement with the
32 department specifying that the political subdivision or other entity will
33 use the information solely for official purposes.
34 (r) The department may release the information as required in
35 IC 6-8.1-3-7.1 concerning:
36 (1) an innkeeper's tax, a food and beverage tax, or an admissions
37 tax under IC 6-9;
38 (2) the supplemental auto rental excise tax under IC 6-6-9.7; and
39 (3) the covered taxes allocated to a professional sports
40 development area fund, sports and convention facilities operating
41 fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
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1 (s) Information concerning state gross retail tax exemption
2 certificates that relate to a person who is exempt from the state gross
3 retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
4 defined in IC 6-2.5-4-5) IC 6-2.5-1-22.5) or a person selling the
5 services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 for the
6 purpose of enforcing and collecting the state gross retail and use taxes
7 under IC 6-2.5.
8 (t) The department may release a statement of tax withholding or
9 other tax information statement provided on behalf of a taxpayer to the
10 department to:
11 (1) the taxpayer on whose behalf the tax withholding or other tax
12 information statement was provided to the department;
13 (2) the taxpayer's spouse, if:
14 (A) the taxpayer is deceased or incapacitated; and
15 (B) the taxpayer's spouse is filing a joint income tax return
16 with the taxpayer; or
17 (3) an administrator, executor, trustee, or other fiduciary acting on
18 behalf of the taxpayer if the taxpayer is deceased.
19 (u) Information related to a listed tax regarding a taxpayer may be
20 disclosed to an individual without a power of attorney under
21 IC 6-8.1-3-8(a)(2) if:
22 (1) the individual is authorized to file returns and remit payments
23 for one (1) or more listed taxes on behalf of the taxpayer through
24 the department's online tax system before September 8, 2020;
25 (2) the information relates to a listed tax described in subdivision
26 (1) for which the individual is authorized to file returns and remit
27 payments;
28 (3) the taxpayer has been notified by the department of the
29 individual's ability to access the taxpayer's information for the
30 listed taxes described in subdivision (1) and the taxpayer has not
31 objected to the individual's access;
32 (4) the individual's authorization or right to access the taxpayer's
33 information for a listed tax described in subdivision (1) has not
34 been withdrawn by the taxpayer; and
35 (5) disclosure of the information to the individual is not
36 prohibited by federal law.
37 Except as otherwise provided by this article, this subsection does not
38 authorize the disclosure of any correspondence from the department
39 that is mailed or otherwise delivered to the taxpayer relating to the
40 specified listed taxes for which the individual was given authorization
41 by the taxpayer. The department shall establish a date, which may be
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1 earlier but not later than September 1, 2023, after which a taxpayer's
2 information concerning returns and remittances for a listed tax may not
3 be disclosed to an individual without a power of attorney under
4 IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
5 previously authorized individuals, including notification published on
6 the department's Internet web site. After the earlier of the date
7 established by the department or September 1, 2023, the department
8 may not disclose a taxpayer's information concerning returns and
9 remittances for a listed tax to an individual unless the individual has a
10 power of attorney under IC 6-8.1-3-8(a)(2) or the disclosure is
11 otherwise allowed under this article.
12 SECTION 80. IC 6-8.1-10-2.1, AS AMENDED BY P.L.159-2021,
13 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JANUARY 1, 2023]: Sec. 2.1. (a) Except as provided in IC 6-3-4-12(k)
15 and IC 6-3-4-13(l), a person that:
16 (1) fails to file a return for any of the listed taxes;
17 (2) fails to pay the full amount of tax shown on the person's return
18 on or before the due date for the return or payment;
19 (3) incurs, upon examination by the department, a deficiency that
20 is due to negligence;
21 (4) fails to timely remit any tax held in trust for the state;
22 (5) fails to file a return in the electronic manner required by the
23 department if such return is required to be filed electronically; or
24 (6) is required to make a payment by electronic funds transfer (as
25 defined in IC 4-8.1-2-7), overnight courier, personal delivery, or
26 any other electronic means and the payment is not received by the
27 department by the due date in such manner and in funds
28 acceptable to the department;
29 is subject to a penalty.
30 (b) Except as provided in subsection (g), the penalty described in
31 subsection (a) is ten percent (10%) of:
32 (1) the full amount of the tax due if the person failed to file the
33 return or, in the case of a return required to be filed electronically,
34 the return is not filed in the electronic manner required by the
35 department;
36 (2) the amount of the tax not paid, if the person filed the return
37 but failed to pay the full amount of the tax shown on the return;
38 (3) the amount of the tax held in trust that is not timely remitted;
39 (4) the amount of deficiency as finally determined by the
40 department; or
41 (5) the amount of tax due if a person failed to make payment
SB 382—LS 7170/DI 120 86
1 required to be made by electronic funds transfer, overnight
2 courier, personal delivery, or any other electronic means by the
3 due date in such manner.
