Indiana Senate Bill SB0382 Enrolled / Bill

                    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 ENROLLED ACT No. 382
AN ACT to amend the Indiana Code concerning taxation and to
make an appropriation. 
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 4-23-7.3-19, AS ADDED BY P.L.198-2007,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 19. (a) The Indiana mapping data and
standards fund is established for the following purposes:
(1) Funding GIS grants.
(2) Administering this chapter.
(3) The purposes set forth in section 23(a)(1) and 23(a)(2) of
this chapter (before its expiration). 
(b) The fund consists of the following:
(1) Appropriations made to the fund by the general assembly.
(2) Gifts, grants, or other money received by the state for GIS
purposes.
(3) Money transferred to the fund under section 23(a) of this
chapter (before its expiration).
(c) The state GIS officer shall administer the fund.
(d) The expenses of administering the fund shall be paid from
money in the fund.
(e) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from these investments shall be deposited in the fund.
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(f) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
(g) Money in the fund is continuously appropriated for the
purposes of the fund.
SECTION 2. IC 4-23-7.3-23 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 23. (a) Before July 1, 2023, the budget
agency shall transfer seven million one hundred thousand dollars
($7,100,000) from the state general fund to the Indiana mapping
standards fund established by section 19 of this chapter which shall
be used for:
(1) the implementation of the geographic information system
(GIS) for the state and local income taxes, as well as listed
taxes, administrated by the department of state revenue; and
(2) the purposes of the Indiana geographic information office.
(b) The budget agency shall identify and 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 Indiana geographic information
office. The report under this subsection shall be submitted to the
interim study committee on fiscal policy established by IC 2-5-1.3-4
before November 1, 2022.
(c) This section expires July 1, 2023.
SECTION 3. IC 4-31-9-3, AS AMENDED BY P.L.165-2021,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 3. (a) At the close of each day on which a permit
holder or satellite facility operator conducts pari-mutuel wagering on
live racing or simulcasts at a racetrack or satellite facility, the permit
holder or satellite facility operator shall pay to the department of state
revenue a tax on the total amount of money wagered on that day as
follows:
(1) Two percent (2%) of the total amount of money wagered
under IC 4-31-7 at a permit holder's racetrack.
(2) Two and one-half percent (2.5%) of the total amount of money
wagered under IC 4-31-5.5-6 at a permit holder's satellite facility.
(b) The taxes collected under subsection (a) shall be paid from the
amounts withheld under section 1 of this chapter and shall be
distributed as follows:
(1) The first one hundred fifty thousand dollars ($150,000) of
taxes collected during each state fiscal year shall be deposited in
the veterinary school research account established by
IC 4-31-12-22.
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(2) The remainder of the taxes collected during each state fiscal
year shall be paid into the Indiana horse racing commission
operating fund (IC 4-31-10).
(c) The tax imposed by this section is a listed tax for purposes of
IC 6-8.1-1.
(d) The payment of the tax under this section must be reported
and remitted electronically through the department's online tax
filing program.
SECTION 4. IC 4-31-9-10, AS AMENDED BY P.L.159-2021,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 10. (a) At the close of each day on which
pari-mutuel wagering is conducted at a racetrack or satellite facility,
the permit holder or satellite facility operator shall pay the breakage
from each of the races on which wagers were taken on that day to the
department of state revenue for deposit in the appropriate breed
development fund as determined by the rules of the commission.
(b) Not later than March 15 of each year, each permit holder or
satellite facility operator shall pay to the commission the balance of the
outs tickets from the previous calendar year. The commission shall
distribute money received under this subsection to the appropriate
breed development fund as determined by the rules of the commission.
(c) The payment of the breakage under this section must be
reported and remitted electronically through the department's
online tax filing program.
SECTION 5. IC 4-33-12-4, AS AMENDED BY P.L.212-2018(ss),
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. (a) A licensed owner must report:
(1) the daily amount of admissions taxes imposed under section
1 of this chapter (before its repeal on July 1, 2018) and
supplemental wagering taxes imposed under section 1.5 of this
chapter to the department at the time the taxes are paid under
subsection (b); and
(2) gaming activity information to the commission daily on forms
prescribed by the commission.
This subsection expires June 30, 2018.
(b) A licensed owner shall pay the admissions taxes imposed under
section 1 of this chapter (before its repeal on July 1, 2018) and
supplemental wagering taxes imposed under section 1.5 of this chapter
to the department on the twenty-fourth calendar day of each month.
Any taxes collected during the month but after the day on which the
taxes are required to be paid to the department shall be paid to the
department at the same time the following month's taxes are due. This
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subsection expires June 30, 2018.
(c) This subsection is effective July 1, 2018. A licensed owner must
report:
(1) the daily amount of supplemental wagering taxes imposed
under section 1.5 of this chapter to the department at the time the
taxes are paid under subsection (d); and
(2) gaming activity information to the commission daily on forms
prescribed by the commission.
(d) This subsection is effective July 1, 2018. A licensed owner shall
pay the supplemental wagering taxes imposed under section 1.5 of this
chapter to the department on the twenty-fourth calendar day of each
month. Any taxes collected during the month but after the day on which
the taxes are required to be paid to the department shall be paid to the
department at the same time the following month's taxes are due.
(e) The payment of the tax under this section must be on a form
prescribed by the department.
(f) (e) The payment of the tax under this section must be in a
manner prescribed by the department. reported and remitted
electronically through the department's online tax filing program.
SECTION 6. IC 4-33-13-1.5, AS AMENDED BY P.L.293-2019,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1.5. (a) This subsection applies only to a riverboat
that received at least seventy-five million dollars ($75,000,000) of
adjusted gross receipts during the preceding state fiscal year. A
graduated tax is imposed on the adjusted gross receipts received from
gambling games authorized under this article as follows:
(1) For state fiscal years ending before July 1, 2021, fifteen
percent (15%), and for state fiscal years beginning after June 30,
2021, ten percent (10%), of the first twenty-five million dollars
($25,000,000) of adjusted gross receipts received during the
period beginning July 1 of each year and ending June 30 of the
following year.
(2) Twenty percent (20%) of the adjusted gross receipts in excess
of twenty-five million dollars ($25,000,000) but not exceeding
fifty million dollars ($50,000,000) received during the period
beginning July 1 of each year and ending June 30 of the following
year.
(3) Twenty-five percent (25%) of the adjusted gross receipts in
excess of fifty million dollars ($50,000,000) but not exceeding
seventy-five million dollars ($75,000,000) received during the
period beginning July 1 of each year and ending June 30 of the
following year.
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(4) Thirty percent (30%) of the adjusted gross receipts in excess
of seventy-five million dollars ($75,000,000) but not exceeding
one hundred fifty million dollars ($150,000,000) received during
the period beginning July 1 of each year and ending June 30 of
the following year.
(5) Thirty-five percent (35%) of all adjusted gross receipts in
excess of one hundred fifty million dollars ($150,000,000) but not
exceeding six hundred million dollars ($600,000,000) received
during the period beginning July 1 of each year and ending June
30 of the following year.
(6) Forty percent (40%) of all adjusted gross receipts exceeding
six hundred million dollars ($600,000,000) received during the
period beginning July 1 of each year and ending June 30 of the
following year.
(b) This subsection applies only to a riverboat that received less than
seventy-five million dollars ($75,000,000) of adjusted gross receipts
during the preceding state fiscal year. A graduated tax is imposed on
the adjusted gross receipts received from gambling games authorized
under this article as follows:
(1) For state fiscal years ending before July 1, 2021, five percent
(5%), and for state fiscal years beginning after June 30, 2021, two
and one-half percent (2.5%), of the first twenty-five million
dollars ($25,000,000) of adjusted gross receipts received during
the period beginning July 1 of each year and ending June 30 of
the following year.
(2) For state fiscal years ending before July 1, 2021, twenty
percent (20%), and for state fiscal years beginning after June 30,
2021, ten percent (10%), of the adjusted gross receipts in excess
of twenty-five million dollars ($25,000,000) but not exceeding
fifty million dollars ($50,000,000) received during the period
beginning July 1 of each year and ending June 30 of the following
year.
(3) For state fiscal years ending before July 1, 2021, twenty-five
percent (25%), and for state fiscal years beginning after June 30,
2021, twenty percent (20%), of the adjusted gross receipts in
excess of fifty million dollars ($50,000,000) but not exceeding
seventy-five million dollars ($75,000,000) received during the
period beginning July 1 of each year and ending June 30 of the
following year.
(4) Thirty percent (30%) of the adjusted gross receipts in excess
of seventy-five million dollars ($75,000,000) but not exceeding
one hundred fifty million dollars ($150,000,000) received during
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the period beginning July 1 of each year and ending June 30 of
the following year.
(5) Thirty-five percent (35%) of all adjusted gross receipts in
excess of one hundred fifty million dollars ($150,000,000) but not
exceeding six hundred million dollars ($600,000,000) received
during the period beginning July 1 of each year and ending June
30 of the following year.
(6) Forty percent (40%) of all adjusted gross receipts exceeding
six hundred million dollars ($600,000,000) received during the
period beginning July 1 of each year and ending June 30 of the
following year.
(c) The licensed owner or operating agent of a riverboat taxed under
subsection (b) shall pay an additional tax of two million five hundred
thousand dollars ($2,500,000) in any state fiscal year in which the
riverboat's adjusted gross receipts exceed seventy-five million dollars
($75,000,000). The additional tax imposed under this subsection is due
before July 1 of the following state fiscal year.
(d) The licensed owner or operating agent shall:
(1) remit the daily amount of tax imposed by this chapter to the
department on the twenty-fourth calendar day of each month for
the wagering taxes collected that month; and
(2) report gaming activity information to the commission daily on
forms prescribed by the commission.
Any taxes collected during the month but after the day on which the
taxes are required to be paid to the department shall be paid to the
department at the same time the following month's taxes are due.
(e) The payment of the tax under this section must be in a manner
prescribed by the department. reported and remitted electronically
through the department's online tax filing program.
(f) If the department requires taxes to be remitted under this chapter
through electronic funds transfer, the department may allow the
licensed owner or operating agent to file a monthly report to reconcile
the amounts remitted to the department.
(g) The department may allow taxes remitted under this section to
be reported on the same form used for taxes paid under IC 4-33-12.
SECTION 7. IC 4-33-13-5, AS AMENDED BY P.L.238-2019,
SECTION 2, AND AS AMENDED BY P.L.108-2019, SECTION 73,
AND AS AMENDED BY P.L.293-2019, SECTION 31, IS
CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) This subsection does not
apply to tax revenue remitted by an operating agent operating a
riverboat in a historic hotel district. After funds are appropriated under
SEA 382 — CC 1 7
section 4 of this chapter, each month the treasurer auditor of state shall
distribute the tax revenue deposited in the state gaming fund under this
chapter to the following:
(1) An amount equal to the following shall be set aside for
revenue sharing under subsection (e): (d):
(A) Before July 1, 2021, the first thirty-three million dollars
($33,000,000) of tax revenues collected under this chapter
shall be set aside for revenue sharing under subsection (e). (d).
(B) After June 30, 2021, if the total adjusted gross receipts
received by licensees from gambling games authorized under
this article during the preceding state fiscal year is equal to or
greater than the total adjusted gross receipts received by
licensees from gambling games authorized under this article
during the state fiscal year ending June 30, 2020, the first
thirty-three million dollars ($33,000,000) of tax revenues
collected under this chapter shall be set aside for revenue
sharing under subsection (e). (d).
(C) After June 30, 2021, if the total adjusted gross receipts
received by licensees from gambling games authorized under
this article during the preceding state fiscal year is less than
the total adjusted gross receipts received by licensees from
gambling games authorized under this article during the state
year ending June 30, 2020, an amount equal to the first
thirty-three million dollars ($33,000,000) of tax revenues
collected under this chapter multiplied by the result of:
(i) the total adjusted gross receipts received by licensees
from gambling games authorized under this article during
the preceding state fiscal year; divided by
(ii) the total adjusted gross receipts received by licensees
from gambling games authorized under this article during
the state fiscal year ending June 30, 2020;
shall be set aside for revenue sharing under subsection (e). (d).
(2) Subject to subsection (c), twenty-five percent (25%) of the
remaining tax revenue remitted by each licensed owner shall be
paid:
(A) to the city in which the riverboat is located or that is
designated as the home dock of the riverboat from which the
tax revenue was collected, in the case of:
(i) a city described in IC 4-33-12-6(b)(1)(A); or
(ii) a city located in a county having a population of more
than four hundred thousand (400,000) but and less than
seven hundred thousand (700,000); or
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(iii) Terre Haute; or
(B) to the county that is designated as the home dock of the
riverboat from which the tax revenue was collected, in the case
of a riverboat that is not located in a city described in clause
(A) or whose home dock is not in a city described in clause
(A).
(3) Subject to subsection (d), The remainder of the tax revenue
remitted by each licensed owner shall be paid to the state general
fund. In each state fiscal year, the treasurer auditor of state shall
make the transfer required by this subdivision not later than the
last business day of the month in which the tax revenue is
remitted to the state on or before the fifteenth day of the month
based on revenue received during the preceding month for
deposit in the state gaming fund. However, if tax revenue is
received by the state on the last business day in a month,
Specifically, the treasurer auditor of state may transfer the tax
revenue received by the state in a month to the state general
fund in the immediately following month according to this
subdivision.
(b) This subsection applies only to tax revenue remitted by an
operating agent operating a riverboat in a historic hotel district after
June 30, 2015. 2019. After funds are appropriated under section 4 of
this chapter, each month the treasurer auditor of state shall distribute
the tax revenue remitted by the operating agent under this chapter as
follows:
(1) For state fiscal years beginning after June 30, 2019, but
ending before July 1, 2021, fifty-six and five-tenths percent
(56.5%) shall be paid to the state general fund.
(2) For state fiscal years beginning after June 30, 2021, fifty-six
and five-tenths percent (56.5%) shall be paid as follows:
(A) Sixty-six and four-tenths percent (66.4%) shall be paid to
the state general fund.
(B) Thirty-three and six-tenths percent (33.6%) shall be paid
to the West Baden Springs historic hotel preservation and
maintenance fund established by IC 36-7-11.5-11(b).
However, if:
(i) at any time the balance in that fund exceeds twenty-five
million dollars ($25,000,000); or
(ii) in any part of a state fiscal year in which the operating
agent has received at least one hundred million dollars
($100,000,000) of adjusted gross receipts;
the amount described in this clause shall be paid to the state
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general fund for the remainder of the state fiscal year.
(2) (3) Forty-three and five-tenths percent (43.5%) shall be paid
as follows:
(A) Twenty-two and four-tenths percent (22.4%) shall be paid
as follows:
(i) Fifty percent (50%) to the fiscal officer of the town of
French Lick.
(ii) Fifty percent (50%) to the fiscal officer of the town of
West Baden Springs.
(B) Fourteen and eight-tenths percent (14.8%) shall be paid to
the county treasurer of Orange County for distribution among
the school corporations in the county. The governing bodies
for the school corporations in the county shall provide a
formula for the distribution of the money received under this
clause among the school corporations by joint resolution
adopted by the governing body of each of the school
corporations in the county. Money received by a school
corporation under this clause must be used to improve the
educational attainment of students enrolled in the school
corporation receiving the money. Not later than the first
regular meeting in the school year of a governing body of a
school corporation receiving a distribution under this clause,
the superintendent of the school corporation shall submit to
the governing body a report describing the purposes for which
the receipts under this clause were used and the improvements
in educational attainment realized through the use of the
money. The report is a public record.
(C) Thirteen and one-tenth percent (13.1%) shall be paid to the
county treasurer of Orange County.
(D) Five and three-tenths percent (5.3%) shall be distributed
quarterly to the county treasurer of Dubois County for
appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county fiscal
body for the receiving county shall provide for the distribution
of the money received under this clause to one (1) or more
taxing units (as defined in IC 6-1.1-1-21) in the county under
a formula established by the county fiscal body after receiving
a recommendation from the county executive.
(E) Five and three-tenths percent (5.3%) shall be distributed
quarterly to the county treasurer of Crawford County for
appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county fiscal
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body for the receiving county shall provide for the distribution
of the money received under this clause to one (1) or more
taxing units (as defined in IC 6-1.1-1-21) in the county under
a formula established by the county fiscal body after receiving
a recommendation from the county executive.
(F) Six and thirty-five hundredths percent (6.35%) shall be
paid to the fiscal officer of the town of Paoli.
(G) Six and thirty-five hundredths percent (6.35%) shall be
paid to the fiscal officer of the town of Orleans.
(H) Twenty-six and four-tenths percent (26.4%) shall be paid
to the Indiana economic development corporation established
by IC 5-28-3-1 for transfer as follows:
(i) Beginning after December 31, 2017, ten percent (10%)
of the amount transferred under this clause in each calendar
year shall be transferred to the South Central Indiana
Regional Economic Development Corporation or a
successor entity or partnership for economic development
for the purpose of recruiting new business to Orange County
as well as promoting the retention and expansion of existing
businesses in Orange County.
(ii) The remainder of the amount transferred under this
clause in each calendar year shall be transferred to Radius
Indiana or a successor regional entity or partnership for the
development and implementation of a regional economic
development strategy to assist the residents of Orange
County and the counties contiguous to Orange County in
improving their quality of life and to help promote
successful and sustainable communities.
To the extent possible, the Indiana economic development
corporation shall provide for the transfer under item (i) to be
made in four (4) equal installments. However, an amount
sufficient to meet current obligations to retire or refinance
indebtedness or leases for which tax revenues under this
section were pledged before January 1, 2015, by the Orange
County development commission shall be paid to the Orange
County development commission before making distributions
to the South Central Indiana Regional Economic Development
Corporation and Radius Indiana or their successor entities or
partnerships. The amount paid to the Orange County
development commission shall proportionally reduce the
amount payable to the South Central Indiana Regional
Economic Development Corporation and Radius Indiana or
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their successor entities or partnerships.
(c) This subsection does not apply to tax revenue remitted by an
inland casino operating in Vigo County. For each city and county
receiving money under subsection (a)(2), the treasurer auditor of state
shall determine the total amount of money paid by the treasurer
auditor of state to the city or county during the state fiscal year 2002.
The amount determined is the base year revenue for the city or county.
The treasurer auditor of state shall certify the base year revenue
determined under this subsection to the city or county. The total
amount of money distributed to a city or county under this section
during a state fiscal year may not exceed the entity's base year revenue.
For each state fiscal year, the treasurer auditor of state shall pay that
part of the riverboat wagering taxes that:
(1) exceeds a particular city's or county's base year revenue; and
(2) would otherwise be due to the city or county under this
section;
to the state general fund instead of to the city or county.
(d) Each state fiscal year the treasurer of state shall transfer from
the tax revenue remitted to the state general fund under subsection
(a)(3) to the build Indiana fund an amount that when added to the
following may not exceed two hundred fifty million dollars
($250,000,000):
(1) Surplus lottery revenues under IC 4-30-17-3.
(2) Surplus revenue from the charity gaming enforcement fund
under IC 4-32.3-7-5.
(3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
The treasurer of state shall make transfers on a monthly basis as
needed to meet the obligations of the build Indiana fund. If in any state
fiscal year insufficient money is transferred to the state general fund
under subsection (a)(3) to comply with this subsection, the treasurer
of state shall reduce the amount transferred to the build Indiana fund
to the amount available in the state general fund from the transfers
under subsection (a)(3) for the state fiscal year.
(e) (d) Except as provided in subsections (l) (k) and (m), (l), before
August 15 of each year, the treasurer auditor of state shall distribute
the wagering taxes set aside for revenue sharing under subsection
(a)(1) to the county treasurer of each county that does not have a
riverboat according to the ratio that the county's population bears to the
total population of the counties that do not have a riverboat. Except as
provided in subsection (h), (g), the county auditor shall distribute the
money received by the county under this subsection as follows:
(1) To each city located in the county according to the ratio the
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city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio the
town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be retained by the county.
(f) (e) Money received by a city, town, or county under subsection
(e) (d) or (h) (g) may be used for any of the following purposes:
(1) To reduce the property tax levy of the city, town, or county for
a particular year (a property tax reduction under this subdivision
does not reduce the maximum levy of the city, town, or county
under IC 6-1.1-18.5).
(2) For deposit in a special fund or allocation fund created under
IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and
IC 36-7-30 to provide funding for debt repayment.
(3) To fund sewer and water projects, including storm water
management projects.
(4) For police and fire pensions.
(5) To carry out any governmental purpose for which the money
is appropriated by the fiscal body of the city, town, or county.
Money used under this subdivision does not reduce the property
tax levy of the city, town, or county for a particular year or reduce
the maximum levy of the city, town, or county under
IC 6-1.1-18.5.
(g) (f) This subsection does not apply to an inland casino operating
in Vigo County. Before July 15 of each year, the treasurer auditor of
state shall determine the total amount of money distributed to an entity
under IC 4-33-12-6 or IC 4-33-12-8 during the preceding state fiscal
year. If the treasurer auditor of state determines that the total amount
of money distributed to an entity under IC 4-33-12-6 or IC 4-33-12-8
during the preceding state fiscal year was less than the entity's base
year revenue (as determined under IC 4-33-12-9), the treasurer auditor
of state shall make a supplemental distribution to the entity from taxes
collected under this chapter and deposited into the state general fund.
Except as provided in subsection (i), (h), the amount of an entity's
supplemental distribution is equal to:
(1) the entity's base year revenue (as determined under
IC 4-33-12-9); minus
(2) the sum of:
(A) the total amount of money distributed to the entity and
constructively received by the entity during the preceding state
fiscal year under IC 4-33-12-6 or IC 4-33-12-8; plus
(B) the amount of any admissions taxes deducted under
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IC 6-3.1-20-7.
(h) (g) This subsection applies only to a county containing a
consolidated city. The county auditor shall distribute the money
received by the county under subsection (e) (d) as follows:
(1) To each city, other than a consolidated city, located in the
county according to the ratio that the city's population bears to the
total population of the county.
(2) To each town located in the county according to the ratio that
the town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be paid in equal amounts to the
consolidated city and the county.
(i) (h) This subsection does not apply to an inland casino operating
in Vigo County. This subsection applies to a supplemental distribution
made after June 30, 2017. The maximum amount of money that may be
distributed under subsection (g) (f) in a state fiscal year is equal to the
following:
(1) Before July 1, 2021, forty-eight million dollars ($48,000,000).
(2) After June 30, 2021, if the total adjusted gross receipts
received by licensees from gambling games authorized under this
article during the preceding state fiscal year is equal to or greater
than the total adjusted gross receipts received by licensees from
gambling games authorized under this article during the state
fiscal year ending June 30, 2020, the maximum amount is
forty-eight million dollars ($48,000,000).
(3) After June 30, 2021, if the total adjusted gross receipts
received by licensees from gambling games authorized under this
article during the preceding state fiscal year is less than the total
adjusted gross receipts received by licensees from gambling
games authorized under this article during the state fiscal year
ending June 30, 2020, the maximum amount is equal to the result
of:
(A) forty-eight million dollars ($48,000,000); multiplied by
(B) the result of:
(i) the total adjusted gross receipts received by licensees
from gambling games authorized under this article during
the preceding state fiscal year; divided by
(ii) the total adjusted gross receipts received by licensees
from gambling games authorized under this article during
the state fiscal year ending June 30, 2020.
If the total amount determined under subsection (g) (f) exceeds the
maximum amount determined under this subsection, the amount
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distributed to an entity under subsection (g) (f) must be reduced
according to the ratio that the amount distributed to the entity under
IC 4-33-12-6 or IC 4-33-12-8 bears to the total amount distributed
under IC 4-33-12-6 and IC 4-33-12-8 to all entities receiving a
supplemental distribution.
(j) (i) This subsection applies to a supplemental distribution, if any,
payable to Lake County, Hammond, Gary, or East Chicago under
subsections (g) (f) and (i). (h). Beginning in July 2016, the treasurer
auditor of state shall, after making any deductions from the
supplemental distribution required by IC 6-3.1-20-7, deduct from the
remainder of the supplemental distribution otherwise payable to the
unit under this section the lesser of:
(1) the remaining amount of the supplemental distribution; or
(2) the difference, if any, between:
(A) three million five hundred thousand dollars ($3,500,000);
minus
(B) the amount of admissions taxes constructively received by
the unit in the previous state fiscal year.
The treasurer auditor of state shall distribute the amounts deducted
under this subsection to the northwest Indiana redevelopment authority
established under IC 36-7.5-2-1 for deposit in the development
authority revenue fund established under IC 36-7.5-4-1.
(k) (j) Money distributed to a political subdivision under subsection
(b):
(1) must be paid to the fiscal officer of the political subdivision
and may be deposited in the political subdivision's general fund
(in the case of a school corporation, the school corporation may
deposit the money into either the education fund (IC 20-40-2) or
the operations fund (IC 20-40-18)) or riverboat fund established
under IC 36-1-8-9, or both;
(2) may not be used to reduce the maximum levy under
IC 6-1.1-18.5 of a county, city, or town or the maximum tax rate
of a school corporation, but, except as provided in subsection
(b)(2)(B), (b)(3)(B), may be used at the discretion of the political
subdivision to reduce the property tax levy of the county, city, or
town for a particular year;
(3) except as provided in subsection (b)(2)(B), (b)(3)(B), may be
used for any legal or corporate purpose of the political
subdivision, including the pledge of money to bonds, leases, or
other obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
Money distributed under subsection (b)(2)(B) (b)(3)(B) must be used
SEA 382 — CC 1 15
for the purposes specified in subsection (b)(2)(B). (b)(3)(B).
(l) (k) After June 30, 2020, the amount of wagering taxes that would
otherwise be distributed to South Bend under subsection (e) (d) shall
be deposited as being received from all riverboats whose supplemental
wagering tax, as calculated under IC 4-33-12-1.5(b), is over three and
five-tenths percent (3.5%). The amount deposited under this
subsection, in each riverboat's account, is proportionate to the
supplemental wagering tax received from that riverboat under
IC 4-33-12-1.5 in the month of July. The amount deposited under this
subsection must be distributed in the same manner as the supplemental
wagering tax collected under IC 4-33-12-1.5. This subsection expires
June 30, 2021.
(m) (l) After June 30, 2021, the amount of wagering taxes that
would otherwise be distributed to South Bend under subsection (e) (d)
shall be withheld and deposited in the state general fund.
SECTION 8. IC 4-35-8-1, AS AMENDED BY P.L.293-2019,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1. (a) A graduated slot machine wagering tax is
imposed as follows on ninety-nine percent (99%) of the adjusted gross
receipts received after June 30, 2012, and before July 1, 2013, on
ninety-one and five-tenths percent (91.5%) of the adjusted gross
receipts received after June 30, 2013, and before July 1, 2015, and on
eighty-eight percent (88%) of the adjusted gross receipts received after
June 30, 2015, from wagering on gambling games authorized by this
article:
(1) Twenty-five percent (25%) of the first one hundred million
dollars ($100,000,000) of adjusted gross receipts received during
the period beginning July 1 of each year and ending June 30 of
the following year.
(2) For periods:
(A) ending before July 1, 2021, thirty percent (30%) of the
adjusted gross receipts in excess of one hundred million
dollars ($100,000,000) but not exceeding two hundred million
dollars ($200,000,000) received during the period beginning
July 1 of each year and ending June 30 of the following year;
and
(B) beginning after June 30, 2021, thirty percent (30%) of the
adjusted gross receipts in excess of one hundred million
dollars ($100,000,000) received during the period beginning
July 1 of each year and ending June 30 of the following year.
(3) For periods ending before July 1, 2021, thirty-five percent
(35%) of the adjusted gross receipts in excess of two hundred
SEA 382 — CC 1 16
million dollars ($200,000,000) received during the period
beginning July 1 of each year and ending June 30 of the following
year.
(b) A licensee shall do the following:
(1) Remit the daily amount of tax imposed by this section to the
department on the twenty-fourth calendar day of each month. Any
taxes collected during the month but after the day on which the
taxes are required to be paid shall be paid to the department at the
same time the following month's taxes are due.
(2) Report gaming activity information to the commission daily
on forms prescribed by the commission.
(c) The payment of the tax under this section must be in a manner
prescribed by the department.
(d) If the department requires taxes to be remitted under this chapter
through electronic funds transfer, the department may allow the
licensee to file a monthly report to reconcile the amounts remitted to
the department.
(e) The payment of the tax under this section must be on a form
prescribed by the department. reported and remitted electronically
through the department's online tax filing program.
SECTION 9. IC 4-35-8.5-2, AS AMENDED BY P.L.255-2015,
SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. Before On or before the fifteenth day of
each month, the treasurer of state shall distribute any county gambling
game wagering fees received from a licensee during the previous
month to the county auditor of the county in which the licensee's
racetrack is located.
SECTION 10. IC 4-38-10-5, AS ADDED BY P.L.293-2019,
SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 5. The payment of the tax under this chapter must
be on a form and in a manner prescribed by the department. reported
and remitted electronically through the department's online tax
filing program.
SECTION 11. IC 6-1.1-3-7.2, AS AMENDED BY P.L.153-2021,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 7.2. (a) This section applies to assessment
dates occurring after December 31, 2015.
(b) As used in this section, "affiliate" means an entity that
effectively controls or is controlled by a taxpayer or is associated with
a taxpayer under common ownership or control, whether by
shareholdings or other means.
(c) As used in this section, "business personal property" means
SEA 382 — CC 1 17
personal property that:
(1) is otherwise subject to assessment and taxation under this
article;
(2) is used in a trade or business or otherwise held, used, or
consumed in connection with the production of income; and
(3) was:
(A) acquired by the taxpayer in an arms length transaction
from an entity that is not an affiliate of the taxpayer, if the
personal property has been previously used in Indiana before
being placed in service in the county; or
(B) acquired in any manner, if the personal property has never
been previously used in Indiana before being placed in service
in the county.
