Indiana 2022 Regular Session

Indiana Senate Bill SB0382 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	SB0382.1
	2	+	January 26, 2022
	3	+	SENATE BILL No. 382
	4	+	_____
	5	+	DIGEST OF SB 382 (Updated January 25, 2022 11:19 am - DI 129)
	6	+	Citations Affected: IC 4-23; IC 4-31; IC 4-33; IC 4-35; IC 4-38;
	7	+	IC 6-2.5; IC 6-3; IC 6-3.6; IC 6-5.5; IC 6-7; IC 6-8.1; IC 6-9; IC 7.1-4;
	8	+	noncode.
	9	+	Synopsis: Various tax matters. Allows certain corporations to make an
	10	+	election to determine the corporation's state adjusted gross income tax
	11	+	under specified provisions. Requires all wagering taxes to be reported
	12	+	and remitted electronically through the department of state revenue
	13	+	(department) online tax filing program. Amends the distribution date
	14	+	for certain alcoholic beverage tax revenue and wagering tax and fee
	15	+	revenue. Clarifies provisions regarding application of the sales tax to
	16	+	transactions in which a person acquires an aircraft for rental or leasing
	17	+	in the ordinary course of the person's business. Reorganizes and revises
	18	+	provisions that apply to the sales tax exemption for nonprofit
	19	+	organizations. Reorganizes and revises provisions regarding sales tax
	20	+	exemptions for utilities. Amends sales tax provisions that apply to
	21	+	wholesale sales. Clarifies that a marketplace facilitator is considered
	22	+	the retail merchant for transactions it facilitates on its marketplace
	23	+	regardless as to whether the marketplace facilitator has a contractual
	24	+	relationship with the seller. Allows nonresident shareholders and
	25	+	partners of a partnership to make an election to opt out of withholding
	26	+	tax requirements in certain specified circumstances. Clarifies the
	27	+	reporting process used for distribution of local income tax revenue to
	28	+	conform to current practice. Amends due date provisions for returns,
	29	+	refunds, assessments, or other submissions under the state income tax
	30	+	and financial institutions tax. Provides that an election by a corporation
	31	+	to make a consolidated return continues to apply following a corporate
	32	+	reorganization or sale. Makes technical and clarifying changes to the
	33	+	(Continued next page)
	34	+	Effective: Upon passage; January 1, 2020 (retroactive); July 1, 2021
	35	+	(retroactive); July 1, 2022; January 1, 2023; July 1, 2023.
	36	+	Holdman
	37	+	January 11, 2022, read first time and referred to Committee on Tax and Fiscal Policy.
	38	+	January 25, 2022, amended, reported favorably — Do Pass.
	39	+	SB 382—LS 7170/DI 120 Digest Continued
	40	+	procedures for reporting federal partnership audit adjustments.
	41	+	Increases the number of years a local income tax (LIT) expenditure tax
	42	+	rate for correctional facilities and rehabilitation facilities may be
	43	+	imposed from 22 to 25 years in the case of a tax rate adopted after June
	44	+	30, 2022. Adds procedures to allow the department to offset LIT
	45	+	distributions to local units when an over distribution has been made
	46	+	either in error or because a taxpayer refund is approved after the
	47	+	distribution. Makes a technical correction to tax penalty provisions that
	48	+	apply to pass through entities. Reduces the tax rate imposed on the
	49	+	distribution of closed system cartridges beginning July 1, 2022, from
	50	+	25% to 15% of the wholesale price. Requires remote sellers to collect
	51	+	the tobacco product tax on taxable products. Provides a more specific
	52	+	definition of "tobacco products" for purposes of the tobacco products
	53	+	tax. Imposes a tax on the distribution of alternative nicotine products
	54	+	in Indiana based on a rate of $0.40 per ounce of the product weight as
	55	+	listed by the manufacturer. Defines "alternative nicotine products" for
	56	+	purposes of the tax. Beginning January 1, 2023, provides for a $0.72
	57	+	per cigar tobacco products tax cap for cigars with a wholesale price
	58	+	exceeding $3 per cigar. Clarifies that, in the case of distributor to
	59	+	distributor transactions, the tobacco products tax is imposed at the time
	60	+	a distributor first receives the tobacco products in Indiana. Amends
	61	+	provisions that apply to a refund of a tobacco products license fee when
	62	+	a license is surrendered to the department before its expiration.
	63	+	Imposes a penalty on retailers who purchase tobacco products or
	64	+	cigarettes from a distributor who has not obtained a registration
	65	+	certificate from the department (or whose registration certification is
	66	+	revoked or suspended). Authorizes the department to revoke or suspend
	67	+	a registration certificate for failure to comply with certain reporting
	68	+	requirements. Provides the basis upon which the department may
	69	+	refuse to issue or renew a registration certificate. Provides that the
	70	+	department may require reporting of any information reasonably
	71	+	necessary to determine alcoholic beverage excise tax liability. Clarifies
	72	+	provisions that specify the effective date of an innkeeper's tax
	73	+	ordinance and the subsequent tax collection duties of the department.
	74	+	Adds similar provisions under the food and beverage tax. Requires the
	75	+	budget agency to transfer $7,100,000 from the state general fund to the
	76	+	Indiana geographic information office (office) to be used for the
	77	+	purposes of funding the office and the implementation of the
	78	+	geographic information system (GIS) for the department of revenue
	79	+	local income tax purposes. Requires the budget agency to create a
	80	+	report on the current GIS related contract costs for all state agencies
	81	+	that could be eliminated in order to offset the required future state
	82	+	appropriations needed to fund the office and submit the report to the
	83	+	interim study committee on fiscal policy before November 1, 2022.
	84	+	Makes conforming changes. Changes population parameters to reflect
	85	+	the population count determined under the 2020 decennial census.
	86	+	SB 382—LS 7170/DI 120SB 382—LS 7170/DI 120 January 26, 2022
1	87		Second Regular Session of the 122nd General Assembly (2022)
2	88		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	89		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	90		additions will appear in this style type, and deletions will appear in this style type.
5	91		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	92		provision adopted), the text of the new provision will appear in this style type. Also, the
7	93		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	94		a new provision to the Indiana Code or the Indiana Constitution.
9	95		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	96		between statutes enacted by the 2021 Regular Session of the General Assembly.
11		-	SENATE ~~ENROLLED ACT~~ No. 382
12		-	AN ACT to amend the Indiana Code concerning ~~taxation and to~~
13		-	~~make an appropriation~~.
	97	+	SENATE BILL No. 382
	98	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	99	+	taxation.
14	100		Be it enacted by the General Assembly of the State of Indiana:
15		-	SECTION 1. IC 4-23-7.3-19, AS ADDED BY P.L.198-2007,
16		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17		-	UPON PASSAGE]: Sec. 19. (a) The Indiana mapping data and
18		-	standards fund is established for the following purposes:
19		-	(1) Funding GIS grants.
20		-	(2) Administering this chapter.
21		-	(3) The purposes set forth in section 23(a)(1) and 23(a)(2) of
22		-	this chapter (before its expiration).
23		-	(b) The fund consists of the following:
24		-	(1) Appropriations made to the fund by the general assembly.
25		-	(2) Gifts, grants, or other money received by the state for GIS
26		-	purposes.
27		-	(3) Money transferred to the fund under section 23(a) of this
28		-	chapter (before its expiration).
29		-	(c) The state GIS officer shall administer the fund.
30		-	(d) The expenses of administering the fund shall be paid from
31		-	money in the fund.
32		-	(e) The treasurer of state shall invest the money in the fund not
33		-	currently needed to meet the obligations of the fund in the same
34		-	manner as other public money may be invested. Interest that accrues
35		-	from these investments shall be deposited in the fund.
36		-	SEA 382 — CC 1 2
37		-	(f) Money in the fund at the end of a state fiscal year does not revert
38		-	to the state general fund.
39		-	(g) Money in the fund is continuously appropriated for the
40		-	purposes of the fund.
41		-	SECTION 2. IC 4-23-7.3-23 IS ADDED TO THE INDIANA CODE
42		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
43		-	UPON PASSAGE]: Sec. 23. (a) Before July 1, 2023, the budget
44		-	agency shall transfer seven million one hundred thousand dollars
45		-	($7,100,000) from the state general fund to the Indiana mapping
46		-	standards fund established by section 19 of this chapter which shall
47		-	be used for:
48		-	(1) the implementation of the geographic information system
49		-	(GIS) for the state and local income taxes, as well as listed
50		-	taxes, administrated by the department of state revenue; and
51		-	(2) the purposes of the Indiana geographic information office.
52		-	(b) The budget agency shall identify and create a report on the
53		-	current GIS related contract costs for all state agencies that could
54		-	be eliminated in order to offset the required future state
55		-	appropriations needed to fund the Indiana geographic information
56		-	office. The report under this subsection shall be submitted to the
57		-	interim study committee on fiscal policy established by IC 2-5-1.3-4
58		-	before November 1, 2022.
59		-	(c) This section expires July 1, 2023.
60		-	SECTION 3. IC 4-31-9-3, AS AMENDED BY P.L.165-2021,
61		-	SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
62		-	JULY 1, 2022]: Sec. 3. (a) At the close of each day on which a permit
63		-	holder or satellite facility operator conducts pari-mutuel wagering on
64		-	live racing or simulcasts at a racetrack or satellite facility, the permit
65		-	holder or satellite facility operator shall pay to the department of state
66		-	revenue a tax on the total amount of money wagered on that day as
67		-	follows:
68		-	(1) Two percent (2%) of the total amount of money wagered
69		-	under IC 4-31-7 at a permit holder's racetrack.
70		-	(2) Two and one-half percent (2.5%) of the total amount of money
71		-	wagered under IC 4-31-5.5-6 at a permit holder's satellite facility.
72		-	(b) The taxes collected under subsection (a) shall be paid from the
73		-	amounts withheld under section 1 of this chapter and shall be
74		-	distributed as follows:
75		-	(1) The first one hundred fifty thousand dollars ($150,000) of
76		-	taxes collected during each state fiscal year shall be deposited in
77		-	the veterinary school research account established by
78		-	IC 4-31-12-22.
79		-	SEA 382 — CC 1 3
80		-	(2) The remainder of the taxes collected during each state fiscal
81		-	year shall be paid into the Indiana horse racing commission
82		-	operating fund (IC 4-31-10).
83		-	(c) The tax imposed by this section is a listed tax for purposes of
84		-	IC 6-8.1-1.
85		-	(d) The payment of the tax under this section must be reported
86		-	and remitted electronically through the department's online tax
87		-	filing program.
88		-	SECTION 4. IC 4-31-9-10, AS AMENDED BY P.L.159-2021,
89		-	SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
90		-	JULY 1, 2022]: Sec. 10. (a) At the close of each day on which
91		-	pari-mutuel wagering is conducted at a racetrack or satellite facility,
92		-	the permit holder or satellite facility operator shall pay the breakage
93		-	from each of the races on which wagers were taken on that day to the
94		-	department of state revenue for deposit in the appropriate breed
95		-	development fund as determined by the rules of the commission.
96		-	(b) Not later than March 15 of each year, each permit holder or
97		-	satellite facility operator shall pay to the commission the balance of the
98		-	outs tickets from the previous calendar year. The commission shall
99		-	distribute money received under this subsection to the appropriate
100		-	breed development fund as determined by the rules of the commission.
101		-	(c) The payment of the breakage under this section must be
102		-	reported and remitted electronically through the department's
103		-	online tax filing program.
104		-	SECTION 5. IC 4-33-12-4, AS AMENDED BY P.L.212-2018(ss),
105		-	SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
106		-	JULY 1, 2022]: Sec. 4. (a) A licensed owner must report:
107		-	(1) the daily amount of admissions taxes imposed under section
108		-	1 of this chapter (before its repeal on July 1, 2018) and
109		-	supplemental wagering taxes imposed under section 1.5 of this
110		-	chapter to the department at the time the taxes are paid under
111		-	subsection (b); and
112		-	(2) gaming activity information to the commission daily on forms
113		-	prescribed by the commission.
114		-	This subsection expires June 30, 2018.
115		-	(b) A licensed owner shall pay the admissions taxes imposed under
116		-	section 1 of this chapter (before its repeal on July 1, 2018) and
117		-	supplemental wagering taxes imposed under section 1.5 of this chapter
118		-	to the department on the twenty-fourth calendar day of each month.
119		-	Any taxes collected during the month but after the day on which the
120		-	taxes are required to be paid to the department shall be paid to the
121		-	department at the same time the following month's taxes are due. This
122		-	SEA 382 — CC 1 4
123		-	subsection expires June 30, 2018.
124		-	(c) This subsection is effective July 1, 2018. A licensed owner must
125		-	report:
126		-	(1) the daily amount of supplemental wagering taxes imposed
127		-	under section 1.5 of this chapter to the department at the time the
128		-	taxes are paid under subsection (d); and
129		-	(2) gaming activity information to the commission daily on forms
130		-	prescribed by the commission.
131		-	(d) This subsection is effective July 1, 2018. A licensed owner shall
132		-	pay the supplemental wagering taxes imposed under section 1.5 of this
133		-	chapter to the department on the twenty-fourth calendar day of each
134		-	month. Any taxes collected during the month but after the day on which
135		-	the taxes are required to be paid to the department shall be paid to the
136		-	department at the same time the following month's taxes are due.
137		-	(e) The payment of the tax under this section must be on a form
138		-	prescribed by the department.
139		-	(f) (e) The payment of the tax under this section must be in a
140		-	manner prescribed by the department. reported and remitted
141		-	electronically through the department's online tax filing program.
142		-	SECTION 6. IC 4-33-13-1.5, AS AMENDED BY P.L.293-2019,
143		-	SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
144		-	JULY 1, 2022]: Sec. 1.5. (a) This subsection applies only to a riverboat
145		-	that received at least seventy-five million dollars ($75,000,000) of
146		-	adjusted gross receipts during the preceding state fiscal year. A
147		-	graduated tax is imposed on the adjusted gross receipts received from
148		-	gambling games authorized under this article as follows:
149		-	(1) For state fiscal years ending before July 1, 2021, fifteen
150		-	percent (15%), and for state fiscal years beginning after June 30,
151		-	2021, ten percent (10%), of the first twenty-five million dollars
152		-	($25,000,000) of adjusted gross receipts received during the
153		-	period beginning July 1 of each year and ending June 30 of the
154		-	following year.
155		-	(2) Twenty percent (20%) of the adjusted gross receipts in excess
156		-	of twenty-five million dollars ($25,000,000) but not exceeding
157		-	fifty million dollars ($50,000,000) received during the period
158		-	beginning July 1 of each year and ending June 30 of the following
159		-	year.
160		-	(3) Twenty-five percent (25%) of the adjusted gross receipts in
161		-	excess of fifty million dollars ($50,000,000) but not exceeding
162		-	seventy-five million dollars ($75,000,000) received during the
163		-	period beginning July 1 of each year and ending June 30 of the
164		-	following year.
165		-	SEA 382 — CC 1 5
166		-	(4) Thirty percent (30%) of the adjusted gross receipts in excess
167		-	of seventy-five million dollars ($75,000,000) but not exceeding
168		-	one hundred fifty million dollars ($150,000,000) received during
169		-	the period beginning July 1 of each year and ending June 30 of
170		-	the following year.
171		-	(5) Thirty-five percent (35%) of all adjusted gross receipts in
172		-	excess of one hundred fifty million dollars ($150,000,000) but not
173		-	exceeding six hundred million dollars ($600,000,000) received
174		-	during the period beginning July 1 of each year and ending June
175		-	30 of the following year.
176		-	(6) Forty percent (40%) of all adjusted gross receipts exceeding
177		-	six hundred million dollars ($600,000,000) received during the
178		-	period beginning July 1 of each year and ending June 30 of the
179		-	following year.
180		-	(b) This subsection applies only to a riverboat that received less than
181		-	seventy-five million dollars ($75,000,000) of adjusted gross receipts
182		-	during the preceding state fiscal year. A graduated tax is imposed on
183		-	the adjusted gross receipts received from gambling games authorized
184		-	under this article as follows:
185		-	(1) For state fiscal years ending before July 1, 2021, five percent
186		-	(5%), and for state fiscal years beginning after June 30, 2021, two
187		-	and one-half percent (2.5%), of the first twenty-five million
188		-	dollars ($25,000,000) of adjusted gross receipts received during
189		-	the period beginning July 1 of each year and ending June 30 of
190		-	the following year.
191		-	(2) For state fiscal years ending before July 1, 2021, twenty
192		-	percent (20%), and for state fiscal years beginning after June 30,
193		-	2021, ten percent (10%), of the adjusted gross receipts in excess
194		-	of twenty-five million dollars ($25,000,000) but not exceeding
195		-	fifty million dollars ($50,000,000) received during the period
196		-	beginning July 1 of each year and ending June 30 of the following
197		-	year.
198		-	(3) For state fiscal years ending before July 1, 2021, twenty-five
199		-	percent (25%), and for state fiscal years beginning after June 30,
200		-	2021, twenty percent (20%), of the adjusted gross receipts in
201		-	excess of fifty million dollars ($50,000,000) but not exceeding
202		-	seventy-five million dollars ($75,000,000) received during the
203		-	period beginning July 1 of each year and ending June 30 of the
204		-	following year.
205		-	(4) Thirty percent (30%) of the adjusted gross receipts in excess
206		-	of seventy-five million dollars ($75,000,000) but not exceeding
207		-	one hundred fifty million dollars ($150,000,000) received during
208		-	SEA 382 — CC 1 6
209		-	the period beginning July 1 of each year and ending June 30 of
210		-	the following year.
211		-	(5) Thirty-five percent (35%) of all adjusted gross receipts in
212		-	excess of one hundred fifty million dollars ($150,000,000) but not
213		-	exceeding six hundred million dollars ($600,000,000) received
214		-	during the period beginning July 1 of each year and ending June
215		-	30 of the following year.
216		-	(6) Forty percent (40%) of all adjusted gross receipts exceeding
217		-	six hundred million dollars ($600,000,000) received during the
218		-	period beginning July 1 of each year and ending June 30 of the
219		-	following year.
220		-	(c) The licensed owner or operating agent of a riverboat taxed under
221		-	subsection (b) shall pay an additional tax of two million five hundred
222		-	thousand dollars ($2,500,000) in any state fiscal year in which the
223		-	riverboat's adjusted gross receipts exceed seventy-five million dollars
224		-	($75,000,000). The additional tax imposed under this subsection is due
225		-	before July 1 of the following state fiscal year.
226		-	(d) The licensed owner or operating agent shall:
227		-	(1) remit the daily amount of tax imposed by this chapter to the
228		-	department on the twenty-fourth calendar day of each month for
229		-	the wagering taxes collected that month; and
230		-	(2) report gaming activity information to the commission daily on
231		-	forms prescribed by the commission.
232		-	Any taxes collected during the month but after the day on which the
233		-	taxes are required to be paid to the department shall be paid to the
234		-	department at the same time the following month's taxes are due.
235		-	(e) The payment of the tax under this section must be in a manner
236		-	prescribed by the department. reported and remitted electronically
237		-	through the department's online tax filing program.
238		-	(f) If the department requires taxes to be remitted under this chapter
239		-	through electronic funds transfer, the department may allow the
240		-	licensed owner or operating agent to file a monthly report to reconcile
241		-	the amounts remitted to the department.
242		-	(g) The department may allow taxes remitted under this section to
243		-	be reported on the same form used for taxes paid under IC 4-33-12.
244		-	SECTION 7. IC 4-33-13-5, AS AMENDED BY P.L.238-2019,
245		-	SECTION 2, AND AS AMENDED BY P.L.108-2019, SECTION 73,
246		-	AND AS AMENDED BY P.L.293-2019, SECTION 31, IS
247		-	CORRECTED AND AMENDED TO READ AS FOLLOWS
248		-	[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) This subsection does not
249		-	apply to tax revenue remitted by an operating agent operating a
250		-	riverboat in a historic hotel district. After funds are appropriated under
251		-	SEA 382 — CC 1 7
252		-	section 4 of this chapter, each month the treasurer auditor of state shall
253		-	distribute the tax revenue deposited in the state gaming fund under this
254		-	chapter to the following:
255		-	(1) An amount equal to the following shall be set aside for
256		-	revenue sharing under subsection (e): (d):
257		-	(A) Before July 1, 2021, the first thirty-three million dollars
258		-	($33,000,000) of tax revenues collected under this chapter
259		-	shall be set aside for revenue sharing under subsection (e). (d).
260		-	(B) After June 30, 2021, if the total adjusted gross receipts
261		-	received by licensees from gambling games authorized under
262		-	this article during the preceding state fiscal year is equal to or
263		-	greater than the total adjusted gross receipts received by
264		-	licensees from gambling games authorized under this article
265		-	during the state fiscal year ending June 30, 2020, the first
266		-	thirty-three million dollars ($33,000,000) of tax revenues
267		-	collected under this chapter shall be set aside for revenue
268		-	sharing under subsection (e). (d).
269		-	(C) After June 30, 2021, if the total adjusted gross receipts
270		-	received by licensees from gambling games authorized under
271		-	this article during the preceding state fiscal year is less than
272		-	the total adjusted gross receipts received by licensees from
273		-	gambling games authorized under this article during the state
274		-	year ending June 30, 2020, an amount equal to the first
275		-	thirty-three million dollars ($33,000,000) of tax revenues
276		-	collected under this chapter multiplied by the result of:
277		-	(i) the total adjusted gross receipts received by licensees
278		-	from gambling games authorized under this article during
279		-	the preceding state fiscal year; divided by
280		-	(ii) the total adjusted gross receipts received by licensees
281		-	from gambling games authorized under this article during
282		-	the state fiscal year ending June 30, 2020;
283		-	shall be set aside for revenue sharing under subsection (e). (d).