4 (c) For purposes of this section, the filing of a substantially blank or
5 unsigned return does not constitute a return.
6 (d) If a person subject to the penalty imposed under this section can
7 show that the failure to file a return, pay the full amount of tax shown
8 on the person's return, timely remit tax held in trust, or pay the
9 deficiency determined by the department was due to reasonable cause
10 and not due to willful neglect, the department shall waive the penalty.
11 (e) A person who wishes to avoid the penalty imposed under this
12 section must make an affirmative showing of all facts alleged as a
13 reasonable cause for the person's failure to file the return, pay the
14 amount of tax shown on the person's return, pay the deficiency, or
15 timely remit tax held in trust, in a written statement containing a
16 declaration that the statement is made under penalty of perjury. The
17 statement must be filed with the return or payment within the time
18 prescribed for protesting departmental assessments. A taxpayer may
19 also avoid the penalty imposed under this section by obtaining a ruling
20 from the department before the end of a particular tax period on the
21 amount of tax due for that tax period.
22 (f) The department shall adopt rules under IC 4-22-2 to prescribe the
23 circumstances that constitute reasonable cause and negligence for
24 purposes of this section.
25 (g) A person who fails to file a return for a listed tax that shows no
26 tax liability for a taxable year, other than an information return (as
27 defined in section 6 of this chapter), on or before the due date of the
28 return shall pay a penalty of ten dollars ($10) for each day that the
29 return is past due, up to a maximum of two hundred fifty dollars
30 ($250).
31 (h) A:
32 (1) corporation which otherwise qualifies under IC 6-3-2-2.8(2);
33 (2) partnership; or
34 (3) trust;
35 that fails to withhold and pay any amount of tax required to be withheld
36 under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15 shall pay a penalty
37 equal to twenty percent (20%) of the amount of tax required to be
38 withheld under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15. This penalty
39 shall be in addition to any penalty imposed by section 6 of this chapter.
40 (i) Subsections (a) through (c) do not apply to a motor carrier fuel
41 tax return.
SB 382—LS 7170/DI 120 87
1 (j) If a partnership or an S corporation pass through entity (as
2 defined in IC 6-3-1-35) fails to include all nonresidential individual
3 nonresident partners, or nonresidential individual nonresident
4 shareholders, or nonresident beneficiaries in a composite return as
5 required by IC 6-3-4-12(i), or IC 6-3-4-13(j), or IC 6-3-4-15(h), a
6 penalty of five hundred dollars ($500) per partnership or S corporation
7 pass through entity is imposed on the partnership or S corporation.
8 pass through entity.
9 (k) If a person subject to the penalty imposed under this section
10 provides the department with documentation showing that the person
11 is or has been subject to incarceration for a period of a least one
12 hundred eighty (180) days, the department shall waive any penalty
13 under this section and interest that accrues during the time the person
14 was incarcerated, but not to an extent greater than the penalty or
15 interest relief to which a person would otherwise have been entitled
16 under the federal Servicemembers Civil Relief Act (50 U.S.C.
17 3901-4043), if the person was in military service. Nothing in this
18 subsection shall preclude the department from issuing a proposed
19 assessment, demand notice, jeopardy proposed assessment, jeopardy
20 demand notice, or warrant otherwise permitted by law.
21 SECTION 81. IC 6-9-29-1.5, AS AMENDED BY P.L.122-2021,
22 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2022]: Sec. 1.5. (a) Unless otherwise provided in this article,
24 a county fiscal body that adopts an ordinance to impose, rescind, or
25 increase or decrease the rate of a county innkeeper's tax, or to make a
26 change between collection of the tax by the county treasurer or the
27 department of state revenue, must specify the effective date of the
28 ordinance to provide that the ordinance takes effect:
29 (1) at least thirty (30) days after the adoption of the ordinance;
30 and
31 (2) on the first day of a month.
32 (b) If a county fiscal body adopts an ordinance described in
33 subsection (a), it must immediately send a certified copy of the
34 ordinance to the commissioner of the department of state revenue.