The term does not include mobile homes assessed under IC 6-1.1-7,
personal property held as an investment, or personal property that is
assessed under IC 6-1.1-8 and is owned by a public utility subject to
regulation by the Indiana utility regulatory commission. However, the
term does include the personal property of a telephone company or a
communications service provider if that personal property meets the
requirements of subdivisions (1) through (3), regardless of whether that
personal property is assessed under IC 6-1.1-8 and regardless of
whether the telephone company or communications service provider is
subject to regulation by the Indiana utility regulatory commission.
(d) Notwithstanding section 7 of this chapter, if the acquisition cost
of a taxpayer's total business personal property in a county is less than
eighty thousand dollars ($80,000) for that assessment date, the
taxpayer's business personal property in the county for that assessment
date is exempt from taxation.
(e) Subject to subsection (f), a taxpayer that is eligible for the
exemption under this section for an assessment date shall include the
following information on the taxpayer's personal property tax return:
(1) A declaration that the taxpayer's business personal property in
the county is exempt from property taxation.
(2) Whether the taxpayer's business personal property within the
county is in one (1) location or multiple locations.
(3) An address for the location of the property.
If the business personal property is in multiple locations within a
county, the taxpayer shall provide an address for the location where the
sum of acquisition costs for business personal property is greatest. If
two (2) or more addresses contain the greatest equivalent sum of
acquisition costs for business personal property within a given county,
the taxpayer shall choose only one (1) address to list on the return.
SEA 382 — CC 1 18
(f) Beginning after December 31, 2022, a taxpayer that has
included the information required under subsection (e) on the
taxpayer's personal property tax return to claim the exemption
under this section is not required to file a personal property return
for the taxpayer's business personal property for an assessment
date that occurs after the assessment date for which the
information is first provided under subsection (e), unless or until
the taxpayer no longer qualifies for the exemption under
subsection (d) for a subsequent assessment date.
SECTION 12. IC 6-1.1-4-46 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 46. (a) This section applies to assessment dates after
December 31, 2022.
(b) As used in this section, "self-service storage facility" means
any real property designed and used for the renting of space under
a rental agreement that provides a renter access to rented space for
the storage and retrieval of the renter's property.
(c) The true tax value of a self-service storage facility must be
determined based solely on the land and the improvements, less
normal depreciation and normal obsolescence, and must exclude
business intangible value. Business intangible value is any value of
the self-service storage facility and related business operations in
excess of the depreciated replacement cost of the improvements
and the value of the land.
(d) The true tax value of a self-service storage facility is the
lowest valuation determined by applying each of the following
appraisal approaches and excluding business intangible value:
(1) Cost approach that includes an estimated reproduction or
replacement cost of buildings and land improvements as of
the date of valuation, together with estimates of the losses in
value that have taken place due to wear and tear, design and
plan, and other depreciation and obsolescence.
(2) Sales comparison approach, using data for generally
comparable property.
(3) Income capitalization approach, using an applicable
capitalization method and appropriate capitalization rates
that are developed and used in computations that lead to an
indication of value commensurate with the risks for the
subject property use.
SECTION 13. IC 6-2.5-1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) "Retail
transaction" means a transaction of a retail merchant that constitutes
SEA 382 — CC 1 19
selling at retail as described in IC 6-2.5-4-1 that constitutes making a
wholesale sale as described in IC 6-2.5-4-2, or that is described in any
other section of IC 6-2.5-4.
(b) "Retail unitary transaction" means a unitary transaction that is
also a retail transaction.
SECTION 14. IC 6-2.5-1-22.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 22.5. "Power subsidiary" means
a corporation which is owned or controlled by one (1) or more
public utilities that furnish or sell electrical energy, natural or
artificial gas, water, steam, or steam heat and which produces
power exclusively for the use of those public utilities.
SECTION 15. IC 6-2.5-1-25.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 25.5. "Public utility" means any
organization of any kind or nature that:
(1) sells electricity, gas, or water for consumption; and
(2) has the right of eminent domain or is otherwise subject to
governmental regulation in any phase of its operation.
SECTION 16. IC 6-2.5-3-4, AS AMENDED BY P.L.146-2020,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. (a) The storage, use, and consumption of
tangible personal property in Indiana is exempt from the use tax if:
(1) the property was acquired in a retail transaction and the state
gross retail tax has been paid on the acquisition of that property;
or
(2) the property was acquired in a transaction that is wholly or
partially exempt from the state gross retail tax under any part of
IC 6-2.5-5 except IC 6-2.5-5-24(b), and the property is being
used, stored, or consumed for the purpose for which it was
exempted.
(b) If a person issues a state gross retail or use tax exemption
certificate for the acquisition of tangible personal property and
subsequently uses, stores, or consumes that property for a nonexempt
purpose, then the person shall pay the use tax.
SECTION 17. IC 6-2.5-4-1, AS AMENDED BY P.L.146-2020,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1. (a) A person is a retail merchant making a retail
transaction when the person engages in selling at retail.
(b) A person is engaged in selling at retail when, in the ordinary
course of the person's regularly conducted trade or business, the
person:
SEA 382 — CC 1 20
(1) acquires tangible personal property for the purpose of resale;
and
(2) transfers that property to another person for consideration.
(c) For purposes of determining what constitutes selling at retail, it
does not matter whether:
(1) the property is transferred in the same form as when it was
acquired;
(2) the property is transferred alone or in conjunction with other
property or services; or
(3) the property is transferred conditionally or otherwise.
(d) Notwithstanding subsection (b), a person is not selling at retail
if the person is making a wholesale sale as described in section 2 of this
chapter. However, in the case of sales of gasoline (as defined in
IC 6-6-1.1-103), a person shall collect the gasoline use tax as provided
in IC 6-2.5-3.5.
(d) Notwithstanding any provision of this article, a person is not
making a retail transaction when the person:
(1) acquires tangible personal property owned by another
person;
(2) provides industrial processing or servicing, including
enameling or plating, on the property; and
(3) transfers the property back to the owner to be sold by that
owner either in the same form or as a part of other tangible
personal property produced by that owner in the owner's
business of manufacturing, assembling, constructing, refining,
or processing.
SECTION 18. IC 6-2.5-4-2 IS REPEALED [EFFECTIVE JULY 1,
2022]. Sec. 2. (a) A person is a retail merchant making a retail
transaction when he is making wholesale sales.
(b) For purposes of this section, a person is making wholesale sales
when he:
(1) sells tangible personal property, other than capital assets or
depreciable property, to a person who purchases the property for
the purpose of reselling it without changing its form;
(2) sells tangible personal property to a person who purchases the
property for direct consumption as a material in the direct
production of other tangible personal property produced by the
person in his business of manufacturing, processing, refining,
repairing, mining, agriculture, or horticulture;
(3) sells tangible personal property to a person who purchases the
property for incorporation as a material or integral part of tangible
SEA 382 — CC 1 21
personal property produced by the person in his business of
manufacturing, assembling, constructing, refining, or processing;
(4) sells drugs, medical or dental preparations, or other similar
materials to a person who purchases the materials for direct
consumption in professional use by a physician, hospital,
embalmer, funeral director, or tonsorial parlor;
(5) sells tangible personal property to a person who purchases the
property for direct consumption in his business of industrial
cleaning; or
(6) sells tangible personal property to a person who purchases the
property for direct consumption in the person's business in the
direct rendering of public utility service.
(c) Notwithstanding any provision of this article, a person is not
making a retail transaction when he:
(1) acquires tangible personal property owned by another person;
(2) provides industrial processing or servicing, including
enameling or plating, on the property; and
(3) transfers the property back to the owner to be sold by that
owner either in the same form or as a part of other tangible
personal property produced by that owner in his business of
manufacturing, assembling, constructing, refining, or processing.
SECTION 19. IC 6-2.5-4-5, AS AMENDED BY P.L.288-2013,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 5. (a) As used in this section, a "power subsidiary"
means a corporation which is owned or controlled by one (1) or more
public utilities that furnish or sell electrical energy, natural or artificial
gas, water, steam, or steam heat and which produces power exclusively
for the use of those public utilities.
(b) A power subsidiary or a person engaged as a public utility is a
retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a person
engaged as a public utility is not a retail merchant making a retail
transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs, constructs,
services, or removes tangible personal property which is used in
connection with the furnishing of the services or commodities
listed in subsection (b).
(2) The power subsidiary or person sells the services or
SEA 382 — CC 1 22
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, processing (after December
31, 2012), repairing (after December 31, 2012), refining,
recycling (as defined in IC 6-2.5-5-45.8), oil extraction, mineral
extraction, irrigation, agriculture, floriculture (after December 31,
2012), arboriculture (after December 31, 2012), or horticulture.
However, this exclusion for sales of the services and commodities
only applies if the services are consumed as an essential and
integral part of an integrated process that produces tangible
personal property and those sales are separately metered for the
excepted uses listed in this subdivision, or if those sales are not
separately metered but are predominately used by the purchaser
for the excepted uses listed in this subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the part
of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
SEA 382 — CC 1 23
in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
(E) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(2), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the qualified military base (as defined in IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
SECTION 20. IC 6-2.5-4-18, AS AMENDED BY P.L.146-2020,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 18. (a) A marketplace facilitator shall be
considered the retail merchant of each retail transaction (including a
retail transaction under section 4 of this chapter) that is facilitated for
sellers on its marketplace, regardless as to whether the marketplace
facilitator has a contractual relationship with the seller, when it
does any of the following: on behalf of the seller:
(1) Collects the sales price or purchase price of the seller's
products.
(2) Provides access to payment processing services, either directly
or indirectly.
(3) Charges, collects, or otherwise receives fees or other
consideration from the purchaser for transactions made on its
electronic marketplace.
(b) Regardless of whether a transaction under subsection (a) was
SEA 382 — CC 1 24
made by the marketplace facilitator on its own behalf or facilitated on
behalf of a seller, A marketplace facilitator is required to do the
following with each retail transaction made on its marketplace:
(1) Collect and remit the gross retail tax, even if a seller for whom
a transaction was facilitated:
(A) does not have a registered retail merchant certificate; or
(B) would not have been required to collect gross retail tax had
the transaction not been facilitated by the marketplace
facilitator.
(2) Comply with all applicable procedures and requirements
imposed under this article as the retail merchant in such
transaction.
(c) The gross retail income from a transaction under this section is
equal to the total amount of consideration paid by the purchaser,
including the payment of any fee, commission, or other charge by the
marketplace facilitator, except that the gross retail income does not
include any taxes on the transaction that are imposed directly on the
consumer other than taxes described under IC 6-2.5-1-5(c)(2).
SECTION 21. IC 6-2.5-5-5.1, AS AMENDED BY P.L.239-2017,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 5.1. (a) As used in this section, "tangible personal
property" includes electrical energy, natural or artificial electricity,
gas, water, steam, and steam. heat.
(b) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring the property
acquires it for direct consumption as a material to be consumed in the
direct production of other tangible personal property in the person's
business of manufacturing, mining, production, processing,
repairing, recycling (as defined in section 45.8 of this chapter),
refining, repairing, mining, oil extraction, mineral extraction,
irrigation, agriculture, floriculture, arboriculture, or horticulture.
floriculture, or arboriculture. This exemption includes transactions
involving acquisitions of tangible personal property used in
commercial printing.
(c) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring that property:
(1) acquires it for the person's direct consumption as a material to
be consumed in an industrial processing service; and
(2) is an industrial processor.
(d) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring the property:
SEA 382 — CC 1 25
(1) acquires it for the person's direct consumption as a material to
be consumed in:
(A) the direct application of fertilizers, pesticides, fungicides,
seeds, and other tangible personal property; or
(B) the direct extraction, harvesting, or processing of
agricultural commodities;
for consideration; and
(2) is occupationally engaged in providing the services described
in subdivision (1) on property that is:
(A) owned or rented by another person occupationally engaged
in agricultural production; and
(B) used for agricultural production.
(e) Transactions involving electricity, gas, water, and steam
delivered through a single meter provided by a public utility are
exempt if the electrical energy, natural or artificial gas, water,
steam, or steam heat is consumed for a purpose exempted pursuant
to this section and the electricity, gas, water, or steam is
predominately used by the purchaser for one (1) or more of the
purposes exempted by this section.
SECTION 22. IC 6-2.5-5-8, AS AMENDED BY P.L.156-2020,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 8. (a) As used in this section, "new motor vehicle"
has the meaning set forth in IC 9-13-2-111.
(b) Except as provided in subsection (j), (e), transactions involving
tangible personal property other than a new motor vehicle are exempt
from the state gross retail tax if the person acquiring the property
acquires it for resale, rental, or leasing in the ordinary course of the
person's business without changing the form of the property.
(c) The following transactions involving a new motor vehicle are
exempt from the state gross retail tax:
(1) A transaction in which a person that has a franchise in effect
at the time of the transaction for the vehicle trade name, trade or
service mark, or related characteristics acquires a new motor
vehicle for resale, rental, or leasing in the ordinary course of the
person's business.
(2) A transaction in which a person that is a franchisee appointed
by a manufacturer or converter manufacturer licensed under
IC 9-23 (before July 1, 2013) or licensed under IC 9-32 (after
June 30, 2013) acquires a new motor vehicle that has at least one
(1) trade name, service mark, or related characteristic as a result
of modification or further manufacture by the manufacturer or
SEA 382 — CC 1 26
converter manufacturer for resale, rental, or leasing in the
ordinary course of the person's business.
(3) A transaction in which a person acquires a new motor vehicle
for rental or leasing in the ordinary course of the person's business
as a rental company (either as defined in IC 24-4-9-7).
IC 24-4-9-7 or as approved by the department).
(d) The rental or leasing of accommodations to a promoter by a
political subdivision (including a capital improvement board) or the
state fair commission is not exempt from the state gross retail tax, if the
rental or leasing of the property by the promoter is exempt under
IC 6-2.5-4-4.
(e) This subsection applies only to aircraft acquired after June 30,
2008. Except as provided in subsection (h), a transaction in which a
person acquires an aircraft for rental or leasing in the ordinary course
of the person's business is not exempt from the state gross retail tax
unless the person establishes, under guidelines adopted by the
department in the manner provided in IC 4-22-2-37.1 for the adoption
of emergency rules, that the annual amount of the gross lease revenue
derived from leasing or rental of the aircraft, which may include
revenue from related party transactions, is equal to or greater than
seven and five-tenths percent (7.5%) of the:
(1) book value of the aircraft, as published in the Vref Aircraft
Value Reference guide for the aircraft; or
(2) net acquisition price for the aircraft.
If a person acquires an aircraft below the Vref Aircraft Value
Reference guide book value, the person may appeal to the department
for a lower lease or rental threshold equal to the actual acquisition price
paid if the person demonstrates that the transaction was completed in
a commercially reasonable manner based on the aircraft's age,
condition, and equipment. The department may request the person to
submit to the department supporting documents showing the aircraft is
available for general public lease or rental, copies of business and
aircraft insurance policies, and other documents that assist the
department in determining if an aircraft is exempt from the state gross
retail tax.
(f) A person is required to meet the requirements of subsection (e)
until the earlier of the date the aircraft has generated sales tax on leases
or rental income that is equal to the amount of the original sales tax
exemption or the elapse of thirteen (13) years. If the aircraft is sold by
the person before meeting the requirements of this section and before
the sale the aircraft was exempt from gross retail tax under subsection
(e), the sale of the aircraft shall not result in the assessment or
SEA 382 — CC 1 27
collection of gross retail tax for the period from the date of acquisition
to the date of sale by the person.
(g) The person is required to remit the gross retail tax on taxable
lease and rental transactions no matter how long the aircraft is used for
lease and rental.
(h) This subsection applies only to aircraft acquired after December
31, 2007. A transaction in which a person acquires an aircraft to rent
or lease the aircraft to another person for predominant use in public
transportation by the other person or by an affiliate of the other person
is exempt from the state gross retail tax. The department may not
require a person to meet the revenue threshold in subsection (e) with
respect to the person's leasing or rental of the aircraft to receive or
maintain the exemption. To maintain the exemption provided under
this subsection, the department may require the person to submit only
annual reports showing that the aircraft is predominantly used to
provide public transportation.
(i) The exemptions allowed under subsections (e) and (h) apply
regardless of the relationship, if any, between the person or lessor and
the lessee or renter of the aircraft.
(j) (e) A person who purchases a motor vehicle for sharing through
a peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) is
not eligible for the exemption under this section.
SECTION 23. IC 6-2.5-5-8.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 8.2. (a) Except as provided in
subsection (f), a transaction in which a person acquires an aircraft
for rental or leasing in the ordinary course of the person's business
is not exempt from the state gross retail tax unless the person
establishes, under guidelines adopted by the department in the
manner provided in IC 4-22-2 (including the adoption of
emergency rules under IC 4-22-2-37.1), that the annual amount of
the gross lease revenue derived from leasing or rental of the
aircraft, which may include revenue from related party
transactions, is equal to or greater than seven and five-tenths
percent (7.5%) of the:
(1) book value of the aircraft, as published in the VREF
Aircraft Value Reference guide for the aircraft; or
(2) net acquisition price for the aircraft, which shall include
the value of any trade or exchange and excluding any sales
commissions paid to third parties.
(b) If a person acquires an aircraft below the VREF Aircraft
Value Reference guide book value as set forth in subsection (a)(1),
SEA 382 — CC 1 28
the person may appeal to the department for a lower lease or
rental threshold equal to the actual acquisition price paid if the
person demonstrates that the transaction was completed in a
commercially reasonable manner based on the aircraft's age,
condition, and equipment.
(c) For purposes of this section, the department may request the
person to submit to the department supporting documents showing
that the aircraft is available for general public lease or rental,
copies of business and aircraft insurance policies, and other
documents that assist the department in determining if an aircraft
is exempt from the state gross retail tax.
(d) A person is required to meet the requirements of subsection
(a) until the earlier of the date the aircraft has generated sales tax
on leases or rental income that is equal to the amount of the
original sales tax exemption, the elapse of thirteen (13) years, or
the date the aircraft is sold. No additional sales or use tax is due
from the seller on the seller's original purchase when the aircraft
is sold if the person has met the terms of this section for all periods
prior to the sale.
(e) A person is required to remit the gross retail tax on taxable
lease and rental transactions the entire time the aircraft is used for
lease and rental, even if the aircraft is used for lease and rental
beyond a thirteen (13) year period.
(f) A transaction in which a person acquires an aircraft to rent
or lease the aircraft to another person for predominant use in
public transportation (as provided for in section 27 of this chapter)
by the other person or by an affiliate of the other person is exempt
from the state gross retail tax. The department may not require a
person to meet the revenue threshold in subsection (a) with respect
to the person's leasing or rental of the aircraft to receive or
maintain the exemption. To maintain the exemption provided
under this subsection, the department may require the person to
submit annual reports showing that the aircraft is predominantly
used to provide public transportation.
(g) The exemptions allowed under subsections (a) and (f) apply
regardless of the relationship, if any, between the person or lessor
and the lessee or renter of the aircraft.
SECTION 24. IC 6-2.5-5-8.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 8.5. Transactions involving
electrical energy, natural or artificial gas, water, steam, or steam
heating service sold or furnished by a power subsidiary or a person
SEA 382 — CC 1 29
engaged as a public utility are exempt from the state gross retail
tax when:
(1) the power subsidiary or person provides, installs,
constructs, services, or removes tangible personal property
which is used in connection with the furnishing of the services
or commodities listed in IC 6-2.5-4-5;
(2) the power subsidiary or person sells the services or
commodities listed in IC 6-2.5-4-5 to another public utility or
power subsidiary or a person described in IC 6-2.5-4-6; or
(3) the power subsidiary or person sells the services or
commodities listed in IC 6-2.5-4-5 and all of the following
conditions are satisfied:
(A) The services or commodities are sold to a business
that:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under
IC 36-7-14.5-12.5 that is or formerly was a military base
(as defined in IC 36-7-30-1(c)), or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operation that relocated to the facility, or
expanded in the facility, commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology
transfer program conducted by the qualified military
base (as defined in IC 36-7-34-3).
(ii) The business is a United States Department of
Defense contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business
and the United States Department of Defense.
(E) In the case of a business that uses the services and
commodities in a qualified military base enhancement area
SEA 382 — CC 1 30
established under IC 36-7-34-4(2), the business must satisfy
at least one (1) of the following criteria:
(i) The business is a participant in the technology
transfer program conducted by the qualified military
base (as defined in IC 36-7-34-3).
(ii) The business and the qualified miliary base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business
and the qualified military base (as defined in
IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another
location in Indiana in order to relocate its operations in an
area described in this subdivision, unless the department
determines that the business had existing operations in the
area described in this subdivision and that the operations
relocated to the area are an expansion of the business's
operations in the area.
SECTION 25. IC 6-2.5-5-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 10. Transactions
involving tangible personal property are exempt from the state gross
retail tax, if:
(1) the property is classified as production plant or power
production expenses, according to the uniform system of accounts
which was adopted and prescribed for the utility by the Indiana
utility regulatory commission; and
(2) the person acquiring the property is:
(A) a public utility that furnishes or sells electrical energy,
steam, or steam heat in a retail transaction described in
IC 6-2.5-4-5; or
(B) a power subsidiary (as defined in IC 6-2.5-4-5(a))
IC 6-2.5-1-22.5) that furnishes or sells electrical energy,
steam, or steam heat to a public utility described in clause (A).
SECTION 26. IC 6-2.5-5-10.5, AS ADDED BY P.L.159-2021,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 10.5. (a) Transactions occurring on or after May
1, 2021, involving tangible personal property are exempt from the state
gross retail tax, if:
(1) the property is classified as a utility scale battery energy
storage system as defined in subsection (b);
(2) the person acquiring the property is:
(A) a public utility that furnishes or sells electrical energy; or
SEA 382 — CC 1 31
(B) a power subsidiary (as defined in IC 6-2.5-4-5(a))
IC 6-2.5-1-22.5) that furnishes or sells electrical energy to a
public utility described in clause (A); and
(3) the person acquiring the property uses the property to store
electrical energy in-front of the customer's meter.
(b) As used in this section, a "utility scale battery energy storage
system" means a system capable of storing and releasing greater than
1MW of electrical energy for a minimum of one (1) hour utilizing an
AC inverter and DC storage, or equipment which receives, stores, and
delivers energy using batteries, compressed air, pumped hydropower,
hydrogen storage (including hydrolysis), thermal energy storage,
regenerative fuel cells, flywheels, capacitors, and superconducting
magnets, but does not include foundations or property used to directly
or indirectly connect the AC inverter or DC storage of such system to
electrical energy production equipment or the customer's meter.
SECTION 27. IC 6-2.5-5-21, AS AMENDED BY P.L.293-2013(ts),
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 21. (a) For purposes of this section, "private
benefit or gain" does not include reasonable compensation paid to an
employee for work or services actually performed.
(b) Sales of food and food ingredients are exempt from the state
gross retail tax if:
(1) the seller meets the filing requirements under subsection (d)
and is any of the following:
(A) A fraternity, a sorority, or a student cooperative housing
organization that is connected with and under the supervision
of a postsecondary educational institution if no part of its
income is used for the private benefit or gain of any member,
trustee, shareholder, employee, or associate.
(B) Any:
(i) institution;
(ii) trust;
(iii) group;
(iv) united fund;
(v) affiliated agency of a united fund;
(vi) nonprofit corporation;
(vii) cemetery association; or
(viii) organization;
that is organized and operated exclusively for religious,
charitable, scientific, literary, educational, or civic purposes if
no part of its income is used for the private benefit or gain of
SEA 382 — CC 1 32
any member, trustee, shareholder, employee, or associate.
(C) A group, an organization, or a nonprofit corporation that
is organized and operated for fraternal or social purposes, or
as a business league or association, and not for the private
benefit or gain of any member, trustee, shareholder, employee,
or associate.
(D) A:
(i) hospital licensed by the state department of health;
(ii) shared hospital services organization exempt from
federal income taxation by Section 501(c)(3) or 501(e) of
the Internal Revenue Code;
(iii) labor union;
(iv) church;
(v) monastery;
(vi) convent;
(vii) school that is a part of the Indiana public school
system;
(viii) parochial school regularly maintained by a recognized
religious denomination; or
(ix) trust created for the purpose of paying pensions to
members of a particular profession or business who created
the trust for the purpose of paying pensions to each other;
if the taxpayer is not organized or operated for private profit or
gain; an organization described in section 25(a)(1) of this
chapter;
(2) the purchaser is a person confined to the purchaser's home
because of age, sickness, or infirmity;
(3) the seller delivers the food and food ingredients to the
purchaser; and
(4) the delivery is prescribed as medically necessary by a
physician licensed to practice medicine in Indiana.
(c) Sales of food and food ingredients are exempt from the state
gross retail tax if the seller is an organization described in subsection
(b)(1), section 25(a)(1) of this chapter, and the purchaser is a patient
in a hospital operated by the seller.
(d) To obtain the exemption provided by this section, a taxpayer
must file an application for exemption with the department not later
than one hundred twenty (120) days after the taxpayer's formation. In
addition, the taxpayer must file an annual report with the department
on or before the fifteenth day of the fifth month following the close of
each taxable year. If a taxpayer fails to file the report, the department
SEA 382 — CC 1 33
shall notify the taxpayer of the failure. If within sixty (60) days after
receiving such notice the taxpayer does not provide the report, the
taxpayer's exemption shall be canceled. However, the department may
reinstate the taxpayer's exemption if the taxpayer shows by petition that
the failure was due to excusable neglect. follow the procedures set
forth in section 25(c) of this chapter.
SECTION 28. IC 6-2.5-5-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 22. (a) Sales of school
meals are exempt from the state gross retail tax if:
(1) the seller is a school containing students in any grade, one (1)
through twelve (12);
(2) the purchaser is one (1) of those students or a school
employee; and
(3) the school furnishes the food and food ingredients on its
premises.
(b) Sales of food and food ingredients by not-for-profit colleges or
universities are exempt from the state gross retail tax, if the purchaser
is a student at the college or university.
(c) Sales of meals after December 31, 1976, by a fraternity, sorority,
or student cooperative housing organization described in section
21(b)(1)(A) 25(a)(1)(A) of this chapter are exempt from the state gross
retail tax, if the purchaser:
(1) is a member of the fraternity, sorority, or student cooperative
housing organization; and
(2) is enrolled in the college, university, or educational institution
with which the fraternity, sorority, or student cooperative housing
organization is connected and by which it is supervised.
SECTION 29. IC 6-2.5-5-24 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 24. (a) Transactions are
exempt from the state gross retail tax to the extent that the gross retail
income from those transactions is derived from gross receipts that are:
(1) derived from sales to the United States government, to the
extent the state is prohibited by the Constitution of the United
States; from taxing that gross income;
(2) derived from commercial printing that results in printed
materials, excluding the business of photocopying, that are
shipped, mailed, or delivered outside Indiana;
(3) United States or Indiana taxes received or collected as a
collecting agent explicitly designated as a collecting agent for a
tax by statute for the state or the United States;
(4) collections by a retail merchant of a retailer's excise tax
SEA 382 — CC 1 34
imposed by the United States if:
(A) the tax is imposed solely on the sale at retail of tangible
personal property;
(B) the tax is remitted to the appropriate taxing authority; and
(C) the retail merchant collects the tax separately as an
addition to the price of the property sold;
(5) collections of a manufacturer's excise tax imposed by the
United States on motor vehicles, motor vehicle bodies and
chassis, parts and accessories for motor vehicles, tires, tubes for
tires, or tread rubber and laminated tires, if the excise tax is
separately stated by the collecting taxpayer as either an addition
to or an inclusion in the price of the property sold; or
(6) amounts represented by an encumbrance of any kind on
tangible personal property received by a retail merchant in
reciprocal exchange for tangible personal property of like kind.
(b) Transactions are exempt from the state gross retail tax to the
extent that the gross retail income from those transactions is derived
from gross receipts that are:
(1) interest or other earnings paid on bonds or other securities
issued by the United States, to the extent the Constitution of the
United States prohibits the taxation of that gross income; or
(2) derived from business conducted in commerce between the
state and either another state or a foreign country, to the extent the
state is prohibited from taxing that gross income by the
Constitution of the United States.
SECTION 30. IC 6-2.5-5-25, AS AMENDED BY P.L.293-2013(ts),
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 25. (a) Transactions involving tangible personal
property, accommodations, or service are exempt from the state gross
retail tax, if the person acquiring the property, accommodations, or
service:
(1) is an organization described in section 21(b)(1) of this
chapter; any of the following types of organizations:
(A) A fraternity, a sorority, or a student cooperative
housing organization that is connected with and under the
supervision of a postsecondary educational institution if no
part of its income is used for the private benefit or gain of
any member, trustee, shareholder, employee, or associate.
(B) Any:
(i) institution;
(ii) trust;
SEA 382 — CC 1 35
(iii) group;
(iv) united fund;
(v) affiliated agency of a united fund;
(vi) nonprofit corporation;
(vii) cemetery association; or
(viii) organization;
that is organized and operated exclusively for religious,
charitable, scientific, literary, educational, or civic
purposes if no part of its income is used for the private
benefit or gain of any member, trustee, shareholder,
employee, or associate.
(C) A group, an organization, or a nonprofit corporation
that is organized and operated for fraternal or social
purposes, or as a business league or association, and not
for the private benefit or gain of any member, trustee,
shareholder, employee, or associate.