284		-	(2) Subject to subsection (c), twenty-five percent (25%) of the
285		-	remaining tax revenue remitted by each licensed owner shall be
286		-	paid:
287		-	(A) to the city in which the riverboat is located or that is
288		-	designated as the home dock of the riverboat from which the
289		-	tax revenue was collected, in the case of:
290		-	(i) a city described in IC 4-33-12-6(b)(1)(A); or
291		-	(ii) a city located in a county having a population of more
292		-	than four hundred thousand (400,000) but and less than
293		-	seven hundred thousand (700,000); or
294		-	SEA 382 — CC 1 8
295		-	(iii) Terre Haute; or
296		-	(B) to the county that is designated as the home dock of the
297		-	riverboat from which the tax revenue was collected, in the case
298		-	of a riverboat that is not located in a city described in clause
299		-	(A) or whose home dock is not in a city described in clause
300		-	(A).
301		-	(3) Subject to subsection (d), The remainder of the tax revenue
302		-	remitted by each licensed owner shall be paid to the state general
303		-	fund. In each state fiscal year, the treasurer auditor of state shall
304		-	make the transfer required by this subdivision not later than the
305		-	last business day of the month in which the tax revenue is
306		-	remitted to the state on or before the fifteenth day of the month
307		-	based on revenue received during the preceding month for
308		-	deposit in the state gaming fund. However, if tax revenue is
309		-	received by the state on the last business day in a month,
310		-	Specifically, the treasurer auditor of state may transfer the tax
311		-	revenue received by the state in a month to the state general
312		-	fund in the immediately following month according to this
313		-	subdivision.
314		-	(b) This subsection applies only to tax revenue remitted by an
315		-	operating agent operating a riverboat in a historic hotel district after
316		-	June 30, 2015. 2019. After funds are appropriated under section 4 of
317		-	this chapter, each month the treasurer auditor of state shall distribute
318		-	the tax revenue remitted by the operating agent under this chapter as
319		-	follows:
320		-	(1) For state fiscal years beginning after June 30, 2019, but
321		-	ending before July 1, 2021, fifty-six and five-tenths percent
322		-	(56.5%) shall be paid to the state general fund.
323		-	(2) For state fiscal years beginning after June 30, 2021, fifty-six
324		-	and five-tenths percent (56.5%) shall be paid as follows:
325		-	(A) Sixty-six and four-tenths percent (66.4%) shall be paid to
326		-	the state general fund.
327		-	(B) Thirty-three and six-tenths percent (33.6%) shall be paid
328		-	to the West Baden Springs historic hotel preservation and
329		-	maintenance fund established by IC 36-7-11.5-11(b).
330		-	However, if:
331		-	(i) at any time the balance in that fund exceeds twenty-five
332		-	million dollars ($25,000,000); or
333		-	(ii) in any part of a state fiscal year in which the operating
334		-	agent has received at least one hundred million dollars
335		-	($100,000,000) of adjusted gross receipts;
336		-	the amount described in this clause shall be paid to the state
337		-	SEA 382 — CC 1 9
338		-	general fund for the remainder of the state fiscal year.
339		-	(2) (3) Forty-three and five-tenths percent (43.5%) shall be paid
340		-	as follows:
341		-	(A) Twenty-two and four-tenths percent (22.4%) shall be paid
342		-	as follows:
343		-	(i) Fifty percent (50%) to the fiscal officer of the town of
344		-	French Lick.
345		-	(ii) Fifty percent (50%) to the fiscal officer of the town of
346		-	West Baden Springs.
347		-	(B) Fourteen and eight-tenths percent (14.8%) shall be paid to
348		-	the county treasurer of Orange County for distribution among
349		-	the school corporations in the county. The governing bodies
350		-	for the school corporations in the county shall provide a
351		-	formula for the distribution of the money received under this
352		-	clause among the school corporations by joint resolution
353		-	adopted by the governing body of each of the school
354		-	corporations in the county. Money received by a school
355		-	corporation under this clause must be used to improve the
356		-	educational attainment of students enrolled in the school
357		-	corporation receiving the money. Not later than the first
358		-	regular meeting in the school year of a governing body of a
359		-	school corporation receiving a distribution under this clause,
360		-	the superintendent of the school corporation shall submit to
361		-	the governing body a report describing the purposes for which
362		-	the receipts under this clause were used and the improvements
363		-	in educational attainment realized through the use of the
364		-	money. The report is a public record.
365		-	(C) Thirteen and one-tenth percent (13.1%) shall be paid to the
366		-	county treasurer of Orange County.
367		-	(D) Five and three-tenths percent (5.3%) shall be distributed
368		-	quarterly to the county treasurer of Dubois County for
369		-	appropriation by the county fiscal body after receiving a
370		-	recommendation from the county executive. The county fiscal
371		-	body for the receiving county shall provide for the distribution
372		-	of the money received under this clause to one (1) or more
373		-	taxing units (as defined in IC 6-1.1-1-21) in the county under
374		-	a formula established by the county fiscal body after receiving
375		-	a recommendation from the county executive.
376		-	(E) Five and three-tenths percent (5.3%) shall be distributed
377		-	quarterly to the county treasurer of Crawford County for
378		-	appropriation by the county fiscal body after receiving a
379		-	recommendation from the county executive. The county fiscal
380		-	SEA 382 — CC 1 10
381		-	body for the receiving county shall provide for the distribution
382		-	of the money received under this clause to one (1) or more
383		-	taxing units (as defined in IC 6-1.1-1-21) in the county under
384		-	a formula established by the county fiscal body after receiving
385		-	a recommendation from the county executive.
386		-	(F) Six and thirty-five hundredths percent (6.35%) shall be
387		-	paid to the fiscal officer of the town of Paoli.
388		-	(G) Six and thirty-five hundredths percent (6.35%) shall be
389		-	paid to the fiscal officer of the town of Orleans.
390		-	(H) Twenty-six and four-tenths percent (26.4%) shall be paid
391		-	to the Indiana economic development corporation established
392		-	by IC 5-28-3-1 for transfer as follows:
393		-	(i) Beginning after December 31, 2017, ten percent (10%)
394		-	of the amount transferred under this clause in each calendar
395		-	year shall be transferred to the South Central Indiana
396		-	Regional Economic Development Corporation or a
397		-	successor entity or partnership for economic development
398		-	for the purpose of recruiting new business to Orange County
399		-	as well as promoting the retention and expansion of existing
400		-	businesses in Orange County.
401		-	(ii) The remainder of the amount transferred under this
402		-	clause in each calendar year shall be transferred to Radius
403		-	Indiana or a successor regional entity or partnership for the
404		-	development and implementation of a regional economic
405		-	development strategy to assist the residents of Orange
406		-	County and the counties contiguous to Orange County in
407		-	improving their quality of life and to help promote
408		-	successful and sustainable communities.
409		-	To the extent possible, the Indiana economic development
410		-	corporation shall provide for the transfer under item (i) to be
411		-	made in four (4) equal installments. However, an amount
412		-	sufficient to meet current obligations to retire or refinance
413		-	indebtedness or leases for which tax revenues under this
414		-	section were pledged before January 1, 2015, by the Orange
415		-	County development commission shall be paid to the Orange
416		-	County development commission before making distributions
417		-	to the South Central Indiana Regional Economic Development
418		-	Corporation and Radius Indiana or their successor entities or
419		-	partnerships. The amount paid to the Orange County
420		-	development commission shall proportionally reduce the
421		-	amount payable to the South Central Indiana Regional
422		-	Economic Development Corporation and Radius Indiana or
423		-	SEA 382 — CC 1 11
424		-	their successor entities or partnerships.
425		-	(c) This subsection does not apply to tax revenue remitted by an
426		-	inland casino operating in Vigo County. For each city and county
427		-	receiving money under subsection (a)(2), the treasurer auditor of state
428		-	shall determine the total amount of money paid by the treasurer
429		-	auditor of state to the city or county during the state fiscal year 2002.
430		-	The amount determined is the base year revenue for the city or county.
431		-	The treasurer auditor of state shall certify the base year revenue
432		-	determined under this subsection to the city or county. The total
433		-	amount of money distributed to a city or county under this section
434		-	during a state fiscal year may not exceed the entity's base year revenue.
435		-	For each state fiscal year, the treasurer auditor of state shall pay that
436		-	part of the riverboat wagering taxes that:
437		-	(1) exceeds a particular city's or county's base year revenue; and
438		-	(2) would otherwise be due to the city or county under this
439		-	section;
440		-	to the state general fund instead of to the city or county.
441		-	(d) Each state fiscal year the treasurer of state shall transfer from
442		-	the tax revenue remitted to the state general fund under subsection
443		-	(a)(3) to the build Indiana fund an amount that when added to the
444		-	following may not exceed two hundred fifty million dollars
445		-	($250,000,000):
446		-	(1) Surplus lottery revenues under IC 4-30-17-3.
447		-	(2) Surplus revenue from the charity gaming enforcement fund
448		-	under IC 4-32.3-7-5.
449		-	(3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
450		-	The treasurer of state shall make transfers on a monthly basis as
451		-	needed to meet the obligations of the build Indiana fund. If in any state
452		-	fiscal year insufficient money is transferred to the state general fund
453		-	under subsection (a)(3) to comply with this subsection, the treasurer
454		-	of state shall reduce the amount transferred to the build Indiana fund
455		-	to the amount available in the state general fund from the transfers
456		-	under subsection (a)(3) for the state fiscal year.
457		-	(e) (d) Except as provided in subsections (l) (k) and (m), (l), before
458		-	August 15 of each year, the treasurer auditor of state shall distribute
459		-	the wagering taxes set aside for revenue sharing under subsection
460		-	(a)(1) to the county treasurer of each county that does not have a
461		-	riverboat according to the ratio that the county's population bears to the
462		-	total population of the counties that do not have a riverboat. Except as
463		-	provided in subsection (h), (g), the county auditor shall distribute the
464		-	money received by the county under this subsection as follows:
465		-	(1) To each city located in the county according to the ratio the
466		-	SEA 382 — CC 1 12
467		-	city's population bears to the total population of the county.
468		-	(2) To each town located in the county according to the ratio the
469		-	town's population bears to the total population of the county.
470		-	(3) After the distributions required in subdivisions (1) and (2) are
471		-	made, the remainder shall be retained by the county.
472		-	(f) (e) Money received by a city, town, or county under subsection
473		-	(e) (d) or (h) (g) may be used for any of the following purposes:
474		-	(1) To reduce the property tax levy of the city, town, or county for
475		-	a particular year (a property tax reduction under this subdivision
476		-	does not reduce the maximum levy of the city, town, or county
477		-	under IC 6-1.1-18.5).
478		-	(2) For deposit in a special fund or allocation fund created under
479		-	IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and
480		-	IC 36-7-30 to provide funding for debt repayment.
481		-	(3) To fund sewer and water projects, including storm water
482		-	management projects.
483		-	(4) For police and fire pensions.
484		-	(5) To carry out any governmental purpose for which the money
485		-	is appropriated by the fiscal body of the city, town, or county.
486		-	Money used under this subdivision does not reduce the property
487		-	tax levy of the city, town, or county for a particular year or reduce
488		-	the maximum levy of the city, town, or county under
489		-	IC 6-1.1-18.5.
490		-	(g) (f) This subsection does not apply to an inland casino operating
491		-	in Vigo County. Before July 15 of each year, the treasurer auditor of
492		-	state shall determine the total amount of money distributed to an entity
493		-	under IC 4-33-12-6 or IC 4-33-12-8 during the preceding state fiscal
494		-	year. If the treasurer auditor of state determines that the total amount
495		-	of money distributed to an entity under IC 4-33-12-6 or IC 4-33-12-8
496		-	during the preceding state fiscal year was less than the entity's base
497		-	year revenue (as determined under IC 4-33-12-9), the treasurer auditor
498		-	of state shall make a supplemental distribution to the entity from taxes
499		-	collected under this chapter and deposited into the state general fund.
500		-	Except as provided in subsection (i), (h), the amount of an entity's
501		-	supplemental distribution is equal to:
502		-	(1) the entity's base year revenue (as determined under
503		-	IC 4-33-12-9); minus
504		-	(2) the sum of:
505		-	(A) the total amount of money distributed to the entity and
506		-	constructively received by the entity during the preceding state
507		-	fiscal year under IC 4-33-12-6 or IC 4-33-12-8; plus
508		-	(B) the amount of any admissions taxes deducted under
509		-	SEA 382 — CC 1 13
510		-	IC 6-3.1-20-7.
511		-	(h) (g) This subsection applies only to a county containing a
512		-	consolidated city. The county auditor shall distribute the money
513		-	received by the county under subsection (e) (d) as follows:
514		-	(1) To each city, other than a consolidated city, located in the
515		-	county according to the ratio that the city's population bears to the
516		-	total population of the county.
517		-	(2) To each town located in the county according to the ratio that
518		-	the town's population bears to the total population of the county.
519		-	(3) After the distributions required in subdivisions (1) and (2) are
520		-	made, the remainder shall be paid in equal amounts to the
521		-	consolidated city and the county.
522		-	(i) (h) This subsection does not apply to an inland casino operating
523		-	in Vigo County. This subsection applies to a supplemental distribution
524		-	made after June 30, 2017. The maximum amount of money that may be
525		-	distributed under subsection (g) (f) in a state fiscal year is equal to the
526		-	following:
527		-	(1) Before July 1, 2021, forty-eight million dollars ($48,000,000).
528		-	(2) After June 30, 2021, if the total adjusted gross receipts
529		-	received by licensees from gambling games authorized under this
530		-	article during the preceding state fiscal year is equal to or greater
531		-	than the total adjusted gross receipts received by licensees from
532		-	gambling games authorized under this article during the state
533		-	fiscal year ending June 30, 2020, the maximum amount is
534		-	forty-eight million dollars ($48,000,000).
535		-	(3) After June 30, 2021, if the total adjusted gross receipts
536		-	received by licensees from gambling games authorized under this
537		-	article during the preceding state fiscal year is less than the total
538		-	adjusted gross receipts received by licensees from gambling
539		-	games authorized under this article during the state fiscal year
540		-	ending June 30, 2020, the maximum amount is equal to the result
541		-	of:
542		-	(A) forty-eight million dollars ($48,000,000); multiplied by
543		-	(B) the result of:
544		-	(i) the total adjusted gross receipts received by licensees
545		-	from gambling games authorized under this article during
546		-	the preceding state fiscal year; divided by
547		-	(ii) the total adjusted gross receipts received by licensees
548		-	from gambling games authorized under this article during
549		-	the state fiscal year ending June 30, 2020.
550		-	If the total amount determined under subsection (g) (f) exceeds the
551		-	maximum amount determined under this subsection, the amount
552		-	SEA 382 — CC 1 14
553		-	distributed to an entity under subsection (g) (f) must be reduced
554		-	according to the ratio that the amount distributed to the entity under
555		-	IC 4-33-12-6 or IC 4-33-12-8 bears to the total amount distributed
556		-	under IC 4-33-12-6 and IC 4-33-12-8 to all entities receiving a
557		-	supplemental distribution.
558		-	(j) (i) This subsection applies to a supplemental distribution, if any,
559		-	payable to Lake County, Hammond, Gary, or East Chicago under
560		-	subsections (g) (f) and (i). (h). Beginning in July 2016, the treasurer
561		-	auditor of state shall, after making any deductions from the
562		-	supplemental distribution required by IC 6-3.1-20-7, deduct from the
563		-	remainder of the supplemental distribution otherwise payable to the
564		-	unit under this section the lesser of:
565		-	(1) the remaining amount of the supplemental distribution; or
566		-	(2) the difference, if any, between:
567		-	(A) three million five hundred thousand dollars ($3,500,000);
568		-	minus
569		-	(B) the amount of admissions taxes constructively received by
570		-	the unit in the previous state fiscal year.
571		-	The treasurer auditor of state shall distribute the amounts deducted
572		-	under this subsection to the northwest Indiana redevelopment authority
573		-	established under IC 36-7.5-2-1 for deposit in the development
574		-	authority revenue fund established under IC 36-7.5-4-1.
575		-	(k) (j) Money distributed to a political subdivision under subsection
576		-	(b):
577		-	(1) must be paid to the fiscal officer of the political subdivision
578		-	and may be deposited in the political subdivision's general fund
579		-	(in the case of a school corporation, the school corporation may
580		-	deposit the money into either the education fund (IC 20-40-2) or
581		-	the operations fund (IC 20-40-18)) or riverboat fund established
582		-	under IC 36-1-8-9, or both;
583		-	(2) may not be used to reduce the maximum levy under
584		-	IC 6-1.1-18.5 of a county, city, or town or the maximum tax rate
585		-	of a school corporation, but, except as provided in subsection
586		-	(b)(2)(B), (b)(3)(B), may be used at the discretion of the political
587		-	subdivision to reduce the property tax levy of the county, city, or
588		-	town for a particular year;
589		-	(3) except as provided in subsection (b)(2)(B), (b)(3)(B), may be
590		-	used for any legal or corporate purpose of the political
591		-	subdivision, including the pledge of money to bonds, leases, or
592		-	other obligations under IC 5-1-14-4; and
593		-	(4) is considered miscellaneous revenue.
594		-	Money distributed under subsection (b)(2)(B) (b)(3)(B) must be used
595		-	SEA 382 — CC 1 15
596		-	for the purposes specified in subsection (b)(2)(B). (b)(3)(B).
597		-	(l) (k) After June 30, 2020, the amount of wagering taxes that would
598		-	otherwise be distributed to South Bend under subsection (e) (d) shall
599		-	be deposited as being received from all riverboats whose supplemental
600		-	wagering tax, as calculated under IC 4-33-12-1.5(b), is over three and
601		-	five-tenths percent (3.5%). The amount deposited under this
602		-	subsection, in each riverboat's account, is proportionate to the
603		-	supplemental wagering tax received from that riverboat under
604		-	IC 4-33-12-1.5 in the month of July. The amount deposited under this
605		-	subsection must be distributed in the same manner as the supplemental
606		-	wagering tax collected under IC 4-33-12-1.5. This subsection expires
607		-	June 30, 2021.
608		-	(m) (l) After June 30, 2021, the amount of wagering taxes that
609		-	would otherwise be distributed to South Bend under subsection (e) (d)
610		-	shall be withheld and deposited in the state general fund.
611		-	SECTION 8. IC 4-35-8-1, AS AMENDED BY P.L.293-2019,
612		-	SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
613		-	JULY 1, 2022]: Sec. 1. (a) A graduated slot machine wagering tax is
614		-	imposed as follows on ninety-nine percent (99%) of the adjusted gross
615		-	receipts received after June 30, 2012, and before July 1, 2013, on
616		-	ninety-one and five-tenths percent (91.5%) of the adjusted gross
617		-	receipts received after June 30, 2013, and before July 1, 2015, and on
618		-	eighty-eight percent (88%) of the adjusted gross receipts received after
619		-	June 30, 2015, from wagering on gambling games authorized by this
620		-	article:
621		-	(1) Twenty-five percent (25%) of the first one hundred million
622		-	dollars ($100,000,000) of adjusted gross receipts received during
623		-	the period beginning July 1 of each year and ending June 30 of
624		-	the following year.
625		-	(2) For periods:
626		-	(A) ending before July 1, 2021, thirty percent (30%) of the
627		-	adjusted gross receipts in excess of one hundred million
628		-	dollars ($100,000,000) but not exceeding two hundred million
629		-	dollars ($200,000,000) received during the period beginning
630		-	July 1 of each year and ending June 30 of the following year;
631		-	and
632		-	(B) beginning after June 30, 2021, thirty percent (30%) of the
633		-	adjusted gross receipts in excess of one hundred million
634		-	dollars ($100,000,000) received during the period beginning
635		-	July 1 of each year and ending June 30 of the following year.
636		-	(3) For periods ending before July 1, 2021, thirty-five percent
637		-	(35%) of the adjusted gross receipts in excess of two hundred
638		-	SEA 382 — CC 1 16
639		-	million dollars ($200,000,000) received during the period
640		-	beginning July 1 of each year and ending June 30 of the following
641		-	year.
642		-	(b) A licensee shall do the following:
643		-	(1) Remit the daily amount of tax imposed by this section to the
644		-	department on the twenty-fourth calendar day of each month. Any
645		-	taxes collected during the month but after the day on which the
646		-	taxes are required to be paid shall be paid to the department at the
647		-	same time the following month's taxes are due.
648		-	(2) Report gaming activity information to the commission daily
649		-	on forms prescribed by the commission.
650		-	(c) The payment of the tax under this section must be in a manner
651		-	prescribed by the department.
652		-	(d) If the department requires taxes to be remitted under this chapter
653		-	through electronic funds transfer, the department may allow the
654		-	licensee to file a monthly report to reconcile the amounts remitted to
655		-	the department.
656		-	(e) The payment of the tax under this section must be on a form
657		-	prescribed by the department. reported and remitted electronically
658		-	through the department's online tax filing program.
659		-	SECTION 9. IC 4-35-8.5-2, AS AMENDED BY P.L.255-2015,
660		-	SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
661		-	UPON PASSAGE]: Sec. 2. Before On or before the fifteenth day of
662		-	each month, the treasurer of state shall distribute any county gambling
663		-	game wagering fees received from a licensee during the previous
664		-	month to the county auditor of the county in which the licensee's
665		-	racetrack is located.