35 Notwithstanding subsection (a), if the department of state revenue
36 collects the revenue from the county innkeeper's tax, the department of
37 state revenue shall begin collecting the tax at the rate as provided in the
38 ordinance for periods beginning on or after on the later of:
39 (1) the first day of the month that is not less than thirty (30) days
40 after the ordinance is sent to the commissioner of the department
41 of state revenue; or
SB 382—LS 7170/DI 120 88
1 (2) the effective date specified in the ordinance.
2 The department shall collect the tax at the rate in the ordinance
3 unless the rate is not authorized under this article.
4 (c) If an ordinance does not specify an effective date, the ordinance
5 shall be considered effective on the earliest date allowable under this
6 section.
7 SECTION 82. IC 6-9-29.5-4 IS ADDED TO THE INDIANA CODE
8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
9 1, 2022]: Sec. 4. (a) If an ordinance is adopted under this article,
10 the adopting body must immediately send a certified copy of the
11 ordinance to the commissioner of the department of state revenue.
12 Notwithstanding any other provision in this article, if the
13 department of state revenue collects the revenue from the food and
14 beverage tax, the department of state revenue shall begin collecting
15 the tax as provided in the ordinance for periods beginning on or
16 after the later of:
17 (1) the first day of the month that is not less than thirty (30)
18 days after the ordinance is sent to the commissioner of the
19 department of state revenue; or
20 (2) the effective date specified in the ordinance.
21 (b) If an ordinance does not specify an effective date, the
22 ordinance shall be considered effective on the earliest date
23 allowable under this section.
24 SECTION 83. IC 7.1-4-6-3.5, AS AMENDED BY P.L.166-2014,
25 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2022]: Sec. 3.5. (a) A person who is liable for the payment of
27 an excise tax levied by this title shall file a monthly return with the
28 department on or before the twentieth day of the month following the
29 month in which the liability for the tax accrues by reason of the
30 manufacture, sale, gift, or the withdrawal for sale or gift, of alcoholic
31 beverages within this state.
32 (b) The department may require the reporting of any
33 information reasonably necessary to determine the amount of
34 excise tax due.
35 (c) The return required by this section must be filed in an
36 electronic format as prescribed by the department. Payment of the
37 excise tax due shall accompany the return, and shall be remitted
38 electronically. Any other returns or forms required to be filed under
39 this title must also be filed in an electronic format and on a date
40 prescribed by the department.
41 SECTION 84. IC 7.1-4-7-9, AS AMENDED BY P.L.86-2018,
42 SECTION 135, IS AMENDED TO READ AS FOLLOWS
SB 382—LS 7170/DI 120 89
1 [EFFECTIVE UPON PASSAGE]: Sec. 9. The auditor of state shall, on
2 or before the first tenth day of April of each year and quarterly on or
3 before the tenth day of the month thereafter, distribute the funds set
4 aside in accordance with the provisions of section 7 of this chapter or
5 the portion of them as reported to the auditor of state, to the general
6 fund of the treasury of the city or town on the basis provided for in this
7 chapter.
8 SECTION 85. [EFFECTIVE JULY 1, 2022] (a) IC 6-3-2-1.7, as
9 added by this act, is effective for taxable years beginning after June
10 30, 2022.
11 (b) This SECTION expires July 1, 2025.
12 SECTION 86. An emergency is declared for this act.
SB 382—LS 7170/DI 120 90
COMMITTEE REPORT
Madam President: The Senate Committee on Tax and Fiscal Policy,
to which was referred Senate Bill No. 382, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 1, line 3, delete "2022," and insert "2023,".
Page 33, line 37, delete "excusable neglect." and insert "reasonable
cause.".
Page 37, delete lines 15 through 41.
Delete pages 38 through 82.
Page 83, delete lines 1 through 21.
Page 87, delete lines 14 through 42.
Delete pages 88 through 134.
Page 135, delete lines 1 through 23.
Page 136, delete lines 8 through 42.
Delete pages 137 through 140.
Page 141, delete lines 1 through 33.
Page 148, line 38, reset in roman "IC 6-3-2-2(p),".
Page 148, line 38, delete "IC 6-3-2-2(k),".
Page 155, line 35, reset in roman "IC 6-3-2-2.2".
Page 155, line 36, delete "IC 6-3-2.6".
Page 156, line 3, reset in roman "IC 6-3-2-2.2,".
Page 156, line 3, delete "IC 6-3-2.6,".
Page 156, line 15, reset in roman "IC 6-3-2-2.2,".
Page 156, line 15, delete "IC 6-3-2.6,".
Page 156, line 20, reset in roman "IC 6-3-2-2.2,".
Page 156, line 21, delete "IC 6-3-2.6,".
Page 163, delete lines 5 through 28.
Page 164, delete lines 26 through 42.