(D) A:
(i) hospital licensed by the state department of health;
(ii) shared hospital services organization exempt from
federal income taxation by Section 501(c)(3) or 501(e) of
the Internal Revenue Code;
(iii) labor union;
(iv) church;
(v) monastery;
(vi) convent;
(vii) school that is a part of the Indiana public school
system;
(viii) parochial school regularly maintained by a
recognized religious denomination; or
(ix) trust created for the purpose of paying pensions to
members of a particular profession or business who
created the trust for the purpose of paying pensions to
each other;
if the taxpayer is not organized or operated for private
profit or gain;
(2) primarily uses the property, accommodations, or service to
carry on or to raise money to carry on its not-for-profit purpose;
and
(3) is not an organization operated predominantly for social
purposes.
(b) Transactions involving tangible personal property or service are
SEA 382 — CC 1 36
exempt from the state gross retail tax, if the person acquiring the
property or service:
(1) is a fraternity, sorority, or student cooperative housing
organization described in section 21(b)(1)(A) of this chapter;
subsection (a)(1)(A); and
(2) uses the property or service to carry on its ordinary and usual
activities and operations as a fraternity, sorority, or student
cooperative housing organization.
(c) To obtain the exemption provided by this section, a taxpayer
must file an application for exemption with the department not
later than one hundred twenty (120) days after the taxpayer's
formation. In addition, the taxpayer must file a report with the
department on or before the fifteenth day of the fifth month every
five (5) years following the date of its formation. The report must
be filed electronically with the department in the manner
determined by the department. If a taxpayer fails to file the report,
the department shall notify the taxpayer of the failure. If within
sixty (60) days after receiving such notice the taxpayer does not
provide the report, the taxpayer's exemption shall be canceled.
However, the department may reinstate the taxpayer's exemption
if the taxpayer shows by petition that the failure was due to
reasonable cause.
(d) Notwithstanding subsection (c), a taxpayer filing a report
under this subsection or section 21(d) of this chapter (prior to
recodification) after December 31, 2021, and before January 1,
2023, will be required to file the next required report on or before
the following dates:
(1) May 15, 2024, if the taxpayer does not have a federal
employer identification number or has a federal employer
identification number ending in 00 through 24, inclusive.
(2) May 15, 2025, if the taxpayer has a federal employer
identification number ending in 25 through 49, inclusive.
(3) May 15, 2026, if the taxpayer has a federal employer
identification number ending in 50 through 74, inclusive.
(4) May 15, 2027, if the taxpayer has a federal employer
identification number ending in 75 through 99 inclusive.
SECTION 31. IC 6-2.5-5-26, AS AMENDED BY P.L.214-2018(ss),
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 26. (a) Sales of tangible personal property by an
organization described in section 25(a)(1) of this chapter are exempt
from the state gross retail tax, if:
(1) the seller is an organization that is described in section
SEA 382 — CC 1 37
21(b)(1) of this chapter;
(2) (1) the organization makes the sale to make money to carry on
a not-for-profit purpose; and
(3) (2) the organization does not make those sales during more
than thirty (30) days twenty thousand dollars ($20,000) in sales
in a calendar year.
Once sales of an organization exceed the amount described in
subdivision (2), the organization is required to collect state gross
retail tax on sales on an ongoing basis for the remainder of the
calendar year.
(b) For purposes of subsection (a), the sales of an organization
include sales made by all units operating under the organization's
registration pursuant to section 25(c) of this chapter.
(b) (c) If the qualifications of subsection (a) are not met, sales of
tangible personal property by an organization described in section
25(a)(1) of this chapter are exempt from the state gross retail tax, if:
(1) the seller is an organization described in section 21(b)(1) of
this chapter;
(2) (1) the seller organization is not operated predominantly for
social purposes;
(3) (2) the property sold is designed and intended primarily either
for the organization's educational, cultural, or religious purposes,
or for improvement of the work skills or professional
qualifications of the organization's members; and
(4) (3) the property sold is not designed or intended primarily for
use in carrying on a private or proprietary business.
(c) (d) Sales of tangible personal property by a public library, or a
charitable organization described in section 21(b)(1) 25(a)(1) of this
chapter formed to support a public library, are exempt from the state
gross retail tax if the property sold consists of:
(1) items in the library's circulated and publicly available
collections, including items from the library's holdings; or
(2) items that would typically be included in the library's
circulated and publicly available collections and that are donated
by individuals or organizations to a public library or to a
charitable organization described in section 21(b)(1) 25(a)(1) of
this chapter formed to support a public library.
The exemption provided by this subsection does not apply to any other
sales of tangible personal property by a public library.
(d) (e) The exemption provided by this section does not apply to an
accredited college or university's sales of books, stationery,
SEA 382 — CC 1 38
haberdashery, supplies, or other property.
(f) To obtain the exemption provided by this section, a taxpayer
must follow the procedures set forth in section 25(c) of this chapter.
SECTION 32. IC 6-2.5-8-8, AS AMENDED BY P.L.159-2021,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 8. (a) A person, authorized under subsection (b),
who makes a purchase in a transaction which is exempt from the state
gross retail and use taxes, may issue an exemption certificate to the
seller instead of paying the tax. Except as provided in subsection (c),
the person shall issue the certificate on forms and in the manner
prescribed by the department on the department's Internet web site.
A seller accepting a proper exemption certificate under this section has
no duty to collect or remit the state gross retail or use tax on that
purchase.
(b) The following are the only persons authorized to issue
exemption certificates:
(1) Retail merchants, wholesalers, and manufacturers, who are
registered with the department under this chapter.
(2) Organizations which are exempt from the state gross retail tax
under IC 6-2.5-5-21, IC 6-2.5-5-25, or IC 6-2.5-5-26 and which
are registered with the department under this chapter.
(3) (2) Persons who are exempt from the state gross retail tax
under IC 6-2.5-4-5 and who receive an exemption certificate from
the department.
(4) (3) Other persons who are exempt from the state gross retail
tax with respect to any part of their purchases.
(c) Organizations that are exempt from the state gross retail tax
under IC 6-2.5-5-21, IC 6-2.5-5-25, or IC 6-2.5-5-26 and that are
registered with the department pursuant to IC 6-2.5-5-25(c) shall
be electronically issued an exemption certificate by the department.
(c) (d) The department may also allow a person to issue a blanket
exemption certificate to cover exempt purchases over a stated period
of time. The department may impose conditions on the use of the
blanket exemption certificate and restrictions on the kind or category
of purchases that are exempt.
(d) (e) A seller that accepts an incomplete exemption certificate
under subsection (a) is not relieved of the duty to collect gross retail or
use tax on the sale unless the seller obtains:
(1) a fully completed exemption certificate; or
(2) the relevant data to complete the exemption certificate;
within ninety (90) days after the sale.
SEA 382 — CC 1 39
(e) (f) If a seller has accepted an incomplete exemption certificate
under subsection (a) and the department requests that the seller
substantiate the exemption, within one hundred twenty (120) days after
the department makes the request the seller shall:
(1) obtain a fully completed exemption certificate; or
(2) prove by other means that the transaction was not subject to
state gross retail or use tax.
(f) (g) A power subsidiary (as defined in IC 6-2.5-4-5)
IC 6-2.5-1-22.5) or a person selling the services or commodities listed
in IC 6-2.5-4-5(b) IC 6-2.5-4-5 who accepts an exemption certificate
issued by the department to a person who is exempt from the state
gross retail tax under IC 6-2.5-4-5 is relieved from the duty to collect
state gross retail or use tax on the sale of the services or commodities
listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 until notified by the department
that the exemption certificate has expired or has been revoked. If the
department notifies a power subsidiary or a person selling the services
or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 that a person's
exemption certificate has expired or has been revoked, the power
subsidiary or person selling the services or commodities listed in
IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall begin collecting state gross retail tax
on the sale of the services or commodities listed in IC 6-2.5-4-5(b)
IC 6-2.5-4-5 to the person whose exemption certificate has expired or
been revoked not later than thirty (30) days after the date of the
department's notice. An exemption certificate issued by the department
to a person who is exempt from the state gross retail tax under
IC 6-2.5-4-5 remains valid for that person regardless of any subsequent
one (1) for one (1) meter number changes with respect to that person
that are required, made, or initiated by a power subsidiary or a person
selling the services or commodities listed in IC 6-2.5-4-5(b),
IC 6-2.5-4-5, unless the department revokes the exemption certificate.
Within thirty (30) days after the final day of each calendar year quarter,
a power subsidiary or a person selling the services or commodities
listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall report to the department any
meter number changes made during the immediately preceding
calendar year quarter and distinguish between the one (1) for one (1)
meter changes and the one (1) for multiple meter changes made during
the calendar year quarter. A power subsidiary or a person selling the
services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall
maintain records sufficient to document each one (1) to one (1) meter
change. A person may request the department to reissue an exemption
certificate with a new meter number in the event of a one (1) to one (1)
meter change. Except for a person to whom a blanket utility exemption
SEA 382 — CC 1 40
applies, any meter number changes not involving a one (1) to one (1)
relationship will no longer be exempt and will require the person to
submit a new utility exemption application for the new meters. Until an
application for a new meter is approved, the new meter is subject to the
state gross retail tax and the power subsidiary or the person selling the
services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 is
required to collect the state gross retail tax from the date of the meter
change.
SECTION 33. IC 6-3-1-3.5, AS AMENDED BY P.L.159-2021,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2021 (RETROACTIVE)]: Sec. 3.5. When used in this
article, the term "adjusted gross income" shall mean the following:
(a) In the case of all individuals, "adjusted gross income" (as
defined in Section 62 of the Internal Revenue Code), modified as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Except as provided in subsection (c), add an amount equal to
any deduction or deductions allowed or allowable pursuant to
Section 62 of the Internal Revenue Code for taxes based on or
measured by income and levied at the state level by any state of
the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a
joint return filed by a husband and wife, subtract for each spouse
one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of the
Internal Revenue Code (as effective January 1, 2017);
(B) each additional amount allowable under Section 63(f) of
the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by
the taxpayer and if the spouse, for the calendar year in which
the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(5) Subtract:
(A) one thousand five hundred dollars ($1,500) for each of the
exemptions allowed under Section 151(c)(1)(B) of the Internal
Revenue Code (as effective January 1, 2004);
(B) one thousand five hundred dollars ($1,500) for each
exemption allowed under Section 151(c) of the Internal
Revenue Code (as effective January 1, 2017) for an individual:
SEA 382 — CC 1 41
(i) who is less than nineteen (19) years of age or is a
full-time student who is less than twenty-four (24) years of
age;
(ii) for whom the taxpayer is the legal guardian; and
(iii) for whom the taxpayer does not claim an exemption
under clause (A); and
(C) five hundred dollars ($500) for each additional amount
allowable under Section 63(f)(1) of the Internal Revenue Code
if the federal adjusted gross income of the taxpayer, or the
taxpayer and the taxpayer's spouse in the case of a joint return,
is less than forty thousand dollars ($40,000). In the case of a
married individual filing a separate return, the qualifying
income amount in this clause is equal to twenty thousand
dollars ($20,000).
This amount is in addition to the amount subtracted under
subdivision (4).
(6) Subtract any amounts included in federal adjusted gross
income under Section 111 of the Internal Revenue Code as a
recovery of items previously deducted as an itemized deduction
from adjusted gross income.
(7) Subtract any amounts included in federal adjusted gross
income under the Internal Revenue Code which amounts were
received by the individual as supplemental railroad retirement
annuities under 45 U.S.C. 231 and which are not deductible under
subdivision (1).
(8) Subtract an amount equal to the amount of federal Social
Security and Railroad Retirement benefits included in a taxpayer's
federal gross income by Section 86 of the Internal Revenue Code.
(9) In the case of a nonresident taxpayer or a resident taxpayer
residing in Indiana for a period of less than the taxpayer's entire
taxable year, the total amount of the deductions allowed pursuant
to subdivisions (3), (4), and (5) shall be reduced to an amount
which bears the same ratio to the total as the taxpayer's income
taxable in Indiana bears to the taxpayer's total income.
(10) In the case of an individual who is a recipient of assistance
under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
subtract an amount equal to that portion of the individual's
adjusted gross income with respect to which the individual is not
allowed under federal law to retain an amount to pay state and
local income taxes.
(11) In the case of an eligible individual, subtract the amount of
SEA 382 — CC 1 42
a Holocaust victim's settlement payment included in the
individual's federal adjusted gross income.
(12) Subtract an amount equal to the portion of any premiums
paid during the taxable year by the taxpayer for a qualified long
term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
file a joint income tax return or the taxpayer is otherwise entitled
to a deduction under this subdivision for the taxpayer's spouse, or
both.
(13) Subtract an amount equal to the lesser of:
(A) two thousand five hundred dollars ($2,500), or one
thousand two hundred fifty dollars ($1,250) in the case of a
married individual filing a separate return; or
(B) the amount of property taxes that are paid during the
taxable year in Indiana by the individual on the individual's
principal place of residence.
(14) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the individual's
federal adjusted gross income.
(15) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(16) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code (concerning net
operating losses).
(17) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding the sum of:
(A) twenty-five thousand dollars ($25,000) to the extent
deductions under Section 179 of the Internal Revenue Code
were not elected as provided in clause (B); and
SEA 382 — CC 1 43
(B) for taxable years beginning after December 31, 2017, the
deductions elected under Section 179 of the Internal Revenue
Code on property acquired in an exchange if:
(i) the exchange would have been eligible for
nonrecognition of gain or loss under Section 1031 of the
Internal Revenue Code in effect on January 1, 2017;
(ii) the exchange is not eligible for nonrecognition of gain or
loss under Section 1031 of the Internal Revenue Code; and
(iii) the taxpayer made an election to take deductions under
Section 179 of the Internal Revenue Code with regard to the
acquired property in the year that the property was placed
into service.
The amount of deductions allowable for an item of property
under this clause may not exceed the amount of adjusted gross
income realized on the property that would have been deferred
under the Internal Revenue Code in effect on January 1, 2017.
(18) Subtract an amount equal to the amount of the taxpayer's
qualified military income that was not excluded from the
taxpayer's gross income for federal income tax purposes under
Section 112 of the Internal Revenue Code.
(19) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7 (certain income
derived from patents); and
(B) included in the individual's federal adjusted gross income
under the Internal Revenue Code.
(20) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract the amount necessary from the adjusted
gross income of any taxpayer that added an amount to adjusted
gross income in a previous year to offset the amount included in
federal gross income as a result of the deferral of income arising
from business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(21) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received on
an obligation of a state other than Indiana, or a political
SEA 382 — CC 1 44
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(22) Subtract an amount as described in Section 1341(a)(2) of the
Internal Revenue Code to the extent, if any, that the amount was
previously included in the taxpayer's adjusted gross income for a
prior taxable year.
(23) For taxable years beginning after December 25, 2016, add an
amount equal to the deduction for deferred foreign income that
was claimed by the taxpayer for the taxable year under Section
965(c) of the Internal Revenue Code.
(24) Subtract any interest expense paid or accrued in the current
taxable year but not deducted as a result of the limitation imposed
under Section 163(j)(1) of the Internal Revenue Code. Add any
interest expense paid or accrued in a previous taxable year but
allowed as a deduction under Section 163 of the Internal Revenue
Code in the current taxable year. For purposes of this subdivision,
an interest expense is considered paid or accrued only in the first
taxable year the deduction would have been allowable under
Section 163 of the Internal Revenue Code if the limitation under
Section 163(j)(1) of the Internal Revenue Code did not exist.
(25) Subtract the amount that would have been excluded from
gross income but for the enactment of Section 118(b)(2) of the
Internal Revenue Code for taxable years ending after December
22, 2017.
(26) For taxable years beginning after December 31, 2019, and
before January 1, 2021, add an amount of the deduction claimed
under Section 62(a)(22) of the Internal Revenue Code.
(27) For taxable years beginning after December 31, 2019, for
payments made by an employer under an education assistance
program after March 27, 2020:
(A) add the amount of payments by an employer that are
excluded from the taxpayer's federal gross income under
Section 127(c)(1)(B) of the Internal Revenue Code; and
(B) deduct the interest allowable under Section 221 of the
Internal Revenue Code, if the disallowance under Section
221(e)(1) of the Internal Revenue Code did not apply to the
payments described in clause (A). For purposes of applying
Section 221(b) of the Internal Revenue Code to the amount
allowable under this clause, the amount under clause (A) shall
not be added to adjusted gross income.
(28) Add an amount equal to the remainder of:
SEA 382 — CC 1 45
(A) the amount allowable as a deduction under Section 274(n)
of the Internal Revenue Code; minus
(B) the amount otherwise allowable as a deduction under
Section 274(n) of the Internal Revenue Code, if Section
274(n)(2)(D) of the Internal Revenue Code was not in effect
for amounts paid or incurred after December 31, 2020.
(29) For taxable years beginning after December 31, 2017, and
before January 1, 2021, add an amount equal to the excess
business loss of the taxpayer as defined in Section 461(l)(3) of the
Internal Revenue Code. In addition:
(A) If a taxpayer has an excess business loss under this
subdivision and also has modifications under subdivisions (15)
and (17) for property placed in service during the taxable year,
the taxpayer shall treat a portion of the taxable year
modifications for that property as occurring in the taxable year
the property is placed in service and a portion of the
modifications as occurring in the immediately following
taxable year.
(B) The portion of the modifications under subdivisions (15)
and (17) for property placed in service during the taxable year
treated as occurring in the taxable year in which the property
is placed in service equals:
(i) the modification for the property otherwise determined
under this section; minus
(ii) the excess business loss disallowed under this
subdivision;
but not less than zero (0).
(C) The portion of the modifications under subdivisions (15)
and (17) for property placed in service during the taxable year
treated as occurring in the taxable year immediately following
the taxable year in which the property is placed in service
equals the modification for the property otherwise determined
under this section minus the amount in clause (B).
(D) Any reallocation of modifications between taxable years
under clauses (B) and (C) shall be first allocated to the
modification under subdivision (15), then to the modification
under subdivision (17).
(30) Add an amount equal to the amount excluded from federal
gross income under Section 108(f)(5) of the Internal Revenue
Code. For purposes of this subdivision:
(A) if an amount excluded under Section 108(f)(5) of the
SEA 382 — CC 1 46
Internal Revenue Code would be excludible under Section
108(a)(1)(B) of the Internal Revenue Code, the exclusion
under Section 108(a)(1)(B) of the Internal Revenue Code shall
take precedence; and
(B) if an amount would have been excludible under Section
108(f)(5) of the Internal Revenue Code as in effect on
January 1, 2020, the amount is not required to be added
back under this subdivision.
(31) For taxable years ending after March 12, 2020, subtract an
amount equal to the deduction disallowed pursuant to:
(A) Section 2301(e) of the CARES Act (Public Law 116-136),
as modified by Sections 206 and 207 of the Taxpayer Certainty
and Disaster Relief Tax Act (Division EE of Public Law
116-260); and
(B) Section 3134(e) of the Internal Revenue Code.
(32) Subtract the amount of an annual grant amount distributed to
a taxpayer's Indiana education scholarship account under
IC 20-51.4-4-2 that is used for a qualified expense (as defined in
IC 20-51.4-2-9), to the extent the distribution used for the
qualified expense is included in the taxpayer's federal adjusted
gross income under the Internal Revenue Code.
(33) For taxable years beginning after December 31, 2019, and
before January 1, 2021, add an amount equal to the amount of
unemployment compensation excluded from federal gross income
under Section 85(c) of the Internal Revenue Code.
(34) For taxable years beginning after December 31, 2022,
subtract an amount equal to the deduction disallowed under
Section 280C(h) of the Internal Revenue Code.
(34) (35) Subtract any other amounts the taxpayer is entitled to
deduct under IC 6-3-2.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 170 of the Internal Revenue
Code (concerning charitable contributions).
(3) Except as provided in subsection (c), add an amount equal to
any deduction or deductions allowed or allowable pursuant to
Section 63 of the Internal Revenue Code for taxes based on or
SEA 382 — CC 1 47
measured by income and levied at the state level by any state of
the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code (concerning foreign tax credits).
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code (concerning net operating
losses).
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding the sum of:
(A) twenty-five thousand dollars ($25,000) to the extent
deductions under Section 179 of the Internal Revenue Code
were not elected as provided in clause (B); and
(B) for taxable years beginning after December 31, 2017, the
deductions elected under Section 179 of the Internal Revenue
Code on property acquired in an exchange if:
(i) the exchange would have been eligible for
nonrecognition of gain or loss under Section 1031 of the
Internal Revenue Code in effect on January 1, 2017;
(ii) the exchange is not eligible for nonrecognition of gain or
loss under Section 1031 of the Internal Revenue Code; and
(iii) the taxpayer made an election to take deductions under
Section 179 of the Internal Revenue Code with regard to the
acquired property in the year that the property was placed
into service.
The amount of deductions allowable for an item of property
SEA 382 — CC 1 48
under this clause may not exceed the amount of adjusted gross
income realized on the property that would have been deferred
under the Internal Revenue Code in effect on January 1, 2017.
(8) Add to the extent required by IC 6-3-2-20:
(A) the amount of intangible expenses (as defined in
IC 6-3-2-20) for the taxable year that reduced the corporation's
taxable income (as defined in Section 63 of the Internal
Revenue Code) for federal income tax purposes; and
(B) any directly related interest expenses (as defined in
IC 6-3-2-20) that reduced the corporation's adjusted gross
income (determined without regard to this subdivision). For
purposes of this clause, any directly related interest expense
that constitutes business interest within the meaning of Section
163(j) of the Internal Revenue Code shall be considered to
have reduced the taxpayer's federal taxable income only in the
first taxable year in which the deduction otherwise would have
been allowable under Section 163 of the Internal Revenue
Code if the limitation under Section 163(j)(1) of the Internal
Revenue Code did not exist.
(9) Add an amount equal to any deduction for dividends paid (as
defined in Section 561 of the Internal Revenue Code) to
shareholders of a captive real estate investment trust (as defined
in section 34.5 of this chapter).
(10) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7 (certain income
derived from patents); and
(B) included in the corporation's taxable income under the
Internal Revenue Code.
(11) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(12) Add the amount excluded from federal gross income under
SEA 382 — CC 1 49
Section 103 of the Internal Revenue Code for interest received on
an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(13) For taxable years beginning after December 25, 2016:
(A) for a corporation other than a real estate investment trust,
add:
(i) an amount equal to the amount reported by the taxpayer
on IRC 965 Transition Tax Statement, line 1; or
(ii) if the taxpayer deducted an amount under Section 965(c)
of the Internal Revenue Code in determining the taxpayer's
taxable income for purposes of the federal income tax, the
amount deducted under Section 965(c) of the Internal
Revenue Code; and
(B) for a real estate investment trust, add an amount equal to
the deduction for deferred foreign income that was claimed by
the taxpayer for the taxable year under Section 965(c) of the
Internal Revenue Code, but only to the extent that the taxpayer
included income pursuant to Section 965 of the Internal
Revenue Code in its taxable income for federal income tax
purposes or is required to add back dividends paid under
subdivision (9).
(14) Add an amount equal to the deduction that was claimed by
the taxpayer for the taxable year under Section 250(a)(1)(B) of the
Internal Revenue Code (attributable to global intangible
low-taxed income). The taxpayer shall separately specify the
amount of the reduction under Section 250(a)(1)(B)(i) of the
Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
Internal Revenue Code.
(15) Subtract any interest expense paid or accrued in the current
taxable year but not deducted as a result of the limitation imposed
under Section 163(j)(1) of the Internal Revenue Code. Add any
interest expense paid or accrued in a previous taxable year but
allowed as a deduction under Section 163 of the Internal Revenue
Code in the current taxable year. For purposes of this subdivision,
an interest expense is considered paid or accrued only in the first
taxable year the deduction would have been allowable under
Section 163 of the Internal Revenue Code if the limitation under
Section 163(j)(1) of the Internal Revenue Code did not exist.
(16) Subtract the amount that would have been excluded from
gross income but for the enactment of Section 118(b)(2) of the
Internal Revenue Code for taxable years ending after December
SEA 382 — CC 1 50
22, 2017.
(17) Add an amount equal to the remainder of:
(A) the amount allowable as a deduction under Section 274(n)
of the Internal Revenue Code; minus
(B) the amount otherwise allowable as a deduction under
Section 274(n) of the Internal Revenue Code, if Section
274(n)(2)(D) of the Internal Revenue Code was not in effect
for amounts paid or incurred after December 31, 2020.
(18) For taxable years ending after March 12, 2020, subtract an
amount equal to the deduction disallowed pursuant to:
(A) Section 2301(e) of the CARES Act (Public Law 116-136),
as modified by Sections 206 and 207 of the Taxpayer Certainty
and Disaster Relief Tax Act (Division EE of Public Law
116-260); and
(B) Section 3134(e) of the Internal Revenue Code.
(19) For taxable years beginning after December 31, 2022,
subtract an amount equal to the deduction disallowed under
Section 280C(h) of the Internal Revenue Code.
(19) (20) Add or subtract any other amounts the taxpayer is:
(A) required to add or subtract; or
(B) entitled to deduct;
under IC 6-3-2.
(c) The following apply to taxable years beginning after December
31, 2018, for purposes of the add back of any deduction allowed on the
taxpayer's federal income tax return for wagering taxes, as provided in
subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
the taxpayer is a corporation:
(1) For taxable years beginning after December 31, 2018, and
before January 1, 2020, a taxpayer is required to add back under
this section eighty-seven and five-tenths percent (87.5%) of any
deduction allowed on the taxpayer's federal income tax return for
wagering taxes.
(2) For taxable years beginning after December 31, 2019, and
before January 1, 2021, a taxpayer is required to add back under
this section seventy-five percent (75%) of any deduction allowed
on the taxpayer's federal income tax return for wagering taxes.
(3) For taxable years beginning after December 31, 2020, and
before January 1, 2022, a taxpayer is required to add back under
this section sixty-two and five-tenths percent (62.5%) of any
deduction allowed on the taxpayer's federal income tax return for
wagering taxes.
SEA 382 — CC 1 51
(4) For taxable years beginning after December 31, 2021, and
before January 1, 2023, a taxpayer is required to add back under
this section fifty percent (50%) of any deduction allowed on the
taxpayer's federal income tax return for wagering taxes.
(5) For taxable years beginning after December 31, 2022, and
before January 1, 2024, a taxpayer is required to add back under
this section thirty-seven and five-tenths percent (37.5%) of any
deduction allowed on the taxpayer's federal income tax return for
wagering taxes.
(6) For taxable years beginning after December 31, 2023, and
before January 1, 2025, a taxpayer is required to add back under
this section twenty-five percent (25%) of any deduction allowed
on the taxpayer's federal income tax return for wagering taxes.
(7) For taxable years beginning after December 31, 2024, and
before January 1, 2026, a taxpayer is required to add back under
this section twelve and five-tenths percent (12.5%) of any
deduction allowed on the taxpayer's federal income tax return for
wagering taxes.
(8) For taxable years beginning after December 31, 2025, a
taxpayer is not required to add back under this section any amount
of a deduction allowed on the taxpayer's federal income tax return
for wagering taxes.
(d) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under Indiana
law, the same as "life insurance company taxable income" (as defined
in Section 801 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code (concerning
charitable contributions).
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 832(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code (concerning foreign tax credits).
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
SEA 382 — CC 1 52
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code (concerning net operating
losses).
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding the sum of:
(A) twenty-five thousand dollars ($25,000) to the extent
deductions under Section 179 of the Internal Revenue Code
were not elected as provided in clause (B); and
(B) for taxable years beginning after December 31, 2017, the
deductions elected under Section 179 of the Internal Revenue
Code on property acquired in an exchange if:
(i) the exchange would have been eligible for
nonrecognition of gain or loss under Section 1031 of the
Internal Revenue Code in effect on January 1, 2017;
(ii) the exchange is not eligible for nonrecognition of gain or
loss under Section 1031 of the Internal Revenue Code; and
(iii) the taxpayer made an election to take deductions under
Section 179 of the Internal Revenue Code with regard to the
acquired property in the year that the property was placed
into service.
The amount of deductions allowable for an item of property
under this clause may not exceed the amount of adjusted gross
income realized on the property that would have been deferred
under the Internal Revenue Code in effect on January 1, 2017.
(8) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7 (certain income
derived from patents); and
(B) included in the insurance company's taxable income under
the Internal Revenue Code.
SEA 382 — CC 1 53
(9) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(10) Add an amount equal to any exempt insurance income under
Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(11) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received on
an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(12) For taxable years beginning after December 25, 2016, add:
(A) an amount equal to the amount reported by the taxpayer on
IRC 965 Transition Tax Statement, line 1; or
(B) if the taxpayer deducted an amount under Section 965(c)
of the Internal Revenue Code in determining the taxpayer's
taxable income for purposes of the federal income tax, the
amount deducted under Section 965(c) of the Internal Revenue
Code.
(13) Add an amount equal to the deduction that was claimed by
the taxpayer for the taxable year under Section 250(a)(1)(B) of the
Internal Revenue Code (attributable to global intangible
low-taxed income). The taxpayer shall separately specify the
amount of the reduction under Section 250(a)(1)(B)(i) of the
Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
Internal Revenue Code.
(14) Subtract any interest expense paid or accrued in the current
taxable year but not deducted as a result of the limitation imposed
under Section 163(j)(1) of the Internal Revenue Code. Add any
interest expense paid or accrued in a previous taxable year but
allowed as a deduction under Section 163 of the Internal Revenue
SEA 382 — CC 1 54
Code in the current taxable year. For purposes of this subdivision,
an interest expense is considered paid or accrued only in the first
taxable year the deduction would have been allowable under
Section 163 of the Internal Revenue Code if the limitation under
Section 163(j)(1) of the Internal Revenue Code did not exist.
(15) Subtract the amount that would have been excluded from
gross income but for the enactment of Section 118(b)(2) of the
Internal Revenue Code for taxable years ending after December
22, 2017.