666		-	SECTION 10. IC 4-38-10-5, AS ADDED BY P.L.293-2019,
667		-	SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
668		-	JULY 1, 2022]: Sec. 5. The payment of the tax under this chapter must
669		-	be on a form and in a manner prescribed by the department. reported
670		-	and remitted electronically through the department's online tax
671		-	filing program.
672		-	SECTION 11. IC 6-1.1-3-7.2, AS AMENDED BY P.L.153-2021,
673		-	SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
674		-	JANUARY 1, 2023]: Sec. 7.2. (a) This section applies to assessment
675		-	dates occurring after December 31, 2015.
676		-	(b) As used in this section, "affiliate" means an entity that
677		-	effectively controls or is controlled by a taxpayer or is associated with
678		-	a taxpayer under common ownership or control, whether by
679		-	shareholdings or other means.
680		-	(c) As used in this section, "business personal property" means
681		-	SEA 382 — CC 1 17
682		-	personal property that:
683		-	(1) is otherwise subject to assessment and taxation under this
684		-	article;
685		-	(2) is used in a trade or business or otherwise held, used, or
686		-	consumed in connection with the production of income; and
687		-	(3) was:
688		-	(A) acquired by the taxpayer in an arms length transaction
689		-	from an entity that is not an affiliate of the taxpayer, if the
690		-	personal property has been previously used in Indiana before
691		-	being placed in service in the county; or
692		-	(B) acquired in any manner, if the personal property has never
693		-	been previously used in Indiana before being placed in service
694		-	in the county.
695		-	The term does not include mobile homes assessed under IC 6-1.1-7,
696		-	personal property held as an investment, or personal property that is
697		-	assessed under IC 6-1.1-8 and is owned by a public utility subject to
698		-	regulation by the Indiana utility regulatory commission. However, the
699		-	term does include the personal property of a telephone company or a
700		-	communications service provider if that personal property meets the
701		-	requirements of subdivisions (1) through (3), regardless of whether that
702		-	personal property is assessed under IC 6-1.1-8 and regardless of
703		-	whether the telephone company or communications service provider is
704		-	subject to regulation by the Indiana utility regulatory commission.
705		-	(d) Notwithstanding section 7 of this chapter, if the acquisition cost
706		-	of a taxpayer's total business personal property in a county is less than
707		-	eighty thousand dollars ($80,000) for that assessment date, the
708		-	taxpayer's business personal property in the county for that assessment
709		-	date is exempt from taxation.
710		-	(e) Subject to subsection (f), a taxpayer that is eligible for the
711		-	exemption under this section for an assessment date shall include the
712		-	following information on the taxpayer's personal property tax return:
713		-	(1) A declaration that the taxpayer's business personal property in
714		-	the county is exempt from property taxation.
715		-	(2) Whether the taxpayer's business personal property within the
716		-	county is in one (1) location or multiple locations.
717		-	(3) An address for the location of the property.
718		-	If the business personal property is in multiple locations within a
719		-	county, the taxpayer shall provide an address for the location where the
720		-	sum of acquisition costs for business personal property is greatest. If
721		-	two (2) or more addresses contain the greatest equivalent sum of
722		-	acquisition costs for business personal property within a given county,
723		-	the taxpayer shall choose only one (1) address to list on the return.
724		-	SEA 382 — CC 1 18
725		-	(f) Beginning after December 31, 2022, a taxpayer that has
726		-	included the information required under subsection (e) on the
727		-	taxpayer's personal property tax return to claim the exemption
728		-	under this section is not required to file a personal property return
729		-	for the taxpayer's business personal property for an assessment
730		-	date that occurs after the assessment date for which the
731		-	information is first provided under subsection (e), unless or until
732		-	the taxpayer no longer qualifies for the exemption under
733		-	subsection (d) for a subsequent assessment date.
734		-	SECTION 12. IC 6-1.1-4-46 IS ADDED TO THE INDIANA CODE
	101	+	1 SECTION 1. IC 4-23-7.3-23 IS ADDED TO THE INDIANA CODE
	102	+	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
	103	+	3 UPON PASSAGE]: Sec. 23. (a) Before July 1, 2023, the budget
	104	+	4 agency shall transfer seven million one hundred thousand dollars
	105	+	5 ($7,100,000) from the state general fund to the Indiana geographic
	106	+	6 information office to be used for the purposes of funding the office
	107	+	7 and the implementation of the geographic information system
	108	+	8 (GIS) for the department of state revenue local income tax
	109	+	9 purposes.
	110	+	10 (b) The budget agency shall identify and create a report on the
	111	+	11 current GIS related contract costs for all state agencies that could
	112	+	12 be eliminated in order to offset the required future state
	113	+	13 appropriations needed to fund the Indiana geographic information
	114	+	14 office. The report under this subsection shall be submitted to the
	115	+	15 interim study committee on fiscal policy established by IC 2-5-1.3-4
	116	+	SB 382—LS 7170/DI 120 2
	117	+	1 before November 1, 2022.
	118	+	2 (c) This section expires July 1, 2023.
	119	+	3 SECTION 2. IC 4-31-9-3, AS AMENDED BY P.L.165-2021,
	120	+	4 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	121	+	5 JULY 1, 2022]: Sec. 3. (a) At the close of each day on which a permit
	122	+	6 holder or satellite facility operator conducts pari-mutuel wagering on
	123	+	7 live racing or simulcasts at a racetrack or satellite facility, the permit
	124	+	8 holder or satellite facility operator shall pay to the department of state
	125	+	9 revenue a tax on the total amount of money wagered on that day as
	126	+	10 follows:
	127	+	11 (1) Two percent (2%) of the total amount of money wagered
	128	+	12 under IC 4-31-7 at a permit holder's racetrack.
	129	+	13 (2) Two and one-half percent (2.5%) of the total amount of money
	130	+	14 wagered under IC 4-31-5.5-6 at a permit holder's satellite facility.
	131	+	15 (b) The taxes collected under subsection (a) shall be paid from the
	132	+	16 amounts withheld under section 1 of this chapter and shall be
	133	+	17 distributed as follows:
	134	+	18 (1) The first one hundred fifty thousand dollars ($150,000) of
	135	+	19 taxes collected during each state fiscal year shall be deposited in
	136	+	20 the veterinary school research account established by
	137	+	21 IC 4-31-12-22.
	138	+	22 (2) The remainder of the taxes collected during each state fiscal
	139	+	23 year shall be paid into the Indiana horse racing commission
	140	+	24 operating fund (IC 4-31-10).
	141	+	25 (c) The tax imposed by this section is a listed tax for purposes of
	142	+	26 IC 6-8.1-1.
	143	+	27 (d) The payment of the tax under this section must be reported
	144	+	28 and remitted electronically through the department's online tax
	145	+	29 filing program.
	146	+	30 SECTION 3. IC 4-31-9-10, AS AMENDED BY P.L.159-2021,
	147	+	31 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	148	+	32 JULY 1, 2022]: Sec. 10. (a) At the close of each day on which
	149	+	33 pari-mutuel wagering is conducted at a racetrack or satellite facility,
	150	+	34 the permit holder or satellite facility operator shall pay the breakage
	151	+	35 from each of the races on which wagers were taken on that day to the
	152	+	36 department of state revenue for deposit in the appropriate breed
	153	+	37 development fund as determined by the rules of the commission.
	154	+	38 (b) Not later than March 15 of each year, each permit holder or
	155	+	39 satellite facility operator shall pay to the commission the balance of the
	156	+	40 outs tickets from the previous calendar year. The commission shall
	157	+	41 distribute money received under this subsection to the appropriate
	158	+	42 breed development fund as determined by the rules of the commission.
	159	+	SB 382—LS 7170/DI 120 3
	160	+	1 (c) The payment of the breakage under this section must be
	161	+	2 reported and remitted electronically through the department's
	162	+	3 online tax filing program.
	163	+	4 SECTION 4. IC 4-33-12-4, AS AMENDED BY P.L.212-2018(ss),
	164	+	5 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	165	+	6 JULY 1, 2022]: Sec. 4. (a) A licensed owner must report:
	166	+	7 (1) the daily amount of admissions taxes imposed under section
	167	+	8 1 of this chapter (before its repeal on July 1, 2018) and
	168	+	9 supplemental wagering taxes imposed under section 1.5 of this
	169	+	10 chapter to the department at the time the taxes are paid under
	170	+	11 subsection (b); and
	171	+	12 (2) gaming activity information to the commission daily on forms
	172	+	13 prescribed by the commission.
	173	+	14 This subsection expires June 30, 2018.
	174	+	15 (b) A licensed owner shall pay the admissions taxes imposed under
	175	+	16 section 1 of this chapter (before its repeal on July 1, 2018) and
	176	+	17 supplemental wagering taxes imposed under section 1.5 of this chapter
	177	+	18 to the department on the twenty-fourth calendar day of each month.
	178	+	19 Any taxes collected during the month but after the day on which the
	179	+	20 taxes are required to be paid to the department shall be paid to the
	180	+	21 department at the same time the following month's taxes are due. This
	181	+	22 subsection expires June 30, 2018.
	182	+	23 (c) This subsection is effective July 1, 2018. A licensed owner must
	183	+	24 report:
	184	+	25 (1) the daily amount of supplemental wagering taxes imposed
	185	+	26 under section 1.5 of this chapter to the department at the time the
	186	+	27 taxes are paid under subsection (d); and
	187	+	28 (2) gaming activity information to the commission daily on forms
	188	+	29 prescribed by the commission.
	189	+	30 (d) This subsection is effective July 1, 2018. A licensed owner shall
	190	+	31 pay the supplemental wagering taxes imposed under section 1.5 of this
	191	+	32 chapter to the department on the twenty-fourth calendar day of each
	192	+	33 month. Any taxes collected during the month but after the day on which
	193	+	34 the taxes are required to be paid to the department shall be paid to the
	194	+	35 department at the same time the following month's taxes are due.
	195	+	36 (e) The payment of the tax under this section must be on a form
	196	+	37 prescribed by the department.
	197	+	38 (f) (e) The payment of the tax under this section must be in a
	198	+	39 manner prescribed by the department. reported and remitted
	199	+	40 electronically through the department's online tax filing program.
	200	+	41 SECTION 5. IC 4-33-13-1.5, AS AMENDED BY P.L.293-2019,
	201	+	42 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	202	+	SB 382—LS 7170/DI 120 4
	203	+	1 JULY 1, 2022]: Sec. 1.5. (a) This subsection applies only to a riverboat
	204	+	2 that received at least seventy-five million dollars ($75,000,000) of
	205	+	3 adjusted gross receipts during the preceding state fiscal year. A
	206	+	4 graduated tax is imposed on the adjusted gross receipts received from
	207	+	5 gambling games authorized under this article as follows:
	208	+	6 (1) For state fiscal years ending before July 1, 2021, fifteen
	209	+	7 percent (15%), and for state fiscal years beginning after June 30,
	210	+	8 2021, ten percent (10%), of the first twenty-five million dollars
	211	+	9 ($25,000,000) of adjusted gross receipts received during the
	212	+	10 period beginning July 1 of each year and ending June 30 of the
	213	+	11 following year.
	214	+	12 (2) Twenty percent (20%) of the adjusted gross receipts in excess
	215	+	13 of twenty-five million dollars ($25,000,000) but not exceeding
	216	+	14 fifty million dollars ($50,000,000) received during the period
	217	+	15 beginning July 1 of each year and ending June 30 of the following
	218	+	16 year.
	219	+	17 (3) Twenty-five percent (25%) of the adjusted gross receipts in
	220	+	18 excess of fifty million dollars ($50,000,000) but not exceeding
	221	+	19 seventy-five million dollars ($75,000,000) received during the
	222	+	20 period beginning July 1 of each year and ending June 30 of the
	223	+	21 following year.
	224	+	22 (4) Thirty percent (30%) of the adjusted gross receipts in excess
	225	+	23 of seventy-five million dollars ($75,000,000) but not exceeding
	226	+	24 one hundred fifty million dollars ($150,000,000) received during
	227	+	25 the period beginning July 1 of each year and ending June 30 of
	228	+	26 the following year.
	229	+	27 (5) Thirty-five percent (35%) of all adjusted gross receipts in
	230	+	28 excess of one hundred fifty million dollars ($150,000,000) but not
	231	+	29 exceeding six hundred million dollars ($600,000,000) received
	232	+	30 during the period beginning July 1 of each year and ending June
	233	+	31 30 of the following year.
	234	+	32 (6) Forty percent (40%) of all adjusted gross receipts exceeding
	235	+	33 six hundred million dollars ($600,000,000) received during the
	236	+	34 period beginning July 1 of each year and ending June 30 of the
	237	+	35 following year.
	238	+	36 (b) This subsection applies only to a riverboat that received less than
	239	+	37 seventy-five million dollars ($75,000,000) of adjusted gross receipts
	240	+	38 during the preceding state fiscal year. A graduated tax is imposed on
	241	+	39 the adjusted gross receipts received from gambling games authorized
	242	+	40 under this article as follows:
	243	+	41 (1) For state fiscal years ending before July 1, 2021, five percent
	244	+	42 (5%), and for state fiscal years beginning after June 30, 2021, two
	245	+	SB 382—LS 7170/DI 120 5
	246	+	1 and one-half percent (2.5%), of the first twenty-five million
	247	+	2 dollars ($25,000,000) of adjusted gross receipts received during
	248	+	3 the period beginning July 1 of each year and ending June 30 of
	249	+	4 the following year.
	250	+	5 (2) For state fiscal years ending before July 1, 2021, twenty
	251	+	6 percent (20%), and for state fiscal years beginning after June 30,
	252	+	7 2021, ten percent (10%), of the adjusted gross receipts in excess
	253	+	8 of twenty-five million dollars ($25,000,000) but not exceeding
	254	+	9 fifty million dollars ($50,000,000) received during the period
	255	+	10 beginning July 1 of each year and ending June 30 of the following
	256	+	11 year.
	257	+	12 (3) For state fiscal years ending before July 1, 2021, twenty-five
	258	+	13 percent (25%), and for state fiscal years beginning after June 30,
	259	+	14 2021, twenty percent (20%), of the adjusted gross receipts in
	260	+	15 excess of fifty million dollars ($50,000,000) but not exceeding
	261	+	16 seventy-five million dollars ($75,000,000) received during the
	262	+	17 period beginning July 1 of each year and ending June 30 of the
	263	+	18 following year.
	264	+	19 (4) Thirty percent (30%) of the adjusted gross receipts in excess
	265	+	20 of seventy-five million dollars ($75,000,000) but not exceeding
	266	+	21 one hundred fifty million dollars ($150,000,000) received during
	267	+	22 the period beginning July 1 of each year and ending June 30 of
	268	+	23 the following year.
	269	+	24 (5) Thirty-five percent (35%) of all adjusted gross receipts in
	270	+	25 excess of one hundred fifty million dollars ($150,000,000) but not
	271	+	26 exceeding six hundred million dollars ($600,000,000) received
	272	+	27 during the period beginning July 1 of each year and ending June
	273	+	28 30 of the following year.
	274	+	29 (6) Forty percent (40%) of all adjusted gross receipts exceeding
	275	+	30 six hundred million dollars ($600,000,000) received during the
	276	+	31 period beginning July 1 of each year and ending June 30 of the
	277	+	32 following year.
	278	+	33 (c) The licensed owner or operating agent of a riverboat taxed under
	279	+	34 subsection (b) shall pay an additional tax of two million five hundred
	280	+	35 thousand dollars ($2,500,000) in any state fiscal year in which the
	281	+	36 riverboat's adjusted gross receipts exceed seventy-five million dollars
	282	+	37 ($75,000,000). The additional tax imposed under this subsection is due
	283	+	38 before July 1 of the following state fiscal year.
	284	+	39 (d) The licensed owner or operating agent shall:
	285	+	40 (1) remit the daily amount of tax imposed by this chapter to the
	286	+	41 department on the twenty-fourth calendar day of each month for
	287	+	42 the wagering taxes collected that month; and
	288	+	SB 382—LS 7170/DI 120 6
	289	+	1 (2) report gaming activity information to the commission daily on
	290	+	2 forms prescribed by the commission.
	291	+	3 Any taxes collected during the month but after the day on which the
	292	+	4 taxes are required to be paid to the department shall be paid to the
	293	+	5 department at the same time the following month's taxes are due.
	294	+	6 (e) The payment of the tax under this section must be in a manner
	295	+	7 prescribed by the department. reported and remitted electronically
	296	+	8 through the department's online tax filing program.
	297	+	9 (f) If the department requires taxes to be remitted under this chapter
	298	+	10 through electronic funds transfer, the department may allow the
	299	+	11 licensed owner or operating agent to file a monthly report to reconcile
	300	+	12 the amounts remitted to the department.
	301	+	13 (g) The department may allow taxes remitted under this section to
	302	+	14 be reported on the same form used for taxes paid under IC 4-33-12.
	303	+	15 SECTION 6. IC 4-33-13-5, AS AMENDED BY P.L.238-2019,
	304	+	16 SECTION 2, AND AS AMENDED BY P.L.108-2019, SECTION 73,
	305	+	17 AND AS AMENDED BY P.L.293-2019, SECTION 31, IS
	306	+	18 CORRECTED AND AMENDED TO READ AS FOLLOWS
	307	+	19 [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) This subsection does not
	308	+	20 apply to tax revenue remitted by an operating agent operating a
	309	+	21 riverboat in a historic hotel district. After funds are appropriated under
	310	+	22 section 4 of this chapter, each month the treasurer auditor of state shall
	311	+	23 distribute the tax revenue deposited in the state gaming fund under this
	312	+	24 chapter to the following:
	313	+	25 (1) An amount equal to the following shall be set aside for
	314	+	26 revenue sharing under subsection (e): (d):
	315	+	27 (A) Before July 1, 2021, the first thirty-three million dollars
	316	+	28 ($33,000,000) of tax revenues collected under this chapter
	317	+	29 shall be set aside for revenue sharing under subsection (e). (d).
	318	+	30 (B) After June 30, 2021, if the total adjusted gross receipts
	319	+	31 received by licensees from gambling games authorized under
	320	+	32 this article during the preceding state fiscal year is equal to or
	321	+	33 greater than the total adjusted gross receipts received by
	322	+	34 licensees from gambling games authorized under this article
	323	+	35 during the state fiscal year ending June 30, 2020, the first
	324	+	36 thirty-three million dollars ($33,000,000) of tax revenues
	325	+	37 collected under this chapter shall be set aside for revenue
	326	+	38 sharing under subsection (e). (d).
	327	+	39 (C) After June 30, 2021, if the total adjusted gross receipts
	328	+	40 received by licensees from gambling games authorized under
	329	+	41 this article during the preceding state fiscal year is less than
	330	+	42 the total adjusted gross receipts received by licensees from
	331	+	SB 382—LS 7170/DI 120 7
	332	+	1 gambling games authorized under this article during the state
	333	+	2 year ending June 30, 2020, an amount equal to the first
	334	+	3 thirty-three million dollars ($33,000,000) of tax revenues
	335	+	4 collected under this chapter multiplied by the result of:
	336	+	5 (i) the total adjusted gross receipts received by licensees
	337	+	6 from gambling games authorized under this article during
	338	+	7 the preceding state fiscal year; divided by
	339	+	8 (ii) the total adjusted gross receipts received by licensees
	340	+	9 from gambling games authorized under this article during
	341	+	10 the state fiscal year ending June 30, 2020;
	342	+	11 shall be set aside for revenue sharing under subsection (e). (d).
	343	+	12 (2) Subject to subsection (c), twenty-five percent (25%) of the
	344	+	13 remaining tax revenue remitted by each licensed owner shall be
	345	+	paid:14
	346	+	15 (A) to the city in which the riverboat is located or that is
	347	+	16 designated as the home dock of the riverboat from which the
	348	+	17 tax revenue was collected, in the case of:
	349	+	18 (i) a city described in IC 4-33-12-6(b)(1)(A); or
	350	+	19 (ii) a city located in a county having a population of more
	351	+	20 than four hundred thousand (400,000) but and less than
	352	+	21 seven hundred thousand (700,000); or
	353	+	22 (iii) Terre Haute; or
	354	+	23 (B) to the county that is designated as the home dock of the
	355	+	24 riverboat from which the tax revenue was collected, in the case
	356	+	25 of a riverboat that is not located in a city described in clause
	357	+	26 (A) or whose home dock is not in a city described in clause
	358	+	27 (A).
	359	+	28 (3) Subject to subsection (d), The remainder of the tax revenue
	360	+	29 remitted by each licensed owner shall be paid to the state general
	361	+	30 fund. In each state fiscal year, the treasurer auditor of state shall
	362	+	31 make the transfer required by this subdivision not later than the
	363	+	32 last business day of the month in which the tax revenue is
	364	+	33 remitted to the state on or before the fifteenth day of the month
	365	+	34 based on revenue received during the preceding month for
	366	+	35 deposit in the state gaming fund. However, if tax revenue is
	367	+	36 received by the state on the last business day in a month,
	368	+	37 Specifically, the treasurer auditor of state may transfer the tax
	369	+	38 revenue received by the state in a month to the state general
	370	+	39 fund in the immediately following month according to this
	371	+	subdivision.40
	372	+	41 (b) This subsection applies only to tax revenue remitted by an
	373	+	42 operating agent operating a riverboat in a historic hotel district after
	374	+	SB 382—LS 7170/DI 120 8
	375	+	June 30, 2015. 2019. 1 After funds are appropriated under section 4 of
	376	+	2 this chapter, each month the treasurer auditor of state shall distribute
	377	+	3 the tax revenue remitted by the operating agent under this chapter as
	378	+	4 follows:
	379	+	5 (1) For state fiscal years beginning after June 30, 2019, but
	380	+	6 ending before July 1, 2021, fifty-six and five-tenths percent
	381	+	7 (56.5%) shall be paid to the state general fund.