Delete pages 165 through 174.
Page 175, delete line 1.
Page 175, line 35, after "smoking" insert "or heating".
Page 177, line 4, after "individual" insert "tobacco".
Page 177, line 7, after "individual" insert "tobacco".
Page 177, between lines 12 and 13, begin a new paragraph and
insert:
"SECTION 94. IC 6-7-2-0.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 0.2. As used in this chapter, "alternative nicotine
product" means a noncombustible product containing nicotine that
SB 382—LS 7170/DI 120 91
is intended for human consumption, whether chewed, absorbed,
dissolved, or ingested by any means. The term does not include
cigarettes (as defined in IC 6-7-1-2), tobacco products, closed
system cartridges, consumable material, open system containers
(as defined in IC 6-7-4-5), vapor products (as defined in
IC 6-7-4-8), or any product regulated as a drug or device by the
United States Food and Drug Administration under 21 U.S.C. 351
to 360fff-7.".
Page 177, between lines 21 and 22, begin a new paragraph and
insert:
"SECTION 95. IC 6-7-2-2, AS AMENDED BY P.L.165-2021,
SECTION 103, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 2. used in this chapter, "distributor"
means a person who:
(1) manufactures, sells, barters, exchanges, or distributes taxable
products or alternative nicotine products in Indiana to retail
dealers for the purpose of resale;
(2) purchases taxable products or alternative nicotine products
directly from a manufacturer of taxable products; or
(3) purchases for resale taxable products or alternative nicotine
products from a wholesaler, jobber, or distributor outside of
Indiana who is not a distributor holding a license issued under this
chapter.".
Page 178, line 12, after "tobacco" insert ", or that contains nicotine
whether natural or synthetic,".
Page 178, line 13, after "consumption," insert "or is likely to be
consumed,".
Page 178, line 13, after "smoked," insert "heated,".
Page 178, delete lines 17 through 31, begin a new paragraph and
insert:
"(b) The term includes, but is not limited to:
(1) cigars;
(2) pipe tobacco;
(3) chewing tobacco;
(4) moist snuff;
(5) snus; and
(6) other similar kinds and forms of tobacco.".
Page 178, delete lines 38 through 42, begin a new line block
indented and insert:
"(6) any drugs, devices, or combination products authorized
for sale by the United States Food and Drug Administration
SB 382—LS 7170/DI 120 92
and defined in the Federal Food, Drug, and Cosmetic Act.".
Page 179, delete lines 1 through 32, begin a new paragraph and
insert:
"SECTION 99. IC 6-7-2-7, AS AMENDED BY P.L.165-2021,
SECTION 107, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 7. (a) A tax is imposed on the
distribution of tobacco products in Indiana at the rate of: following
rates:
(1) Twenty-four percent (24%) of the wholesale price of tobacco
products other than:
(A) moist snuff; and
(B) beginning after December 31, 2022, cigars. or
(2) For moist snuff, forty cents ($0.40) per ounce, and a
proportionate tax at the same rate on all fractional parts of an
ounce. If the tax calculated for a fractional part of an ounce
carried to the third decimal place results in the numeral in the
third decimal place being greater than four (4), the amount of the
tax shall be rounded to the next additional cent.
(3) Beginning after December 31, 2022, for cigars:
(A) twenty-four percent (24%) of the wholesale price of a
cigar for cigars having a wholesale price not exceeding
three dollars ($3) per cigar; or
(B) seventy-two cents ($0.72) per cigar for cigars having a
wholesale price exceeding three dollars ($3) per cigar.
(b) A tax is imposed on the distribution of alternative nicotine
products in Indiana at a rate of forty cents ($0.40) per ounce,
calculated based upon the product weight as listed by the
manufacturer.
(b) (c) The distributor of the tobacco products or alternative
nicotine products, including a person that sells tobacco products or
alternative nicotine products through an Internet web site, is liable
for the tax imposed under subsection subsections (a) and (b). The tax
is imposed at the time the distributor:
(1) brings or causes tobacco products or alternative nicotine
products to be brought into Indiana for distribution;
(2) manufactures tobacco products or alternative nicotine
products in Indiana for distribution; or
(3) transports tobacco products or alternative nicotine products
to retail dealers in Indiana for resale by those retail dealers; or
(4) first receives the tobacco products or alternative nicotine
products in Indiana in the case of a distributor or distributor
SB 382—LS 7170/DI 120 93
transactions.
(c) (d) The Indiana general assembly finds that the tax rate on
smokeless tobacco should reflect the relative risk between such
products and cigarettes.