(16) Add an amount equal to the remainder of:
(A) the amount allowable as a deduction under Section 274(n)
of the Internal Revenue Code; minus
(B) the amount otherwise allowable as a deduction under
Section 274(n) of the Internal Revenue Code, if Section
274(n)(2)(D) of the Internal Revenue Code was not in effect
for amounts paid or incurred after December 31, 2020.
(17) For taxable years ending after March 12, 2020, subtract an
amount equal to the deduction disallowed pursuant to:
(A) Section 2301(e) of the CARES Act (Public Law 116-136),
as modified by Sections 206 and 207 of the Taxpayer Certainty
and Disaster Relief Tax Act (Division EE of Public Law
116-260); and
(B) Section 3134(e) of the Internal Revenue Code.
(18) For taxable years beginning after December 31, 2022,
subtract an amount equal to the deduction disallowed under
Section 280C(h) of the Internal Revenue Code.
(18) (19) Add or subtract any other amounts the taxpayer is:
(A) required to add or subtract; or
(B) entitled to deduct;
under IC 6-3-2.
(e) In the case of insurance companies subject to tax under Section
831 of the Internal Revenue Code and organized under Indiana law, the
same as "taxable income" (as defined in Section 832 of the Internal
Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code (concerning
charitable contributions).
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 832(c) of the Internal Revenue Code
SEA 382 — CC 1 55
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code (concerning foreign tax credits).
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code (concerning net operating
losses).
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding the sum of:
(A) twenty-five thousand dollars ($25,000) to the extent
deductions under Section 179 of the Internal Revenue Code
were not elected as provided in clause (B); and
(B) for taxable years beginning after December 31, 2017, the
deductions elected under Section 179 of the Internal Revenue
Code on property acquired in an exchange if:
(i) the exchange would have been eligible for
nonrecognition of gain or loss under Section 1031 of the
Internal Revenue Code in effect on January 1, 2017;
(ii) the exchange is not eligible for nonrecognition of gain or
loss under Section 1031 of the Internal Revenue Code; and
(iii) the taxpayer made an election to take deductions under
Section 179 of the Internal Revenue Code with regard to the
acquired property in the year that the property was placed
into service.
The amount of deductions allowable for an item of property
SEA 382 — CC 1 56
under this clause may not exceed the amount of adjusted gross
income realized on the property that would have been deferred
under the Internal Revenue Code in effect on January 1, 2017.
(8) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7 (certain income
derived from patents); and
(B) included in the insurance company's taxable income under
the Internal Revenue Code.
(9) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(10) Add an amount equal to any exempt insurance income under
Section 953(e) of the Internal Revenue Code that is active
financing income under Subpart F of Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(11) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received on
an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(12) For taxable years beginning after December 25, 2016, add:
(A) an amount equal to the amount reported by the taxpayer on
IRC 965 Transition Tax Statement, line 1; or
(B) if the taxpayer deducted an amount under Section 965(c)
of the Internal Revenue Code in determining the taxpayer's
taxable income for purposes of the federal income tax, the
amount deducted under Section 965(c) of the Internal Revenue
Code.
(13) Add an amount equal to the deduction that was claimed by
the taxpayer for the taxable year under Section 250(a)(1)(B) of the
Internal Revenue Code (attributable to global intangible
SEA 382 — CC 1 57
low-taxed income). The taxpayer shall separately specify the
amount of the reduction under Section 250(a)(1)(B)(i) of the
Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
Internal Revenue Code.
(14) Subtract any interest expense paid or accrued in the current
taxable year but not deducted as a result of the limitation imposed
under Section 163(j)(1) of the Internal Revenue Code. Add any
interest expense paid or accrued in a previous taxable year but
allowed as a deduction under Section 163 of the Internal Revenue
Code in the current taxable year. For purposes of this subdivision,
an interest expense is considered paid or accrued only in the first
taxable year the deduction would have been allowable under
Section 163 of the Internal Revenue Code if the limitation under
Section 163(j)(1) of the Internal Revenue Code did not exist.
(15) Subtract the amount that would have been excluded from
gross income but for the enactment of Section 118(b)(2) of the
Internal Revenue Code for taxable years ending after December
22, 2017.
(16) Add an amount equal to the remainder of:
(A) the amount allowable as a deduction under Section 274(n)
of the Internal Revenue Code; minus
(B) the amount otherwise allowable as a deduction under
Section 274(n) of the Internal Revenue Code, if Section
274(n)(2)(D) of the Internal Revenue Code was not in effect
for amounts paid or incurred after December 31, 2020.
(17) For taxable years ending after March 12, 2020, subtract an
amount equal to the deduction disallowed pursuant to:
(A) Section 2301(e) of the CARES Act (Public Law 116-136),
as modified by Sections 206 and 207 of the Taxpayer Certainty
and Disaster Relief Tax Act (Division EE of Public Law
116-260); and
(B) Section 3134(e) of the Internal Revenue Code.
(18) For taxable years beginning after December 31, 2022,
subtract an amount equal to the deduction disallowed under
Section 280C(h) of the Internal Revenue Code.
(18) (19) Add or subtract any other amounts the taxpayer is:
(A) required to add or subtract; or
(B) entitled to deduct;
under IC 6-3-2.
(f) In the case of trusts and estates, "taxable income" (as defined for
trusts and estates in Section 641(b) of the Internal Revenue Code)
SEA 382 — CC 1 58
adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the federal
adjusted gross income of the estate of a victim of the September
11 terrorist attack or a trust to the extent the trust benefits a victim
of the September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(4) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code (concerning net operating
losses).
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding the sum of:
(A) twenty-five thousand dollars ($25,000) to the extent
deductions under Section 179 of the Internal Revenue Code
were not elected as provided in clause (B); and
(B) for taxable years beginning after December 31, 2017, the
deductions elected under Section 179 of the Internal Revenue
Code on property acquired in an exchange if:
(i) the exchange would have been eligible for
nonrecognition of gain or loss under Section 1031 of the
Internal Revenue Code in effect on January 1, 2017;
(ii) the exchange is not eligible for nonrecognition of gain or
loss under Section 1031 of the Internal Revenue Code; and
(iii) the taxpayer made an election to take deductions under
Section 179 of the Internal Revenue Code with regard to the
SEA 382 — CC 1 59
acquired property in the year that the property was placed
into service.
The amount of deductions allowable for an item of property
under this clause may not exceed the amount of adjusted gross
income realized on the property that would have been deferred
under the Internal Revenue Code in effect on January 1, 2017.
(6) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7 (certain income
derived from patents); and
(B) included in the taxpayer's taxable income under the
Internal Revenue Code.
(7) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from business
indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable
debt instrument, as provided in Section 108(i) of the Internal
Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a
previous year the amount necessary to offset the amount included
in federal gross income as a result of the deferral of income
arising from business indebtedness discharged in connection with
the reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(8) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received on
an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(9) For taxable years beginning after December 25, 2016, add an
amount equal to:
(A) the amount reported by the taxpayer on IRC 965
Transition Tax Statement, line 1;
(B) if the taxpayer deducted an amount under Section 965(c)
of the Internal Revenue Code in determining the taxpayer's
taxable income for purposes of the federal income tax, the
amount deducted under Section 965(c) of the Internal Revenue
Code; and
(C) with regard to any amounts of income under Section 965
of the Internal Revenue Code distributed by the taxpayer, the
deduction under Section 965(c) of the Internal Revenue Code
SEA 382 — CC 1 60
attributable to such distributed amounts and not reported to the
beneficiary.
For purposes of this article, the amount required to be added back
under clause (B) is not considered to be distributed or
distributable to a beneficiary of the estate or trust for purposes of
Sections 651 and 661 of the Internal Revenue Code.
(10) Subtract any interest expense paid or accrued in the current
taxable year but not deducted as a result of the limitation imposed
under Section 163(j)(1) of the Internal Revenue Code. Add any
interest expense paid or accrued in a previous taxable year but
allowed as a deduction under Section 163 of the Internal Revenue
Code in the current taxable year. For purposes of this subdivision,
an interest expense is considered paid or accrued only in the first
taxable year the deduction would have been allowable under
Section 163 of the Internal Revenue Code if the limitation under
Section 163(j)(1) of the Internal Revenue Code did not exist.
(11) Add an amount equal to the deduction for qualified business
income that was claimed by the taxpayer for the taxable year
under Section 199A of the Internal Revenue Code.
(12) Subtract the amount that would have been excluded from
gross income but for the enactment of Section 118(b)(2) of the
Internal Revenue Code for taxable years ending after December
22, 2017.
(13) Add an amount equal to the remainder of:
(A) the amount allowable as a deduction under Section 274(n)
of the Internal Revenue Code; minus
(B) the amount otherwise allowable as a deduction under
Section 274(n) of the Internal Revenue Code, if Section
274(n)(2)(D) of the Internal Revenue Code was not in effect
for amounts paid or incurred after December 31, 2020.
(14) For taxable years beginning after December 31, 2017, and
before January 1, 2021, add an amount equal to the excess
business loss of the taxpayer as defined in Section 461(l)(3) of the
Internal Revenue Code. In addition:
(A) If a taxpayer has an excess business loss under this
subdivision and also has modifications under subdivisions (3)
and (5) for property placed in service during the taxable year,
the taxpayer shall treat a portion of the taxable year
modifications for that property as occurring in the taxable year
the property is placed in service and a portion of the
modifications as occurring in the immediately following
taxable year.
SEA 382 — CC 1 61
(B) The portion of the modifications under subdivisions (3)
and (5) for property placed in service during the taxable year
treated as occurring in the taxable year in which the property
is placed in service equals:
(i) the modification for the property otherwise determined
under this section; minus
(ii) the excess business loss disallowed under this
subdivision;
but not less than zero (0).
(C) The portion of the modifications under subdivisions (3)
and (5) for property placed in service during the taxable year
treated as occurring in the taxable year immediately following
the taxable year in which the property is placed in service
equals the modification for the property otherwise determined
under this section minus the amount in clause (B).
(D) Any reallocation of modifications between taxable years
under clauses (B) and (C) shall be first allocated to the
modification under subdivision (3), then to the modification
under subdivision (5).
(15) For taxable years ending after March 12, 2020, subtract an
amount equal to the deduction disallowed pursuant to:
(A) Section 2301(e) of the CARES Act (Public Law 116-136),
as modified by Sections 206 and 207 of the Taxpayer Certainty
and Disaster Relief Tax Act (Division EE of Public Law
116-260); and
(B) Section 3134(e) of the Internal Revenue Code.
(16) For taxable years beginning after December 31, 2022,
subtract an amount equal to the deduction disallowed under
Section 280C(h) of the Internal Revenue Code.
(16) (17) Add or subtract any other amounts the taxpayer is:
(A) required to add or subtract; or
(B) entitled to deduct;
under IC 6-3-2.
(g) Subsections (a)(34), (b)(19), (d)(18), (e)(18), or (f)(16) (a)(35),
(b)(20), (d)(19), (e)(19), or (f)(17) may not be construed to require an
add back or allow a deduction or exemption more than once for a
particular add back, deduction, or exemption.
(h) For taxable years beginning after December 25, 2016, if:
(1) a taxpayer is a shareholder, either directly or indirectly, in a
corporation that is an E&P deficit foreign corporation as defined
in Section 965(b)(3)(B) of the Internal Revenue Code, and the
SEA 382 — CC 1 62
earnings and profit deficit, or a portion of the earnings and profit
deficit, of the E&P deficit foreign corporation is permitted to
reduce the federal adjusted gross income or federal taxable
income of the taxpayer, the deficit, or the portion of the deficit,
shall also reduce the amount taxable under this section to the
extent permitted under the Internal Revenue Code, however, in no
case shall this permit a reduction in the amount taxable under
Section 965 of the Internal Revenue Code for purposes of this
section to be less than zero (0); and
(2) the Internal Revenue Service issues guidance that such an
income or deduction is not reported directly on a federal tax
return or is to be reported in a manner different than specified in
this section, this section shall be construed as if federal adjusted
gross income or federal taxable income included the income or
deduction.
(i) If a partner is required to include an item of income, a deduction,
or another tax attribute in the partner's adjusted gross income tax return
pursuant to IC 6-3-4.5, such item shall be considered to be includible
in the partner's federal adjusted gross income or federal taxable
income, regardless of whether such item is actually required to be
reported by the partner for federal income tax purposes. For purposes
of this subsection:
(1) items for which a valid election is made under IC 6-3-4.5-6,
IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
in the partner's adjusted gross income or taxable income; and
(2) items for which the partnership did not make an election under
IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
partnership is required to remit tax pursuant to IC 6-3-4.5-18,
shall be included in the partner's adjusted gross income or taxable
income.
SECTION 34. IC 6-3-2-1.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 1.7. (a) For purposes of this section:
(1) "Distributor" means a person or entity located in this state
that purchases tangible personal property from an eligible
corporation for purposes of resale. For purposes of this
section, a distributor is not a person or entity that has a
relationship described in Section 267(b) of the Internal
Revenue Code with the eligible corporation.
(2) "Eligible corporation" means a corporation otherwise
subject to tax under section 1(b) of this chapter. An eligible
corporation shall not include a corporation described in
SEA 382 — CC 1 63
section 2.8(2) of this chapter or a corporation subject to tax
under IC 6-5.5.
(3) "Qualifying distribution sale" means a sale of tangible
personal property by an eligible corporation to a distributor
that:
(A) is a purchase for resale by the distributor as defined in
IC 6-2.5-5-8; and
(B) for which the sourcing of the sale of the property to an
ultimate customer outside Indiana is agreed to by the
department and the eligible corporation, or, in the absence
of an agreement, sourced by the ratio of the population of
Indiana compared to the population of all states in which
the qualified distribution sales are sold to an ultimate
customer.
For purposes of this section, a qualifying distribution sale
shall not include any sale for which the distributor does not
issue an exemption certificate in the manner provided by the
department under IC 6-2.5-8-8 or a purchase by the
distributor for the distributor's own use other than for resale.
A qualifying distribution sale shall not include any sale made
by a pass through entity that would otherwise be attributable
under this article to the eligible corporation.
(4) "Ultimate customer" means a purchaser of tangible
personal property who purchases the tangible personal
property without an intent of future resale of property.
(b) If an eligible corporation has greater than one billion dollars
($1,000,000,000) of tangible personal property sales that otherwise
would be sourced to this state under section 2(e) of this chapter,
and would have an apportionment percentage under section 2 of
this chapter of greater than ten percent (10%) prior to application
of this section the eligible corporation may elect to determine its
tax as follows:
STEP ONE: Determine the apportionment percentage under
sections 2 and 2.2 of this chapter, treating qualifying
distribution sales as if they were not receipts for purposes of
the apportionment numerator, but treating the portion where
the ultimate customer would be located in Indiana as part of
the receipts numerator.
STEP TWO: Determine Indiana adjusted gross income in the
manner otherwise provided in this article, applying the
apportionment percentage in STEP ONE. For purposes of this
STEP, any adjusted gross income arising from qualified
SEA 382 — CC 1 64
distribution sales shall be treated as business income of the
eligible corporation.
STEP THREE: Determine the tax due under this chapter on
the amount computed in STEP TWO, reduced by any
nonrefundable credits under IC 6-3-3 or IC 6-3.1, but not less
than zero (0). For purposes of this article, any application of
a credit under this STEP shall reduce the amount available
for carryforward in the same manner as otherwise provided
under IC 6-3-3 or IC 6-3.1.
STEP FOUR:
(A) If the eligible corporation's qualified distribution sales
are not in excess of two billion dollars ($2,000,000,000),
determine one-half of one percent (0.5%) of the qualified
distribution sales.
(B) If the eligible corporation's qualified distribution sales
are in excess of two billion dollars ($2,000,000,000) but not
in excess of three billion dollars ($3,000,000,000),
determine three-eighths of one percent (0.375%) of the
qualified distribution sales in excess of two billion dollars
($2,000,000,000) plus ten million dollars ($10,000,000).
(C) If the eligible corporation's qualified distribution sales
are in excess of three billion dollars ($3,000,000,000) but
not in excess of four billion dollars ($4,000,000,000),
determine one-fourth of one percent (0.25%) of the
qualified distribution sales in excess of three billion dollars
($3,000,000,000) plus thirteen million seven hundred fifty
thousand dollars ($13,750,000).
(D) If the eligible corporation's qualified distribution sales
are in excess of four billion dollars ($4,000,000,000),
determine one-eighth of one percent (0.125%) of the
qualified distribution sales in excess of four billion dollars
($4,000,000,000) plus sixteen million two hundred fifty
thousand dollars ($16,250,000).
STEP FIVE: Add the amounts determined under STEP
THREE and STEP FOUR.
(c) Notwithstanding any other provision of this section, for an
eligible corporation that makes an election:
(1) if the tax for a taxable year covered by the election as
computed under subsection (b) is less than twenty-six million
dollars ($26,000,000), the tax shall be twenty-six million
dollars ($26,000,000); and
(2) if the tax for the taxable year covered by an election as
SEA 382 — CC 1 65
computed under subsection (b) is greater than the amount
specified in clauses (A) through (C), the amount of tax shall be
the following amounts:
(A) For a taxable year ending after December 31, 2018,
and before January 1, 2025, forty million dollars
($40,000,000).
(B) For a taxable year ending after December 31, 2024, and
before January 1, 2026, forty-two million dollars
($42,000,000).
(C) For each taxable year ending after December 31, 2025,
forty-two million dollars ($42,000,000) plus one million
dollars ($1,000,000) for each taxable year ending after
December 31, 2025.
For purposes of this subsection, the tax for a taxable year under
this section shall be determined after application of any credit
allowable under IC 6-3-3 and IC 6-3.1.
(d) If an eligible corporation makes an election under this
section, the following apply:
(1) The eligible corporation shall be subject to the election for
the taxable year of the election and each taxable year
thereafter until the first taxable year ending ten (10) years
after the first year in which an election is made under this
section, even if the corporation would not be an eligible
corporation for a taxable year after the taxable year in which
the election is made, and shall be binding on any successor
corporation or group of corporations to the eligible
corporation.
(2) After the period of the initial election under subdivision
(1), the department may permit a taxpayer to make an
election under this section for each subsequent taxable year
after the election expires under subdivision (1). However:
(A) an election under this subdivision is only permitted for
one (1) taxable year; and
(B) if an eligible corporation does make an election for a
taxable year, the eligible corporation may only make a new
election if the new election is subject to the terms of
subdivision (1).
(e) If two (2) or more eligible corporations are part of a
consolidated return or combined return, the computation under
STEP FOUR of subsection (b) shall be determined separately for
each corporation.
(f) For purposes of computing net operating losses for the
SEA 382 — CC 1 66
taxable year under section 2.6 of this chapter and the deduction
allowable against adjusted gross income under section 2.6 of this
chapter, the loss for the taxable year or deduction allowable shall
be computed pursuant to STEP TWO of subsection (b).
(g) An election under this section shall be in the form and
manner prescribed by the department. The election must be
completed and filed with the department on or before the date of
filing of the original return for a taxable year to be effective
beginning with that taxable year. In addition, if an eligible
corporation files a consolidated return or combined return for the
first taxable year of the election, or for any year subsequent to the
first taxable year of the election, the eligible corporation and the
department shall enter into an agreement regarding issues specific
to consolidated or combined returns. In the absence of such an
agreement, any such issues shall be treated in a manner prescribed
by the department and published in the Indiana Register. If the
original return for a taxable year is filed after the due date for the
original return, including any extensions, an election will not be
allowed for that taxable year or any subsequent year to which the
election otherwise would apply. However, the eligible corporation
may file an election for subsequent taxable years, provided the
eligible corporation otherwise meets the requirements of this
section.
SECTION 35. IC 6-3-2-2.5, AS AMENDED BY P.L.165-2021,
SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 2.5. (a) This section applies to a resident
person.
(b) Resident persons are entitled to a net operating loss deduction.
The amount of the deduction taken in a taxable year may not exceed
the taxpayer's unused Indiana net operating losses carried over to that
year. A taxpayer is not entitled to carryback any net operating losses
after December 31, 2011.
(c) An Indiana net operating loss equals the sum of:
(1) the taxpayer's federal net operating loss for a taxable year as
calculated under Section 172 of the Internal Revenue Code,
adjusted for certain modifications required by IC 6-3-1-3.5 as set
forth in subsection (d)(1) and, in the case of an individual,
reduced by any deductions allowable in determining the federal
net operating loss for the taxable year, but not allowable in
determining federal adjusted gross income;
(2) the excess business loss deduction disallowed under
IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14); and
SEA 382 — CC 1 67
(3) for taxable years beginning after December 31, 2020, a loss
for a taxable year disallowed because of Section 461(l) of the
Internal Revenue Code, without any modifications under
subsection (d).
(d) The following provisions apply for purposes of subsection (c):
(1) The modifications that are to be applied are those
modifications required under IC 6-3-1-3.5 for the same taxable
year in which each net operating loss was incurred, except that the
modifications do not include the modifications required under:
(A) IC 6-3-1-3.5(a)(3);
(B) IC 6-3-1-3.5(a)(4);
(C) IC 6-3-1-3.5(a)(5);
(D) IC 6-3-1-3.5(a)(34); IC 6-3-1-3.5(a)(35);
(E) IC 6-3-1-3.5(f)(11); and
(F) IC 6-3-1-3.5(f)(16). IC 6-3-1-3.5(f)(17).
(2) An Indiana net operating loss includes a net operating loss that
arises when the applicable modifications required by IC 6-3-1-3.5
as set forth in subdivision (1) exceed the sum of the taxpayer's
federal adjusted gross income (as defined in Section 62 of the
Internal Revenue Code) if the taxpayer is an individual, or federal
taxable income (as defined in Section 63 of the Internal Revenue
Code) if the taxpayer is a trust or an estate for the taxable year in
which the Indiana net operating loss is determined and the
modifications otherwise required for federal net operating losses
for the taxable year by Section 172(d) of the Internal Revenue
Code. A modification that reduces a federal net operating loss
shall be treated as a positive number for purposes of this
subdivision, and a modification that increases a federal net
operating loss shall be treated as a negative number for purposes
of this subdivision.
(e) Subject to the limitations contained in subsection (g), an Indiana
net operating loss carryover shall be available as a deduction from the
taxpayer's adjusted gross income (as defined in IC 6-3-1-3.5) in the
carryover year provided in subsection (f), but not in excess of the
taxpayer's adjusted gross income (as defined in IC 6-3-1-3.5) in the
carryover year determined without regard to this section.
(f) Carryovers shall be determined under this subsection as follows:
(1) An Indiana net operating loss shall be an Indiana net operating
loss carryover to each of the carryover years following the taxable
year of the loss.
(2) An Indiana net operating loss may not be carried over for
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more than twenty (20) taxable years after the taxable year of the
loss.
(g) The entire amount of the Indiana net operating loss for any
taxable year shall be carried to the earliest of the taxable years to which
(as determined under subsection (f)) the loss may be carried. The
amount of the Indiana net operating loss remaining after the deduction
is taken under this section in a taxable year may be carried over as
provided in subsection (f). The amount of the Indiana net operating loss
carried over from year to year shall be reduced to the extent that the
Indiana net operating loss carryover is used by the taxpayer to obtain
a deduction in a taxable year until the occurrence of the earlier of the
following:
(1) The entire amount of the Indiana net operating loss has been
used as a deduction.
(2) The Indiana net operating loss has been carried over to each
of the carryover years provided by subsection (f).
SECTION 36. IC 6-3-2-2.6, AS AMENDED BY P.L.165-2021,
SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 2.6. (a) This section applies to a corporation
or a nonresident person.
(b) Corporations and nonresident persons are entitled to a net
operating loss deduction. The amount of the deduction taken in a
taxable year may not exceed the taxpayer's unused Indiana net
operating losses carried over to that year. A taxpayer is not entitled to
carryback any net operating losses after December 31, 2011.
(c) An Indiana net operating loss equals the sum of:
(1) the taxpayer's federal net operating loss for a taxable year as
calculated under Section 172 of the Internal Revenue Code,
derived from sources within Indiana and adjusted for certain
modifications required by IC 6-3-1-3.5 as set forth in subsection
(d)(1) and, for a nonresident individual, reduced by any
deductions from Indiana sources allowable in determining the
federal net operating loss for the taxable year, but not allowable
in determining federal adjusted gross income;
(2) the excess business loss deduction disallowed under
IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14) and incurred from
Indiana sources; and
(3) for taxable years beginning after December 31, 2020, the
portion of the loss for a taxable year disallowed because of
Section 461(l) of the Internal Revenue Code and incurred from
Indiana sources, without any modifications under subsection (d).
Any net operating loss under this subdivision shall be computed
SEA 382 — CC 1 69
in a manner consistent with the computation of adjusted gross
income under IC 6-3.
(d) The following provisions apply for purposes of subsection (c):
(1) The modifications that are to be applied are those
modifications required under IC 6-3-1-3.5 for the same taxable
year in which each net operating loss was incurred, except that the
modifications do not include the modifications required under:
(A) IC 6-3-1-3.5(a)(3);
(B) IC 6-3-1-3.5(a)(4);
(C) IC 6-3-1-3.5(a)(5);
(D) IC 6-3-1-3.5(a)(34); IC 6-3-1-3.5(a)(35);
(E) IC 6-3-1-3.5(b)(14);
(F) IC 6-3-1-3.5(b)(19); IC 6-3-1-3.5(b)(20);
(G) IC 6-3-1-3.5(d)(13);
(H) IC 6-3-1-3.5(d)(18); IC 6-3-1-3.5(d)(19);
(I) IC 6-3-1-3.5(e)(13);
(J) IC 6-3-1-3.5(e)(18); IC 6-3-1-3.5(e)(19);
(K) IC 6-3-1-3.5(f)(11); and
(L) IC 6-3-1-3.5(f)(16). IC 6-3-1-3.5(f)(17).
(2) The amount of the taxpayer's net operating loss that is derived
from sources within Indiana shall be determined in the same
manner that the amount of the taxpayer's adjusted gross income
derived from sources within Indiana is determined under section
2 of this chapter for the same taxable year during which each loss
was incurred.
(3) An Indiana net operating loss includes a net operating loss that
arises when the applicable modifications required by IC 6-3-1-3.5
as set forth in subdivision (1) exceed the sum of:
(A) either:
(i) the taxpayer's federal taxable income (as defined in
Section 63 of the Internal Revenue Code), if the taxpayer is
a corporation, nonresident estate, or nonresident trust; or
(ii) the taxpayer's federal adjusted gross income (as defined
by Section 62 of the Internal Revenue Code), if the taxpayer
is a nonresident individual;
for the taxable year in which the Indiana net operating loss is
determined; and
(B) the modifications otherwise required for federal net
operating losses for the taxable year of the Indiana net
operating loss under Section 172(d) of the Internal Revenue
Code or Section 512(b) of the Internal Revenue Code. A
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modification that reduces a federal net operating loss shall be
treated as a positive number for purposes of this subdivision,
and a modification that increases a federal net operating loss
shall be treated as a negative number for purposes of this
subdivision.
(e) Subject to the limitations contained in subsection (g), an Indiana
net operating loss carryover shall be available as a deduction from the
taxpayer's adjusted gross income derived from sources within Indiana
(as defined in section 2 of this chapter) in the carryover year provided
in subsection (f), but not in excess of the taxpayer's adjusted gross
income (as defined in IC 6-3-1-3.5) in the carryover year determined
without regard to the deduction allowable under this section.
(f) Carryovers shall be determined under this subsection as follows:
(1) An Indiana net operating loss shall be an Indiana net operating
loss carryover to each of the carryover years following the taxable
year of the loss.
(2) An Indiana net operating loss may not be carried over for
more than twenty (20) taxable years after the taxable year of the
loss.
(g) The entire amount of the Indiana net operating loss for any
taxable year shall be carried to the earliest of the taxable years to which
(as determined under subsection (f)) the loss may be carried. The
amount of the Indiana net operating loss remaining after the deduction
is taken under this section in a taxable year may be carried over as
provided in subsection (f). The amount of the Indiana net operating loss
carried over from year to year shall be reduced to the extent that the
Indiana net operating loss carryover is used by the taxpayer to obtain
a deduction in a taxable year until the occurrence of the earlier of the
following:
(1) The entire amount of the Indiana net operating loss has been
used as a deduction.
(2) The Indiana net operating loss has been carried over to each
of the carryover years provided by subsection (f).
(h) An Indiana net operating loss deduction determined under this
section shall be allowed notwithstanding the fact that in the year the
taxpayer incurred the net operating loss the taxpayer was not subject to
the tax imposed under section 1 of this chapter because the taxpayer
was:
(1) a life insurance company (as defined in Section 816(a) of the
Internal Revenue Code); or
(2) an insurance company subject to tax under Section 831 of the
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Internal Revenue Code.
(i) In the case of a life insurance company, this section shall be
applied by substituting life insurance company taxable income (as
defined in Section 801 the Internal Revenue Code) in place of
references to taxable income (as defined in Section 63 of the Internal
Revenue Code).
SECTION 37. IC 6-3-4-3, AS AMENDED BY P.L.212-2018(ss),
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 3. (a) Returns required to be made pursuant
to section 1 of this chapter shall be filed with the department on or
before the later of the following:
(1) The 15th day of the fourth month following the close of the
taxable year.
(2) For a corporation whose federal tax return is due on or after
the date set forth in subdivision (1), as determined without regard
to any extensions, weekends, Saturdays, Sundays, or holidays
recognized by the Internal Revenue Service, the 15th day of the
fifth month following the due date of the federal tax return. close
of the taxable year.
(b) However, If the due date for a federal income tax return is
extended by the Internal Revenue Service to a date that is later than the
date specified in subdivision (1) or (2) subsection (a)(1) or (a)(2) (as
applicable), the department may extend the due date of a return
required to be made under section 1 of this chapter to reflect the due
date permitted for the federal income tax return.