	382	+	8 (2) For state fiscal years beginning after June 30, 2021, fifty-six
	383	+	9 and five-tenths percent (56.5%) shall be paid as follows:
	384	+	10 (A) Sixty-six and four-tenths percent (66.4%) shall be paid to
	385	+	11 the state general fund.
	386	+	12 (B) Thirty-three and six-tenths percent (33.6%) shall be paid
	387	+	13 to the West Baden Springs historic hotel preservation and
	388	+	14 maintenance fund established by IC 36-7-11.5-11(b).
	389	+	15 However, if:
	390	+	16 (i) at any time the balance in that fund exceeds twenty-five
	391	+	17 million dollars ($25,000,000); or
	392	+	18 (ii) in any part of a state fiscal year in which the operating
	393	+	19 agent has received at least one hundred million dollars
	394	+	20 ($100,000,000) of adjusted gross receipts;
	395	+	21 the amount described in this clause shall be paid to the state
	396	+	22 general fund for the remainder of the state fiscal year.
	397	+	23 (2) (3) Forty-three and five-tenths percent (43.5%) shall be paid
	398	+	24 as follows:
	399	+	25 (A) Twenty-two and four-tenths percent (22.4%) shall be paid
	400	+	26 as follows:
	401	+	27 (i) Fifty percent (50%) to the fiscal officer of the town of
	402	+	28 French Lick.
	403	+	29 (ii) Fifty percent (50%) to the fiscal officer of the town of
	404	+	30 West Baden Springs.
	405	+	31 (B) Fourteen and eight-tenths percent (14.8%) shall be paid to
	406	+	32 the county treasurer of Orange County for distribution among
	407	+	33 the school corporations in the county. The governing bodies
	408	+	34 for the school corporations in the county shall provide a
	409	+	35 formula for the distribution of the money received under this
	410	+	36 clause among the school corporations by joint resolution
	411	+	37 adopted by the governing body of each of the school
	412	+	38 corporations in the county. Money received by a school
	413	+	39 corporation under this clause must be used to improve the
	414	+	40 educational attainment of students enrolled in the school
	415	+	41 corporation receiving the money. Not later than the first
	416	+	42 regular meeting in the school year of a governing body of a
	417	+	SB 382—LS 7170/DI 120 9
	418	+	1 school corporation receiving a distribution under this clause,
	419	+	2 the superintendent of the school corporation shall submit to
	420	+	3 the governing body a report describing the purposes for which
	421	+	4 the receipts under this clause were used and the improvements
	422	+	5 in educational attainment realized through the use of the
	423	+	6 money. The report is a public record.
	424	+	7 (C) Thirteen and one-tenth percent (13.1%) shall be paid to the
	425	+	8 county treasurer of Orange County.
	426	+	9 (D) Five and three-tenths percent (5.3%) shall be distributed
	427	+	10 quarterly to the county treasurer of Dubois County for
	428	+	11 appropriation by the county fiscal body after receiving a
	429	+	12 recommendation from the county executive. The county fiscal
	430	+	13 body for the receiving county shall provide for the distribution
	431	+	14 of the money received under this clause to one (1) or more
	432	+	15 taxing units (as defined in IC 6-1.1-1-21) in the county under
	433	+	16 a formula established by the county fiscal body after receiving
	434	+	17 a recommendation from the county executive.
	435	+	18 (E) Five and three-tenths percent (5.3%) shall be distributed
	436	+	19 quarterly to the county treasurer of Crawford County for
	437	+	20 appropriation by the county fiscal body after receiving a
	438	+	21 recommendation from the county executive. The county fiscal
	439	+	22 body for the receiving county shall provide for the distribution
	440	+	23 of the money received under this clause to one (1) or more
	441	+	24 taxing units (as defined in IC 6-1.1-1-21) in the county under
	442	+	25 a formula established by the county fiscal body after receiving
	443	+	26 a recommendation from the county executive.
	444	+	27 (F) Six and thirty-five hundredths percent (6.35%) shall be
	445	+	28 paid to the fiscal officer of the town of Paoli.
	446	+	29 (G) Six and thirty-five hundredths percent (6.35%) shall be
	447	+	30 paid to the fiscal officer of the town of Orleans.
	448	+	31 (H) Twenty-six and four-tenths percent (26.4%) shall be paid
	449	+	32 to the Indiana economic development corporation established
	450	+	33 by IC 5-28-3-1 for transfer as follows:
	451	+	34 (i) Beginning after December 31, 2017, ten percent (10%)
	452	+	35 of the amount transferred under this clause in each calendar
	453	+	36 year shall be transferred to the South Central Indiana
	454	+	37 Regional Economic Development Corporation or a
	455	+	38 successor entity or partnership for economic development
	456	+	39 for the purpose of recruiting new business to Orange County
	457	+	40 as well as promoting the retention and expansion of existing
	458	+	41 businesses in Orange County.
	459	+	42 (ii) The remainder of the amount transferred under this
	460	+	SB 382—LS 7170/DI 120 10
	461	+	1 clause in each calendar year shall be transferred to Radius
	462	+	2 Indiana or a successor regional entity or partnership for the
	463	+	3 development and implementation of a regional economic
	464	+	4 development strategy to assist the residents of Orange
	465	+	5 County and the counties contiguous to Orange County in
	466	+	6 improving their quality of life and to help promote
	467	+	7 successful and sustainable communities.
	468	+	8 To the extent possible, the Indiana economic development
	469	+	9 corporation shall provide for the transfer under item (i) to be
	470	+	10 made in four (4) equal installments. However, an amount
	471	+	11 sufficient to meet current obligations to retire or refinance
	472	+	12 indebtedness or leases for which tax revenues under this
	473	+	13 section were pledged before January 1, 2015, by the Orange
	474	+	14 County development commission shall be paid to the Orange
	475	+	15 County development commission before making distributions
	476	+	16 to the South Central Indiana Regional Economic Development
	477	+	17 Corporation and Radius Indiana or their successor entities or
	478	+	18 partnerships. The amount paid to the Orange County
	479	+	19 development commission shall proportionally reduce the
	480	+	20 amount payable to the South Central Indiana Regional
	481	+	21 Economic Development Corporation and Radius Indiana or
	482	+	22 their successor entities or partnerships.
	483	+	23 (c) This subsection does not apply to tax revenue remitted by an
	484	+	24 inland casino operating in Vigo County. For each city and county
	485	+	25 receiving money under subsection (a)(2), the treasurer auditor of state
	486	+	26 shall determine the total amount of money paid by the treasurer
	487	+	27 auditor of state to the city or county during the state fiscal year 2002.
	488	+	28 The amount determined is the base year revenue for the city or county.
	489	+	29 The treasurer auditor of state shall certify the base year revenue
	490	+	30 determined under this subsection to the city or county. The total
	491	+	31 amount of money distributed to a city or county under this section
	492	+	32 during a state fiscal year may not exceed the entity's base year revenue.
	493	+	33 For each state fiscal year, the treasurer auditor of state shall pay that
	494	+	34 part of the riverboat wagering taxes that:
	495	+	35 (1) exceeds a particular city's or county's base year revenue; and
	496	+	36 (2) would otherwise be due to the city or county under this
	497	+	37 section;
	498	+	38 to the state general fund instead of to the city or county.
	499	+	39 (d) Each state fiscal year the treasurer of state shall transfer from
	500	+	40 the tax revenue remitted to the state general fund under subsection
	501	+	41 (a)(3) to the build Indiana fund an amount that when added to the
	502	+	42 following may not exceed two hundred fifty million dollars
	503	+	SB 382—LS 7170/DI 120 11
	504	+	1 ($250,000,000):
	505	+	2 (1) Surplus lottery revenues under IC 4-30-17-3.
	506	+	3 (2) Surplus revenue from the charity gaming enforcement fund
	507	+	4 under IC 4-32.3-7-5.
	508	+	5 (3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
	509	+	6 The treasurer of state shall make transfers on a monthly basis as
	510	+	7 needed to meet the obligations of the build Indiana fund. If in any state
	511	+	8 fiscal year insufficient money is transferred to the state general fund
	512	+	9 under subsection (a)(3) to comply with this subsection, the treasurer
	513	+	10 of state shall reduce the amount transferred to the build Indiana fund
	514	+	11 to the amount available in the state general fund from the transfers
	515	+	12 under subsection (a)(3) for the state fiscal year.
	516	+	13 (e) (d) Except as provided in subsections (l) (k) and (m), (l), before
	517	+	14 August 15 of each year, the treasurer auditor of state shall distribute
	518	+	15 the wagering taxes set aside for revenue sharing under subsection
	519	+	16 (a)(1) to the county treasurer of each county that does not have a
	520	+	17 riverboat according to the ratio that the county's population bears to the
	521	+	18 total population of the counties that do not have a riverboat. Except as
	522	+	19 provided in subsection (h), (g), the county auditor shall distribute the
	523	+	20 money received by the county under this subsection as follows:
	524	+	21 (1) To each city located in the county according to the ratio the
	525	+	22 city's population bears to the total population of the county.
	526	+	23 (2) To each town located in the county according to the ratio the
	527	+	24 town's population bears to the total population of the county.
	528	+	25 (3) After the distributions required in subdivisions (1) and (2) are
	529	+	26 made, the remainder shall be retained by the county.
	530	+	27 (f) (e) Money received by a city, town, or county under subsection
	531	+	28 (e) (d) or (h) (g) may be used for any of the following purposes:
	532	+	29 (1) To reduce the property tax levy of the city, town, or county for
	533	+	30 a particular year (a property tax reduction under this subdivision
	534	+	31 does not reduce the maximum levy of the city, town, or county
	535	+	32 under IC 6-1.1-18.5).
	536	+	33 (2) For deposit in a special fund or allocation fund created under
	537	+	34 IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and
	538	+	35 IC 36-7-30 to provide funding for debt repayment.
	539	+	36 (3) To fund sewer and water projects, including storm water
	540	+	37 management projects.
	541	+	38 (4) For police and fire pensions.
	542	+	39 (5) To carry out any governmental purpose for which the money
	543	+	40 is appropriated by the fiscal body of the city, town, or county.
	544	+	41 Money used under this subdivision does not reduce the property
	545	+	42 tax levy of the city, town, or county for a particular year or reduce
	546	+	SB 382—LS 7170/DI 120 12
	547	+	1 the maximum levy of the city, town, or county under
	548	+	2 IC 6-1.1-18.5.
	549	+	3 (g) (f) This subsection does not apply to an inland casino operating
	550	+	4 in Vigo County. Before July 15 of each year, the treasurer auditor of
	551	+	5 state shall determine the total amount of money distributed to an entity
	552	+	6 under IC 4-33-12-6 or IC 4-33-12-8 during the preceding state fiscal
	553	+	7 year. If the treasurer auditor of state determines that the total amount
	554	+	8 of money distributed to an entity under IC 4-33-12-6 or IC 4-33-12-8
	555	+	9 during the preceding state fiscal year was less than the entity's base
	556	+	10 year revenue (as determined under IC 4-33-12-9), the treasurer auditor
	557	+	11 of state shall make a supplemental distribution to the entity from taxes
	558	+	12 collected under this chapter and deposited into the state general fund.
	559	+	13 Except as provided in subsection (i), (h), the amount of an entity's
	560	+	14 supplemental distribution is equal to:
	561	+	15 (1) the entity's base year revenue (as determined under
	562	+	16 IC 4-33-12-9); minus
	563	+	17 (2) the sum of:
	564	+	18 (A) the total amount of money distributed to the entity and
	565	+	19 constructively received by the entity during the preceding state
	566	+	20 fiscal year under IC 4-33-12-6 or IC 4-33-12-8; plus
	567	+	21 (B) the amount of any admissions taxes deducted under
	568	+	22 IC 6-3.1-20-7.
	569	+	23 (h) (g) This subsection applies only to a county containing a
	570	+	24 consolidated city. The county auditor shall distribute the money
	571	+	25 received by the county under subsection (e) (d) as follows:
	572	+	26 (1) To each city, other than a consolidated city, located in the
	573	+	27 county according to the ratio that the city's population bears to the
	574	+	28 total population of the county.
	575	+	29 (2) To each town located in the county according to the ratio that
	576	+	30 the town's population bears to the total population of the county.
	577	+	31 (3) After the distributions required in subdivisions (1) and (2) are
	578	+	32 made, the remainder shall be paid in equal amounts to the
	579	+	33 consolidated city and the county.
	580	+	34 (i) (h) This subsection does not apply to an inland casino operating
	581	+	35 in Vigo County. This subsection applies to a supplemental distribution
	582	+	36 made after June 30, 2017. The maximum amount of money that may be
	583	+	37 distributed under subsection (g) (f) in a state fiscal year is equal to the
	584	+	38 following:
	585	+	39 (1) Before July 1, 2021, forty-eight million dollars ($48,000,000).
	586	+	40 (2) After June 30, 2021, if the total adjusted gross receipts
	587	+	41 received by licensees from gambling games authorized under this
	588	+	42 article during the preceding state fiscal year is equal to or greater
	589	+	SB 382—LS 7170/DI 120 13
	590	+	1 than the total adjusted gross receipts received by licensees from
	591	+	2 gambling games authorized under this article during the state
	592	+	3 fiscal year ending June 30, 2020, the maximum amount is
	593	+	4 forty-eight million dollars ($48,000,000).
	594	+	5 (3) After June 30, 2021, if the total adjusted gross receipts
	595	+	6 received by licensees from gambling games authorized under this
	596	+	7 article during the preceding state fiscal year is less than the total
	597	+	8 adjusted gross receipts received by licensees from gambling
	598	+	9 games authorized under this article during the state fiscal year
	599	+	10 ending June 30, 2020, the maximum amount is equal to the result
	600	+	11 of:
	601	+	12 (A) forty-eight million dollars ($48,000,000); multiplied by
	602	+	13 (B) the result of:
	603	+	14 (i) the total adjusted gross receipts received by licensees
	604	+	15 from gambling games authorized under this article during
	605	+	16 the preceding state fiscal year; divided by
	606	+	17 (ii) the total adjusted gross receipts received by licensees
	607	+	18 from gambling games authorized under this article during
	608	+	the state fiscal year ending June 30, 2020.19
	609	+	20 If the total amount determined under subsection (g) (f) exceeds the
	610	+	21 maximum amount determined under this subsection, the amount
	611	+	22 distributed to an entity under subsection (g) (f) must be reduced
	612	+	23 according to the ratio that the amount distributed to the entity under
	613	+	24 IC 4-33-12-6 or IC 4-33-12-8 bears to the total amount distributed
	614	+	25 under IC 4-33-12-6 and IC 4-33-12-8 to all entities receiving a
	615	+	26 supplemental distribution.
	616	+	27 (j) (i) This subsection applies to a supplemental distribution, if any,
	617	+	28 payable to Lake County, Hammond, Gary, or East Chicago under
	618	+	29 subsections (g) (f) and (i). (h). Beginning in July 2016, the treasurer
	619	+	30 auditor of state shall, after making any deductions from the
	620	+	31 supplemental distribution required by IC 6-3.1-20-7, deduct from the
	621	+	32 remainder of the supplemental distribution otherwise payable to the
	622	+	33 unit under this section the lesser of:
	623	+	34 (1) the remaining amount of the supplemental distribution; or
	624	+	35 (2) the difference, if any, between:
	625	+	36 (A) three million five hundred thousand dollars ($3,500,000);
	626	+	37 minus
	627	+	38 (B) the amount of admissions taxes constructively received by
	628	+	the unit in the previous state fiscal year.39
	629	+	40 The treasurer auditor of state shall distribute the amounts deducted
	630	+	41 under this subsection to the northwest Indiana redevelopment authority
	631	+	42 established under IC 36-7.5-2-1 for deposit in the development
	632	+	SB 382—LS 7170/DI 120 14
	633	+	1 authority revenue fund established under IC 36-7.5-4-1.
	634	+	2 (k) (j) Money distributed to a political subdivision under subsection
	635	+	3 (b):
	636	+	4 (1) must be paid to the fiscal officer of the political subdivision
	637	+	5 and may be deposited in the political subdivision's general fund
	638	+	6 (in the case of a school corporation, the school corporation may
	639	+	7 deposit the money into either the education fund (IC 20-40-2) or
	640	+	8 the operations fund (IC 20-40-18)) or riverboat fund established
	641	+	9 under IC 36-1-8-9, or both;
	642	+	10 (2) may not be used to reduce the maximum levy under
	643	+	11 IC 6-1.1-18.5 of a county, city, or town or the maximum tax rate
	644	+	12 of a school corporation, but, except as provided in subsection
	645	+	13 (b)(2)(B), (b)(3)(B), may be used at the discretion of the political
	646	+	14 subdivision to reduce the property tax levy of the county, city, or
	647	+	15 town for a particular year;
	648	+	16 (3) except as provided in subsection (b)(2)(B), (b)(3)(B), may be
	649	+	17 used for any legal or corporate purpose of the political
	650	+	18 subdivision, including the pledge of money to bonds, leases, or
	651	+	19 other obligations under IC 5-1-14-4; and
	652	+	20 (4) is considered miscellaneous revenue.
	653	+	21 Money distributed under subsection (b)(2)(B) (b)(3)(B) must be used
	654	+	22 for the purposes specified in subsection (b)(2)(B). (b)(3)(B).
	655	+	23 (l) (k) After June 30, 2020, the amount of wagering taxes that would
	656	+	24 otherwise be distributed to South Bend under subsection (e) (d) shall
	657	+	25 be deposited as being received from all riverboats whose supplemental
	658	+	26 wagering tax, as calculated under IC 4-33-12-1.5(b), is over three and
	659	+	27 five-tenths percent (3.5%). The amount deposited under this
	660	+	28 subsection, in each riverboat's account, is proportionate to the
	661	+	29 supplemental wagering tax received from that riverboat under
	662	+	30 IC 4-33-12-1.5 in the month of July. The amount deposited under this
	663	+	31 subsection must be distributed in the same manner as the supplemental
	664	+	32 wagering tax collected under IC 4-33-12-1.5. This subsection expires
	665	+	33 June 30, 2021.
	666	+	34 (m) (l) After June 30, 2021, the amount of wagering taxes that
	667	+	35 would otherwise be distributed to South Bend under subsection (e) (d)
	668	+	36 shall be withheld and deposited in the state general fund.
	669	+	37 SECTION 7. IC 4-35-8-1, AS AMENDED BY P.L.293-2019,
	670	+	38 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	671	+	39 JULY 1, 2022]: Sec. 1. (a) A graduated slot machine wagering tax is
	672	+	40 imposed as follows on ninety-nine percent (99%) of the adjusted gross
	673	+	41 receipts received after June 30, 2012, and before July 1, 2013, on
	674	+	42 ninety-one and five-tenths percent (91.5%) of the adjusted gross
	675	+	SB 382—LS 7170/DI 120 15
	676	+	1 receipts received after June 30, 2013, and before July 1, 2015, and on
	677	+	2 eighty-eight percent (88%) of the adjusted gross receipts received after
	678	+	3 June 30, 2015, from wagering on gambling games authorized by this
	679	+	4 article:
	680	+	5 (1) Twenty-five percent (25%) of the first one hundred million
	681	+	6 dollars ($100,000,000) of adjusted gross receipts received during
	682	+	7 the period beginning July 1 of each year and ending June 30 of
	683	+	8 the following year.
	684	+	9 (2) For periods:
	685	+	10 (A) ending before July 1, 2021, thirty percent (30%) of the
	686	+	11 adjusted gross receipts in excess of one hundred million
	687	+	12 dollars ($100,000,000) but not exceeding two hundred million
	688	+	13 dollars ($200,000,000) received during the period beginning
	689	+	14 July 1 of each year and ending June 30 of the following year;
	690	+	15 and
	691	+	16 (B) beginning after June 30, 2021, thirty percent (30%) of the
	692	+	17 adjusted gross receipts in excess of one hundred million
	693	+	18 dollars ($100,000,000) received during the period beginning
	694	+	19 July 1 of each year and ending June 30 of the following year.
	695	+	20 (3) For periods ending before July 1, 2021, thirty-five percent
	696	+	21 (35%) of the adjusted gross receipts in excess of two hundred
	697	+	22 million dollars ($200,000,000) received during the period
	698	+	23 beginning July 1 of each year and ending June 30 of the following
	699	+	24 year.
	700	+	25 (b) A licensee shall do the following:
	701	+	26 (1) Remit the daily amount of tax imposed by this section to the
	702	+	27 department on the twenty-fourth calendar day of each month. Any
	703	+	28 taxes collected during the month but after the day on which the
	704	+	29 taxes are required to be paid shall be paid to the department at the
	705	+	30 same time the following month's taxes are due.
	706	+	31 (2) Report gaming activity information to the commission daily
	707	+	32 on forms prescribed by the commission.
	708	+	33 (c) The payment of the tax under this section must be in a manner
	709	+	34 prescribed by the department.
	710	+	35 (d) If the department requires taxes to be remitted under this chapter
	711	+	36 through electronic funds transfer, the department may allow the
	712	+	37 licensee to file a monthly report to reconcile the amounts remitted to
	713	+	38 the department.