(d) (e) A consumer who purchases untaxed tobacco products or
alternative nicotine products from a distributor or retailer, including
through an Internet web site, a catalog, or other similar means, is liable
for the tax imposed under subsection subsections (a) and (b).".
Page 179, line 37, delete "twenty percent (20%)" and insert "fifteen
percent (15%)".
Page 180, line 14, after "taxable" insert "tobacco".
Page 180, between lines 23 and 24, begin a new paragraph and
insert:
"(b) The tax imposed under section 7(b) of this chapter shall also
be imposed on the sale of taxable alternative nicotine products in
Indiana by remote sellers.".
Page 180, line 24, delete "(b)" and insert "(c)".
Page 180, line 27, delete "(c)" and insert "(d)".
Page 180, between lines 28 and 29, begin a new paragraph and
insert:
"SECTION 102. IC 6-7-2-8, AS AMENDED BY P.L.165-2021,
SECTION 109, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 8. (a) A distributor, including a
person that sells taxable products or alternative nicotine products
through an Internet web site, must obtain a license under this section
before it distributes taxable products or alternative nicotine products
in Indiana. The department shall issue licenses to applicants that
qualify under this section. A license issued under this section is valid
for one (1) year unless revoked or suspended by the department and is
not transferable.
(b) An applicant for a license under this section must submit proof
to the department of the appointment of an agent for service of process
in Indiana if the applicant is:
(1) an individual whose principal place of residence is outside
Indiana; or
(2) a person, other than an individual, that has its principal place
of business outside Indiana.
(c) To obtain or renew a license under this section, a person must:
(1) submit, for each location where it intends to distribute taxable
products or alternative nicotine products, an application that
includes all information required by the department;
SB 382—LS 7170/DI 120 94
(2) pay a fee of twenty-five dollars ($25) at the time of
application; and
(3) at the time of application, post a bond, issued by a surety
company approved by the department, in an amount not less than
one thousand dollars ($1,000) and conditioned on the applicant's
compliance with this chapter.
(d) If business is transacted at two (2) or more places by one (1)
distributor, a separate license must be obtained for each place of
business.
(e) Each license must be numbered, show the name and address of
the distributor, and be posted in a conspicuous place at the place of
business for which it is issued.
(f) If the department determines that a bond provided by a licensee
is inadequate, the department may require a new bond in the amount
necessary to fully protect the state.".
Page 183, delete lines 7 through 33, begin a new paragraph and
insert:
"SECTION 107. IC 6-7-2-12, AS AMENDED BY P.L.165-2021,
SECTION 110, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2023]: Sec. 12. Before the fifteenth day
of each month, each distributor (and remote seller beginning July 1,
2023) liable for a tax imposed by this chapter shall:
(1) file a return with the department that includes all information
required by the department including, but not limited to:
(A) name of distributor (or remote seller beginning July 1,
2023);
(B) address of distributor (or remote seller beginning July 1,
2023);
(C) license number of distributor (or remote seller beginning
July 1, 2023);
(D) invoice date;
(E) invoice number;
(F) name and address of person from whom taxable products
or alternative nicotine products were purchased or name and
address of person to whom taxable products were sold (except
in the case of sales to an end consumer beginning July 1,
2023);
(G) the wholesale price for tobacco products other than moist
snuff and cigars (or the actual cost in the case of remote
sellers beginning July 1, 2023);
(H) for moist snuff, the weight of the moist snuff; and
SB 382—LS 7170/DI 120 95
(I) for cigars, the wholesale price of the cigars;
(J) for alternative nicotine products, the weight of the
alternative nicotine products; and
(I) (K) for closed system cartridges, the wholesale price of
closed system cartridges sold; and
(2) pay the taxes for which it is liable under this chapter for the
preceding month minus the amount specified in section 13 of this
chapter.
All returns required to be filed and taxes required to be paid under this
chapter must be made in an electronic format prescribed by the
department.".
Page 184, line 7, after "products" insert "or alternative nicotine
products".
Page 184, line 33, after "product" insert "or alternative nicotine
product".
Page 184, line 38, delete ";" and insert "or alternative nicotine
product;".
Page 186, delete lines 25 through 42.
Delete page 187.
Page 188, delete lines 1 through 29.
Page 195, delete lines 41 through 42.
Delete pages 196 through 198.
Page 199, delete lines 1 through 6.
 Page 202, delete line 42.
Page 203, delete lines 1 through 22.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 382 as introduced.)
HOLDMAN, Chairperson
Committee Vote: Yeas 8, Nays 2.
SB 382—LS 7170/DI 120