(c) If the due date for a federal income tax return in the Internal
Revenue Code, as determined without regard to any extensions,
Saturdays, Sundays, or holidays recognized by the Internal
Revenue Service, is later than the date provided in subsection (a),
the due date for the return made pursuant to section 1 of this
chapter shall be the later of the due date for the federal income tax
return or the due date provided under this section.
SECTION 38. IC 6-3-4-12, AS AMENDED BY P.L.85-2017,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 12. (a) Every partnership shall, at the time that the
partnership pays or credits amounts to any of its nonresident partners
on account of their distributive shares of partnership income, for a
taxable year of the partnership, deduct and retain therefrom the amount
prescribed in the withholding instructions referred to in section 8 of
this chapter. Such partnership so paying or crediting any nonresident
partner:
(1) shall be liable to the state of Indiana for the payment of the tax
SEA 382 — CC 1 72
required to be deducted and retained under this section and shall
not be liable to such partner for the amount deducted from such
payment or credit and paid over in compliance or intended
compliance with this section; and
(2) shall make return of and payment to the department monthly
whenever the amount of tax due under IC 6-3 and IC 6-3.6
exceeds an aggregate amount of fifty dollars ($50) per month with
such payment due on the thirtieth day of the following month,
unless an earlier date is specified by section 8.1 of this chapter.
Where the aggregate amount due under IC 6-3 and IC 6-3.6 does not
exceed fifty dollars ($50) per month, then such partnership shall make
return and payment to the department quarterly, on such dates and in
such manner as the department shall prescribe, of the amount of tax
which, under IC 6-3 and IC 6-3.6, it is required to withhold.
(b) Every partnership shall, at the time of each payment made by it
to the department pursuant to this section, deliver to the department a
return upon such form as shall be prescribed by the department
showing the total amounts paid or credited to its nonresident partners,
the amount deducted therefrom in accordance with the provisions of
this section, and such other information as the department may require.
Every partnership making the deduction and retention provided in this
section shall furnish to its nonresident partners annually, but not later
than the fifteenth day of the third month after the end of its taxable
year, a record of the amount of tax deducted and retained from such
partners on forms to be prescribed by the department.
(c) All money deducted and retained by the partnership, as provided
in this section, shall immediately upon such deduction be the money of
the state of Indiana and every partnership which deducts and retains
any amount of money under the provisions of IC 6-3 shall hold the
same in trust for the state of Indiana and for payment thereof to the
department in the manner and at the times provided in IC 6-3. Any
partnership may be required to post a surety bond in such sum as the
department shall determine to be appropriate to protect the state of
Indiana with respect to money deducted and retained pursuant to this
section.
(d) The provisions of IC 6-8.1 relating to additions to tax in case of
delinquency and penalties shall apply to partnerships subject to the
provisions of this section, and for these purposes any amount deducted,
or required to be deducted and remitted to the department under this
section, shall be considered to be the tax of the partnership, and with
respect to such amount it shall be considered the taxpayer.
(e) Amounts deducted from payments or credits to a nonresident
SEA 382 — CC 1 73
partner during any taxable year of the partnership in accordance with
the provisions of this section shall be considered to be in part payment
of the tax imposed on such nonresident partner for the nonresident
partner's taxable year within or with which the partnership's taxable
year ends. A return made by the partnership under subsection (b) shall
be accepted by the department as evidence in favor of the nonresident
partner of the amount so deducted for the nonresident partner's
distributive share.
(f) This section shall in no way relieve any nonresident partner from
the nonresident partner's obligations of filing a return or returns at the
time required under IC 6-3 or IC 6-3.6, and any unpaid tax shall be paid
at the time prescribed by section 5 of this chapter.
(g) Instead of the reporting periods required under subsection (a),
the department may permit a partnership to file one (1) return and
payment each year if the partnership pays or credits amounts to its
nonresident partners only one (1) time each year. The return and
payment are due on or before the fifteenth day of the fourth month after
the end of the year. However, if a partnership is permitted an extension
to file its income tax return under IC 6-8.1-6-1, the return and payment
due under this subsection shall be allowed the same treatment as an
extended income tax return with respect to due dates, interest, and
penalties under IC 6-8.1-6-1.
(h) If a partnership fails to withhold and pay any amount of tax
required to be withheld under this section and thereafter the tax is paid
by the partners, the amounts of tax as paid by the partners shall not be
collected from the partnership but it may not be relieved from liability
for interest or penalty otherwise due in respect to the failure to
withhold under IC 6-8.1-10.
(i) A partnership shall file a composite adjusted gross income tax
return on behalf of all nonresident partners. The composite return must
include each nonresident partner regardless of whether or not the
nonresident partner has other Indiana source income.
(j) If a partnership does not include all nonresident partners in the
composite return, the partnership is subject to the penalty imposed
under IC 6-8.1-10-2.1(j).
(k) For taxable years beginning after December 31, 2013, the
department may not impose a late payment penalty on a partnership for
the failure to file a return, pay the full amount of the tax shown on the
partnership's return, or pay the deficiency of the withholding taxes due
under this section if the partnership pays the department before the
fifteenth day of the fourth month after the end of the partnership's
taxable year at least:
SEA 382 — CC 1 74
(1) eighty percent (80%) of the withholding tax due for the
current year; or
(2) one hundred percent (100%) of the withholding tax due for the
preceding year.
(l) Notwithstanding subsection (a) or (i), a pass through entity
partnership is not required to withhold tax or file a composite adjusted
gross income tax return for a nonresident member partner if the entity:
partnership:
(1) is a publicly traded partnership as defined by Section 7704(b)
of the Internal Revenue Code;
(2) meets the exception for partnerships under Section 7704(c) of
the Internal Revenue Code; and
(3) has agreed to file an annual information return reporting the
name, address, taxpayer identification number, and other
information requested by the department of each unit holder.
The department may issue written guidance explaining circumstances
under which limited partnerships or limited liability companies owned
by a publicly traded partnership may be excluded from the withholding
requirements of this section.
(m) Notwithstanding subsection (k), a partnership is subject to a late
payment penalty for the failure to file a return, pay the full amount of
the tax shown on the partnership's return, or pay the deficiency of the
withholding taxes due under this section for any amounts of
withholding tax, including any interest under IC 6-8.1-10-1, reported
or paid after the due date of the return, as adjusted by any extension
under IC 6-8.1-6-1.
(n) For purposes of this section, a "nonresident partner" is:
(1) an individual who does not reside in Indiana;
(2) a trust that does not reside in Indiana;
(3) an estate that does not reside in Indiana;
(4) a partnership not domiciled in Indiana;
(5) a C corporation not domiciled in Indiana; or
(6) an S corporation not domiciled in Indiana.
SECTION 39. IC 6-3-4-14, AS AMENDED BY P.L.136-2018,
SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 14. (a) An affiliated group of corporations shall
have the privilege of making a consolidated return with respect to the
taxes imposed by IC 6-3. The making of a consolidated return shall be
upon the condition that all corporations which at any time during the
taxable year have been members of the affiliated group consent to all
of the provisions of this section including all provisions of the
SEA 382 — CC 1 75
consolidated return regulations prescribed pursuant to Section 1502 of
the Internal Revenue Code and incorporated in this section by reference
and all regulations promulgated by the department implementing this
section prior to the last day prescribed by law for the filing of such
return. The making of a consolidated return shall be considered as such
consent. In the case of a corporation which is a member of the affiliated
group for a fractional part of the year, the consolidated return shall
include the income of such corporation for such part of the year as it is
a member of the affiliated group.
(b) For the purposes of this section the term "affiliated group" shall
mean an "affiliated group" as defined in Section 1504 of the Internal
Revenue Code with the exception that the affiliated group shall not
include any corporation which does not have adjusted gross income
derived from sources within the state of Indiana.
(c) For purposes of IC 6-3-1-3.5(b), the determination of "taxable
income," as defined in Section 63 of the Internal Revenue Code, of any
affiliated group of corporations making a consolidated return and of
each corporation in the group, both during and after the period of
affiliation, shall be determined pursuant to the regulations prescribed
under Section 1502 of the Internal Revenue Code.
(d) Any credit against the taxes imposed by IC 6-3 which is
available to any corporation which is a member of an affiliated group
of corporations making a consolidated return shall be applied against
the tax liability of the affiliated group.
(e) For purposes of this section, the following rules shall apply:
(1) In the case of the sale of a corporation, the filing status of
the remaining members of the consolidated group shall
continue absent an election by those consolidated members to
file separately or on a combined basis.
(2) In the case of a merger, the previous filing status of the
surviving corporation shall continue. If the surviving
corporation is part of an affiliated group that filed a
consolidated return in the immediately preceding taxable
year, the surviving corporation shall be considered to be part
of the consolidated return, provided that the surviving
corporation would otherwise be part of the affiliated group
under subsection (b).
(3) In the case of an acquisition of a corporation, the filing
status of the acquiring group shall continue absent an election
by the corporations to file separately or on a combined basis.
(4) In the case of a corporation that was previously part of a
consolidated return but ceased to be part of a consolidated
SEA 382 — CC 1 76
return for any other reason, the election to be part of a
consolidated return shall be considered to continue for all
corporations.
Provided, however, that if a consolidated election is discontinued
as a result of sale, merger, acquisition, or any other reason, nothing
in this section shall be construed to prevent a new election to file a
consolidated return under this section.
SECTION 40. IC 6-3-4-15.1, AS ADDED BY P.L.159-2021,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 15.1. For purposes of IC 6-3-4-12, IC 6-3-4-13,
and IC 6-3-4-15, the department may:
(1) prescribe procedures by which a pass through entity remits tax
on behalf of partners, shareholders, and beneficiaries who are
considered residents for purposes of those sections in the same
manner as tax is remitted for partners, shareholders, and
beneficiaries who are considered nonresidents for purposes of
those sections, provided that such procedures do not relieve filing
requirements otherwise applicable to partners, shareholders, and
beneficiaries who are considered residents for purposes of those
sections;
(2) prescribe special procedures for persons or entities that are
otherwise subject to withholding under those sections but who
may have circumstances such that a standard tax computation
may result in excess withholding;
(3) prescribe procedures for individuals and trusts that are
residents for part of the taxable year and nonresidents for part of
the taxable year; and
(4) prescribe procedures by which an entity subject to those
sections may request alternative withholding arrangements,
provided that such arrangements do not jeopardize the tax
otherwise due under IC 6-3 or IC 6-5.5; and
(5) prescribe procedures and guidelines by which a partner,
shareholder, or beneficiary may elect to not be subject to
withholding, in whole or in part, provided that:
(A) the election by the partner, shareholder, or beneficiary
lists the conditions of the election and that the election is
signed under penalty of perjury prior to the due date for
the pass through entity to remit tax for the taxable year;
(B) the election states that partner, shareholder, or
beneficiary has adequate funds to remit any tax due under
this article or IC 6-5.5;
(C) the election provides any periods for which
SEA 382 — CC 1 77
withholding is not required or is reduced;
(D) the election provides that the partner, shareholder, or
beneficiary agree to be subject to the jurisdiction of the
state of Indiana and shall be liable to file any returns
otherwise due under this article or IC 6-5.5, including any
composite and withholding returns, and to remit any tax
otherwise due, including any interest or penalties due on
any tax due;
(E) the election provides that the election is subject to
department approval and that the department may revoke
the election at any time for any reason; and
(F) the election is attached to the returns of the pass
through entity and of the partner, shareholder, or
beneficiary required under this article or IC 6-5.5.
A failure by the pass through entity to obtain an election for
a taxable year or to attach the election to the pass through
entity's return for a taxable year shall be treated as if the
election was not made for the taxable year.
SECTION 41. IC 6-3-4.5-1, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 1. The following definitions
apply throughout this chapter:
(1) "Adjustment year" means the partnership taxable year
described in Section 6225(d)(2) of the Internal Revenue Code.
(2) "Administrative adjustment request" means an administrative
adjustment request filed by a partnership under Section 6227 of
the Internal Revenue Code.
(3) "Affected year" means any taxable year for a taxpayer that is
affected by an adjustment under this chapter, regardless of
whether the partnership has received an adjustment for that
taxable year.
(4) "Audited partnership" means a partnership subject to a
partnership level audit resulting in a federal adjustment.
(5) "Corporate partner" means a partner that is subject to the state
adjusted gross income tax under IC 6-3-2-1(b) or the financial
institutions tax under IC 6-5.5-2-1. In the case of a partner that is
a corporation described in IC 6-3-2-2.8(2) that also is subject to
tax under IC 6-3-2-1(b), the corporation is a corporate partner
only to the extent that its income is subject to tax under
IC 6-3-2-1(b).
(6) "Direct partner" means a partner that holds an interest directly
in a partnership or pass through entity.
SEA 382 — CC 1 78
(7) "Exempt partner" means a partner that is exempt from the
adjusted gross income tax under IC 6-3-2-2.8(1) or the financial
institutions tax under IC 6-5.5-2-7(4), except to the extent of
unrelated business taxable income.
(8) "Federal adjustment" means a change to an item or amount
determined under the Internal Revenue Code or a change to any
other tax attribute that is used by a taxpayer to compute state
adjusted gross income taxes or financial institutions tax owed,
whether that change results from action by the Internal Revenue
Service, including a partnership level audit, or the filing of an
amended federal return, a federal refund claim, or an
administrative adjustment request by the taxpayer. A federal
adjustment is positive to the extent that it increases state adjusted
gross income as determined under IC 6-3 or IC 6-5.5 and is
negative to the extent that it decreases state adjusted gross income
as determined under IC 6-3 or IC 6-5.5.
(9) "Federal adjustment reports" includes methods or forms
required by the department for use by a taxpayer to report final
federal adjustments for purposes of this chapter, including an
amended Indiana tax return, information return, or uniform
multistate report.
(10) "Federal partnership representative" means a person the
partnership designates for the taxable year as the partnership's
representative, or the person the Internal Revenue Service has
appointed to act as the federal partnership representative,
pursuant to Section 6223(a) of the Internal Revenue Code.
(11) "Final determination date" means the following:
(A) Except as provided in clause (B) or (C), if the federal
adjustment arises from an Internal Revenue Service audit or
other action by the Internal Revenue Service, the final
determination date is the date on which the federal adjustment
is a final determination under IC 6-3-4-6(d).
(B) For federal adjustments arising from an Internal Revenue
Service audit or other action by the Internal Revenue Service,
if the taxpayer filed as a member of a consolidated tax return
filed under IC 6-3-4-14, a combined return filed under
IC 6-3-2-2 or IC 6-5.5-5-1, or a return combined by the
department under IC 6-3-2-2(p), the final determination date
means the first date on which no related federal adjustments
arising from that audit remain to be finally determined, as
described in clause (A), for the entire group.
(C) If the federal adjustment results from filing an amended
SEA 382 — CC 1 79
federal return, a federal refund claim, or an administrative
adjustment request, the final determination date means the day
on which the amended return, refund claim, administrative
adjustment request, or other similar report was filed.
(12) "Final federal adjustment" means a federal adjustment after
the final determination date for that federal adjustment has
passed.
(13) "Indirect partner" means a partner in a partnership or pass
through entity that itself holds an interest directly, or through
another indirect partner, in a partnership or pass through entity.
(14) "Internal Revenue Code" has the meaning set forth in
IC 6-3-1-11.
(15) "Nonresident partner" has the meaning provided in
IC 6-3-4-12(n).
(16) "Partner" means a person or entity that holds an interest
directly or indirectly in a partnership or other pass through entity.
(17) "Partner level adjustments report" means a report provided
by a partnership to its partners as a result of a department action
with regard to the partnership. A partner level adjustments report
does not include an amended statement provided by a partnership
or other entity as a result of an adjustment reported by the
partnership.
(18) "Partnership" has the meaning set forth in IC 6-3-1-19.
(19) "Partnership level audit" means an examination by the
Internal Revenue Service at the partnership level under Sections
6221 through 6241 of the Internal Revenue Code, as enacted by
the Bipartisan Budget Act of 2015, Public Law 114-74, which
results in federal adjustments.
(20) "Partnership return" means a return required to be filed by a
partnership pursuant to IC 6-3-4-10. In the case of a partnership
that is required to withhold tax or file a composite return pursuant
to IC 6-3-4-12 or IC 6-5.5-2-8, the term also includes the returns
or schedules required for tax withholding or composite filing.
(21) "Pass through entity" means an entity defined in IC 6-3-1-35,
other than a partnership, that is not subject to tax under IC 6-3.
(22) "Reallocation adjustment" means a federal adjustment
resulting from a partnership level audit or an administrative
adjustment request that changes the shares of one (1) or more
items of partnership income, gain, loss, expense, or credit
allocated to direct partners. A positive reallocation adjustment
means the portion of a reallocation adjustment that would
SEA 382 — CC 1 80
increase federal adjusted gross income or federal taxable income
for one (1) or more direct partners, and a negative reallocation
adjustment means the portion of a reallocation adjustment that
would decrease federal adjusted gross income or federal taxable
income for one (1) or more direct partners, according to Section
6225 of the Internal Revenue Code and the regulations under that
section.
(23) "Resident partner" means a partner that is not a nonresident
partner.
(24) "Review year" means the taxable year of a partnership that
is subject to a partnership level audit, an administrative
adjustment request, or an amended federal return that results
in federal adjustments, regardless of whether any federal tax
determined to be due is the responsibility of the partnership
or partners.
(25) "Statement" means a form or schedule prescribed by the
department through which a partnership or pass through entity
reports tax attributes to its owners or beneficiaries.
(26) "Tax attribute" means any item of income, deduction, credit,
receipts for apportionment, or other amount or status that
determines a partner's liability under IC 6-3, IC 6-3.6, or IC 6-5.5.
(27) "Taxable year" means, in the case of a partnership, the year
or partial year for which a partnership files a return for state and
federal purposes and, in the case of a partner, the taxable year in
which the partner reports tax attributes from the partnership.
(28) "Taxpayer" has the meaning set forth in IC 6-3-1-15 (in the
case of the adjusted gross income tax) and IC 6-5.5-1-17 (in the
case of the financial institutions tax) and, unless the context
clearly indicates otherwise, includes a partnership subject to a
partnership level audit or a partnership that has made an
administrative adjustment request, as well as a tiered partner of
that partnership.
(29) "Tiered partner" means any partner that is a partnership or
pass through entity.
(30) "Unrelated business taxable income" has the meaning set
forth in Section 512 of the Internal Revenue Code.
SECTION 42. IC 6-3-4.5-2, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 2. The following apply for
purposes of this chapter:
(1) If a taxpayer has not filed a return under IC 6-3 or IC 6-5.5 for
SEA 382 — CC 1 81
a taxable year, review year, or adjustment year, any reference to
an amended return shall be a reference to an original return that
includes any adjustments under this chapter.
(2) If a taxpayer is a partnership or pass through entity and has
not issued a statement to its owners or beneficiaries, any reference
to an amended statement shall be a reference to an original
statement that includes any adjustment under this chapter.
(3) Any reference to tax shall include interest under IC 6-8.1-10-1
and penalties under IC 6-8.1.
(4) In the case of an a final federal adjustment for a review year
that is required, to be paid or otherwise reported for federal
purposes in an adjustment year, the adjustment shall be treated as:
(A) occurring in the review year, if any tax, interest, or if and
to the extent the adjustment:
(i) results in an imputed underpayment for federal
purposes to the partnership;
(ii) would result in an imputed underpayment for federal
purposes to the partnership for the review year except
that the adjustment is reported by the partners of the
partnership in the manner provided under Section
6225(c)(2) of the Internal Revenue Code; or
(iii) results in an adjustment that is passed through to the
review year partners for federal tax purposes, in the case
of a partnership that makes a valid election pursuant to
Section 6226 of the Internal Revenue Code; or penalties
are based on the review year for federal purposes; or
(B) occurring in the adjustment year, to the extent a tax
attribute is taken into account by the partnership as
provided under Section 6225(a)(2) of the Internal Revenue
Code and regardless of whether the item is a separately
stated item for partners for federal income tax purposes.
(i) the adjustment year, if the item is required to be reported
for federal purposes on the federal tax return or in any other
manner for the adjustment year; or
(ii) any other year, if the item is required to be reported for
federal purposes on the federal tax return or in any other
manner for such other year;
and is not described in clause (A).
(C) For purposes of clauses (A) and (B):
(i) a federal adjustment netted against another federal
adjustment for purposes of determining an imputed
SEA 382 — CC 1 82
underpayment for federal purposes to the partnership,
or for purposes of determining a partner's federal tax
due with respect to a review year, is considered to occur
in the review year;
(ii) a federal adjustment permitted to reduce the imputed
underpayment for federal purposes for a partnership, or
permitted for purposes of determining a partner's
federal tax due or federal tax attributes with respect to
a review year, and not otherwise described in item (i), is
considered to occur in the review year; and
(iii) if an adjustment related to a review year affects a
tax attribute of a partner such that the partner is
required to change one (1) or more tax attributes for
federal purposes for a year other than the review year,
the partner shall treat the change in the tax attribute as
occurring for Indiana purposes in the same year as the
change is required for federal purposes.
(5) In the case of a state adjustment, the change shall be treated
as occurring in the taxable year to which the state adjustment
relates, unless the adjustment is treated as occurring in a different
year as a result of subdivision (4).
(6) For taxable years beginning before January 1, 2017, any
reference to IC 6-3.6 shall be construed to include IC 6-3.5-1.1,
IC 6-3.5-6, and IC 6-3.5-7, prior to their repeal.
(7) With respect to partnerships and tiered partners:
(A) a partner that is a partnership that receives a report of
partnership adjustments, receives a final federal adjustment, or
files an amended return is considered a tier one (1) entity;
(B) a tiered partner that is a direct partner of a tier one (1)
entity is considered a tier two (2) entity; and
(C) each tiered partner that is an owner, beneficiary, or partner
of an entity that is a tier two (2) entity or higher shall be
assigned a tier number that is one (1) tier higher and is
considered an entity in that tier.
If, after application of this subdivision, a tiered partner is assigned
to more than one (1) tier, the tiered partner shall be treated as
being assigned to the highest numerical tier to which the tiered
partner could be assigned.
(8) In the case of a partnership or tiered partner that is assigned a
numerical tier, the applicable deadline for purposes of this chapter
is:
(A) in the case of a tier one (1) entity receiving a report of
SEA 382 — CC 1 83
partnership adjustments, ninety (90) days from the date the
report of partnership adjustments is final;
(B) in the case of a tier one (1) entity that has received a final
federal determination, adjustment, one hundred eighty (180)
days from the final determination date;
(C) in the case of a tier one (1) entity that has filed an
amended return under this chapter other than an amended
return resulting from a final federal determination,
adjustment, zero (0) days; and
(D) in the case of a tiered partner that has received
adjustments resulting from a tier one (1) partnership, a number
of days equal to:
(i) the number of days described in clauses (A) through (C),
as applicable; plus
(ii) thirty (30) multiplied by the tier number assigned to the
tiered partner; minus
(iii) thirty (30).
However, if a tiered partner receives an adjustment reported on a
partnership audit tracking report under Section 6226 of the
Internal Revenue Code, the time period applicable for the tiered
partner is the longer of the time period described in clause (D) or
ninety (90) days from the date prescribed in Section
6226(b)(4)(B) of the Internal Revenue Code, and any other
applicable deadlines under this subdivision or subdivision (9).
(9) Any reference to an election under section 9(c) of this
chapter includes an election under sections 6(d) and 8(c) of
this chapter.
(9) (10) In the case of a direct partner or indirect partner that is
not a tiered partner, the applicable deadline for purposes of this
chapter is ninety (90) days after the applicable deadline that is
determined for the partnership or tiered partner under subdivision
(8). If a direct partner or indirect partner described in this
subdivision is subject to more than one (1) applicable deadline,
the applicable deadline is the latest date determined under this
subdivision.
SECTION 43. IC 6-3-4.5-3, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 3. (a) If the department
conducts an audit or investigation of a partnership, and the department
determines that the partnership:
(1) did not correctly report any tax attribute for a taxable year; or
SEA 382 — CC 1 84
(2) did not correctly allocate any tax attribute for a taxable year;
the department may adjust or reallocate the tax attribute. If the
department makes an adjustment or reallocation to one (1) or more tax
attributes, the department shall provide a report of proposed
partnership adjustments for the taxable year to the partnership.
(b) The preliminary report of proposed partnership adjustments
shall list:
(1) the department's adjustments to tax attributes; and
(2) the allocation of the department's adjustments to all affected
direct partners.
(c) If the preliminary report of proposed partnership adjustments for
a taxable year results in either:
(1) a potential increase in tax to one (1) or more direct partners;
or
(2) if the partnership reported tax attributes that would result in a
refund of tax to one (1) or more partners, a reduction in that
refund;
such report shall be treated as a proposed assessment under IC 6-8.1-5
to the partnership.
(d) If the result for partnership adjustments for a taxable year results
in:
(1) no direct increase in tax to any direct partner; and
(2) a change in tax attributes to one (1) or more direct partners
that would result in a refund in excess of any refund claimed;
the department shall issue a report of proposed partnership adjustments
to the partnership reflecting such adjustments. Any refund arising from
a report of proposed partnership adjustments shall be issued to the
partners, subject to the partner claiming the refund and any statute of
limitations on such refunds. In the case of partnership adjustments
otherwise described in this subsection that result from a partnership
adjustment described in subsection (c), all such partnership
adjustments shall be treated as adjustments to which subsection (c)
applies.
SECTION 44. IC 6-3-4.5-5, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 5. (a) For purposes of this
chapter, a report of proposed partnership adjustments for a taxable
year is considered a final report of final partnership adjustments upon
the latest of:
(1) the last day a protest of the report of proposed partnership
adjustments could have been filed by the partnership, if no protest
SEA 382 — CC 1 85
is filed;
(2) if a protest is filed, but no original tax appeal is filed pursuant
to IC 6-8.1-5, the last day on which an original tax appeal could
have been filed;
(3) if an original tax appeal has been filed, the last day on which
no further appeal may be taken from a decision requested; or
(4) the date set in subsection (b).
(b) If, upon protest or appeal, an adjustment in a report of proposed
partnership adjustments is determined to be incorrect, the department
shall issue a report of final partnership adjustments consistent with the
determination not more than one hundred eighty (180) days after the
determination is otherwise determined to be final under subsection
(a)(1) through (a)(3). If the report of final partnership adjustments is
not issued within one hundred eighty (180) days, one (1) day for each
day that the report of final partnership adjustments is issued after the
one hundred eighty (180) day deadline is added to the deadline for
which a partnership or tiered partner may act without being subject to
assessment under section 18 of this chapter. In the case of a partnership
with multiple tiers, this extension applies to each tier.
(c) Notwithstanding subsection (a), if the partnership and the
department enter into a settlement agreement under IC 6-8.1-3-17 to
resolve all matters related to the report of proposed partnership
adjustments for a taxable year, the report of final partnership
adjustments for that taxable year reflected in the agreement shall be
issued final one hundred eighty (180) days after the date of the
signature of the last party required to sign the agreement.
SECTION 45. IC 6-3-4.5-8, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 8. (a) If a partnership:
(1) determines that it did not correctly report any tax attribute for
a taxable year;
(2) determines that it did not correctly allocate any tax attribute
for a taxable year; or
(3) receives final federal adjustments as a result of a federal
partnership audit or administrative adjustment request for a
taxable year;
the partnership shall file an amended partnership return with the
department and provide its direct partners with amended statements or
a report in the form and manner prescribed by the department reflecting
the correctly reported and allocated tax attributes for any applicable
year.
SEA 382 — CC 1 86
(b) If the partnership files an amended partnership return under this
section for a taxable year:
(1) the partnership shall remit any composite tax or withholding
tax due under IC 6-3-4-12 or IC 6-5.5-2-8 on its direct partners
resulting from the amended return at the time of filing;
(2) any tiered partners shall, not later than the applicable deadline
for the tiered partner:
(A) file an amended return and, if applicable, remit any tax
due under IC 6-3, IC 6-3.6, or IC 6-5.5, including any amounts
due under IC 6-3-4-12, IC 6-3-4-13, IC 6-3-4-15, or
IC 6-5.5-2-8; and
(B) report any adjustments to the tiered partner's owners or
beneficiaries by providing amended statements to the tiered
partner's owners or beneficiaries, or a report in the form and
manner prescribed by the department; and
(3) any direct or indirect partners who are not tiered partners and
who are required to file a return under IC 6-3 or IC 6-5.5 or who
have filed a return under IC 6-3 or IC 6-5.5 shall file amended
returns with the department for any taxable year affected by the
amended partnership return and remit any tax due not later than
the applicable deadline for the partner.
(c) Notwithstanding any other provision of this chapter or
IC 6-3-4-11:
(1) A partnership that has filed an amended partnership return
under this section, or a tiered partner that is a partnership and that
is a partner of a partnership that has filed an amended partnership
return under this section, may elect to pay any tax due arising
from an amended partnership return.
(2) Such election must be filed with the department not later than
the date on which the amended partnership return is filed with the
department or, in the case of an election by a tiered partner that is
a partnership, not later than the date by which the tiered partner
is required to file an amended return under this section.
(3) The computation and payment of tax and other provisions
governing this election shall be made in a manner consistent with
an election under section 9(c) of this chapter.
(4) If a partnership has made an election under this chapter to
report and remit all tax otherwise due at the partnership level for
a taxable year, the partnership shall be considered to have made
a timely election under this subsection with regard to any changes
arising from an amended return under this section for that taxable
SEA 382 — CC 1 87
year.
(d) If the department determines that a partnership:
(1) did not correctly report any tax attributes for a taxable year; or
(2) did not correctly allocate any tax attributes for a taxable year;
the department may proceed against the partnership in the manner
provided under sections 3 through 6 of this chapter.