	714	+	39 (e) The payment of the tax under this section must be on a form
	715	+	40 prescribed by the department. reported and remitted electronically
	716	+	41 through the department's online tax filing program.
	717	+	42 SECTION 8. IC 4-35-8.5-2, AS AMENDED BY P.L.255-2015,
	718	+	SB 382—LS 7170/DI 120 16
	719	+	1 SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	720	+	2 UPON PASSAGE]: Sec. 2. Before On or before the fifteenth day of
	721	+	3 each month, the treasurer of state shall distribute any county gambling
	722	+	4 game wagering fees received from a licensee during the previous
	723	+	5 month to the county auditor of the county in which the licensee's
	724	+	6 racetrack is located.
	725	+	7 SECTION 9. IC 4-38-10-5, AS ADDED BY P.L.293-2019,
	726	+	8 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	727	+	9 JULY 1, 2022]: Sec. 5. The payment of the tax under this chapter must
	728	+	10 be on a form and in a manner prescribed by the department. reported
	729	+	11 and remitted electronically through the department's online tax
	730	+	12 filing program.
	731	+	13 SECTION 10. IC 6-2.5-1-2 IS AMENDED TO READ AS
	732	+	14 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) "Retail
	733	+	15 transaction" means a transaction of a retail merchant that constitutes
	734	+	16 selling at retail as described in IC 6-2.5-4-1 that constitutes making a
	735	+	17 wholesale sale as described in IC 6-2.5-4-2, or that is described in any
	736	+	18 other section of IC 6-2.5-4.
	737	+	19 (b) "Retail unitary transaction" means a unitary transaction that is
	738	+	20 also a retail transaction.
	739	+	21 SECTION 11. IC 6-2.5-1-22.5 IS ADDED TO THE INDIANA
	740	+	22 CODE AS A NEW SECTION TO READ AS FOLLOWS
	741	+	23 [EFFECTIVE JULY 1, 2022]: Sec. 22.5. "Power subsidiary" means
	742	+	24 a corporation which is owned or controlled by one (1) or more
	743	+	25 public utilities that furnish or sell electrical energy, natural or
	744	+	26 artificial gas, water, steam, or steam heat and which produces
	745	+	27 power exclusively for the use of those public utilities.
	746	+	28 SECTION 12. IC 6-2.5-1-25.5 IS ADDED TO THE INDIANA
	747	+	29 CODE AS A NEW SECTION TO READ AS FOLLOWS
	748	+	30 [EFFECTIVE JULY 1, 2022]: Sec. 25.5. "Public utility" means any
	749	+	31 organization of any kind or nature that:
	750	+	32 (1) sells electricity, gas, or water for consumption; and
	751	+	33 (2) has the right of eminent domain or is otherwise subject to
	752	+	34 governmental regulation in any phase of its operation.
	753	+	35 SECTION 13. IC 6-2.5-3-4, AS AMENDED BY P.L.146-2020,
	754	+	36 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	755	+	37 JULY 1, 2022]: Sec. 4. (a) The storage, use, and consumption of
	756	+	38 tangible personal property in Indiana is exempt from the use tax if:
	757	+	39 (1) the property was acquired in a retail transaction and the state
	758	+	40 gross retail tax has been paid on the acquisition of that property;
	759	+	41 or
	760	+	42 (2) the property was acquired in a transaction that is wholly or
	761	+	SB 382—LS 7170/DI 120 17
	762	+	1 partially exempt from the state gross retail tax under any part of
	763	+	2 IC 6-2.5-5 except IC 6-2.5-5-24(b), and the property is being
	764	+	3 used, stored, or consumed for the purpose for which it was
	765	+	4 exempted.
	766	+	5 (b) If a person issues a state gross retail or use tax exemption
	767	+	6 certificate for the acquisition of tangible personal property and
	768	+	7 subsequently uses, stores, or consumes that property for a nonexempt
	769	+	8 purpose, then the person shall pay the use tax.
	770	+	9 SECTION 14. IC 6-2.5-4-1, AS AMENDED BY P.L.146-2020,
	771	+	10 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	772	+	11 JULY 1, 2022]: Sec. 1. (a) A person is a retail merchant making a retail
	773	+	12 transaction when the person engages in selling at retail.
	774	+	13 (b) A person is engaged in selling at retail when, in the ordinary
	775	+	14 course of the person's regularly conducted trade or business, the
	776	+	15 person:
	777	+	16 (1) acquires tangible personal property for the purpose of resale;
	778	+	17 and
	779	+	18 (2) transfers that property to another person for consideration.
	780	+	19 (c) For purposes of determining what constitutes selling at retail, it
	781	+	20 does not matter whether:
	782	+	21 (1) the property is transferred in the same form as when it was
	783	+	22 acquired;
	784	+	23 (2) the property is transferred alone or in conjunction with other
	785	+	24 property or services; or
	786	+	25 (3) the property is transferred conditionally or otherwise.
	787	+	26 (d) Notwithstanding subsection (b), a person is not selling at retail
	788	+	27 if the person is making a wholesale sale as described in section 2 of this
	789	+	28 chapter. However, in the case of sales of gasoline (as defined in
	790	+	29 IC 6-6-1.1-103), a person shall collect the gasoline use tax as provided
	791	+	30 in IC 6-2.5-3.5.
	792	+	31 (d) Notwithstanding any provision of this article, a person is not
	793	+	32 making a retail transaction when the person:
	794	+	33 (1) acquires tangible personal property owned by another
	795	+	34 person;
	796	+	35 (2) provides industrial processing or servicing, including
	797	+	36 enameling or plating, on the property; and
	798	+	37 (3) transfers the property back to the owner to be sold by that
	799	+	38 owner either in the same form or as a part of other tangible
	800	+	39 personal property produced by that owner in the owner's
	801	+	40 business of manufacturing, assembling, constructing, refining,
	802	+	41 or processing.
	803	+	SB 382—LS 7170/DI 120 18
	804	+	1 SECTION 15. IC 6-2.5-4-2 IS REPEALED [EFFECTIVE JULY 1,
	805	+	2 2022]. Sec. 2. (a) A person is a retail merchant making a retail
	806	+	3 transaction when he is making wholesale sales.
	807	+	4 (b) For purposes of this section, a person is making wholesale sales
	808	+	5 when he:
	809	+	6 (1) sells tangible personal property, other than capital assets or
	810	+	7 depreciable property, to a person who purchases the property for
	811	+	8 the purpose of reselling it without changing its form;
	812	+	9 (2) sells tangible personal property to a person who purchases the
	813	+	10 property for direct consumption as a material in the direct
	814	+	11 production of other tangible personal property produced by the
	815	+	12 person in his business of manufacturing, processing, refining,
	816	+	13 repairing, mining, agriculture, or horticulture;
	817	+	14 (3) sells tangible personal property to a person who purchases the
	818	+	15 property for incorporation as a material or integral part of tangible
	819	+	16 personal property produced by the person in his business of
	820	+	17 manufacturing, assembling, constructing, refining, or processing;
	821	+	18 (4) sells drugs, medical or dental preparations, or other similar
	822	+	19 materials to a person who purchases the materials for direct
	823	+	20 consumption in professional use by a physician, hospital,
	824	+	21 embalmer, funeral director, or tonsorial parlor;
	825	+	22 (5) sells tangible personal property to a person who purchases the
	826	+	23 property for direct consumption in his business of industrial
	827	+	24 cleaning; or
	828	+	25 (6) sells tangible personal property to a person who purchases the
	829	+	26 property for direct consumption in the person's business in the
	830	+	27 direct rendering of public utility service.
	831	+	28 (c) Notwithstanding any provision of this article, a person is not
	832	+	29 making a retail transaction when he:
	833	+	30 (1) acquires tangible personal property owned by another person;
	834	+	31 (2) provides industrial processing or servicing, including
	835	+	32 enameling or plating, on the property; and
	836	+	33 (3) transfers the property back to the owner to be sold by that
	837	+	34 owner either in the same form or as a part of other tangible
	838	+	35 personal property produced by that owner in his business of
	839	+	36 manufacturing, assembling, constructing, refining, or processing.
	840	+	37 SECTION 16. IC 6-2.5-4-5, AS AMENDED BY P.L.288-2013,
	841	+	38 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	842	+	39 JULY 1, 2022]: Sec. 5. (a) As used in this section, a "power subsidiary"
	843	+	40 means a corporation which is owned or controlled by one (1) or more
	844	+	41 public utilities that furnish or sell electrical energy, natural or artificial
	845	+	SB 382—LS 7170/DI 120 19
	846	+	1 gas, water, steam, or steam heat and which produces power exclusively
	847	+	2 for the use of those public utilities.
	848	+	3 (b) A power subsidiary or a person engaged as a public utility is a
	849	+	4 retail merchant making a retail transaction when the subsidiary or
	850	+	5 person furnishes or sells electrical energy, natural or artificial gas,
	851	+	6 water, steam, or steam heating service to a person for commercial or
	852	+	7 domestic consumption.
	853	+	8 (c) Notwithstanding subsection (b), a power subsidiary or a person
	854	+	9 engaged as a public utility is not a retail merchant making a retail
	855	+	10 transaction in any of the following transactions:
	856	+	11 (1) The power subsidiary or person provides, installs, constructs,
	857	+	12 services, or removes tangible personal property which is used in
	858	+	13 connection with the furnishing of the services or commodities
	859	+	14 listed in subsection (b).
	860	+	15 (2) The power subsidiary or person sells the services or
	861	+	16 commodities listed in subsection (b) to another public utility or
	862	+	17 power subsidiary described in this section or a person described
	863	+	18 in section 6 of this chapter.
	864	+	19 (3) The power subsidiary or person sells the services or
	865	+	20 commodities listed in subsection (b) to a person for use in
	866	+	21 manufacturing, mining, production, processing (after December
	867	+	22 31, 2012), repairing (after December 31, 2012), refining,
	868	+	23 recycling (as defined in IC 6-2.5-5-45.8), oil extraction, mineral
	869	+	24 extraction, irrigation, agriculture, floriculture (after December 31,
	870	+	25 2012), arboriculture (after December 31, 2012), or horticulture.
	871	+	26 However, this exclusion for sales of the services and commodities
	872	+	27 only applies if the services are consumed as an essential and
	873	+	28 integral part of an integrated process that produces tangible
	874	+	29 personal property and those sales are separately metered for the
	875	+	30 excepted uses listed in this subdivision, or if those sales are not
	876	+	31 separately metered but are predominately used by the purchaser
	877	+	32 for the excepted uses listed in this subdivision.
	878	+	33 (4) The power subsidiary or person sells the services or
	879	+	34 commodities listed in subsection (b) and all the following
	880	+	35 conditions are satisfied:
	881	+	36 (A) The services or commodities are sold to a business that:
	882	+	37 (i) relocates all or part of its operations to a facility; or
	883	+	38 (ii) expands all or part of its operations in a facility;
	884	+	39 located in a military base (as defined in IC 36-7-30-1(c)), a
	885	+	40 military base reuse area established under IC 36-7-30, the part
	886	+	41 of an economic development area established under
	887	+	SB 382—LS 7170/DI 120 20
	888	+	1 IC 36-7-14.5-12.5 that is or formerly was a military base (as
	889	+	2 defined in IC 36-7-30-1(c)), or a qualified military base
	890	+	3 enhancement area established under IC 36-7-34.
	891	+	4 (B) The business uses the services or commodities in the
	892	+	5 facility described in clause (A) not later than five (5) years
	893	+	6 after the operations that are relocated to the facility or
	894	+	7 expanded in the facility commence.
	895	+	8 (C) The sales of the services or commodities are separately
	896	+	9 metered for use by the relocated or expanded operations.
	897	+	10 (D) In the case of a business that uses the services or
	898	+	11 commodities in a qualified military base enhancement area
	899	+	12 established under IC 36-7-34-4(1), the business must satisfy at
	900	+	13 least one (1) of the following criteria:
	901	+	14 (i) The business is a participant in the technology transfer
	902	+	15 program conducted by the qualified military base (as defined
	903	+	16 in IC 36-7-34-3).
	904	+	17 (ii) The business is a United States Department of Defense
	905	+	18 contractor.
	906	+	19 (iii) The business and the qualified military base have a
	907	+	20 mutually beneficial relationship evidenced by a
	908	+	21 memorandum of understanding between the business and
	909	+	22 the United States Department of Defense.
	910	+	23 (E) In the case of a business that uses the services or
	911	+	24 commodities in a qualified military base enhancement area
	912	+	25 established under IC 36-7-34-4(2), the business must satisfy at
	913	+	26 least one (1) of the following criteria:
	914	+	27 (i) The business is a participant in the technology transfer
	915	+	28 program conducted by the qualified military base (as defined
	916	+	29 in IC 36-7-34-3).
	917	+	30 (ii) The business and the qualified military base have a
	918	+	31 mutually beneficial relationship evidenced by a
	919	+	32 memorandum of understanding between the business and
	920	+	33 the qualified military base (as defined in IC 36-7-34-3).
	921	+	34 However, this subdivision does not apply to a business that
	922	+	35 substantially reduces or ceases its operations at another location
	923	+	36 in Indiana in order to relocate its operations in an area described
	924	+	37 in this subdivision, unless the department determines that the
	925	+	38 business had existing operations in the area described in this
	926	+	39 subdivision and that the operations relocated to the area are an
	927	+	40 expansion of the business's operations in the area.
	928	+	41 SECTION 17. IC 6-2.5-4-18, AS AMENDED BY P.L.146-2020,
	929	+	SB 382—LS 7170/DI 120 21
	930	+	1 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	931	+	2 JULY 1, 2022]: Sec. 18. (a) A marketplace facilitator shall be
	932	+	3 considered the retail merchant of each retail transaction (including a
	933	+	4 retail transaction under section 4 of this chapter) that is facilitated for
	934	+	5 sellers on its marketplace, regardless as to whether the marketplace
	935	+	6 facilitator has a contractual relationship with the seller, when it
	936	+	7 does any of the following: on behalf of the seller:
	937	+	8 (1) Collects the sales price or purchase price of the seller's
	938	+	9 products.
	939	+	10 (2) Provides access to payment processing services, either directly
	940	+	11 or indirectly.
	941	+	12 (3) Charges, collects, or otherwise receives fees or other
	942	+	13 consideration for transactions made on its electronic marketplace.
	943	+	14 (b) Regardless of whether a transaction under subsection (a) was
	944	+	15 made by the marketplace facilitator on its own behalf or facilitated on
	945	+	16 behalf of a seller, A marketplace facilitator is required to do the
	946	+	17 following with each retail transaction made on its marketplace:
	947	+	18 (1) Collect and remit the gross retail tax, even if a seller for whom
	948	+	19 a transaction was facilitated:
	949	+	20 (A) does not have a registered retail merchant certificate; or
	950	+	21 (B) would not have been required to collect gross retail tax had
	951	+	22 the transaction not been facilitated by the marketplace
	952	+	23 facilitator.
	953	+	24 (2) Comply with all applicable procedures and requirements
	954	+	25 imposed under this article as the retail merchant in such
	955	+	26 transaction.
	956	+	27 (c) The gross retail income from a transaction under this section is
	957	+	28 equal to the total amount of consideration paid by the purchaser,
	958	+	29 including the payment of any fee, commission, or other charge by the
	959	+	30 marketplace facilitator, except that the gross retail income does not
	960	+	31 include any taxes on the transaction that are imposed directly on the
	961	+	32 consumer other than taxes described under IC 6-2.5-1-5(c)(2).
	962	+	33 SECTION 18. IC 6-2.5-5-5.1, AS AMENDED BY P.L.239-2017,
	963	+	34 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	964	+	35 JULY 1, 2022]: Sec. 5.1. (a) As used in this section, "tangible personal
	965	+	36 property" includes electrical energy, natural or artificial electricity,
	966	+	37 gas, water, steam, and steam. heat.
	967	+	38 (b) Transactions involving tangible personal property are exempt
	968	+	39 from the state gross retail tax if the person acquiring the property
	969	+	40 acquires it for direct consumption as a material to be consumed in the
	970	+	41 direct production of other tangible personal property in the person's
	971	+	SB 382—LS 7170/DI 120 22
	972	+	1 business of manufacturing, mining, production, processing,
	973	+	2 repairing, recycling (as defined in section 45.8 of this chapter),
	974	+	3 refining, repairing, mining, oil extraction, mineral extraction,
	975	+	4 irrigation, agriculture, floriculture, arboriculture, or horticulture.
	976	+	5 floriculture, or arboriculture. This exemption includes transactions
	977	+	6 involving acquisitions of tangible personal property used in
	978	+	7 commercial printing.
	979	+	8 (c) Transactions involving tangible personal property are exempt
	980	+	9 from the state gross retail tax if the person acquiring that property:
	981	+	10 (1) acquires it for the person's direct consumption as a material to
	982	+	11 be consumed in an industrial processing service; and
	983	+	12 (2) is an industrial processor.
	984	+	13 (d) Transactions involving tangible personal property are exempt
	985	+	14 from the state gross retail tax if the person acquiring the property:
	986	+	15 (1) acquires it for the person's direct consumption as a material to
	987	+	16 be consumed in:
	988	+	17 (A) the direct application of fertilizers, pesticides, fungicides,
	989	+	18 seeds, and other tangible personal property; or
	990	+	19 (B) the direct extraction, harvesting, or processing of
	991	+	20 agricultural commodities;
	992	+	21 for consideration; and
	993	+	22 (2) is occupationally engaged in providing the services described
	994	+	23 in subdivision (1) on property that is:
	995	+	24 (A) owned or rented by another person occupationally engaged
	996	+	25 in agricultural production; and
	997	+	26 (B) used for agricultural production.
	998	+	27 (e) Transactions involving electricity, gas, water, and steam
	999	+	28 delivered through a single meter provided by a public utility are
	1000	+	29 exempt if the electrical energy, natural or artificial gas, water,
	1001	+	30 steam, or steam heat is consumed for a purpose exempted pursuant
	1002	+	31 to this section and the electricity, gas, water, or steam is
	1003	+	32 predominately used by the purchaser for one (1) or more of the
	1004	+	33 purposes exempted by this section.
	1005	+	34 SECTION 19. IC 6-2.5-5-8, AS AMENDED BY P.L.156-2020,
	1006	+	35 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1007	+	36 JULY 1, 2022]: Sec. 8. (a) As used in this section, "new motor vehicle"
	1008	+	37 has the meaning set forth in IC 9-13-2-111.
	1009	+	38 (b) Except as provided in subsection (j), (e), transactions involving
	1010	+	39 tangible personal property other than a new motor vehicle are exempt
	1011	+	40 from the state gross retail tax if the person acquiring the property
	1012	+	41 acquires it for resale, rental, or leasing in the ordinary course of the
	1013	+	SB 382—LS 7170/DI 120 23
	1014	+	1 person's business without changing the form of the property.
	1015	+	2 (c) The following transactions involving a new motor vehicle are
	1016	+	3 exempt from the state gross retail tax:
	1017	+	4 (1) A transaction in which a person that has a franchise in effect
	1018	+	5 at the time of the transaction for the vehicle trade name, trade or
	1019	+	6 service mark, or related characteristics acquires a new motor
	1020	+	7 vehicle for resale, rental, or leasing in the ordinary course of the
	1021	+	8 person's business.
	1022	+	9 (2) A transaction in which a person that is a franchisee appointed
	1023	+	10 by a manufacturer or converter manufacturer licensed under
	1024	+	11 IC 9-23 (before July 1, 2013) or licensed under IC 9-32 (after
	1025	+	12 June 30, 2013) acquires a new motor vehicle that has at least one
	1026	+	13 (1) trade name, service mark, or related characteristic as a result
	1027	+	14 of modification or further manufacture by the manufacturer or
	1028	+	15 converter manufacturer for resale, rental, or leasing in the
	1029	+	16 ordinary course of the person's business.
	1030	+	17 (3) A transaction in which a person acquires a new motor vehicle
	1031	+	18 for rental or leasing in the ordinary course of the person's business
	1032	+	19 as a rental company (either as defined in IC 24-4-9-7).
	1033	+	20 IC 24-4-9-7 or as approved by the department).
	1034	+	21 (d) The rental or leasing of accommodations to a promoter by a
	1035	+	22 political subdivision (including a capital improvement board) or the
	1036	+	23 state fair commission is not exempt from the state gross retail tax, if the
	1037	+	24 rental or leasing of the property by the promoter is exempt under
	1038	+	25 IC 6-2.5-4-4.
	1039	+	26 (e) This subsection applies only to aircraft acquired after June 30,
	1040	+	27 2008. Except as provided in subsection (h), a transaction in which a
	1041	+	28 person acquires an aircraft for rental or leasing in the ordinary course
	1042	+	29 of the person's business is not exempt from the state gross retail tax
	1043	+	30 unless the person establishes, under guidelines adopted by the
	1044	+	31 department in the manner provided in IC 4-22-2-37.1 for the adoption
	1045	+	32 of emergency rules, that the annual amount of the gross lease revenue
	1046	+	33 derived from leasing or rental of the aircraft, which may include
	1047	+	34 revenue from related party transactions, is equal to or greater than
	1048	+	35 seven and five-tenths percent (7.5%) of the:
	1049	+	36 (1) book value of the aircraft, as published in the Vref Aircraft
	1050	+	37 Value Reference guide for the aircraft; or
	1051	+	38 (2) net acquisition price for the aircraft.
	1052	+	39 If a person acquires an aircraft below the Vref Aircraft Value
	1053	+	40 Reference guide book value, the person may appeal to the department
	1054	+	41 for a lower lease or rental threshold equal to the actual acquisition price
	1055	+	SB 382—LS 7170/DI 120 24
	1056	+	1 paid if the person demonstrates that the transaction was completed in
	1057	+	2 a commercially reasonable manner based on the aircraft's age,
	1058	+	3 condition, and equipment. The department may request the person to
	1059	+	4 submit to the department supporting documents showing the aircraft is
	1060	+	5 available for general public lease or rental, copies of business and
	1061	+	6 aircraft insurance policies, and other documents that assist the
	1062	+	7 department in determining if an aircraft is exempt from the state gross
	1063	+	8 retail tax.
	1064	+	9 (f) A person is required to meet the requirements of subsection (e)
	1065	+	10 until the earlier of the date the aircraft has generated sales tax on leases
	1066	+	11 or rental income that is equal to the amount of the original sales tax
	1067	+	12 exemption or the elapse of thirteen (13) years. If the aircraft is sold by
	1068	+	13 the person before meeting the requirements of this section and before
	1069	+	14 the sale the aircraft was exempt from gross retail tax under subsection
	1070	+	15 (e), the sale of the aircraft shall not result in the assessment or
	1071	+	16 collection of gross retail tax for the period from the date of acquisition
	1072	+	17 to the date of sale by the person.
	1073	+	18 (g) The person is required to remit the gross retail tax on taxable
	1074	+	19 lease and rental transactions no matter how long the aircraft is used for
	1075	+	20 lease and rental.
	1076	+	21 (h) This subsection applies only to aircraft acquired after December
	1077	+	22 31, 2007. A transaction in which a person acquires an aircraft to rent
	1078	+	23 or lease the aircraft to another person for predominant use in public
	1079	+	24 transportation by the other person or by an affiliate of the other person
	1080	+	25 is exempt from the state gross retail tax. The department may not
	1081	+	26 require a person to meet the revenue threshold in subsection (e) with
	1082	+	27 respect to the person's leasing or rental of the aircraft to receive or
	1083	+	28 maintain the exemption. To maintain the exemption provided under
	1084	+	29 this subsection, the department may require the person to submit only
	1085	+	30 annual reports showing that the aircraft is predominantly used to
	1086	+	31 provide public transportation.
	1087	+	32 (i) The exemptions allowed under subsections (e) and (h) apply
	1088	+	33 regardless of the relationship, if any, between the person or lessor and
	1089	+	34 the lessee or renter of the aircraft.
	1090	+	35 (j) (e) A person who purchases a motor vehicle for sharing through
	1091	+	36 a peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) is
	1092	+	37 not eligible for the exemption under this section.
	1093	+	38 SECTION 20. IC 6-2.5-5-8.2 IS ADDED TO THE INDIANA
	1094	+	39 CODE AS A NEW SECTION TO READ AS FOLLOWS
	1095	+	40 [EFFECTIVE JULY 1, 2022]: Sec. 8.2. (a) Except as provided in
	1096	+	41 subsection (f), a transaction in which a person acquires an aircraft
	1097	+	42 for rental or leasing in the ordinary course of the person's business
	1098	+	SB 382—LS 7170/DI 120 25
	1099	+	1 is not exempt from the state gross retail tax unless the person
	1100	+	2 establishes, under guidelines adopted by the department in the
	1101	+	3 manner provided in IC 4-22-2 (including the adoption of
	1102	+	4 emergency rules under IC 4-22-2-37.1), that the annual amount of
	1103	+	5 the gross lease revenue derived from leasing or rental of the
	1104	+	6 aircraft, which may include revenue from related party
	1105	+	7 transactions, is equal to or greater than seven and five-tenths
	1106	+	8 percent (7.5%) of the:
	1107	+	9 (1) book value of the aircraft, as published in the VREF
	1108	+	10 Aircraft Value Reference guide for the aircraft; or
	1109	+	11 (2) net acquisition price for the aircraft, which shall include
	1110	+	12 the value of any trade or exchange and excluding any sales
	1111	+	13 commissions paid to third parties.
	1112	+	14 (b) If a person acquires an aircraft below the VREF Aircraft
	1113	+	15 Value Reference guide book value as set forth in subsection (a)(1),
	1114	+	16 the person may appeal to the department for a lower lease or
	1115	+	17 rental threshold equal to the actual acquisition price paid if the
	1116	+	18 person demonstrates that the transaction was completed in a
	1117	+	19 commercially reasonable manner based on the aircraft's age,
	1118	+	20 condition, and equipment.
	1119	+	21 (c) For purposes of this section, the department may request the
	1120	+	22 person to submit to the department supporting documents showing
	1121	+	23 that the aircraft is available for general public lease or rental,
	1122	+	24 copies of business and aircraft insurance policies, and other
	1123	+	25 documents that assist the department in determining if an aircraft
	1124	+	26 is exempt from the state gross retail tax.
	1125	+	27 (d) A person is required to meet the requirements of subsection
	1126	+	28 (a) until the earlier of the date the aircraft has generated sales tax
	1127	+	29 on leases or rental income that is equal to the amount of the
	1128	+	30 original sales tax exemption, the elapse of thirteen (13) years, or
	1129	+	31 the date the aircraft is sold. No additional sales or use tax is due
	1130	+	32 from the seller on the seller's original purchase when the aircraft
	1131	+	33 is sold if the person has met the terms of this section for all periods
	1132	+	34 prior to the sale.
	1133	+	35 (e) A person is required to remit the gross retail tax on taxable
	1134	+	36 lease and rental transactions the entire time the aircraft is used for
	1135	+	37 lease and rental, even if the aircraft is used for lease and rental
	1136	+	38 beyond a thirteen (13) year period.
	1137	+	39 (f) A transaction in which a person acquires an aircraft to rent
	1138	+	40 or lease the aircraft to another person for predominant use in
	1139	+	41 public transportation (as provided for in section 27 of this chapter)
	1140	+	42 by the other person or by an affiliate of the other person is exempt
	1141	+	SB 382—LS 7170/DI 120 26
	1142	+	1 from the state gross retail tax. The department may not require a
	1143	+	2 person to meet the revenue threshold in subsection (a) with respect
	1144	+	3 to the person's leasing or rental of the aircraft to receive or
	1145	+	4 maintain the exemption. To maintain the exemption provided
	1146	+	5 under this subsection, the department may require the person to
	1147	+	6 submit annual reports showing that the aircraft is predominantly
	1148	+	7 used to provide public transportation.
	1149	+	8 (g) The exemptions allowed under subsections (a) and (f) apply
	1150	+	9 regardless of the relationship, if any, between the person or lessor
	1151	+	10 and the lessee or renter of the aircraft.
	1152	+	11 SECTION 21. IC 6-2.5-5-8.5 IS ADDED TO THE INDIANA
	1153	+	12 CODE AS A NEW SECTION TO READ AS FOLLOWS
	1154	+	13 [EFFECTIVE JULY 1, 2022]: Sec. 8.5. Transactions involving
	1155	+	14 electrical energy, natural or artificial gas, water, steam, or steam
	1156	+	15 heating service sold or furnished by a power subsidiary or a person
	1157	+	16 engaged as a public utility are exempt from the state gross retail
	1158	+	17 tax when:
	1159	+	18 (1) the power subsidiary or person provides, installs,
	1160	+	19 constructs, services, or removes tangible personal property
	1161	+	20 which is used in connection with the furnishing of the services
	1162	+	21 or commodities listed in IC 6-2.5-4-5;
	1163	+	22 (2) the power subsidiary or person sells the services or
	1164	+	23 commodities listed in IC 6-2.5-4-5 to another public utility or
	1165	+	24 power subsidiary or a person described in IC 6-2.5-4-6; or
	1166	+	25 (3) the power subsidiary or person sells the services or
	1167	+	26 commodities listed in IC 6-2.5-4-5 and all of the following
	1168	+	27 conditions are satisfied:
	1169	+	28 (A) The services or commodities are sold to a business
	1170	+	29 that:
	1171	+	30 (i) relocates all or part of its operations to a facility; or
	1172	+	31 (ii) expands all or part of its operations in a facility;
	1173	+	32 located in a military base (as defined in IC 36-7-30-1(c)), a
	1174	+	33 military base reuse area established under
	1175	+	34 IC 36-7-14.5-12.5 that is or formerly was a military base
	1176	+	35 (as defined in IC 36-7-30-1(c)), or a qualified military base
	1177	+	36 enhancement area established under IC 36-7-34.
	1178	+	37 (B) The business uses the services or commodities in the
	1179	+	38 facility described in clause (A) not later than five (5) years
	1180	+	39 after the operation that relocated to the facility, or
	1181	+	40 expanded in the facility, commence.
	1182	+	41 (C) The sales of the services or commodities are separately
	1183	+	42 metered for use by the relocated or expanded operations.
	1184	+	SB 382—LS 7170/DI 120 27
	1185	+	1 (D) In the case of a business that uses the services or
	1186	+	2 commodities in a qualified military base enhancement area
	1187	+	3 established under IC 36-7-34-4(1), the business must satisfy
	1188	+	4 at least one (1) of the following criteria:
	1189	+	5 (i) The business is a participant in the technology
	1190	+	6 transfer program conducted by the qualified military
	1191	+	7 base (as defined in IC 36-7-34-3).
	1192	+	8 (ii) The business is a United States Department of
	1193	+	9 Defense contractor.
	1194	+	10 (iii) The business and the qualified military base have a
	1195	+	11 mutually beneficial relationship evidenced by a
	1196	+	12 memorandum of understanding between the business
	1197	+	13 and the United States Department of Defense.
	1198	+	14 (E) In the case of a business that uses the services and
	1199	+	15 commodities in a qualified military base enhancement area
	1200	+	16 established under IC 36-7-34-4(2), the business must satisfy
	1201	+	17 at least one (1) of the following criteria:
	1202	+	18 (i) The business is a participant in the technology
	1203	+	19 transfer program conducted by the qualified military
	1204	+	20 base (as defined in IC 36-7-34-3).
	1205	+	21 (ii) The business and the qualified miliary base have a
	1206	+	22 mutually beneficial relationship evidenced by a
	1207	+	23 memorandum of understanding between the business
	1208	+	24 and the qualified military base (as defined in
	1209	+	25 IC 36-7-34-3).
	1210	+	26 However, this subdivision does not apply to a business that
	1211	+	27 substantially reduces or ceases its operations at another
	1212	+	28 location in Indiana in order to relocate its operations in an
	1213	+	29 area described in this subdivision, unless the department
	1214	+	30 determines that the business had existing operations in the
	1215	+	31 area described in this subdivision and that the operations
	1216	+	32 relocated to the area are an expansion of the business's
	1217	+	33 operations in the area.
	1218	+	34 SECTION 22. IC 6-2.5-5-10 IS AMENDED TO READ AS
	1219	+	35 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 10. Transactions
	1220	+	36 involving tangible personal property are exempt from the state gross
	1221	+	37 retail tax, if:
	1222	+	38 (1) the property is classified as production plant or power
	1223	+	39 production expenses, according to the uniform system of accounts
	1224	+	40 which was adopted and prescribed for the utility by the Indiana
	1225	+	41 utility regulatory commission; and
	1226	+	42 (2) the person acquiring the property is:
	1227	+	SB 382—LS 7170/DI 120 28
	1228	+	1 (A) a public utility that furnishes or sells electrical energy,
	1229	+	2 steam, or steam heat in a retail transaction described in
	1230	+	3 IC 6-2.5-4-5; or
	1231	+	4 (B) a power subsidiary (as defined in IC 6-2.5-4-5(a))
	1232	+	5 IC 6-2.5-1-22.5) that furnishes or sells electrical energy,
	1233	+	6 steam, or steam heat to a public utility described in clause (A).
	1234	+	7 SECTION 23. IC 6-2.5-5-10.5, AS ADDED BY P.L.159-2021,
	1235	+	8 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1236	+	9 JULY 1, 2022]: Sec. 10.5. (a) Transactions occurring on or after May
	1237	+	10 1, 2021, involving tangible personal property are exempt from the state
	1238	+	11 gross retail tax, if:
	1239	+	12 (1) the property is classified as a utility scale battery energy
	1240	+	13 storage system as defined in subsection (b);
	1241	+	14 (2) the person acquiring the property is:
	1242	+	15 (A) a public utility that furnishes or sells electrical energy; or
	1243	+	16 (B) a power subsidiary (as defined in IC 6-2.5-4-5(a))
	1244	+	17 IC 6-2.5-1-22.5) that furnishes or sells electrical energy to a
	1245	+	18 public utility described in clause (A); and
	1246	+	19 (3) the person acquiring the property uses the property to store
	1247	+	20 electrical energy in-front of the customer's meter.
	1248	+	21 (b) As used in this section, a "utility scale battery energy storage
	1249	+	22 system" means a system capable of storing and releasing greater than
	1250	+	23 1MW of electrical energy for a minimum of one (1) hour utilizing an
	1251	+	24 AC inverter and DC storage, or equipment which receives, stores, and
	1252	+	25 delivers energy using batteries, compressed air, pumped hydropower,
	1253	+	26 hydrogen storage (including hydrolysis), thermal energy storage,
	1254	+	27 regenerative fuel cells, flywheels, capacitors, and superconducting
	1255	+	28 magnets, but does not include foundations or property used to directly
	1256	+	29 or indirectly connect the AC inverter or DC storage of such system to
	1257	+	30 electrical energy production equipment or the customer's meter.
	1258	+	31 SECTION 24. IC 6-2.5-5-21, AS AMENDED BY P.L.293-2013(ts),
	1259	+	32 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1260	+	33 JULY 1, 2022]: Sec. 21. (a) For purposes of this section, "private
	1261	+	34 benefit or gain" does not include reasonable compensation paid to an
	1262	+	35 employee for work or services actually performed.
	1263	+	36 (b) Sales of food and food ingredients are exempt from the state
	1264	+	37 gross retail tax if:
	1265	+	38 (1) the seller meets the filing requirements under subsection (d)
	1266	+	39 and is any of the following:
	1267	+	40 (A) A fraternity, a sorority, or a student cooperative housing
	1268	+	41 organization that is connected with and under the supervision
	1269	+	SB 382—LS 7170/DI 120 29
	1270	+	1 of a postsecondary educational institution if no part of its
	1271	+	2 income is used for the private benefit or gain of any member,
	1272	+	3 trustee, shareholder, employee, or associate.
	1273	+	4 (B) Any:
	1274	+	5 (i) institution;
	1275	+	6 (ii) trust;
	1276	+	7 (iii) group;
	1277	+	8 (iv) united fund;
	1278	+	9 (v) affiliated agency of a united fund;
	1279	+	10 (vi) nonprofit corporation;
	1280	+	11 (vii) cemetery association; or
	1281	+	12 (viii) organization;
	1282	+	13 that is organized and operated exclusively for religious,
	1283	+	14 charitable, scientific, literary, educational, or civic purposes if
	1284	+	15 no part of its income is used for the private benefit or gain of
	1285	+	16 any member, trustee, shareholder, employee, or associate.
	1286	+	17 (C) A group, an organization, or a nonprofit corporation that
	1287	+	18 is organized and operated for fraternal or social purposes, or
	1288	+	19 as a business league or association, and not for the private
	1289	+	20 benefit or gain of any member, trustee, shareholder, employee,
	1290	+	21 or associate.
	1291	+	22 (D) A:
	1292	+	23 (i) hospital licensed by the state department of health;
	1293	+	24 (ii) shared hospital services organization exempt from
	1294	+	25 federal income taxation by Section 501(c)(3) or 501(e) of
	1295	+	26 the Internal Revenue Code;
	1296	+	27 (iii) labor union;
	1297	+	28 (iv) church;
	1298	+	29 (v) monastery;
	1299	+	30 (vi) convent;
	1300	+	31 (vii) school that is a part of the Indiana public school
	1301	+	32 system;
	1302	+	33 (viii) parochial school regularly maintained by a recognized
	1303	+	34 religious denomination; or
	1304	+	35 (ix) trust created for the purpose of paying pensions to
	1305	+	36 members of a particular profession or business who created
	1306	+	37 the trust for the purpose of paying pensions to each other;
	1307	+	38 if the taxpayer is not organized or operated for private profit or
	1308	+	39 gain; an organization described in section 25(a)(1) of this
	1309	+	40 chapter;
	1310	+	41 (2) the purchaser is a person confined to the purchaser's home
	1311	+	SB 382—LS 7170/DI 120 30
	1312	+	1 because of age, sickness, or infirmity;
	1313	+	2 (3) the seller delivers the food and food ingredients to the
	1314	+	3 purchaser; and
	1315	+	4 (4) the delivery is prescribed as medically necessary by a
	1316	+	5 physician licensed to practice medicine in Indiana.
	1317	+	6 (c) Sales of food and food ingredients are exempt from the state
	1318	+	7 gross retail tax if the seller is an organization described in subsection
	1319	+	8 (b)(1), section 25(a)(1) of this chapter, and the purchaser is a patient
	1320	+	9 in a hospital operated by the seller.
	1321	+	10 (d) To obtain the exemption provided by this section, a taxpayer
	1322	+	11 must file an application for exemption with the department not later
	1323	+	12 than one hundred twenty (120) days after the taxpayer's formation. In
	1324	+	13 addition, the taxpayer must file an annual report with the department
	1325	+	14 on or before the fifteenth day of the fifth month following the close of
	1326	+	15 each taxable year. If a taxpayer fails to file the report, the department
	1327	+	16 shall notify the taxpayer of the failure. If within sixty (60) days after
	1328	+	17 receiving such notice the taxpayer does not provide the report, the
	1329	+	18 taxpayer's exemption shall be canceled. However, the department may
	1330	+	19 reinstate the taxpayer's exemption if the taxpayer shows by petition that
	1331	+	20 the failure was due to excusable neglect. follow the procedures set
	1332	+	21 forth in section 25(c) of this chapter.
	1333	+	22 SECTION 25. IC 6-2.5-5-22 IS AMENDED TO READ AS
	1334	+	23 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 22. (a) Sales of school
	1335	+	24 meals are exempt from the state gross retail tax if:
	1336	+	25 (1) the seller is a school containing students in any grade, one (1)
	1337	+	26 through twelve (12);
	1338	+	27 (2) the purchaser is one (1) of those students or a school
	1339	+	28 employee; and
	1340	+	29 (3) the school furnishes the food and food ingredients on its
	1341	+	30 premises.
	1342	+	31 (b) Sales of food and food ingredients by not-for-profit colleges or
	1343	+	32 universities are exempt from the state gross retail tax, if the purchaser
	1344	+	33 is a student at the college or university.
	1345	+	34 (c) Sales of meals after December 31, 1976, by a fraternity, sorority,
	1346	+	35 or student cooperative housing organization described in section
	1347	+	36 21(b)(1)(A) 25(a)(1)(A) of this chapter are exempt from the state gross
	1348	+	37 retail tax, if the purchaser:
	1349	+	38 (1) is a member of the fraternity, sorority, or student cooperative
	1350	+	39 housing organization; and
	1351	+	40 (2) is enrolled in the college, university, or educational institution
	1352	+	41 with which the fraternity, sorority, or student cooperative housing
	1353	+	SB 382—LS 7170/DI 120 31
	1354	+	1 organization is connected and by which it is supervised.
	1355	+	2 SECTION 26. IC 6-2.5-5-24 IS AMENDED TO READ AS
	1356	+	3 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 24. (a) Transactions are
	1357	+	4 exempt from the state gross retail tax to the extent that the gross retail
	1358	+	5 income from those transactions is derived from gross receipts that are:
	1359	+	6 (1) derived from sales to the United States government, to the
	1360	+	7 extent the state is prohibited by the Constitution of the United
	1361	+	8 States; from taxing that gross income;
	1362	+	9 (2) derived from commercial printing that results in printed
	1363	+	10 materials, excluding the business of photocopying, that are
	1364	+	11 shipped, mailed, or delivered outside Indiana;
	1365	+	12 (3) United States or Indiana taxes received or collected as a
	1366	+	13 collecting agent explicitly designated as a collecting agent for a
	1367	+	14 tax by statute for the state or the United States;
	1368	+	15 (4) collections by a retail merchant of a retailer's excise tax
	1369	+	16 imposed by the United States if:
	1370	+	17 (A) the tax is imposed solely on the sale at retail of tangible
	1371	+	18 personal property;
	1372	+	19 (B) the tax is remitted to the appropriate taxing authority; and
	1373	+	20 (C) the retail merchant collects the tax separately as an
	1374	+	21 addition to the price of the property sold;
	1375	+	22 (5) collections of a manufacturer's excise tax imposed by the
	1376	+	23 United States on motor vehicles, motor vehicle bodies and
	1377	+	24 chassis, parts and accessories for motor vehicles, tires, tubes for
	1378	+	25 tires, or tread rubber and laminated tires, if the excise tax is
	1379	+	26 separately stated by the collecting taxpayer as either an addition
	1380	+	27 to or an inclusion in the price of the property sold; or
	1381	+	28 (6) amounts represented by an encumbrance of any kind on
	1382	+	29 tangible personal property received by a retail merchant in
	1383	+	30 reciprocal exchange for tangible personal property of like kind.
	1384	+	31 (b) Transactions are exempt from the state gross retail tax to the
	1385	+	32 extent that the gross retail income from those transactions is derived
	1386	+	33 from gross receipts that are:
	1387	+	34 (1) interest or other earnings paid on bonds or other securities
	1388	+	35 issued by the United States, to the extent the Constitution of the
	1389	+	36 United States prohibits the taxation of that gross income; or
	1390	+	37 (2) derived from business conducted in commerce between the
	1391	+	38 state and either another state or a foreign country, to the extent the
	1392	+	39 state is prohibited from taxing that gross income by the
	1393	+	40 Constitution of the United States.