SECTION 46. IC 6-3-4.5-9, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 9. (a) Partnerships and
partners shall report final federal adjustments arising from a
partnership level audit or an administrative adjustment request and
make payments as required under this section.
(b) Final federal adjustments subject to the requirements of this
section, except those subject to a properly made election under
subsection (c), shall be reported as follows:
(1) Not later than the applicable deadline, the partnership shall:
(A) file an amended partnership return for the review year and
any other taxable year affected by the final federal adjustments
with the department as provided in section 8 of this chapter
and provide any other information required by the department;
(B) notify each of its direct partners of their distributive share
of the final federal adjustments as provided in section 8 of this
chapter for all affected taxable years for which the partnership
filed an amended partnership return by an amended statement
or a report in the form and manner prescribed by the
department; and
(C) file an amended composite return for direct partners and
an amended withholding return for direct partners for the
review year and any affected taxable years as otherwise
required by IC 6-3-4-12 or IC 6-5.5-2-8 and pay any tax due
for the taxable years.
(2) Each direct partner that is subject to tax under IC 6-3,
IC 6-3.6, or IC 6-5.5 shall, on or before the applicable deadline:
(A) file an amended return as provided in section 8 of this
chapter reporting their distributive share of the adjustments
reported to them under subdivision (1)(B) for the taxable year
in which affected taxable year attributes would be reported by
the direct partner as provided in section 8 of this chapter; and
(B) pay any additional amount of tax due as if final federal
partnership adjustments had been properly reported, less any
credit for related amounts paid or withheld and remitted on
SEA 382 — CC 1 88
behalf of the direct partner.
(3) Each tiered partner shall treat any final federal partnership
adjustments under this section in a manner consistent with the
treatment of tiered partners under section 8 of this chapter.
(c) Except as provided in subsection (d), an audited partnership
making an election under this subsection shall:
(1) not later than the applicable deadline, file an amended
partnership return for the review year and for any other affected
taxable year elected by the audited partnership, including
information as required by the department, and notify the
department that it is making the election under this subsection;
and
(2) not later than ninety (90) days after the applicable deadline,
pay an amount, determined as follows, in lieu of taxes owed by its
direct or indirect partners:
(A) Exclude from final federal adjustments the distributive
share of these adjustments reported to a direct exempt partner
that is not unrelated business income.
(B) For the total distributive shares of the remaining final
federal adjustments reported to direct corporate partners and
to direct exempt partners, apportion and allocate such
adjustments as provided under IC 6-3-2-2 or IC 6-3-2-2.2 (in
the case of the adjusted gross income tax) or IC 6-5.5-4 (in the
case of the financial institutions tax), and multiply the
resulting amount by the tax rate for the taxable year under
IC 6-3-2-1(b), IC 6-3-2-1.5, or IC 6-5.5-2-1, as applicable.
(C) For the total distributive shares of the remaining final
federal adjustments reported to nonresident direct partners
other than tiered partners or corporate partners, determine
the amount of such adjustments which is Indiana source
income under IC 6-3-2-2 or IC 6-3-2-2.2, and multiply the
resulting amount by the tax rate under IC 6-3-2-1(a), and if
applicable IC 6-3.6. If a partnership is unable to determine
whether a nonresident is subject to tax under IC 6-3.6, or to
determine in what county the nonresident is subject to tax
under IC 6-3.6, tax shall also be imposed at the highest rate for
which a county imposes a tax under IC 6-3.6 for the taxable
year.
(D) For the total distributive shares of the remaining final
federal adjustments reported to tiered partners:
(i) determine the amount of any adjustment that is of a type
that it would be subject to sourcing in Indiana under
SEA 382 — CC 1 89
IC 6-3-2-2, IC 6-3-2-2.2, or IC 6-5.5-4, as applicable, and
determine the portion of this amount that would be sourced
to Indiana;
(ii) determine the amount of any adjustment that is of a type
that it would not be subject to sourcing to Indiana by a
nonresident partner under IC 6-3-2-2, IC 6-3-2-2.2, or
IC 6-5.5-4, as applicable;
(iii) determine the portion of the amount determined under
item (ii) that can be established, as prescribed by the
department by rule under IC 4-22-2, to be properly allocable
to nonresident indirect partners or other partners not subject
to tax on the adjustments; and
(iv) multiply the sum of the amounts determined in items (i)
and (ii) reduced by the amount determined in item (iii) by
the highest combined rate for the review taxable year under
IC 6-3-2-1(a) and IC 6-3.6 for any county, the rate under
IC 6-3-2-1(b), or the rate under 6-5.5-2-1 for the taxable
year, whichever is highest.
(E) For the total distributive shares of the remaining final
federal adjustments reported to resident individual, estate, or
trust direct partners, multiply that amount by the tax rate under
IC 6-3-2-1(a) and IC 6-3.6. If a partnership does not
reasonably ascertain the county of residence for an individual
direct partner, the rate under IC 6-3.6 for that partner shall be
treated as the highest rate imposed in any county under
IC 6-3.6 for the taxable year.
(F) Add an amount equal to any credit reduction under
IC 6-3-3, IC 6-3.1, and IC 6-5.5 attributable as a result of
final federal adjustments.
(F) (G) Add the amounts determined in clauses (B), (C),
(D)(iv), and (E), and (F). For purposes of determining interest
and penalties, the due date of payment shall be the due date of
the partnership's return under IC 6-3-4-10 for the taxable year,
determined without regard to any extensions.
If a partnership has made an election under this chapter to report and
remit all tax otherwise due at the partnership level for a taxable year,
the partnership shall be considered to have made a timely election
under this subsection with regard to any changes arising from an
amended return under this section for that taxable year.
(d) Final federal adjustments subject to an election under subsection
(c) shall not include:
(1) the distributive share of final federal adjustments that would
SEA 382 — CC 1 90
constitute income derived from a partnership to any direct or
indirect partner that is a corporation taxable under IC 6-3-2-1(b),
IC 6-3-2-1.5, or IC 6-5.5-2-1 and is considered unitary to the
partnership;
(2) any final federal adjustments resulting from an administrative
adjustment request; or
(3) any other circumstances that the department determines would
result in avoidance or evasion of any tax otherwise due from one
(1) or more partners under IC 6-3 or IC 6-5.5.
(e) Notwithstanding IC 6-3-4-11, an audited partnership not
otherwise subject to any reporting or payment obligations to Indiana
that makes an election under subsection (c) consents to be subject to
Indiana law related to reporting, assessment, payment, and collection
of Indiana tax calculated under the election.
SECTION 47. IC 6-3-4.5-14, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 14. For purposes of this
chapter and IC 6-8.1-5-2, an assessment may not be issued against a
direct or indirect partner or partnership with regard to changes related
to a proposed or report of final partnership adjustments if the report of
proposed partnership adjustments is issued by the department to a
partnership after the latest of:
(1) three (3) years after the due date of the partnership's return,
including any valid extension granted under IC 6-8.1-6-1;
(2) three (3) years after the date the partnership's return is filed
with the department;
(3) in the case of the partnership's underreporting of its adjusted
gross income by more than twenty-five percent (25%), the periods
provided in subdivisions (1) and (2) shall be six (6) years;
(4) if the partnership fails to file a return required under
IC 6-3-4-10, files a fraudulent return, or files a substantially blank
return, no time limit;
(5) in the case of a report of proposed partnership adjustments
arising from final federal adjustments:
(A) one hundred eighty (180) days after the date on which the
department receives the final federal adjustments from the
partnership in the manner prescribed by the department; or
(B) December 31, 2021;
whichever is later; or
(6) in the case of a report of proposed partnership adjustments
issued to a tiered partner that is a partnership as a direct or
SEA 382 — CC 1 91
indirect result of another partnership's report of final partnership
adjustments, final federal adjustments, or an amended return, one
hundred eighty (180) days after the applicable deadline for the
tiered partner or the date otherwise determined under this section
for the partnership, whichever is later.
SECTION 48. IC 6-3-4.5-15, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 15. (a) If the department
receives the partner level adjustments report, amended statement, or
similar report required to be provided under section 6 of this chapter
and the department determines that a taxpayer has not reported the
correct amount of tax to the department for a taxable year of the
taxpayer affected by the partner level adjustments report, the
department shall issue a proposed assessment to the taxpayer not later
than:
(1) one hundred eighty (180) days after the department receives
the partner level adjustments report or amended statement arising
from the partner level adjustments report from the entity required
to provide the report or statement to the department;
(2) one hundred eighty (180) days after the applicable deadline
for the taxpayer; or
(3) the period during which the taxpayer could otherwise be
issued a proposed assessment under IC 6-8.1-5-2;
whichever is latest.
(b) If a taxpayer receives multiple partner level adjustments reports
or amended statements relating to the same final report of final
partnership adjustments, the last day for issuing a proposed assessment
to the taxpayer is the latest time for which the department could issue
an assessment for any partner level adjustments report or amended
statement arising from the report of partnership adjustments as
determined under this section.
(c) The taxpayer may protest or appeal the proposed assessment or
refund denial in the same manner as prescribed in IC 6-8.1-5 or
IC 6-8.1-9-1, whichever is applicable. However, any adjustments made
pursuant to a final report of final partnership adjustments shall be
considered final as to the taxpayer.
SECTION 49. IC 6-3-4.5-17, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 17. (a) If the department
determines that a taxpayer reported a tax attribute in an inconsistent
manner with the partnership's reporting of the tax attribute and the
taxpayer does not disclose the inconsistent reporting in a manner
SEA 382 — CC 1 92
prescribed by the department, the department may issue a proposed
assessment against the taxpayer as a result of the inconsistent reporting
not later than:
(1) three (3) years after the due date of the partnership's return,
including any valid extensions granted under IC 6-8.1-6-1;
(2) three (3) years after the partnership's return is filed with the
department;
(3) in the case of the partnership's underreporting of its adjusted
gross income by more than twenty-five percent (25%), the periods
provided in subdivisions (1) and (2) shall be six (6) years;
(4) if the partnership fails to file a return required under
IC 6-3-4-10, files a fraudulent return, or files a substantially blank
return, no time limit; or
(5) the latest date for which the taxpayer could be assessed under
IC 6-8.1-5-2;
whichever date is latest.
(b) For purposes of this section:
(1) if a partnership is required to file a return under IC 6-3-4-10
and fails to file such return or fails to provide the partner with a
statement setting forth the tax attributes from the partnership, the
taxpayer will be considered to have reported all tax attributes
from the partnership in an inconsistent manner with the
partnership's reporting of the tax attributes;
(2) in the case of a partner who owns a direct or indirect
interest in a partnership that has made a valid election under
Section 6221(b) of the Internal Revenue Code and has
received a final federal adjustment with regard to an item of
the partnership:
(A) the partner shall be considered to have reported items
consistently with the partnership only if the partner
properly reports the federal adjustment in a manner
consistent with the federal treatment of such adjustment;
and
(B) for purposes of this chapter, IC 6-8.1-5-2, and
IC 6-8.1-9-1, the federal adjustment shall be considered a
final federal adjustment with regard to such partner; and
(3) for purposes of any protest or appeal with regard to a proposed
assessment under this section, any reporting by the partnership
shall be considered conclusive with regard to the direct or indirect
partners of the partnership, provided that the reporting by the
partnership is determined to be neither fraudulent nor in bad faith.
SEA 382 — CC 1 93
SECTION 50. IC 6-3-4.5-18, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 18. (a) If a partnership or
tiered partner is required to issue a report, issue an amended statement,
or issue other information to a partner, owner, or beneficiary under this
chapter, and does not issue such report, statement, or information
within the period such issuance is required under this chapter, the
partnership or tiered partner shall be liable for any tax that otherwise
may be due from the partner, owner, or beneficiary, notwithstanding
any other provision in IC 6-3 or IC 6-5.5. The tax rate under this
section shall be computed at the highest rate for the taxable year under:
(1) IC 6-3-2-1(a), plus the highest rate imposed in any county
under IC 6-3.6;
(2) IC 6-3-2-1(b); or
(3) IC 6-5.5-2-1;
unless the partnership or tiered partner can establish that a lower rate
should apply, the partnership or tiered partner has made an election to
be subject to tax under sections 6, 8, or 9 of this chapter, or to the
extent the partnership, tiered partner, or the department can determine
that the tax was otherwise properly reported and remitted. Such tax
shall be considered to be due on the due date of the partnership's or
tiered partner's return for the taxable year, determined without regard
to extensions.
(b) If a partnership or tiered partner issues the report, amended
statement, or other information:
(1) to an address that the partnership or tiered partner knows or
reasonably should know is incorrect; or
(2) if the report, amended statement, or other information not
described in subdivision (1) is returned and the partnership or
tiered partner:
(A) fails to take reasonable steps to determine a proper address
for reissuance within thirty (30) days after the report, amended
statement, or other information is returned; or
(B) takes such steps and fails to reissue the report, amended
statement, or other information to a proper address within
thirty (30) days after the report, amended statement, or other
information is returned;
such report, amended statement, or other information shall be
considered to have not been issued for purposes of this section.
(c) The department may issue a proposed assessment under this
section not later than three (3) years after the department receives a
SEA 382 — CC 1 94
return or amended return from the partnership or tiered partner for
which the partnership or tiered partner fails to issue reports, amended
statements, or other information, or from the date a partnership is
required to issue partner level adjustments reports to its partners.
(d) If:
(1) a direct or indirect partner files and remits the tax otherwise
due under this section, the assessment to the partnership or tiered
partner under this section shall be reduced by the portion of the
tax attributable to the direct or indirect partner; and
(2) a partnership or tiered partner files and remits the tax under
this section, such tax shall be treated as payment of tax to the
direct or indirect partners. However, in no event shall the direct
or indirect partners be permitted a refund of tax paid by a
partnership or tiered partner under this section unless otherwise
permitted under this chapter or IC 6-8.1-9-1.
(e) Nothing in this section shall be construed to relieve a partnership
or tiered partner from any duty to issue a report, amended statement, or
other information otherwise required under this chapter or under any
other provision of IC 6-3 or IC 6-5.5. If a partnership or tiered partner
issues a report, amended statement, or other information provided
under this chapter after the date otherwise required for issuance, the
department may grant relief to any tiered partner, direct partner, or
indirect partner affected by the late issuance, including extension of
applicable deadlines.
SECTION 51. IC 6-3-4.5-20, AS ADDED BY P.L.159-2021,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2021 (RETROACTIVE)]: Sec. 20. (a) Notwithstanding any
other provision of this chapter or IC 6-8.1, if, before the end of the time
period within which the department may take an action under this
chapter:
(1) in the case of a partnership or tiered partner that has more than
ten thousand (10,000) direct owners, the department shall extend
the time period one (1) time by sixty (60) days upon written
request of the partnership or tiered partner, regardless of whether
the department signs the extension;
(2) in the case of an action required to be taken with regard to a
partnership under this chapter, the department and the partnership
agree to extend that period, the period may be extended according
to the terms of a written agreement signed by both the department
and the partnership; and
(3) in the case of an action required to be taken with regard to a
tiered partner, direct partner, or indirect partner under this
SEA 382 — CC 1 95
chapter, the department and the tiered partner, direct partner, or
indirect partner, as applicable, agree to extend that period, the
period may be extended according to the terms of a written
agreement signed by both the department and the tiered partner,
direct partner, or indirect partner, as appropriate.
(b) If an extension is entered into under subsection (a), the request
for automatic extension or agreement must contain:
(1) the date to which the extension is made; and
(2) a statement that the person or entity agrees to preserve the
person's or entity's records until the extension terminates.
(c) If an extension is entered into under subsection (a), the
applicable deadlines and statute of limitations for any actions arising
from an action required by a partnership, tiered partner, direct partner,
or indirect partner shall be extended in a manner consistent with the
extension under subsection (a)(1) or (a)(2). (a).
(d) The department and a partnership, tiered partner, direct partner,
or indirect partner may enter into more than one (1) extension
agreement under this section.
(e) The department may, by rules adopted under IC 4-22-2 or by
guidelines published in the Indiana Register, provide for automatic
extensions or relief from liability and reporting for certain situations.
The following apply:
(1) In the case of an automatic extension, the extension shall be
considered signed by both the department and the partnership,
tiered partner, direct partner, or indirect partner before the time
the department may take an action under this section. In addition,
the partnership, tiered partner, direct partner, or indirect partner
shall preserve the person's or entity's records until the automatic
extension terminates.
(2) In the case of relief from liability, such relief shall be granted
only under the situations specifically granted by the rules or
guidelines.
(3) The department may adopt rules or guidelines to establish a de
minimis amount upon which a taxpayer shall not be required to
comply with specified provisions of this chapter.
SECTION 52. IC 6-3.1-35 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]:
Chapter 35. Affordable and Workforce Housing Tax Credit
Sec. 1. The state tax credit provided by this chapter applies only
to taxable years beginning on or after January 1, 2024. However,
SEA 382 — CC 1 96
beginning July 1, 2023:
(1) eligible applicants may submit applications to the
authority for state tax credits for qualified projects; and
(2) the authority may evaluate applications and issue
eligibility statements;
under section 7 of this chapter.
Sec. 2. The following definitions apply throughout this chapter:
(1) "Authority" refers to the Indiana housing and community
development authority created by IC 5-20-1-3.
(2) "Eligibility statement" refers to the statement issued by
the authority to an eligible applicant under section 7 of this
chapter.
(3) "Eligible applicant" means a taxpayer who is:
(A) an owner of a qualified project; or
(B) a shareholder, member, or partner of an owner of a
qualified project that is designated by the owner in the
manner prescribed by the authority.
(4) "Federal tax credit" means a federal low income housing
credit under Section 42 of the Internal Revenue Code that is
a thirty percent (30%) present value credit. The term does not
include a seventy percent (70%) present value credit under
Section 42 of the Internal Revenue Code for certain new
buildings.
(5) "Holder of a state tax credit" for a taxable year in a
qualified project's state tax credit period means:
(A) the eligible applicant for the qualified project;
(B) a shareholder, member, or partner of the owner of the
qualified project; or
(C) a successor, assignee, or transferee of the eligible
applicant under section 6 of this chapter;
that has a right to claim all or part of the tax credit for the
taxable year.
(6) "Qualified basis" of a qualified project has the meaning
set forth in Section 42 of the Internal Revenue Code.
(7) "Qualified project" means a qualified low income building
(as defined in Section 42(c) of the Internal Revenue Code):
(A) that is located in Indiana;
(B) for which a federal affordable housing tax credit was
awarded using a thirty percent (30%) present value of the
qualified basis of the building; and
(C) that is financed by tax exempt bonds that are subject
SEA 382 — CC 1 97
to the private activity bond volume cap (under Section
42(h)(4) of the Internal Revenue Code).
(8) "State tax credit" means the tax credit provided by this
chapter.
(9) "State tax credit period" for a qualified project means the
period of five (5) taxable years beginning with the taxable
year in which any amount of the federal tax credit for the
qualified project is first claimed by a taxpayer.
(10) "State tax liability" means a taxpayer's total tax liability
incurred under:
(A) IC 6-3-1 through IC 6-3-7 (the adjusted gross income
tax);
(B) IC 6-5.5 (the financial institutions tax);
(C) IC 27-1-18-2 (the insurance premiums tax); and
(D) IC 27-1-20-12 (the insurance premiums retaliatory
tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by
this chapter.
(11) "Tax credit application" means an application submitted
by an eligible applicant to the authority under section 7 of this
chapter.
(12) "Taxpayer" means an individual, a corporation, an S
corporation, a partnership, a limited partnership, a limited
liability partnership, a limited liability company, or a joint
venture.
Sec. 3. (a) Except as otherwise provided in this chapter, for each
taxable year in the state tax credit period of a qualified project, the
holder of a state tax credit awarded under this chapter for the
qualified project is entitled to a credit against the holder's state tax
liability for the taxable year in an amount equal to:
(1) the percentage of the state tax credit for the taxable year
that the holder retains at the end of the last day of the taxable
year, as determined under subsection (c); multiplied by
(2) the amount of the state tax credit for the qualified project
for the taxable year, as determined under subsections (d) and
(e).
(b) At the time an eligibility statement is issued to an eligible
applicant, the eligible applicant is considered to have acquired one
hundred percent (100%) of the state tax credit for each taxable
year in the state tax credit period of the qualified project.
(c) The percentage of a state tax credit for a taxable year that a
SEA 382 — CC 1 98
holder retains at the end of the last day of a taxable year under
subsection (a)(1) is equal to:
(1) the sum of the percentages of the state tax credit for the
taxable year that the holder acquires before the end of the last
day of the taxable year; minus
(2) the sum of the percentages of the state tax credit for the
taxable year that the holder transfers before the end of the
last day of the taxable year.
(d) The amount of a state tax credit for a taxable year in the
state tax credit period of a qualified project under subsection (a)(2)
is equal to:
(1) a factor equal to:
(A) one (1); divided by
(B) the number of taxable years in the state tax credit
period for the qualified project; multiplied by
(2) the lesser of:
(A) the amount of the total federal credit allowed for the
qualified project, as shown on Internal Revenue Service
Form 8609, Line 1(b) for the qualified project; or
(B) the maximum aggregate amount of state tax credits
awarded for the qualified project, as stated in the
eligibility statement issued under section 7 of this chapter.
(e) The department shall determine the amounts of the state tax
credits specified under subsection (d) for each taxable year in the
state tax credit period of each qualified project as those amounts
are able to be computed and promptly publish the amounts on the
department's Internet web site to assist holders in claiming the
state tax credit provided by this chapter.
Sec. 4. (a) If a holder's state tax credit exceeds the holder's state
tax liability for the taxable year, the excess may be carried forward
for up to nine (9) consecutive taxable years immediately following
the first taxable year of the holder's state tax credit period and
may be used to reduce the holder's state tax liability during those
taxable years. Only the unused part of a state tax credit may be
carried forward and used in a subsequent taxable year.
(b) The holder of a state tax credit is not entitled to a carryback
or refund of any unused credit.
Sec. 5. (a) If a pass through entity is entitled to a state tax credit
but does not have state tax liability against which the state tax
credit may be applied, the pass through entity may allocate or
otherwise transfer the state tax credit among the shareholders,
members, or partners of the pass through entity in any manner
SEA 382 — CC 1 99
agreed to by the shareholders, members, or partners, regardless of
how the federal tax credit for the qualified project is allocated or
transferred or whether the allocation or transfer of the state tax
credit under the agreement has substantial economic effect under
Section 704(b) of the Internal Revenue Code. A pass through entity
or its designee shall certify to the department the amount of the
state tax credit that is allocated or transferred to each shareholder,
member, or partner of the pass through entity for the taxable year,
if any, in the manner prescribed by the department.
(b) The credit provided under subsection (a) is in addition to a
state tax credit to which a shareholder, member, or partner of a
pass through entity is otherwise entitled under this chapter.
Sec. 6. (a) A holder of a state tax credit may transfer, sell, or
assign all or part of a state tax credit for a taxable year in the state
tax credit period of the associated qualified project if the holder of
the state tax credit complies with this section.
(b) A holder shall furnish the following to the transferee,
purchaser, or assignee:
(1) A copy of the eligibility statement for the qualified project.
(2) A declaration, on a form prescribed by the department,
that states:
(A) the percentage of the state tax credit for the taxable
year that was held by the transferor before the transfer;
(B) the percentage of the state tax credit for the taxable
year that will be held by the transferor after the transfer;
(C) the percentage of the state tax credit for the taxable
year that will be held by the transferee after the transfer;
and
(D) any other information required by the department.
The percentage specified in clause (A) must equal the sum of
the percentages specified in clauses (B) and (C).
(3) Copies of other documents in the possession of the
transferor that relate to the transferor's right to claim the
state tax credit provided by this chapter, if any.
(c) A transferor of all or part of a state tax credit for a taxable
year under this section shall report the transaction to the
department in the manner prescribed by the department.
Sec. 7. (a) An eligible applicant who wishes to obtain the state
tax credit provided by this chapter for a qualified project must
submit an application to the authority after June 30, 2023, and
before January 1, 2028, in the manner prescribed by the authority.
(b) An application submitted under subsection (a) must include:
SEA 382 — CC 1 100
(1) the name and address of the qualified project;
(2) the name and address of the owner of the qualified
project; and
(3) any other information required by the authority.
(c) Subject to section 8 of this chapter, the authority may
approve a tax credit application if:
(1) the applicant is an eligible applicant;
(2) the project identified in the application is a qualified
project; and
(3) the tax credit application meets any other requirements
for receipt of state tax credits established by the authority.
(d) If the authority approves a tax credit application for a
qualified project, for each taxable year in the tax credit period the
authority may approve a maximum amount of state tax credits.
The maximum aggregate amount of state tax credits awarded by
the authority for the state tax credit period of a qualified project
is an amount that is the product of:
(1) a percentage determined by the authority, which must be:
(A) greater than or equal to forty percent (40%); and
(B) less than or equal to one hundred percent (100%);
multiplied by
(2) the anticipated aggregate federal tax credits specified in a
letter issued by the authority for the qualified project under
Section 42(m) of the Internal Revenue Code.
(e) If the authority approves a tax credit application for a
qualified project, the authority shall issue an eligibility statement
to the eligible applicant. The eligibility statement must specify at
least the following:
(1) A unique identification code for the eligibility statement,
determined by the authority.
(2) The name of the qualified project.
(3) For each taxable year in the state tax credit period of the
qualified project, the maximum amount of state tax credit
that the authority is awarding to the eligible applicant for the
qualified project.
(f) The authority shall transmit a copy of each eligibility
statement issued under subsection (e) to the department.
Sec. 8. (a) For each state fiscal year beginning after June 30,
2023, and before July 1, 2028, the aggregate amount of state tax
credits awarded by the authority under this chapter may not
exceed thirty million dollars ($30,000,000). For purposes of
SEA 382 — CC 1 101
calculating the aggregate state tax credit limit for a state fiscal
year, the amounts awarded by the authority are considered to be
awarded in the year the award is made to the state tax credit
recipient by the authority, notwithstanding the fact that the
awarded state tax credit is to be claimed over the state tax credit
period.
(b) To the extent that the tax credit applications requesting state
tax credits exceed the amount of available state tax credits in a
year, or the authority reasonably anticipates that the requests will
exceed the state fiscal year limitation established in subsection (a),
the authority may allocate the state tax credits in a manner that
furthers the mission and purpose of the authority and otherwise
promotes the establishment of qualified projects.
Sec. 9. To receive the state tax credit provided by this chapter,
a holder of a state tax credit must claim the credit on the holder's
annual state tax return in the manner prescribed by the
department. The holder of the state tax credit shall submit to the
department all information that the department determines is
necessary for the calculation of the state tax credit.
Sec. 10. The department or the authority, or both, may adopt
rules to implement this chapter.
Sec. 11. This chapter is subject to review under IC 2-5-3.2-1 to
evaluate the effectiveness of the state tax credit one (1) year prior
to its expiration under section 12 of this chapter.
Sec. 12. This chapter expires July 1, 2028.
SECTION 53. IC 6-3.6-6-2.7, AS AMENDED BY P.L.257-2019,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 2.7. (a) A county fiscal body may adopt an
ordinance to impose a tax rate for correctional facilities and
rehabilitation facilities in the county. The tax rate must be in
increments of one-hundredth of one percent (0.01%) and may not
exceed two-tenths of one percent (0.2%). The tax rate may not be in
effect for more than:
(1) twenty-two (22) years, in the case of a tax rate imposed in
an ordinance adopted before January 1, 2019; or
(2) twenty-five (25) years, in the case of a tax rate imposed in
an ordinance adopted on or after January 1, 2019.
If an ordinance is adopted after June 30, 2019, to impose a tax rate
under this section, not more than twenty percent (20%) of the revenue
from the tax rate under this section may be used for operating expenses
for correctional facilities and rehabilitation facilities in the county.
(b) The revenue generated by a tax rate imposed under this section
SEA 382 — CC 1 102
must be distributed directly to the county before the remainder of the
expenditure rate revenue is distributed. The revenue shall be
maintained in a separate dedicated county fund and used by the county
only for paying for correctional facilities and rehabilitation facilities in
the county.
SECTION 54. IC 6-3.6-9-4, AS AMENDED BY P.L.165-2021,
SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. Revenue derived from the imposition of the tax
shall, in the manner prescribed by this chapter, be distributed to the
county that imposed it. The amount that is to be distributed to a county
during an ensuing calendar year equals the amount of tax revenue that
the budget agency determines has been:
(1) received from attributed to that county for a taxable year
ending in a calendar year preceding the calendar year in which the
determination is made; and
(2) reported on an annual return or amended return filed by or for
a county taxpayer and processed by the department in the state
fiscal year ending before July 1, or for a federal income tax
deadline set after July 1, a date set by the department for a period
of not more than sixty (60) days beyond the federal deadline, of
the calendar year in which the determination is made.
as adjusted for refunds of tax made in the state fiscal year.
SECTION 55. IC 6-5.5-1-2, AS AMENDED BY P.L.199-2021,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 2. (a) Except as provided in subsections (b)
through (d), "adjusted gross income" means taxable income as defined
in Section 63 of the Internal Revenue Code, adjusted as follows:
(1) Add the following amounts:
(A) An amount equal to a deduction allowed or allowable
under Section 166, Section 585, or Section 593 of the Internal
Revenue Code.
(B) An amount equal to a deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(C) An amount equal to a deduction or deductions allowed or
allowable under Section 63 of the Internal Revenue Code for
taxes based on or measured by income and levied at the state
level by a state of the United States or levied at the local level
by any subdivision of a state of the United States.
(D) The amount of interest excluded under Section 103 of the
Internal Revenue Code or under any other federal law, minus
the associated expenses disallowed in the computation of
SEA 382 — CC 1 103
taxable income under Section 265 of the Internal Revenue
Code.