	1394	+	41 SECTION 27. IC 6-2.5-5-25, AS AMENDED BY P.L.293-2013(ts),
	1395	+	SB 382—LS 7170/DI 120 32
	1396	+	1 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1397	+	2 JULY 1, 2022]: Sec. 25. (a) Transactions involving tangible personal
	1398	+	3 property, accommodations, or service are exempt from the state gross
	1399	+	4 retail tax, if the person acquiring the property, accommodations, or
	1400	+	5 service:
	1401	+	6 (1) is an organization described in section 21(b)(1) of this
	1402	+	7 chapter; any of the following types of organizations:
	1403	+	8 (A) A fraternity, a sorority, or a student cooperative
	1404	+	9 housing organization that is connected with and under the
	1405	+	10 supervision of a postsecondary educational institution if no
	1406	+	11 part of its income is used for the private benefit or gain of
	1407	+	12 any member, trustee, shareholder, employee, or associate.
	1408	+	13 (B) Any:
	1409	+	14 (i) institution;
	1410	+	15 (ii) trust;
	1411	+	16 (iii) group;
	1412	+	17 (iv) united fund;
	1413	+	18 (v) affiliated agency of a united fund;
	1414	+	19 (vi) nonprofit corporation;
	1415	+	20 (vii) cemetery association; or
	1416	+	21 (viii) organization;
	1417	+	22 that is organized and operated exclusively for religious,
	1418	+	23 charitable, scientific, literary, educational, or civic
	1419	+	24 purposes if no part of its income is used for the private
	1420	+	25 benefit or gain of any member, trustee, shareholder,
	1421	+	26 employee, or associate.
	1422	+	27 (C) A group, an organization, or a nonprofit corporation
	1423	+	28 that is organized and operated for fraternal or social
	1424	+	29 purposes, or as a business league or association, and not
	1425	+	30 for the private benefit or gain of any member, trustee,
	1426	+	31 shareholder, employee, or associate.
	1427	+	32 (D) A:
	1428	+	33 (i) hospital licensed by the state department of health;
	1429	+	34 (ii) shared hospital services organization exempt from
	1430	+	35 federal income taxation by Section 501(c)(3) or 501(e) of
	1431	+	36 the Internal Revenue Code;
	1432	+	37 (iii) labor union;
	1433	+	38 (iv) church;
	1434	+	39 (v) monastery;
	1435	+	40 (vi) convent;
	1436	+	41 (vii) school that is a part of the Indiana public school
	1437	+	SB 382—LS 7170/DI 120 33
	1438	+	1 system;
	1439	+	2 (viii) parochial school regularly maintained by a
	1440	+	3 recognized religious denomination; or
	1441	+	4 (ix) trust created for the purpose of paying pensions to
	1442	+	5 members of a particular profession or business who
	1443	+	6 created the trust for the purpose of paying pensions to
	1444	+	7 each other;
	1445	+	8 if the taxpayer is not organized or operated for private
	1446	+	9 profit or gain;
	1447	+	10 (2) primarily uses the property, accommodations, or service to
	1448	+	11 carry on or to raise money to carry on its not-for-profit purpose;
	1449	+	12 and
	1450	+	13 (3) is not an organization operated predominantly for social
	1451	+	14 purposes.
	1452	+	15 (b) Transactions involving tangible personal property or service are
	1453	+	16 exempt from the state gross retail tax, if the person acquiring the
	1454	+	17 property or service:
	1455	+	18 (1) is a fraternity, sorority, or student cooperative housing
	1456	+	19 organization described in section 21(b)(1)(A) of this chapter;
	1457	+	20 subsection (a)(1)(A); and
	1458	+	21 (2) uses the property or service to carry on its ordinary and usual
	1459	+	22 activities and operations as a fraternity, sorority, or student
	1460	+	23 cooperative housing organization.
	1461	+	24 (c) To obtain the exemption provided by this section, a taxpayer
	1462	+	25 must file an application for exemption with the department not
	1463	+	26 later than one hundred twenty (120) days after the taxpayer's
	1464	+	27 formation. In addition, the taxpayer must file a report with the
	1465	+	28 department on or before the fifteenth day of the fifth month every
	1466	+	29 five (5) years following the date of its formation. The report must
	1467	+	30 be filed electronically with the department in the manner
	1468	+	31 determined by the department. If a taxpayer fails to file the report,
	1469	+	32 the department shall notify the taxpayer of the failure. If within
	1470	+	33 sixty (60) days after receiving such notice the taxpayer does not
	1471	+	34 provide the report, the taxpayer's exemption shall be canceled.
	1472	+	35 However, the department may reinstate the taxpayer's exemption
	1473	+	36 if the taxpayer shows by petition that the failure was due to
	1474	+	37 reasonable cause.
	1475	+	38 (d) For purposes of subsection (c), a taxpayer filing a report on
	1476	+	39 or before December 31, 2022, will not be required to file a
	1477	+	40 subsequent report until December 31, 2027. This subsection expires
	1478	+	41 January 1, 2030.
	1479	+	42 SECTION 28. IC 6-2.5-5-26, AS AMENDED BY P.L.214-2018(ss),
	1480	+	SB 382—LS 7170/DI 120 34
	1481	+	1 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1482	+	2 JULY 1, 2022]: Sec. 26. (a) Sales of tangible personal property by an
	1483	+	3 organization described in section 25(a)(1) of this chapter are exempt
	1484	+	4 from the state gross retail tax, if:
	1485	+	5 (1) the seller is an organization that is described in section
	1486	+	6 21(b)(1) of this chapter;
	1487	+	7 (2) (1) the organization makes the sale to make money to carry on
	1488	+	8 a not-for-profit purpose; and
	1489	+	9 (3) (2) the organization does not make those sales during more
	1490	+	10 than thirty (30) days twenty thousand dollars ($20,000) in sales
	1491	+	11 in a calendar year.
	1492	+	12 Once sales of an organization exceed the amount described in
	1493	+	13 subdivision (2), the organization is required to collect state gross
	1494	+	14 retail tax on sales on an ongoing basis for the remainder of the
	1495	+	15 calendar year.
	1496	+	16 (b) For purposes of subsection (a), the sales of an organization
	1497	+	17 include sales made by all units operating under the organization's
	1498	+	18 registration pursuant to section 25(c) of this chapter.
	1499	+	19 (b) (c) If the qualifications of subsection (a) are not met, sales of
	1500	+	20 tangible personal property by an organization described in section
	1501	+	21 25(a)(1) of this chapter are exempt from the state gross retail tax, if:
	1502	+	22 (1) the seller is an organization described in section 21(b)(1) of
	1503	+	23 this chapter;
	1504	+	24 (2) (1) the seller organization is not operated predominantly for
	1505	+	25 social purposes;
	1506	+	26 (3) (2) the property sold is designed and intended primarily either
	1507	+	27 for the organization's educational, cultural, or religious purposes,
	1508	+	28 or for improvement of the work skills or professional
	1509	+	29 qualifications of the organization's members; and
	1510	+	30 (4) (3) the property sold is not designed or intended primarily for
	1511	+	31 use in carrying on a private or proprietary business.
	1512	+	32 (c) (d) Sales of tangible personal property by a public library, or a
	1513	+	33 charitable organization described in section 21(b)(1) 25(a)(1) of this
	1514	+	34 chapter formed to support a public library, are exempt from the state
	1515	+	35 gross retail tax if the property sold consists of:
	1516	+	36 (1) items in the library's circulated and publicly available
	1517	+	37 collections, including items from the library's holdings; or
	1518	+	38 (2) items that would typically be included in the library's
	1519	+	39 circulated and publicly available collections and that are donated
	1520	+	40 by individuals or organizations to a public library or to a
	1521	+	41 charitable organization described in section 21(b)(1) 25(a)(1) of
	1522	+	SB 382—LS 7170/DI 120 35
	1523	+	1 this chapter formed to support a public library.
	1524	+	2 The exemption provided by this subsection does not apply to any other
	1525	+	3 sales of tangible personal property by a public library.
	1526	+	4 (d) (e) The exemption provided by this section does not apply to an
	1527	+	5 accredited college or university's sales of books, stationery,
	1528	+	6 haberdashery, supplies, or other property.
	1529	+	7 (f) To obtain the exemption provided by this section, a taxpayer
	1530	+	8 must follow the procedures set forth in section 25(c) of this chapter.
	1531	+	9 SECTION 29. IC 6-2.5-8-8, AS AMENDED BY P.L.159-2021,
	1532	+	10 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1533	+	11 JULY 1, 2022]: Sec. 8. (a) A person, authorized under subsection (b),
	1534	+	12 who makes a purchase in a transaction which is exempt from the state
	1535	+	13 gross retail and use taxes, may issue an exemption certificate to the
	1536	+	14 seller instead of paying the tax. Except as provided in subsection (c),
	1537	+	15 the person shall issue the certificate on forms and in the manner
	1538	+	16 prescribed by the department on the department's Internet web site.
	1539	+	17 A seller accepting a proper exemption certificate under this section has
	1540	+	18 no duty to collect or remit the state gross retail or use tax on that
	1541	+	19 purchase.
	1542	+	20 (b) The following are the only persons authorized to issue
	1543	+	21 exemption certificates:
	1544	+	22 (1) Retail merchants, wholesalers, and manufacturers, who are
	1545	+	23 registered with the department under this chapter.
	1546	+	24 (2) Organizations which are exempt from the state gross retail tax
	1547	+	25 under IC 6-2.5-5-21, IC 6-2.5-5-25, or IC 6-2.5-5-26 and which
	1548	+	26 are registered with the department under this chapter.
	1549	+	27 (3) (2) Persons who are exempt from the state gross retail tax
	1550	+	28 under IC 6-2.5-4-5 and who receive an exemption certificate from
	1551	+	29 the department.
	1552	+	30 (4) (3) Other persons who are exempt from the state gross retail
	1553	+	31 tax with respect to any part of their purchases.
	1554	+	32 (c) Organizations that are exempt from the state gross retail tax
	1555	+	33 under IC 6-2.5-5-21, IC 6-2.5-5-25, or IC 6-2.5-5-26 and that are
	1556	+	34 registered with the department pursuant to IC 6-2.5-5-25(c) shall
	1557	+	35 be electronically issued an exemption certificate by the department.
	1558	+	36 (c) (d) The department may also allow a person to issue a blanket
	1559	+	37 exemption certificate to cover exempt purchases over a stated period
	1560	+	38 of time. The department may impose conditions on the use of the
	1561	+	39 blanket exemption certificate and restrictions on the kind or category
	1562	+	40 of purchases that are exempt.
	1563	+	41 (d) (e) A seller that accepts an incomplete exemption certificate
	1564	+	SB 382—LS 7170/DI 120 36
	1565	+	1 under subsection (a) is not relieved of the duty to collect gross retail or
	1566	+	2 use tax on the sale unless the seller obtains:
	1567	+	3 (1) a fully completed exemption certificate; or
	1568	+	4 (2) the relevant data to complete the exemption certificate;
	1569	+	5 within ninety (90) days after the sale.
	1570	+	6 (e) (f) If a seller has accepted an incomplete exemption certificate
	1571	+	7 under subsection (a) and the department requests that the seller
	1572	+	8 substantiate the exemption, within one hundred twenty (120) days after
	1573	+	9 the department makes the request the seller shall:
	1574	+	10 (1) obtain a fully completed exemption certificate; or
	1575	+	11 (2) prove by other means that the transaction was not subject to
	1576	+	12 state gross retail or use tax.
	1577	+	13 (f) (g) A power subsidiary (as defined in IC 6-2.5-4-5)
	1578	+	14 IC 6-2.5-1-22.5) or a person selling the services or commodities listed
	1579	+	15 in IC 6-2.5-4-5(b) IC 6-2.5-4-5 who accepts an exemption certificate
	1580	+	16 issued by the department to a person who is exempt from the state
	1581	+	17 gross retail tax under IC 6-2.5-4-5 is relieved from the duty to collect
	1582	+	18 state gross retail or use tax on the sale of the services or commodities
	1583	+	19 listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 until notified by the department
	1584	+	20 that the exemption certificate has expired or has been revoked. If the
	1585	+	21 department notifies a power subsidiary or a person selling the services
	1586	+	22 or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 that a person's
	1587	+	23 exemption certificate has expired or has been revoked, the power
	1588	+	24 subsidiary or person selling the services or commodities listed in
	1589	+	25 IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall begin collecting state gross retail tax
	1590	+	26 on the sale of the services or commodities listed in IC 6-2.5-4-5(b)
	1591	+	27 IC 6-2.5-4-5 to the person whose exemption certificate has expired or
	1592	+	28 been revoked not later than thirty (30) days after the date of the
	1593	+	29 department's notice. An exemption certificate issued by the department
	1594	+	30 to a person who is exempt from the state gross retail tax under
	1595	+	31 IC 6-2.5-4-5 remains valid for that person regardless of any subsequent
	1596	+	32 one (1) for one (1) meter number changes with respect to that person
	1597	+	33 that are required, made, or initiated by a power subsidiary or a person
	1598	+	34 selling the services or commodities listed in IC 6-2.5-4-5(b),
	1599	+	35 IC 6-2.5-4-5, unless the department revokes the exemption certificate.
	1600	+	36 Within thirty (30) days after the final day of each calendar year quarter,
	1601	+	37 a power subsidiary or a person selling the services or commodities
	1602	+	38 listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall report to the department any
	1603	+	39 meter number changes made during the immediately preceding
	1604	+	40 calendar year quarter and distinguish between the one (1) for one (1)
	1605	+	41 meter changes and the one (1) for multiple meter changes made during
	1606	+	SB 382—LS 7170/DI 120 37
	1607	+	1 the calendar year quarter. A power subsidiary or a person selling the
	1608	+	2 services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall
	1609	+	3 maintain records sufficient to document each one (1) to one (1) meter
	1610	+	4 change. A person may request the department to reissue an exemption
	1611	+	5 certificate with a new meter number in the event of a one (1) to one (1)
	1612	+	6 meter change. Except for a person to whom a blanket utility exemption
	1613	+	7 applies, any meter number changes not involving a one (1) to one (1)
	1614	+	8 relationship will no longer be exempt and will require the person to
	1615	+	9 submit a new utility exemption application for the new meters. Until an
	1616	+	10 application for a new meter is approved, the new meter is subject to the
	1617	+	11 state gross retail tax and the power subsidiary or the person selling the
	1618	+	12 services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 is
	1619	+	13 required to collect the state gross retail tax from the date of the meter
	1620	+	14 change.
	1621	+	15 SECTION 30. IC 6-3-2-1.7 IS ADDED TO THE INDIANA CODE
	1622	+	16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	1623	+	17 1, 2022]: Sec. 1.7. (a) For purposes of this section:
	1624	+	18 (1) "Distributor" means a person or entity located in this state
	1625	+	19 that purchases tangible personal property from an eligible
	1626	+	20 corporation for purposes of resale. For purposes of this
	1627	+	21 section, a distributor is not a person or entity that has a
	1628	+	22 relationship described in Section 267(b) of the Internal
	1629	+	23 Revenue Code with the eligible corporation.
	1630	+	24 (2) "Eligible corporation" means a corporation otherwise
	1631	+	25 subject to tax under section 1(b) of this chapter. An eligible
	1632	+	26 corporation shall not include a corporation described in
	1633	+	27 IC 6-3-2-2.8(2) or a corporation subject to tax under IC 6-5.5.
	1634	+	28 (3) "Qualifying distribution sale" means a sale of tangible
	1635	+	29 personal property by an eligible corporation to a distributor
	1636	+	30 that:
	1637	+	31 (A) is a purchase for resale by the distributor as defined in
	1638	+	32 IC 6-2.5-5-8; and
	1639	+	33 (B) for which the sourcing of the sale of the property to an
	1640	+	34 ultimate customer outside Indiana is agreed to by the
	1641	+	35 department and the eligible corporation, or, in the absence
	1642	+	36 of an agreement, sourced by the ratio of the population of
	1643	+	37 Indiana compared to the population of all states in which
	1644	+	38 the qualified distribution sales are sold to an ultimate
	1645	+	39 customer.
	1646	+	40 For purposes of this section, a qualifying distribution sale
	1647	+	41 shall not include any sale for which the distributor does not
	1648	+	42 issue an exemption certificate in the manner provided by the
	1649	+	SB 382—LS 7170/DI 120 38
	1650	+	1 department under IC 6-2.5-8-8 or a purchase by the
	1651	+	2 distributor for the distributor's own use other than for resale.
	1652	+	3 A qualifying distribution sale shall not include any sale made
	1653	+	4 by a pass through entity that would otherwise be attributable
	1654	+	5 under this article to the eligible corporation.
	1655	+	6 (4) "Ultimate customer" means a purchaser of tangible
	1656	+	7 personal property who purchases the tangible personal
	1657	+	8 property without an intent of future resale of property.
	1658	+	9 (b) If an eligible corporation has greater than one billion dollars
	1659	+	10 ($1,000,000,000) of tangible personal property sales that otherwise
	1660	+	11 would be sourced to this state under IC 6-3-2-2(e), and would have
	1661	+	12 an apportionment percentage under IC 6-3-2-2 of greater than ten
	1662	+	13 percent (10%) prior to application of this section the eligible
	1663	+	14 corporation may elect to determine its tax as follows:
	1664	+	15 STEP ONE: Determine the apportionment percentage under
	1665	+	16 IC 6-3-2-2 and IC 6-3-3-2.2, treating qualifying distribution
	1666	+	17 sales as if they were not receipts for purposes of the
	1667	+	18 apportionment numerator, but treating the portion where the
	1668	+	19 ultimate customer would be located in Indiana as part of the
	1669	+	20 receipts numerator.
	1670	+	21 STEP TWO: Determine Indiana adjusted gross income in the
	1671	+	22 manner otherwise provided in this article, applying the
	1672	+	23 apportionment percentage in STEP ONE. For purposes of this
	1673	+	24 STEP, any adjusted gross income arising from qualified
	1674	+	25 distribution sales shall be treated as business income of the
	1675	+	26 eligible corporation.
	1676	+	27 STEP THREE: Determine the tax due under this chapter on
	1677	+	28 the amount computed in STEP TWO, reduced by any
	1678	+	29 nonrefundable credits under IC 6-3-3 or IC 6-3.1, but not less
	1679	+	30 than zero (0). For purposes of this article, any application of
	1680	+	31 a credit under this STEP shall reduce the amount available
	1681	+	32 for carryforward in the same manner as otherwise provided
	1682	+	33 under IC 6-3-3 or IC 6-3.1.
	1683	+	34 STEP FOUR:
	1684	+	35 (A) If the eligible corporation's qualified distribution sales
	1685	+	36 are not in excess of two billion dollars ($2,000,000,000),
	1686	+	37 determine one-half of one percent (0.5%) of the qualified
	1687	+	38 distribution sales.
	1688	+	39 (B) If the eligible corporation's qualified distribution sales
	1689	+	40 are in excess of two billion dollars ($2,000,000,000) but not
	1690	+	41 in excess of three billion dollars ($3,000,000,000),
	1691	+	42 determine three-eighths of one percent (0.375%) of the
	1692	+	SB 382—LS 7170/DI 120 39
	1693	+	1 qualified distribution sales in excess of two billion dollars
	1694	+	2 ($2,000,000,000) plus ten million dollars ($10,000,000).
	1695	+	3 (C) If the eligible corporation's qualified distribution sales
	1696	+	4 are in excess of three billion dollars ($3,000,000,000) but
	1697	+	5 not in excess of four billion dollars ($4,000,000,000),
	1698	+	6 determine one-fourth of one percent (0.25%) of the
	1699	+	7 qualified distribution sales in excess of three billion dollars
	1700	+	8 ($3,000,000,000) plus thirteen million seven hundred fifty
	1701	+	9 thousand dollars ($13,750,000).
	1702	+	10 (D) If the eligible corporation's qualified distribution sales
	1703	+	11 are in excess of four billion dollars ($4,000,000,000),
	1704	+	12 determine one-eighth of one percent (0.125%) of the
	1705	+	13 qualified distribution sales in excess of four billion dollars
	1706	+	14 ($4,000,000,000) plus sixteen million two hundred fifty
	1707	+	15 thousand dollars ($16,250,000).
	1708	+	16 STEP FIVE: Add the amounts determined under STEP
	1709	+	17 THREE and STEP FOUR.
	1710	+	18 (c) Notwithstanding any other provision of this section, for an
	1711	+	19 eligible corporation that makes an election:
	1712	+	20 (1) if the tax for a taxable year covered by the election as
	1713	+	21 computed under subsection (b) is less than twenty-six million
	1714	+	22 dollars ($26,000,000), the tax shall be twenty-six million
	1715	+	23 dollars ($26,000,000); and
	1716	+	24 (2) if the tax for the taxable year covered by an election as
	1717	+	25 computed under subsection (b) is greater than the amount
	1718	+	26 specified in clauses (A) through (C), the amount of tax shall be
	1719	+	27 the following amounts:
	1720	+	28 (A) For a taxable year ending after December 31, 2018,
	1721	+	29 and before January 1, 2025, forty million dollars
	1722	+	30 ($40,000,000).
	1723	+	31 (B) For a taxable year ending after December 31, 2024, and
	1724	+	32 before January 1, 2026, forty-two million dollars
	1725	+	33 ($42,000,000).