(E) An amount equal to the deduction allowed under Section
172 or 1212 of the Internal Revenue Code for net operating
losses or net capital losses.
(F) For a taxpayer that is not a large bank (as defined in
Section 585(c)(2) of the Internal Revenue Code), an amount
equal to the recovery of a debt, or part of a debt, that becomes
worthless to the extent a deduction was allowed from gross
income in a prior taxable year under Section 166(a) of the
Internal Revenue Code.
(G) Add the amount necessary to make the adjusted gross
income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation to the property in the year that it
was placed in service.
(H) Add the amount necessary to make the adjusted gross
income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in
service in the current taxable year or in an earlier taxable year
equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax
purposes not been made for the year in which the property was
placed in service to take deductions under Section 179 of the
Internal Revenue Code in a total amount exceeding the sum of:
(i) twenty-five thousand dollars ($25,000) to the extent
deductions under Section 179 of the Internal Revenue Code
were not elected as provided in item (ii); and
(ii) for taxable years beginning after December 31, 2017, the
deductions elected under Section 179 of the Internal
Revenue Code on property acquired in an exchange if the
exchange would have been eligible for nonrecognition of
gain or loss under Section 1031 of the Internal Revenue
Code in effect on January 1, 2017, the exchange is not
eligible for nonrecognition of gain or loss under Section
1031 of the Internal Revenue Code, and the taxpayer made
an election to take deductions under Section 179 of the
Internal Revenue Code with regard to the acquired property
in the year that the property was placed into service. The
SEA 382 — CC 1 104
amount of deductions allowable for an item of property
under this item may not exceed the amount of adjusted gross
income realized on the property that would have been
deferred under the Internal Revenue Code in effect on
January 1, 2017.
(I) Add an amount equal to any income not included in gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code. Subtract from the
adjusted gross income of any taxpayer that added an amount
to adjusted gross income in a previous year the amount
necessary to offset the amount included in federal gross
income as a result of the deferral of income arising from
business indebtedness discharged in connection with the
reacquisition after December 31, 2008, and before January 1,
2011, of an applicable debt instrument, as provided in Section
108(i) of the Internal Revenue Code.
(J) Add an amount equal to any exempt insurance income
under Section 953(e) of the Internal Revenue Code for active
financing income under Subpart F, Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(K) Add an amount equal to the remainder of:
(i) the amount allowable as a deduction under Section
274(n) of the Internal Revenue Code; minus
(ii) the amount otherwise allowable as a deduction under
Section 274(n) of the Internal Revenue Code, if Section
274(n)(2)(D) of the Internal Revenue Code was not in effect
for amounts paid or incurred after December 31, 2020.
(2) Subtract the following amounts:
(A) Income that the United States Constitution or any statute
of the United States prohibits from being used to measure the
tax imposed by this chapter.
(B) Income that is derived from sources outside the United
States, as defined by the Internal Revenue Code.
(C) An amount equal to a debt or part of a debt that becomes
worthless, as permitted under Section 166(a) of the Internal
Revenue Code.
(D) An amount equal to any bad debt reserves that are
included in federal income because of accounting method
SEA 382 — CC 1 105
changes required by Section 585(c)(3)(A) or Section 593 of
the Internal Revenue Code.
(E) The amount necessary to make the adjusted gross income
of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross
income that would have been computed had an election not
been made under Section 168(k) of the Internal Revenue Code
to apply bonus depreciation.
(F) The amount necessary to make the adjusted gross income
of any taxpayer that placed Section 179 property (as defined
in Section 179 of the Internal Revenue Code) in service in the
current taxable year or in an earlier taxable year equal to the
amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding the sum of:
(i) twenty-five thousand dollars ($25,000) to the extent
deductions under Section 179 of the Internal Revenue Code
were not elected as provided in item (ii); and
(ii) for taxable years beginning after December 31, 2017, the
deductions elected under Section 179 of the Internal
Revenue Code on property acquired in an exchange if the
exchange would have been eligible for nonrecognition of
gain or loss under Section 1031 of the Internal Revenue
Code in effect on January 1, 2017, the exchange is not
eligible for nonrecognition of gain or loss under Section
1031 of the Internal Revenue Code, and the taxpayer made
an election to take deductions under Section 179 of the
Internal Revenue Code with regard to the acquired property
in the year that the property was placed into service. The
amount of deductions allowable for an item of property
under this item may not exceed the amount of adjusted gross
income realized on the property that would have been
deferred under the Internal Revenue Code in effect on
January 1, 2017.
(G) Income that is:
(i) exempt from taxation under IC 6-3-2-21.7; and
(ii) included in the taxpayer's taxable income under the
Internal Revenue Code.
(H) The amount that would have been excluded from gross
SEA 382 — CC 1 106
income but for the enactment of Section 118(b)(2) of the
Internal Revenue Code for taxable years ending after
December 22, 2017.
(I) For taxable years ending after March 12, 2020, an amount
equal to the deduction disallowed pursuant to:
(i) Section 2301(e) of the CARES Act (Public Law
116-136), as modified by Sections 206 and 207 of the
Taxpayer Certainty and Disaster Relief Tax Act (Division
EE of Public Law 116-260); and
(ii) Section 3134(e) of the Internal Revenue Code.
(J) Subtract an amount equal to the deduction disallowed
under Section 280C(h) of the Internal Revenue Code.
(3) Make the following adjustments:
(A) Subtract the amount of any interest expense paid or
accrued in the current taxable year but not deducted as a result
of the limitation imposed under Section 163(j)(1) of the
Internal Revenue Code.
(B) Add any interest expense paid or accrued in a previous
taxable year but allowed as a deduction under Section 163 of
the Internal Revenue Code in the current taxable year.
For purposes of this subdivision, an interest expense is considered
paid or accrued only in the first taxable year the deduction would
have been allowable under Section 163 of the Internal Revenue
Code if the limitation under Section 163(j)(1) of the Internal
Revenue Code did not exist.
(b) In the case of a credit union, "adjusted gross income" for a
taxable year means the total transfers to undivided earnings minus
dividends for that taxable year after statutory reserves are set aside
under IC 28-7-1-24.
(c) In the case of an investment company, "adjusted gross income"
means the company's federal taxable income adjusted as follows:
(1) Add the amount excluded from federal gross income under
Section 103 of the Internal Revenue Code for interest received on
an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after
December 31, 2011.
(2) Make the following adjustments:
(A) Subtract the amount of any interest expense paid or
accrued in the current taxable year but not deducted as a result
of the limitation imposed under Section 163(j)(1) of the
Internal Revenue Code.
SEA 382 — CC 1 107
(B) Add any interest expense paid or accrued in a previous
taxable year but allowed as a deduction under Section 163 of
the Internal Revenue Code in the current taxable year.
For purposes of this subdivision, an interest expense is considered
paid or accrued only in the first taxable year the deduction would
have been allowable under Section 163 of the Internal Revenue
Code if the limitation under Section 163(j)(1) of the Internal
Revenue Code did not exist.
(3) Multiply the amount determined after the adjustments in
subdivisions (1) and (2) by the quotient of:
(A) the aggregate of the gross payments collected by the
company during the taxable year from old and new business
upon investment contracts issued by the company and held by
residents of Indiana; divided by
(B) the total amount of gross payments collected during the
taxable year by the company from the business upon
investment contracts issued by the company and held by
persons residing within Indiana and elsewhere.
(d) As used in subsection (c), "investment company" means a
person, copartnership, association, limited liability company, or
corporation, whether domestic or foreign, that:
(1) is registered under the Investment Company Act of 1940 (15
U.S.C. 80a-1 et seq.); and
(2) solicits or receives a payment to be made to itself and issues
in exchange for the payment:
(A) a so-called bond;
(B) a share;
(C) a coupon;
(D) a certificate of membership;
(E) an agreement;
(F) a pretended agreement; or
(G) other evidences of obligation;
entitling the holder to anything of value at some future date, if the
gross payments received by the company during the taxable year
on outstanding investment contracts, plus interest and dividends
earned on those contracts (by prorating the interest and dividends
earned on investment contracts by the same proportion that
certificate reserves (as defined by the Investment Company Act
of 1940) is to the company's total assets) is at least fifty percent
(50%) of the company's gross payments upon investment
contracts plus gross income from all other sources except
SEA 382 — CC 1 108
dividends from subsidiaries for the taxable year. The term
"investment contract" means an instrument listed in clauses (A)
through (G).
(e) If a partner is required to include an item of income, a deduction,
or another tax attribute in the partner's adjusted gross income tax return
pursuant to IC 6-3-4.5, such item shall be considered to be includible
in the partner's federal adjusted gross income or federal taxable
income, regardless of whether such item is actually required to be
reported by the partner for federal income tax purposes. For purposes
of this subsection:
(1) items for which a valid election is made under IC 6-3-4.5-6,
IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
in the partner's adjusted gross income or taxable income; and
(2) items for which the partnership did not make an election under
IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
partnership is required to remit tax pursuant to IC 6-3-4.5-18,
shall be included in the partner's adjusted gross income or taxable
income.
SECTION 56. IC 6-5.5-6-2, AS AMENDED BY P.L.239-2017,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 2. (a) Annual returns required by this
chapter shall be filed with the department on or before the later of the
following:
(1) the fifteenth day of the fourth fifth month following the close
of the taxpayer's taxable year.
(2) For a taxpayer whose federal tax return is due on or after the
date set forth in subdivision (1), as determined without regard to
any extensions, weekends, or holidays, the fifteenth day of the
month following the due date of the federal tax return.
However, if a taxpayer receives an extension of time from the United
States Internal Revenue Service for the filing of its federal income tax
return for a taxable year, the department shall grant a similar an
extension of time to the taxpayer for the filing of a return required by
this chapter for that taxable year to the date otherwise provided by
IC 6-8.1-6-1. In addition, the department may grant an additional
reasonable extension of time for filing a return required by this chapter
as provided by IC 6-8.1-6-1.
(b) If the due date for a federal income tax return is extended by
the Internal Revenue Service to a date that is later than the date
specified in subsection (a), the department may extend the due date
of a return required to be made under this chapter to reflect the
due date permitted for the federal income tax return.
SEA 382 — CC 1 109
(c) If the due date for a federal income tax return in the Internal
Revenue Code, as determined without regard to any extensions,
Saturdays, Sundays, or holidays, is later than the date provided in
subsection (a), the due date for the return made pursuant to this
section shall be the later of the due date for the federal income tax
return or the due date provided under this section.
SECTION 57. IC 6-7-1-2, AS AMENDED BY P.L.191-2016,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 2. Unless the context requires otherwise,
"cigarette" shall mean and include any roll for smoking or heating
made wholly or in part of tobacco, irrespective of size or shape and
irrespective of tobacco being flavored, adulterated, or mixed with any
other ingredient, where such roll has a wrapper or cover made of paper
or any other material not containing tobacco. Provided the definition
in this section shall not be construed to include cigars (as defined in
IC 6-7-2-0.3). Excepting where context clearly shows that cigarettes
alone are intended, the term "cigarettes" shall mean and include
cigarettes upon which a tax is imposed by sections 12 and 13 of this
chapter.
SECTION 58. IC 6-7-1-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 15. (a) The department
is the official agent of the state for the administration and enforcement
of this chapter. A sufficient sum to pay salaries and expenses is
appropriated to the department out of the monies received by virtue of
this chapter.
(b) The department may issue registration certificates, upon the
terms and conditions provided in this chapter, and may revoke or
suspend the same upon the violation of this chapter or a violation of
IC 24-3-5.4-17 by the holder of such a certificate.
(c) The department may apply for membership in the National
Tobacco Tax Association.
(d) The department may design and have printed or manufactured
stamps of sizes and denominations to be affixed to each individual
package. The stamps shall be firmly affixed on each individual package
in such a manner that the stamps can not be removed without being
mutilated or destroyed; however, the department may by regulation
designate some other manner for cancelation cancellation of stamps.
In addition to the stamps, the department may by rules and regulations
authorize distributors to use metered stamping machines or other
devices which will imprint distinctive indicia evidencing the payment
of the tax upon each individual package. The machines shall be
constructed in such a manner as will accurately record or meter the
SEA 382 — CC 1 110
number of impressions or tax stamps made. The tax meter machines or
other devices shall be kept available at all reasonable times for
inspection by the department, and the machines shall be maintained in
proper operating condition. A person who knowingly tampers with the
printing or recording mechanism of such a machine commits a Class
B misdemeanor.
SECTION 59. IC 6-7-1-38 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 38. A retailer who purchases cigarettes from a
distributor who has not obtained a registration certificate required
under section 16 of this chapter or whose registration certificate
has been suspended or revoked by the department is subject to a
penalty not to exceed the greater of:
(1) one hundred percent (100%) of the retail value of the
cigarettes described in this section; or
(2) five thousand dollars ($5,000);
on each such purchase.
SECTION 60. IC 6-7-2-0.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 0.1. As used in this chapter:
(1) "actual cost" means the price paid by a remote seller for
an individual taxable product; and
(2) "actual cost list" means an annual list (prepared,
maintained, and certified by each remote seller) of the cost of
each individual taxable product. For purposes of this
subdivision, the actual cost for each individual product in a
cost list shall be the average of the actual price paid by a
remote seller for the individual product over the twelve (12)
calendar months prior to January 1 of the year in which the
sale by the remote seller occurs.
SECTION 61. IC 6-7-2-0.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 0.2. As used in this chapter, "alternative nicotine
product" means a noncombustible product containing nicotine that
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.
SEA 382 — CC 1 111
SECTION 62. IC 6-7-2-0.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 0.3. As used in this chapter, "cigar" means a tobacco
product that is a roll of tobacco wrapped in leaf tobacco or in any
substance containing tobacco (other than any roll of tobacco that
is a cigarette within the meaning of IC 6-7-1-2). The term includes
tobacco products commonly known as "little cigars", which are
cigars with an integrated cellulose acetate filter and that are
wrapped in a substance containing tobacco.
SECTION 63. IC 6-7-2-3.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 3.1. As used in this chapter, "pipe tobacco" means a
tobacco product that, because of its appearance, type, packaging,
or labeling, is suitable and likely to be smoked in a pipe.
SECTION 64. IC 6-7-2-3.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 3.3. As used in this chapter, "remote seller" means a
retail dealer that meets one (1) or both of the economic thresholds
under IC 6-2.5-2-1(d) and sells taxable products to an ultimate
consumer under either of the following circumstances:
(1) By means of a telephone or other method of voice
transmission, the mail, or the Internet or other electronic
service.
(2) When the taxable products are delivered to the consumer
by common carrier, private delivery service, or other method
of delivery.
SECTION 65. IC 6-7-2-3.5, AS ADDED BY P.L.165-2021,
SECTION 104, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 3.5. As used in this chapter,
"taxable product" means tobacco products, alternative nicotine
products, or closed system cartridges, or both. any combination
thereof.
SECTION 66. IC 6-7-2-4, AS AMENDED BY P.L.165-2021,
SECTION 105, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 4. As used in this chapter, "retail
dealer" means a person engaged in the business of selling taxable
products to ultimate consumers, including a retail merchant that
meets one (1) or both of the economic thresholds under
IC 6-2.5-2-1(d).
SECTION 67. IC 6-7-2-5, AS AMENDED BY P.L.172-2011,
SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 5. (a) As used in this chapter, "tobacco product"
SEA 382 — CC 1 112
means
(1) any product made from tobacco, other than a cigarette (as
defined in IC 6-7-1-2), that is made for smoking, chewing, or
both; or
(2) snuff, including moist snuff.
any product containing, made, or derived from tobacco that is
intended for human consumption, or is likely to be consumed,
whether chewed, smoked, heated, absorbed, dissolved, inhaled,
snorted, sniffed, or ingested by any other means, or any
component, part, or accessory of a tobacco product.
(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.
(c) The term does not include:
(1) cigarettes (as defined in IC 6-7-1-2);
(2) closed system cartridges;
(3) consumable material;
(4) open system containers (as defined in IC 6-7-4-5);
(5) vapor products (as defined in IC 6-7-4-8);
(6) alternative nicotine products; or
(7) any drugs, devices, or combination products authorized
for sale by the United States Food and Drug Administration
and defined in the Federal Food, Drug, and Cosmetic Act.
SECTION 68. 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:
(1) twenty-four percent (24%) of the wholesale price of tobacco
products other than moist snuff; 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.
(b) A tax is imposed on the distribution of alternative nicotine
products in Indiana at a rate of forty cents ($0.40) per ounce, and
SEA 382 — CC 1 113
a proportionate tax at the same rate on all fractional parts of an
ounce, calculated based upon the product weight as listed by the
manufacturer. If the tax calculated for a fractional part of an
ounce carried to the third decimal place being greater than four
(4), the amount of the tax shall be rounded to the next additional
cent.
(b) (c) The distributor of the tobacco products or alternative
nicotine products including a person that sells tobacco products
through an Internet web site, is liable for the tax imposed under
subsection subsections (a) or (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
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) or (b).
SECTION 69. IC 6-7-2-7.5, AS ADDED BY P.L.165-2021,
SECTION 108, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 7.5. (a) A tax is imposed on the
distribution of closed system cartridges in Indiana at the rate of
twenty-five percent (25%) fifteen percent (15%) of the wholesale
price of the closed system cartridge. If a closed system cartridge is
sold in the same package as a vapor product device, the tax
imposed under this subsection shall only apply to the wholesale
price of the closed system cartridge if the wholesale cost of the
closed system cartridge can be isolated from the vapor product
device on the invoice. 
(b) The distributor of closed system cartridges, including a person
that sells closed system cartridges through an Internet web site, is liable
for the tax imposed under subsection (a). The tax is imposed at the time
the distributor:
SEA 382 — CC 1 114
(1) brings or causes closed system cartridges to be brought into
Indiana for distribution;
(2) manufactures closed system cartridges in Indiana for
distribution; or
(3) transports closed system cartridges to retail dealers in Indiana
for resale by those retail dealers.
(c) A consumer who purchases untaxed closed system cartridges
from a distributor or retailer including closed system cartridges
purchased through an Internet web site, a catalog, or other similar
means, is liable for the tax imposed under subsection (a).
SECTION 70. IC 6-7-2-7.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 7.7. (a) The tax imposed under sections 7(a)(1), 7(b),
and 7.5(a) of this chapter shall also be imposed on the sale of
taxable products in Indiana by remote sellers, and shall be
calculated based on one (1) of the following methods:
(1) For remote sellers using an actual cost method, the tax
shall be calculated by applying the rate to the actual cost of
each individual product.
(2) For remote sellers using an actual cost list method, the tax
shall be calculated by applying the rate to the cost established
for each individual product in the remote seller's actual cost
list.
(b) The remote seller of taxable products is liable for the tax
imposed under section 7(a)(1), 7(b), or 7.5(a) of this chapter.
(c) The tax under this section shall be imposed at the time of
purchase by an ultimate consumer.
SECTION 71. IC 6-7-2-8.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 8.5. (a) A remote seller, including a person that sells
taxable products through an Internet web site, must obtain a
license under this section before a remote seller can sell taxable
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
SEA 382 — CC 1 115
place of business outside Indiana.
(c) To obtain or renew a license under this section, a person
must:
(1) submit an application that includes all information
required by the department;
(2) meet one (1) or both of the economic thresholds under
IC 6-2.5-2-1(d) and obtain a registered retail merchant
certificate;
(3) attest that the person uses third party age verification
technology as described in subsection (d);
(4) pay a fee of twenty-five dollars ($25) at the time of
application; and
(5) 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) A remote seller must use age verification through an
independent, third party age verification service that compares:
(1) information available from a commercially available data
base (or aggregate of data bases) that are regularly used by
government agencies and businesses for the purpose of age
and identity verification; and
(2) personal information entered by the individual during the
ordering process;
that establishes that the individual is of the required minimum age.
(e) A remote seller that collects the tax imposed under section
7.7 of this chapter using the actual cost list method to calculate the
tax must provide to the department a certified actual cost list for
each individual product offered for sale in the subsequent calendar
year. The actual cost list shall be updated annually as new products
are added to a remote seller's inventory. New products must be
added to the actual cost list using the actual cost first paid for each
individual product.
(f) If a business owns multiple entities that qualify as a remote
seller, a separate license must be obtained for each remote seller.
(g) Each license must be numbered, show the name and address
of the remote seller, and be kept at the place of business for which
it is issued.
(h) 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.
(i) A license issued under this section does not permit the remote
SEA 382 — CC 1 116
seller to sell cigarettes, vapor products, or other products subject
to tax under IC 6-7-1 or IC 6-7-4.
SECTION 72. IC 6-7-2-9 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 9. A distributor or remote seller
that changes its place of business shall return its license, and the
department shall issue, free of charge, a new license for the new place
of business.
SECTION 73. IC 6-7-2-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 10. A license issued
under this chapter may be surrendered to the department at any time
before its expiration, and the department shall refund an amount of
money that bears the same proportion to the fee originally paid as the
unexpired period of the permit bears to one (1) year. No refund may be
allowed if a license is suspended or revoked. and no refund may be
made that is:
(1) greater than seventy-five dollars ($75); or
(2) less than twenty-five dollars ($25).
SECTION 74. IC 6-7-2-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 11. The department:
(1) may revoke or suspend a license issued under this chapter for
any violation of this chapter, or IC 6-7-1-18, or IC 24-3-5.4-17 by
the licensee; and
(2) may not issue a license under this chapter to an applicant
within six (6) months after the revocation of that applicant's
license.
SECTION 75. IC 6-7-2-11.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 11.5. (a) The department may refuse to issue or
renew a license issued under this chapter if:
(1) the application is filed by a person whose license has
previously been canceled for cause (including a similar license
issued by another state);
(2) the application is not filed in good faith, as determined by
the department;
(3) the application is filed by a person as a subterfuge for the
real person in interest whose license has previously been
canceled for cause;
(4) the applicant has been convicted of fraud,
misrepresentation, or any other offense that indicates the
applicant may not comply with this chapter if issued a license;
(5) the applicant has an outstanding listed tax liability; or
SEA 382 — CC 1 117
(6) the applicant has not complied with a filing requirement
of the department.
(b) Before being denied a license as a distributor, the applicant
is entitled to a hearing with five (5) days written notice. At the
hearing the applicant may appear in person or by counsel and
present testimony.
SECTION 76. 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
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
(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.
SECTION 77. IC 6-7-2-13, AS AMENDED BY P.L.165-2021,
SEA 382 — CC 1 118
SECTION 111, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 13. A distributor or remote seller
that files a complete return and pays the taxes due within the time
specified in section 12 of this chapter is entitled to deduct and retain
from the tax a collection allowance of seven-thousandths (0.007) of the
amount due. If a distributor or remote seller files an incomplete report,
the department may reduce the collection allowance by an amount that
does not exceed the lesser of:
(1) ten percent (10%) of the collection allowance; or
(2) fifty dollars ($50).
SECTION 78. IC 6-7-2-14, AS AMENDED BY P.L.165-2021,
SECTION 112, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 14. The department shall credit or
refund to a distributor or remote seller the taxes paid under this
chapter on taxable products that are:
(1) shipped outside Indiana;
(2) returned to the manufacturer; or
(3) destroyed by the distributor in the presence of an employee or
agent of the department.
SECTION 79. IC 6-7-2-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 20. A distributor or
remote seller who does not comply with the requirements of
IC 6-8.1-5-4 commits a Class B misdemeanor.
SECTION 80. IC 6-7-2-21, AS AMENDED BY P.L.165-2021,
SECTION 118, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 21. (a) A distributor or remote
seller who knowingly:
(1) acts as a distributor or remote seller without a license;
(2) makes a false statement in a report under this chapter; or
(3) does not pay a tax for which the distributor or remote seller
is liable under this chapter;
commits a Class B misdemeanor. However, the offense is a Level 6
felony if it is committed with intent to evade the tax imposed by this
chapter or to defraud the state.
(b) Violations of this chapter described in subsection (a) may be
reported to the department or the office of the attorney general.
SECTION 81. IC 6-7-2-24 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 24. A retailer (except a remote seller that is required
to remit tax imposed by this chapter) who purchases a taxable
product from a distributor who has not obtained a license required
SEA 382 — CC 1 119
under section 8 of this chapter or whose license has been suspended
or revoked by the department is subject to a penalty not to exceed
the greater of:
(1) one hundred percent (100%) of the retail value of the
taxable product; or
(2) five thousand dollars ($5,000);
on the purchase.
SECTION 82. IC 6-8.1-1-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 9. (a) If any due date or date required for
a particular act by the taxpayer or the department falls on
Saturday, Sunday, a national legal holiday recognized by the
federal government, or a statewide holiday, the act by the taxpayer
or the department that must be performed by that date is timely if
performed by the next succeeding day that is not a Saturday, a
Sunday, or one of those holidays.
(b) If the due date of a particular act is later than the date
otherwise provided for the act as a result to the due date falling on
Saturday, Sunday, a national legal holiday recognized by the
federal government, or a statewide holiday, the last date on which
a proposed assessment or demand notice must be issued or the last
day on which a refund claim may be filed shall be determined
without regard to the original due date (including allowable
extensions) falling on a Saturday, Sunday, or holiday.
SECTION 83. IC 6-8.1-1-10 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2020 (RETROACTIVE)]: Sec. 10. (a) This section
applies for purposes of determining:
(1) the last date on which a proposed assessment can be issued
under IC 6-8.1-5;
(2) the date by which withholding payments were required to
be made to meet the safe harbor requirements under
IC 6-3-4-12 or IC 6-3-4-13;
(3) the date by which ninety percent (90%) of tax reasonably
expected to be due under IC 6-8.1-6-1 is required to be paid;
(4) the last date on which a demand notice or tax warrant can
be issued under IC 6-8.1-8;
(5) the last date on which a refund claim can be filed under
IC 6-8.1-9-1;
(6) the first date on which interest can accrue on refunds
under IC 6-8.1-9-2;
(7) the first date on which interest can be assessed under
SEA 382 — CC 1 120
IC 6-8.1-10-1; and
(8) the due date for a return or payment under IC 6-2.3-6-1,
IC 6-3-4-4.1, IC 6-5.5-6-3, or IC 6-8.1-10-2.1.
(b) For an estimated tax payment under IC 6-2.3-6-1,
IC 6-3-4-4.1, or IC 6-5.5-6-3 that otherwise was due after March
23, 2020, and before July 15, 2020, the due date of the payment
shall be treated as July 15, 2020.
(c) For a return or other tax payment under IC 6-2.3, IC 6-3, or
IC 6-5.5, that otherwise was due after March 23, 2020, and before
May 1, 2020, the due date of the return or tax payment shall be
treated as July 15, 2020.
(d) For a return or other tax payment under IC 6-3 or IC 6-5.5
that otherwise was due after April 30, 2020, and before July 16,
2020, the due date of the return or tax payment shall be treated as:
(1) August 15, 2020, to the extent an action is determined
without regard to a Saturday; or
(2) August 17, 2020, to the extent an action is permitted to be
delayed due to a Saturday.
(e) A due date for payment determined under subsection (c) or
(d) shall be treated as the due date by which a tax payment is
required by meet minimum payment requirements for penalty
deferment under:
(1) IC 6-3-4-12(k);
(2) IC 6-3-4-13(l); and
(3) IC 6-8.1-6-1(d).
(f) For a return or payment with regard to individual adjusted
gross income tax under IC 6-3 for taxable years ending December
31, 2020, the due date shall be treated as:
(1) May 15, 2021, to the extent an action is determined
without regard to a Saturday; or
(2) May 17, 2021, to the extent an action is permitted to be
delayed due to a Saturday.
(g) This section expires December 31, 2024.
SECTION 84. IC 6-8.1-3-28 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 28. (a) If the department determines that an amount
of a listed tax has been distributed to a county, taxing district, or
taxing unit in error or determines that all or part of the
distribution was refunded subsequent to the distribution, the
department shall notify the county treasurer and the county
auditor of the excess distribution and request that the excess
distribution be repaid to the department or that the department be
SEA 382 — CC 1 121
permitted to offset the excess distribution against listed taxes. The
notification under this section shall consist of:
(1) the listed tax for which the excess distribution occurred;
(2) the period to which the excess distribution relates; and
(3) the county, taxing district, or taxing unit that received the
excess distribution.
(b) If the department is unable to obtain repayment from the
county or obtain an agreement to offset against other listed taxes
after a request by the department is made under subsection (a), the
department may offset distributions of that listed tax or other
listed taxes distributable to that county upon notification of:
(1) the listed tax from which the offset will be applied;
(2) in the case of an offset applied against local income tax, the
particular share from which the offset will be obtained; and
(3) the amount of the repayment to be obtained.
The department may recover any excess distribution over a period
of multiple distributions.
(c) The department shall attempt to apply any offset against the
same listed tax as the over distribution or other listed taxes
otherwise distributable to the county, taxing district, or taxing unit
as closely as possible. If the department determines that such an
offset is not practicable, the department shall offset the distribution
against the local income tax distributions otherwise required under
IC 6-3.6 and the state budget agency shall adjust the distributions
of local income tax for the calendar year in which the offset occurs
or will occur to reflect such distribution.
SECTION 85. IC 6-8.1-6-1, AS AMENDED BY P.L.190-2014,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 1. (a) This subsection does not apply to a
person's Indiana adjusted gross income tax return or a person's financial
institutions tax return. If a person responsible for filing a tax return is
unable to file the return by the appropriate due date, the person may
petition the department, before that due date, for a filing extension.
When the department receives the petition, the department shall grant
the person a sixty (60) day extension.
(b) If a person responsible for filing a tax return has received an
extension of the due date and is still unable to file the return by the
extended due date, the person may petition the department for another
extension. The person must include in the petition a statement of the
reasons for the person's inability to file the return by the due date. If the
department finds that the person's petition is proper and that the person
has good cause for requesting the extension, the department may
SEA 382 — CC 1 122
extend the person's due date for any period that the department deems
reasonable under the circumstances. The department may allow
additional, successive extensions if the person properly petitions for the
extension before the end of the person's current extension period.
(c) The following apply only to a person's Indiana adjusted gross
income tax return or a person's financial institutions tax return:
(1) If the Internal Revenue Service allows a person an extension
on the person's federal income tax return, the corresponding due
dates for the person's Indiana income tax returns are automatically
extended for the same period to the last day as the federal
extension, plus thirty (30) days. one (1) month. For purposes of
this subdivision, if the last day of the federal extension is a
Saturday, Sunday, a national legal holiday recognized by the
federal government, or a statewide holiday, the last day of the
federal extension shall be determined without regard to
Saturdays, Sundays, or holidays.
(2) If a person petitions the department for a filing extension for
the person's Indiana adjusted gross income tax return or financial
institutions tax return without obtaining an extension for filing the
person's federal income tax return, the department shall extend
the person's due date for the person's Indiana adjusted gross
income tax return or financial institutions tax return for the same
period that the person would have been allowed under subdivision
(1) if the person had been granted an extension by the Internal
Revenue Service. For purposes of this subdivision, if a person
files an extension request for the person's federal income tax
return for a taxable year but the extension is denied by the
Internal Revenue Service, the department shall consider the
person to have filed an extension under this subsection for
that taxable year, provided that the person did not have a
previous extension request denied by the Internal Revenue
Service for that taxable year.
(d) A person submitting a petition for an extension under this
section is not required to include any payment of tax with the petition.
However, a person obtaining an extension under this section must pay
at least ninety percent (90%) of the tax that is reasonably expected to
be due on the original due date by that due date, or the person may be
subject to the penalties imposed for failure to pay the tax. This
subsection does not apply to payments required under
IC 6-3-4-12(k) and IC 6-3-4-13(l).
(e) Any tax that remains unpaid during an extension period accrues
interest at a rate established under IC 6-8.1-10-1 from the original due
SEA 382 — CC 1 123
date, but that tax will not accrue any late payment penalties until the
extension period has ended. Any penalties must be determined based
on the amount of tax not paid on or before the end of the extension
period after application of payments provided under IC 6-8.1-8-1.5 and
determined as of the deadline of the extension period.
SECTION 86. IC 6-8.1-6-2 IS REPEALED [EFFECTIVE
JANUARY 1, 2023]. Sec. 2. If any due date falls on a Saturday, a
Sunday, a national legal holiday recognized by the federal government,
or a statewide holiday, the act that must be performed by that date is
timely if performed by the next succeeding day that is not a Saturday,
a Sunday, or one of those holidays.
SECTION 87. IC 6-8.1-7-1, AS AMENDED BY P.L.159-2021,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1. (a) This subsection does not apply to the
disclosure of information concerning a conviction on a tax evasion
charge. Unless in accordance with a judicial order or as otherwise
provided in this chapter, the department, its employees, former
employees, counsel, agents, or any other person may not divulge the
amount of tax paid by any taxpayer, terms of a settlement agreement
executed between a taxpayer and the department, investigation records,
investigation reports, or any other information disclosed by the reports
filed under the provisions of the law relating to any of the listed taxes,
including required information derived from a federal return, except to
any of the following when it is agreed that the information is to be
confidential and to be used solely for official purposes:
(1) Members and employees of the department.
(2) The governor.
(3) A member of the general assembly or an employee of the
house of representatives or the senate when acting on behalf of a
taxpayer located in the member's legislative district who has
provided sufficient information to the member or employee for
the department to determine that the member or employee is
acting on behalf of the taxpayer.
(4) An employee of the legislative services agency to carry out the
responsibilities of the legislative services agency under
IC 2-5-1.1-7 or another law.
(5) The attorney general or any other legal representative of the
state in any action in respect to the amount of tax due under the
provisions of the law relating to any of the listed taxes.
(6) Any authorized officers of the United States.
(b) The information described in subsection (a) may be revealed
upon the receipt of a certified request of any designated officer of the
SEA 382 — CC 1 124
state tax department of any other state, district, territory, or possession
of the United States when:
(1) the state, district, territory, or possession permits the exchange
of like information with the taxing officials of the state; and
(2) it is agreed that the information is to be confidential and to be
used solely for tax collection purposes.
(c) The information described in subsection (a) relating to a person
on public welfare or a person who has made application for public
welfare may be revealed to the director of the division of family
resources, and to any director of a county office of the division of
family resources located in Indiana, upon receipt of a written request
from either director for the information. The information shall be
treated as confidential by the directors. In addition, the information
described in subsection (a) relating to a person who has been
designated as an absent parent by the state Title IV-D agency shall be
made available to the state Title IV-D agency upon request. The
information shall be subject to the information safeguarding provisions
of the state and federal Title IV-D programs.
(d) The name, address, Social Security number, and place of
employment relating to any individual who is delinquent in paying
educational loans owed to a postsecondary educational institution may
be revealed to that institution if it provides proof to the department that
the individual is delinquent in paying for educational loans. This
information shall be provided free of charge to approved postsecondary
educational institutions (as defined by IC 21-7-13-6(a)). The
department shall establish fees that all other institutions must pay to the
department to obtain information under this subsection. However, these
fees may not exceed the department's administrative costs in providing
the information to the institution.
(e) The information described in subsection (a) relating to reports
submitted under IC 6-6-1.1-502 concerning the number of gallons of
gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
gallons of special fuel sold by a supplier and the number of gallons of
special fuel exported by a licensed exporter or imported by a licensed
transporter may be released by the commissioner upon receipt of a
written request for the information.
(f) The information described in subsection (a) may be revealed
upon the receipt of a written request from the administrative head of a
state agency of Indiana when:
(1) the state agency shows an official need for the information;
and
(2) the administrative head of the state agency agrees that any
SEA 382 — CC 1 125
information released will be kept confidential and will be used
solely for official purposes.
(g) The information described in subsection (a) may be revealed
upon the receipt of a written request from the chief law enforcement
officer of a state or local law enforcement agency in Indiana when it is
agreed that the information is to be confidential and to be used solely
for official purposes.
(h) The name and address of retail merchants, including township,
as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
purposes to township assessors and county assessors.
(i) The department shall notify the appropriate innkeeper's tax
board, bureau, or commission that a taxpayer is delinquent in remitting
innkeepers' taxes under IC 6-9.
(j) All information relating to the delinquency or evasion of the
vehicle excise tax may be disclosed to the bureau of motor vehicles in
Indiana and may be disclosed to another state, if the information is
disclosed for the purpose of the enforcement and collection of the taxes
imposed by IC 6-6-5.
(k) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable to the bureau of motor
vehicles in Indiana may be disclosed to the bureau and may be
disclosed to another state, if the information is disclosed for the
purpose of the enforcement and collection of the taxes imposed by
IC 6-6-5.5.
(l) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable under the International
Registration Plan may be disclosed to another state, if the information
is disclosed for the purpose of the enforcement and collection of the
taxes imposed by IC 6-6-5.5.
(m) All information relating to the delinquency or evasion of the
excise taxes imposed on recreational vehicles and truck campers that
are payable to the bureau of motor vehicles in Indiana may be disclosed
to the bureau and may be disclosed to another state if the information
is disclosed for the purpose of the enforcement and collection of the
taxes imposed by IC 6-6-5.1.
(n) This section does not apply to:
(1) the beer excise tax, including brand and packaged type
(IC 7.1-4-2);
(2) the liquor excise tax (IC 7.1-4-3);
(3) the wine excise tax (IC 7.1-4-4);
(4) the hard cider excise tax (IC 7.1-4-4.5);
SEA 382 — CC 1 126
(5) the vehicle excise tax (IC 6-6-5);
(6) the commercial vehicle excise tax (IC 6-6-5.5); and
(7) the fees under IC 13-23.
(o) The name and business address of retail merchants within each
county that sell tobacco products may be released to the division of
mental health and addiction and the alcohol and tobacco commission
solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
(p) The name and business address of a person licensed by the
department under IC 6-6 or IC 6-7, or issued a registered retail
merchant's certificate under IC 6-2.5, may be released for the purpose
of reporting the status of the person's license or certificate.
(q) The department may release information concerning total
incremental tax amounts under:
(1) IC 5-28-26;
(2) IC 36-7-13;
(3) IC 36-7-26;
(4) IC 36-7-27;
(5) IC 36-7-31;
(6) IC 36-7-31.3; or
(7) any other statute providing for the calculation of incremental
state taxes that will be distributed to or retained by a political
subdivision or other entity;
to the fiscal officer of the political subdivision or other entity that
established the district or area from which the incremental taxes were
received if that fiscal officer enters into an agreement with the
department specifying that the political subdivision or other entity will
use the information solely for official purposes.
(r) The department may release the information as required in
IC 6-8.1-3-7.1 concerning:
(1) an innkeeper's tax, a food and beverage tax, or an admissions
tax under IC 6-9;
(2) the supplemental auto rental excise tax under IC 6-6-9.7; and
(3) the covered taxes allocated to a professional sports
development area fund, sports and convention facilities operating
fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
(s) Information concerning state gross retail tax exemption
certificates that relate to a person who is exempt from the state gross
retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
defined in IC 6-2.5-4-5) IC 6-2.5-1-22.5) or a person selling the
services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 for the
purpose of enforcing and collecting the state gross retail and use taxes
SEA 382 — CC 1 127
under IC 6-2.5.
(t) The department may release a statement of tax withholding or
other tax information statement provided on behalf of a taxpayer to the
department to:
(1) the taxpayer on whose behalf the tax withholding or other tax
information statement was provided to the department;
(2) the taxpayer's spouse, if:
(A) the taxpayer is deceased or incapacitated; and
(B) the taxpayer's spouse is filing a joint income tax return
with the taxpayer; or
(3) an administrator, executor, trustee, or other fiduciary acting on
behalf of the taxpayer if the taxpayer is deceased.
(u) Information related to a listed tax regarding a taxpayer may be
disclosed to an individual without a power of attorney under
IC 6-8.1-3-8(a)(2) if:
(1) the individual is authorized to file returns and remit payments
for one (1) or more listed taxes on behalf of the taxpayer through
the department's online tax system before September 8, 2020;
(2) the information relates to a listed tax described in subdivision
(1) for which the individual is authorized to file returns and remit
payments;
(3) the taxpayer has been notified by the department of the
individual's ability to access the taxpayer's information for the
listed taxes described in subdivision (1) and the taxpayer has not
objected to the individual's access;
(4) the individual's authorization or right to access the taxpayer's
information for a listed tax described in subdivision (1) has not
been withdrawn by the taxpayer; and
(5) disclosure of the information to the individual is not
prohibited by federal law.
Except as otherwise provided by this article, this subsection does not
authorize the disclosure of any correspondence from the department
that is mailed or otherwise delivered to the taxpayer relating to the
specified listed taxes for which the individual was given authorization
by the taxpayer. The department shall establish a date, which may be
earlier but not later than September 1, 2023, after which a taxpayer's
information concerning returns and remittances for a listed tax may not
be disclosed to an individual without a power of attorney under
IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
previously authorized individuals, including notification published on
the department's Internet web site. After the earlier of the date
SEA 382 — CC 1 128
established by the department or September 1, 2023, the department
may not disclose a taxpayer's information concerning returns and
remittances for a listed tax to an individual unless the individual has a
power of attorney under IC 6-8.1-3-8(a)(2) or the disclosure is
otherwise allowed under this article.
SECTION 88. IC 6-8.1-10-2.1, AS AMENDED BY P.L.159-2021,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 2.1. (a) Except as provided in IC 6-3-4-12(k)
and IC 6-3-4-13(l), a person that:
(1) fails to file a return for any of the listed taxes;
(2) fails to pay the full amount of tax shown on the person's return
on or before the due date for the return or payment;
(3) incurs, upon examination by the department, a deficiency that
is due to negligence;
(4) fails to timely remit any tax held in trust for the state;
(5) fails to file a return in the electronic manner required by the
department if such return is required to be filed electronically; or
(6) is required to make a payment by electronic funds transfer (as
defined in IC 4-8.1-2-7), overnight courier, personal delivery, or
any other electronic means and the payment is not received by the
department by the due date in such manner and in funds
acceptable to the department;
is subject to a penalty.
(b) Except as provided in subsection (g), the penalty described in
subsection (a) is ten percent (10%) of:
(1) the full amount of the tax due if the person failed to file the
return or, in the case of a return required to be filed electronically,
the return is not filed in the electronic manner required by the
department;
(2) the amount of the tax not paid, if the person filed the return
but failed to pay the full amount of the tax shown on the return;
(3) the amount of the tax held in trust that is not timely remitted;
(4) the amount of deficiency as finally determined by the
department; or
(5) the amount of tax due if a person failed to make payment
required to be made by electronic funds transfer, overnight
courier, personal delivery, or any other electronic means by the
due date in such manner.
(c) For purposes of this section, the filing of a substantially blank or
unsigned return does not constitute a return.
(d) If a person subject to the penalty imposed under this section can
SEA 382 — CC 1 129
show that the failure to file a return, pay the full amount of tax shown
on the person's return, timely remit tax held in trust, or pay the
deficiency determined by the department was due to reasonable cause
and not due to willful neglect, the department shall waive the penalty.
(e) A person who wishes to avoid the penalty imposed under this
section must make an affirmative showing of all facts alleged as a
reasonable cause for the person's failure to file the return, pay the
amount of tax shown on the person's return, pay the deficiency, or
timely remit tax held in trust, in a written statement containing a
declaration that the statement is made under penalty of perjury. The
statement must be filed with the return or payment within the time
prescribed for protesting departmental assessments. A taxpayer may
also avoid the penalty imposed under this section by obtaining a ruling
from the department before the end of a particular tax period on the
amount of tax due for that tax period.
(f) The department shall adopt rules under IC 4-22-2 to prescribe the
circumstances that constitute reasonable cause and negligence for
purposes of this section.
(g) A person who fails to file a return for a listed tax that shows no
tax liability for a taxable year, other than an information return (as
defined in section 6 of this chapter), on or before the due date of the
return shall pay a penalty of ten dollars ($10) for each day that the
return is past due, up to a maximum of two hundred fifty dollars
($250).
(h) A:
(1) corporation which otherwise qualifies under IC 6-3-2-2.8(2);
(2) partnership; or
(3) trust;
that fails to withhold and pay any amount of tax required to be withheld
under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15 shall pay a penalty
equal to twenty percent (20%) of the amount of tax required to be
withheld under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15. This penalty
shall be in addition to any penalty imposed by section 6 of this chapter.
(i) Subsections (a) through (c) do not apply to a motor carrier fuel
tax return.
(j) If a partnership or an S corporation pass through entity (as
defined in IC 6-3-1-35) fails to include all nonresidential individual
nonresident partners, or nonresidential individual nonresident
shareholders, or nonresident beneficiaries in a composite return as
required by IC 6-3-4-12(i), or IC 6-3-4-13(j), or IC 6-3-4-15(h), a
penalty of five hundred dollars ($500) per partnership or S corporation
SEA 382 — CC 1 130
pass through entity is imposed on the partnership or S corporation.
pass through entity.
(k) If a person subject to the penalty imposed under this section
provides the department with documentation showing that the person
is or has been subject to incarceration for a period of a least one
hundred eighty (180) days, the department shall waive any penalty
under this section and interest that accrues during the time the person
was incarcerated, but not to an extent greater than the penalty or
interest relief to which a person would otherwise have been entitled
under the federal Servicemembers Civil Relief Act (50 U.S.C.
3901-4043), if the person was in military service. Nothing in this
subsection shall preclude the department from issuing a proposed
assessment, demand notice, jeopardy proposed assessment, jeopardy
demand notice, or warrant otherwise permitted by law.
SECTION 89. IC 6-9-24-8, AS AMENDED BY P.L.65-2013,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 8. (a) If a tax is imposed under section 3 of this
chapter, the fiscal body of the municipality shall establish a food and
beverage tax receipts fund.
(b) The fiscal officer of the municipality shall deposit in this fund
all amounts received under this chapter.
(c) Any money earned from the investment of money in the fund
becomes a part of the fund.
(d) Money in this fund shall be used by the municipality to:
(1) finance, construct, improve, equip, operate, and maintain
public parking and public restroom facilities;
(2) renovate, equip, operate, and maintain any structure that may
be used as a public parking or public restroom facility; or
(3) finance, construct, improve, equip, operate, and maintain
sidewalks and other streetscape improvements; or
(4) provide grants to businesses located within the
municipality that meet the criteria developed under
subsection (e) to be used for:
(A) exterior improvements to the building in which the
business is located, including signage, lighting, and decor
improvements; and
(B) architectural or engineering services or consultation.
The municipality may enter into lease or contractual arrangements, or
both, with governmental, not-for-profit, or other private entities to
operate and maintain these facilities and improvements.
(e) The fiscal body of the municipality shall develop criteria for
SEA 382 — CC 1 131
awarding a grant under subsection (d)(4), including eligibility
requirements, grant guidelines, and an application process.
SECTION 90. IC 6-9-24-9 IS REPEALED [EFFECTIVE JULY 1,
2022]. Sec. 9. (a) If the tax is imposed by a municipality under this
chapter, the tax terminates January 1, 2023.
(b) This chapter expires July 1, 2023.
SECTION 91. IC 6-9-29-1.5, AS AMENDED BY P.L.122-2021,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1.5. (a) Unless otherwise provided in this article,
a county fiscal body that adopts an ordinance to impose, rescind, or
increase or decrease the rate of a county innkeeper's tax, or to make a
change between collection of the tax by the county treasurer or the
department of state revenue, must specify the effective date of the
ordinance to provide that the ordinance takes effect:
(1) at least thirty (30) days after the adoption of the ordinance;
and
(2) on the first day of a month.
(b) If a county fiscal body adopts an ordinance described in
subsection (a), it must immediately send a certified copy of the
ordinance to the commissioner of the department of state revenue.
Notwithstanding subsection (a), if the department of state revenue
collects the revenue from the county innkeeper's tax, the department of
state revenue shall begin collecting the tax at the rate as provided in the
ordinance for periods beginning on or after on the later of:
(1) the first day of the month that is not less than thirty (30) days
after the ordinance is sent to the commissioner of the department
of state revenue; or
(2) the effective date specified in the ordinance.
The department shall collect the tax at the rate in the ordinance
unless the rate is not authorized under this article.
(c) If an ordinance does not specify an effective date, the ordinance
shall be considered effective on the earliest date allowable under this
section.
SECTION 92. IC 6-9-29.5-4 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]: Sec. 4. (a) If an ordinance is adopted under this article,
the adopting body must immediately send a certified copy of the
ordinance to the commissioner of the department of state revenue.
Notwithstanding any other provision in this article, if the
department of state revenue collects the revenue from the food and
beverage tax, the department of state revenue shall begin collecting
SEA 382 — CC 1 132
the tax as provided in the ordinance for periods beginning on or
after the later of:
(1) the first day of the month that is not less than thirty (30)
days after the ordinance is sent to the commissioner of the
department of state revenue; or
(2) the effective date specified in the ordinance.
(b) If an ordinance does not specify an effective date, the
ordinance shall be considered effective on the earliest date
allowable under this section.
SECTION 93. IC 6-9-44-1, AS ADDED BY P.L.157-2013,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1. This chapter applies to the town city of Fishers.
SECTION 94. IC 6-9-44-3, AS ADDED BY P.L.157-2013,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 3. (a) The fiscal body of the town city may adopt
an ordinance on or before December 31, 2013, 2023, to impose an
excise tax, known as the town city food and beverage tax, on
transactions described in section 4 of this chapter. The fiscal body of
the town city may adopt an ordinance under this subsection only after
the fiscal body has previously held at least one (1) separate public
hearing in which a discussion of the proposed ordinance to impose the
town city food and beverage tax is the only substantive issue on the
agenda for that public hearing.
(b) If the town city fiscal body adopts an ordinance under
subsection (a), the town city fiscal body shall immediately send a
certified copy of the ordinance to the department of state revenue.
(c) If the town city fiscal body adopts an ordinance under subsection
(a), the town city food and beverage tax applies to transactions that
occur after the last day of the month that succeeds the month in which
the ordinance is adopted.
SECTION 95. IC 6-9-44-4, AS ADDED BY P.L.157-2013,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. (a) Except as provided in subsection (c), a tax
imposed under section 3 of this chapter applies to a transaction in
which food or beverage is furnished, prepared, or served:
(1) for consumption at a location or on equipment provided by a
retail merchant;
(2) in the town; city; and
(3) by a retail merchant for consideration.
(b) Transactions described in subsection (a)(1) include transactions
in which food or beverage is:
SEA 382 — CC 1 133
(1) served by a retail merchant off the merchant's premises;
(2) food sold in a heated state or heated by a retail merchant;
(3) made of two (2) or more food ingredients, mixed or combined
by a retail merchant for sale as a single item (other than food that
is only cut, repackaged, or pasteurized by the seller, and eggs,
fish, meat, poultry, and foods containing these raw animal foods
requiring cooking by the consumer as recommended by the
federal Food and Drug Administration in chapter 3, subpart
3-401.11 of its Food Code so as to prevent food borne illnesses);
or
(4) food sold with eating utensils provided by a retail merchant,
including plates, knives, forks, spoons, glasses, cups, napkins, or
straws (for purposes of this subdivision, a plate does not include
a container or package used to transport the food).
(c) The town city food and beverage tax does not apply to the
furnishing, preparing, or serving of a food or beverage in a transaction
that is exempt, or to the extent the transaction is exempt, from the state
gross retail tax imposed by IC 6-2.5.
SECTION 96. IC 6-9-44-5, AS ADDED BY P.L.157-2013,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 5. The town city food and beverage tax rate may
not exceed one percent (1%) of the gross retail income received by the
merchant from the food or beverage transaction described in section 4
of this chapter. For purposes of this chapter, the gross retail income
received by the retail merchant from a transaction does not include the
amount of tax imposed on the transaction under IC 6-2.5.
SECTION 97. IC 6-9-44-7, AS ADDED BY P.L.157-2013,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 7. The amounts received from the tax imposed
under this chapter shall be paid monthly by the treasurer of state to the
town city fiscal officer upon warrants issued by the auditor of state.
SECTION 98. IC 6-9-44-8, AS ADDED BY P.L.157-2013,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 8. (a) If a tax is imposed under section 3 of this
chapter by a town, city, the town city fiscal officer shall establish a
food and beverage tax receipts fund.
(b) The town city fiscal officer shall deposit in this fund all amounts
received under this chapter.
(c) Money earned from the investment of money in the fund
becomes a part of the fund.
SECTION 99. IC 6-9-44-9, AS ADDED BY P.L.157-2013,
SEA 382 — CC 1 134
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 9. Money in the food and beverage tax receipts
fund shall be used by the town: city:
(1) to reduce the town's city's property tax levy for a particular
year at the discretion of the town, city, but this use does not
reduce the maximum permissible ad valorem property tax levy
under IC 6-1.1-18.5 for the town; city; or
(2) for economic development purposes, including the pledge of
money under IC 5-1-14-4 for bonds, leases, or other obligations
for economic development purposes.
Revenue derived from the imposition of a tax under this chapter may
be treated by the town city as additional revenue for the purpose of
fixing its budget for the budget year during which the revenues are to
be distributed to the town. city.
SECTION 100. IC 7.1-4-6-3.5, AS AMENDED BY P.L.166-2014,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 3.5. (a) A person who is liable for the payment of
an excise tax levied by this title shall file a monthly return with the
department on or before the twentieth day of the month following the
month in which the liability for the tax accrues by reason of the
manufacture, sale, gift, or the withdrawal for sale or gift, of alcoholic
beverages within this state.
(b) The department may require the reporting of any
information reasonably necessary to determine the amount of
excise tax due.
(c) The return required by this section must be filed in an
electronic format as prescribed by the department. Payment of the
excise tax due shall accompany the return, and shall be remitted
electronically. Any other returns or forms required to be filed under
this title must also be filed in an electronic format and on a date
prescribed by the department.
SECTION 101. IC 7.1-4-7-9, AS AMENDED BY P.L.86-2018,
SECTION 135, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 9. The auditor of state shall, on
or before the first tenth day of April of each year and quarterly on or
before the tenth day of the month thereafter, distribute the funds set
aside in accordance with the provisions of section 7 of this chapter or
the portion of them as reported to the auditor of state, to the general
fund of the treasury of the city or town on the basis provided for in this
chapter.
SECTION 102. IC 10-13-3-38.5, AS AMENDED BY
P.L.212-2018(ss), SECTION 31, IS AMENDED TO READ AS
SEA 382 — CC 1 135
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 38.5. (a) Under federal
P.L.92-544 (86 Stat. 1115), the department may use an individual's
fingerprints submitted by the individual for the following purposes:
(1) Determining the individual's suitability for employment with
the state, or as an employee of a contractor of the state, in a
position:
(A) that has a job description that includes contact with, care
of, or supervision over a person less than eighteen (18) years
of age;
(B) that has a job description that includes contact with, care
of, or supervision over an endangered adult (as defined in
IC 12-10-3-2), except the individual is not required to meet the
standard for harmed or threatened with harm set forth in
IC 12-10-3-2(a)(3);
(C) at a state institution managed by the office of the secretary
of family and social services or state department of health;
(D) at the Indiana School for the Deaf established by
IC 20-22-2-1;
(E) at the Indiana School for the Blind and Visually Impaired
established by IC 20-21-2-1;
(F) at a juvenile detention facility;
(G) with the Indiana gaming commission under IC 4-33-3-16;
(H) with the department of financial institutions under
IC 28-11-2-3; or
(I) that has a job description that includes access to or
supervision over state financial or personnel data, including
state warrants, banking codes, or payroll information
pertaining to state employees.
(2) Determining the individual's suitability for employment with
state or local government, or as an employee of a contractor of
state or local government, in a position in which the individual's
duties include access to confidential tax information obtained
from the United States Internal Revenue Service under Section
6103(d) of the Internal Revenue Code or from an authorized
secondary source.
(3) Identification in a request related to an application for a
teacher's license submitted to the department of education
established by IC 20-19-3-1.
(4) Use by the gaming commission established under IC 4-33-3-1
for licensure of a promoter (as defined in IC 4-33-22-6) under
IC 4-33-22.
SEA 382 — CC 1 136
(5) Use by the Indiana board of pharmacy in determining the
individual's suitability for a position or employment with a
wholesale drug distributor, as specified in IC 25-26-14-16(b),
IC 25-26-14-16.5(b), IC 25-26-14-17.8(c), and IC 25-26-14-20.
(6) Identification in a request related to an individual applying for
or renewing a license or certificate described in IC 25-1-1.1-4 and
a conviction described in IC 25-1-1.1-2 or IC 25-1-1.1-3.
An applicant shall submit the fingerprints in an appropriate format or
on forms provided for the employment, license, or certificate
application. The department shall charge each applicant the fee
established under section 28 of this chapter and by federal authorities
to defray the costs associated with a search for and classification of the
applicant's fingerprints. The department may forward fingerprints
submitted by an applicant to the Federal Bureau of Investigation or any
other agency for processing. The state personnel department, the
Indiana professional licensing agency, or the agency to which the
applicant is applying for employment or a license may receive the
results of all fingerprint investigations.
(b) An applicant who is an employee of the state may not be charged
under subsection (a).
(c) Subsection (a)(1) does not apply to an employee of a contractor
of the state if the contract involves the construction or repair of a
capital project or other public works project of the state.
(d) Each current or new state or local government employee whose
duties include access to confidential tax information described in
subsection (a)(2) must submit to a fingerprint based criminal history
background check of both national and state records data bases before
being granted access to the confidential tax information. In addition to
the initial criminal history background checks, each state or local
government employee whose duties include access to confidential tax
information described in subsection (a)(2) must submit to such
criminal history background checks at least once every ten (10) five (5)
years thereafter. The appointing authority of such a state or local
government employee may pay any fee charged for the cost of
fingerprinting or conducting the criminal history background checks
for the state or local government employee. Only the state or local
government agency in its capacity as the individual's employer or to
which the applicant is applying for employment is entitled to receive
the results of all fingerprint investigations.
(e) Each current or new contractor or subcontractor whose contract
or subcontract grants access to confidential tax information described
in subsection (a)(2) must submit to a fingerprint based criminal history
SEA 382 — CC 1 137
background check of both national and state records data bases at least
once every ten (10) five (5) years before being granted access to the
confidential tax information. Only the state or local government agency
is entitled to receive the results of all fingerprint investigations
conducted under this subsection.
(f) Each contract entered into by the state in which access to
confidential tax information described in subsection (a)(2) is granted
to a contractor or a subcontractor shall include:
(1) terms regarding which party is responsible for payment of any
fee charged for the cost of the fingerprinting or the criminal
history background checks; and
(2) terms regarding the consequences if one (1) or more
disqualifying records are discovered through the criminal history
background checks.
(g) The department:
(1) may permanently retain an applicant's fingerprints submitted
under this section; and
(2) shall retain the applicant's fingerprints separately from
fingerprints collected under section 24 of this chapter.
SECTION 103. [EFFECTIVE UPON PASSAGE] (a) The
administrative rule concerning a property tax exemption for public
airports that is set forth in 50 IAC 1-3-2 is void. The publisher of
the Indiana Administrative Code shall remove 50 IAC 1-3-2 from
the Indiana Administrative Code.
(b) This SECTION expires July 1, 2023.
SECTION 104. [EFFECTIVE JULY 1, 2022] (a) IC 6-3-2-1.7, as
added by this act, is effective for taxable years beginning after June
30, 2022.
(b) This SECTION expires July 1, 2025.
SECTION 105. An emergency is declared for this act.
SEA 382 — CC 1 President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: 	Time: 
SEA 382 — CC 1