	1726	+	34 (C) For each taxable year ending after December 31, 2025,
	1727	+	35 forty-two million dollars ($42,000,000) plus one million
	1728	+	36 dollars ($1,000,000) for each taxable year ending after
	1729	+	37 December 31, 2025.
	1730	+	38 For purposes of this subsection, the tax for a taxable year under
	1731	+	39 this section shall be determined after application of any credit
	1732	+	40 allowable under IC 6-3-3 and IC 6-3.1.
	1733	+	41 (d) If an eligible corporation makes an election under this
	1734	+	42 section, the following apply:
	1735	+	SB 382—LS 7170/DI 120 40
	1736	+	1 (1) The eligible corporation shall be subject to the election for
	1737	+	2 the taxable year of the election and each taxable year
	1738	+	3 thereafter until the first taxable year ending ten (10) years
	1739	+	4 after the first year in which an election is made under this
	1740	+	5 section, even if the corporation would not be an eligible
	1741	+	6 corporation for a taxable year after the taxable year in which
	1742	+	7 the election is made, and shall be binding on any successor
	1743	+	8 corporation or group of corporations to the eligible
	1744	+	9 corporation.
	1745	+	10 (2) After the period of the initial election under subdivision
	1746	+	11 (1), the department may permit a taxpayer to make an
	1747	+	12 election under this section for each subsequent taxable year
	1748	+	13 after the election expires under subdivision (1). However:
	1749	+	14 (A) an election under this subdivision is only permitted for
	1750	+	15 one (1) taxable year; and
	1751	+	16 (B) if an eligible corporation does make an election for a
	1752	+	17 taxable year, the eligible corporation may only make a new
	1753	+	18 election if the new election is subject to the terms of
	1754	+	19 subdivision (1).
	1755	+	20 (e) If two (2) or more eligible corporations are part of a
	1756	+	21 consolidated return or combined return, the computation under
	1757	+	22 STEP FOUR of subsection (b) shall be determined separately for
	1758	+	23 each corporation.
	1759	+	24 (f) For purposes of computing net operating losses for the
	1760	+	25 taxable year under IC 6-3-2-2.6 and the deduction allowable
	1761	+	26 against adjusted gross income under IC 6-3-2-2.6, the loss for the
	1762	+	27 taxable year or deduction allowable shall be computed pursuant to
	1763	+	28 STEP TWO of subsection (b).
	1764	+	29 (g) An election under this section shall be in the form and
	1765	+	30 manner prescribed by the department. The election must be
	1766	+	31 completed and filed with the department on or before the date of
	1767	+	32 filing of the original return for a taxable year to be effective
	1768	+	33 beginning with that taxable year. In addition, if an eligible
	1769	+	34 corporation files a consolidated return or combined return for the
	1770	+	35 first taxable year of the election, or for any year subsequent to the
	1771	+	36 first taxable year of the election, the eligible corporation and the
	1772	+	37 department shall enter into an agreement regarding issues specific
	1773	+	38 to consolidated or combined returns. In the absence of such an
	1774	+	39 agreement, any such issues shall be treated in a manner prescribed
	1775	+	40 by the department and published in the Indiana Register. If the
	1776	+	41 original return for a taxable year is filed after the due date for the
	1777	+	42 original return, including any extensions, an election will not be
	1778	+	SB 382—LS 7170/DI 120 41
	1779	+	1 allowed for that taxable year or any subsequent year to which the
	1780	+	2 election otherwise would apply. However, the eligible corporation
	1781	+	3 may file an election for subsequent taxable years, provided the
	1782	+	4 eligible corporation otherwise meets the requirements of this
	1783	+	5 section.
	1784	+	6 SECTION 31. IC 6-3-4-3, AS AMENDED BY P.L.212-2018(ss),
	1785	+	7 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1786	+	8 JANUARY 1, 2023]: Sec. 3. (a) Returns required to be made pursuant
	1787	+	9 to section 1 of this chapter shall be filed with the department on or
	1788	+	10 before the later of the following:
	1789	+	11 (1) The 15th day of the fourth month following the close of the
	1790	+	12 taxable year.
	1791	+	13 (2) For a corporation whose federal tax return is due on or after
	1792	+	14 the date set forth in subdivision (1), as determined without regard
	1793	+	15 to any extensions, weekends, Saturdays, Sundays, or holidays
	1794	+	16 recognized by the Internal Revenue Service, the 15th day of the
	1795	+	17 fifth month following the due date of the federal tax return. close
	1796	+	18 of the taxable year.
	1797	+	19 (b) However, If the due date for a federal income tax return is
	1798	+	20 extended by the Internal Revenue Service to a date that is later than the
	1799	+	21 date specified in subdivision (1) or (2) subsection (a)(1) or (a)(2) (as
	1800	+	22 applicable), the department may extend the due date of a return
	1801	+	23 required to be made under section 1 of this chapter to reflect the due
	1802	+	24 date permitted for the federal income tax return.
	1803	+	25 (c) If the due date for a federal income tax return in the Internal
	1804	+	26 Revenue Code, as determined without regard to any extensions,
	1805	+	27 Saturdays, Sundays, or holidays recognized by the Internal
	1806	+	28 Revenue Service, is later than the date provided in subsection (a),
	1807	+	29 the due date for the return made pursuant to section 1 of this
	1808	+	30 chapter shall be the later of the due date for the federal income tax
	1809	+	31 return or the due date provided under this section.
	1810	+	32 SECTION 32. IC 6-3-4-12, AS AMENDED BY P.L.85-2017,
	1811	+	33 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1812	+	34 JULY 1, 2022]: Sec. 12. (a) Every partnership shall, at the time that the
	1813	+	35 partnership pays or credits amounts to any of its nonresident partners
	1814	+	36 on account of their distributive shares of partnership income, for a
	1815	+	37 taxable year of the partnership, deduct and retain therefrom the amount
	1816	+	38 prescribed in the withholding instructions referred to in section 8 of
	1817	+	39 this chapter. Such partnership so paying or crediting any nonresident
	1818	+	40 partner:
	1819	+	41 (1) shall be liable to the state of Indiana for the payment of the tax
	1820	+	42 required to be deducted and retained under this section and shall
	1821	+	SB 382—LS 7170/DI 120 42
	1822	+	1 not be liable to such partner for the amount deducted from such
	1823	+	2 payment or credit and paid over in compliance or intended
	1824	+	3 compliance with this section; and
	1825	+	4 (2) shall make return of and payment to the department monthly
	1826	+	5 whenever the amount of tax due under IC 6-3 and IC 6-3.6
	1827	+	6 exceeds an aggregate amount of fifty dollars ($50) per month with
	1828	+	7 such payment due on the thirtieth day of the following month,
	1829	+	8 unless an earlier date is specified by section 8.1 of this chapter.
	1830	+	9 Where the aggregate amount due under IC 6-3 and IC 6-3.6 does not
	1831	+	10 exceed fifty dollars ($50) per month, then such partnership shall make
	1832	+	11 return and payment to the department quarterly, on such dates and in
	1833	+	12 such manner as the department shall prescribe, of the amount of tax
	1834	+	13 which, under IC 6-3 and IC 6-3.6, it is required to withhold.
	1835	+	14 (b) Every partnership shall, at the time of each payment made by it
	1836	+	15 to the department pursuant to this section, deliver to the department a
	1837	+	16 return upon such form as shall be prescribed by the department
	1838	+	17 showing the total amounts paid or credited to its nonresident partners,
	1839	+	18 the amount deducted therefrom in accordance with the provisions of
	1840	+	19 this section, and such other information as the department may require.
	1841	+	20 Every partnership making the deduction and retention provided in this
	1842	+	21 section shall furnish to its nonresident partners annually, but not later
	1843	+	22 than the fifteenth day of the third month after the end of its taxable
	1844	+	23 year, a record of the amount of tax deducted and retained from such
	1845	+	24 partners on forms to be prescribed by the department.
	1846	+	25 (c) All money deducted and retained by the partnership, as provided
	1847	+	26 in this section, shall immediately upon such deduction be the money of
	1848	+	27 the state of Indiana and every partnership which deducts and retains
	1849	+	28 any amount of money under the provisions of IC 6-3 shall hold the
	1850	+	29 same in trust for the state of Indiana and for payment thereof to the
	1851	+	30 department in the manner and at the times provided in IC 6-3. Any
	1852	+	31 partnership may be required to post a surety bond in such sum as the
	1853	+	32 department shall determine to be appropriate to protect the state of
	1854	+	33 Indiana with respect to money deducted and retained pursuant to this
	1855	+	34 section.
	1856	+	35 (d) The provisions of IC 6-8.1 relating to additions to tax in case of
	1857	+	36 delinquency and penalties shall apply to partnerships subject to the
	1858	+	37 provisions of this section, and for these purposes any amount deducted,
	1859	+	38 or required to be deducted and remitted to the department under this
	1860	+	39 section, shall be considered to be the tax of the partnership, and with
	1861	+	40 respect to such amount it shall be considered the taxpayer.
	1862	+	41 (e) Amounts deducted from payments or credits to a nonresident
	1863	+	42 partner during any taxable year of the partnership in accordance with
	1864	+	SB 382—LS 7170/DI 120 43
	1865	+	1 the provisions of this section shall be considered to be in part payment
	1866	+	2 of the tax imposed on such nonresident partner for the nonresident
	1867	+	3 partner's taxable year within or with which the partnership's taxable
	1868	+	4 year ends. A return made by the partnership under subsection (b) shall
	1869	+	5 be accepted by the department as evidence in favor of the nonresident
	1870	+	6 partner of the amount so deducted for the nonresident partner's
	1871	+	7 distributive share.
	1872	+	8 (f) This section shall in no way relieve any nonresident partner from
	1873	+	9 the nonresident partner's obligations of filing a return or returns at the
	1874	+	10 time required under IC 6-3 or IC 6-3.6, and any unpaid tax shall be paid
	1875	+	11 at the time prescribed by section 5 of this chapter.
	1876	+	12 (g) Instead of the reporting periods required under subsection (a),
	1877	+	13 the department may permit a partnership to file one (1) return and
	1878	+	14 payment each year if the partnership pays or credits amounts to its
	1879	+	15 nonresident partners only one (1) time each year. The return and
	1880	+	16 payment are due on or before the fifteenth day of the fourth month after
	1881	+	17 the end of the year. However, if a partnership is permitted an extension
	1882	+	18 to file its income tax return under IC 6-8.1-6-1, the return and payment
	1883	+	19 due under this subsection shall be allowed the same treatment as an
	1884	+	20 extended income tax return with respect to due dates, interest, and
	1885	+	21 penalties under IC 6-8.1-6-1.
	1886	+	22 (h) If a partnership fails to withhold and pay any amount of tax
	1887	+	23 required to be withheld under this section and thereafter the tax is paid
	1888	+	24 by the partners, the amounts of tax as paid by the partners shall not be
	1889	+	25 collected from the partnership but it may not be relieved from liability
	1890	+	26 for interest or penalty otherwise due in respect to the failure to
	1891	+	27 withhold under IC 6-8.1-10.
	1892	+	28 (i) A partnership shall file a composite adjusted gross income tax
	1893	+	29 return on behalf of all nonresident partners. The composite return must
	1894	+	30 include each nonresident partner regardless of whether or not the
	1895	+	31 nonresident partner has other Indiana source income.
	1896	+	32 (j) If a partnership does not include all nonresident partners in the
	1897	+	33 composite return, the partnership is subject to the penalty imposed
	1898	+	34 under IC 6-8.1-10-2.1(j).
	1899	+	35 (k) For taxable years beginning after December 31, 2013, the
	1900	+	36 department may not impose a late payment penalty on a partnership for
	1901	+	37 the failure to file a return, pay the full amount of the tax shown on the
	1902	+	38 partnership's return, or pay the deficiency of the withholding taxes due
	1903	+	39 under this section if the partnership pays the department before the
	1904	+	40 fifteenth day of the fourth month after the end of the partnership's
	1905	+	41 taxable year at least:
	1906	+	42 (1) eighty percent (80%) of the withholding tax due for the
	1907	+	SB 382—LS 7170/DI 120 44
	1908	+	1 current year; or
	1909	+	2 (2) one hundred percent (100%) of the withholding tax due for the
	1910	+	3 preceding year.
	1911	+	4 (l) Notwithstanding subsection (a) or (i), a pass through entity
	1912	+	5 partnership is not required to withhold tax or file a composite adjusted
	1913	+	6 gross income tax return for a nonresident member partner if the entity:
	1914	+	7 partnership:
	1915	+	8 (1) is a publicly traded partnership as defined by Section 7704(b)
	1916	+	9 of the Internal Revenue Code;
	1917	+	10 (2) meets the exception for partnerships under Section 7704(c) of
	1918	+	11 the Internal Revenue Code; and
	1919	+	12 (3) has agreed to file an annual information return reporting the
	1920	+	13 name, address, taxpayer identification number, and other
	1921	+	14 information requested by the department of each unit holder.
	1922	+	15 The department may issue written guidance explaining circumstances
	1923	+	16 under which limited partnerships or limited liability companies owned
	1924	+	17 by a publicly traded partnership may be excluded from the withholding
	1925	+	18 requirements of this section.
	1926	+	19 (m) Notwithstanding subsection (k), a partnership is subject to a late
	1927	+	20 payment penalty for the failure to file a return, pay the full amount of
	1928	+	21 the tax shown on the partnership's return, or pay the deficiency of the
	1929	+	22 withholding taxes due under this section for any amounts of
	1930	+	23 withholding tax, including any interest under IC 6-8.1-10-1, reported
	1931	+	24 or paid after the due date of the return, as adjusted by any extension
	1932	+	25 under IC 6-8.1-6-1.
	1933	+	26 (n) For purposes of this section, a "nonresident partner" is:
	1934	+	27 (1) an individual who does not reside in Indiana;
	1935	+	28 (2) a trust that does not reside in Indiana;
	1936	+	29 (3) an estate that does not reside in Indiana;
	1937	+	30 (4) a partnership not domiciled in Indiana;
	1938	+	31 (5) a C corporation not domiciled in Indiana; or
	1939	+	32 (6) an S corporation not domiciled in Indiana.
	1940	+	33 SECTION 33. IC 6-3-4-14, AS AMENDED BY P.L.136-2018,
	1941	+	34 SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	1942	+	35 JULY 1, 2022]: Sec. 14. (a) An affiliated group of corporations shall
	1943	+	36 have the privilege of making a consolidated return with respect to the
	1944	+	37 taxes imposed by IC 6-3. The making of a consolidated return shall be
	1945	+	38 upon the condition that all corporations which at any time during the
	1946	+	39 taxable year have been members of the affiliated group consent to all
	1947	+	40 of the provisions of this section including all provisions of the
	1948	+	41 consolidated return regulations prescribed pursuant to Section 1502 of
	1949	+	SB 382—LS 7170/DI 120 45
	1950	+	1 the Internal Revenue Code and incorporated in this section by reference
	1951	+	2 and all regulations promulgated by the department implementing this
	1952	+	3 section prior to the last day prescribed by law for the filing of such
	1953	+	4 return. The making of a consolidated return shall be considered as such
	1954	+	5 consent. In the case of a corporation which is a member of the affiliated
	1955	+	6 group for a fractional part of the year, the consolidated return shall
	1956	+	7 include the income of such corporation for such part of the year as it is
	1957	+	8 a member of the affiliated group.
	1958	+	9 (b) For the purposes of this section the term "affiliated group" shall
	1959	+	10 mean an "affiliated group" as defined in Section 1504 of the Internal
	1960	+	11 Revenue Code with the exception that the affiliated group shall not
	1961	+	12 include any corporation which does not have adjusted gross income
	1962	+	13 derived from sources within the state of Indiana.
	1963	+	14 (c) For purposes of IC 6-3-1-3.5(b), the determination of "taxable
	1964	+	15 income," as defined in Section 63 of the Internal Revenue Code, of any
	1965	+	16 affiliated group of corporations making a consolidated return and of
	1966	+	17 each corporation in the group, both during and after the period of
	1967	+	18 affiliation, shall be determined pursuant to the regulations prescribed
	1968	+	19 under Section 1502 of the Internal Revenue Code.
	1969	+	20 (d) Any credit against the taxes imposed by IC 6-3 which is
	1970	+	21 available to any corporation which is a member of an affiliated group
	1971	+	22 of corporations making a consolidated return shall be applied against
	1972	+	23 the tax liability of the affiliated group.
	1973	+	24 (e) For purposes of this section, the following rules shall apply:
	1974	+	25 (1) In the case of the sale of a corporation, the filing status of
	1975	+	26 the remaining members of the consolidated group shall
	1976	+	27 continue absent an election by those consolidated members to
	1977	+	28 file separately or on a combined basis.
	1978	+	29 (2) In the case of a merger, the previous filing status of the
	1979	+	30 surviving corporation shall continue. If the surviving
	1980	+	31 corporation is part of an affiliated group that filed a
	1981	+	32 consolidated return in the immediately preceding taxable
	1982	+	33 year, the surviving corporation shall be considered to be part
	1983	+	34 of the consolidated return, provided that the surviving
	1984	+	35 corporation would otherwise be part of the affiliated group
	1985	+	36 under subsection (b).
	1986	+	37 (3) In the case of an acquisition of a corporation, the filing
	1987	+	38 status of the acquiring group shall continue absent an election
	1988	+	39 by the corporations to file separately or on a combined basis.
	1989	+	40 (4) In the case of a corporation that was previously part of a
	1990	+	41 consolidated return but ceased to be part of a consolidated
	1991	+	42 return for any other reason, the election to be part of a
	1992	+	SB 382—LS 7170/DI 120 46
	1993	+	1 consolidated return shall be considered to continue for all
	1994	+	2 corporations.
	1995	+	3 Provided, however, that if a consolidated election is discontinued
	1996	+	4 as a result of sale, merger, acquisition, or any other reason, nothing
	1997	+	5 in this section shall be construed to prevent a new election to file a
	1998	+	6 consolidated return under this section.
	1999	+	7 SECTION 34. IC 6-3-4-15.1, AS ADDED BY P.L.159-2021,
	2000	+	8 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2001	+	9 JULY 1, 2022]: Sec. 15.1. For purposes of IC 6-3-4-12, IC 6-3-4-13,
	2002	+	10 and IC 6-3-4-15, the department may:
	2003	+	11 (1) prescribe procedures by which a pass through entity remits tax
	2004	+	12 on behalf of partners, shareholders, and beneficiaries who are
	2005	+	13 considered residents for purposes of those sections in the same
	2006	+	14 manner as tax is remitted for partners, shareholders, and
	2007	+	15 beneficiaries who are considered nonresidents for purposes of
	2008	+	16 those sections, provided that such procedures do not relieve filing
	2009	+	17 requirements otherwise applicable to partners, shareholders, and
	2010	+	18 beneficiaries who are considered residents for purposes of those
	2011	+	19 sections;
	2012	+	20 (2) prescribe special procedures for persons or entities that are
	2013	+	21 otherwise subject to withholding under those sections but who
	2014	+	22 may have circumstances such that a standard tax computation
	2015	+	23 may result in excess withholding;
	2016	+	24 (3) prescribe procedures for individuals and trusts that are
	2017	+	25 residents for part of the taxable year and nonresidents for part of
	2018	+	26 the taxable year; and
	2019	+	27 (4) prescribe procedures by which an entity subject to those
	2020	+	28 sections may request alternative withholding arrangements,
	2021	+	29 provided that such arrangements do not jeopardize the tax
	2022	+	30 otherwise due under IC 6-3 or IC 6-5.5; and
	2023	+	31 (5) prescribe procedures and guidelines by which a partner,
	2024	+	32 shareholder, or beneficiary may elect to not be subject to
	2025	+	33 withholding, in whole or in part, provided that:
	2026	+	34 (A) the election by the partner, shareholder, or beneficiary
	2027	+	35 lists the conditions of the election and that the election is
	2028	+	36 signed under penalty of perjury prior to the due date for
	2029	+	37 the pass through entity to remit tax for the taxable year;
	2030	+	38 (B) the election states that partner, shareholder, or
	2031	+	39 beneficiary has adequate funds to remit any tax due under
	2032	+	40 this article or IC 6-5.5;
	2033	+	41 (C) the election provides any periods for which
	2034	+	42 withholding is not required or is reduced;
	2035	+	SB 382—LS 7170/DI 120 47
	2036	+	1 (D) the election provides that the partner, shareholder, or
	2037	+	2 beneficiary agree to be subject to the jurisdiction of the
	2038	+	3 state of Indiana and shall be liable to file any returns
	2039	+	4 otherwise due under this article or IC 6-5.5, including any
	2040	+	5 composite and withholding returns, and to remit any tax
	2041	+	6 otherwise due, including any interest or penalties due on
	2042	+	7 any tax due;
	2043	+	8 (E) the election provides that the election is subject to
	2044	+	9 department approval and that the department may revoke
	2045	+	10 the election at any time for any reason; and
	2046	+	11 (F) the election is attached to the returns of the pass
	2047	+	12 through entity and of the partner, shareholder, or
	2048	+	13 beneficiary required under this article or IC 6-5.5.
	2049	+	14 A failure by the pass through entity to obtain an election for
	2050	+	15 a taxable year or to attach the election to the pass through
	2051	+	16 entity's return for a taxable year shall be treated as if the
	2052	+	17 election was not made for the taxable year.
	2053	+	18 SECTION 35. IC 6-3-4.5-1, AS ADDED BY P.L.159-2021,
	2054	+	19 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2055	+	20 JULY 1, 2021 (RETROACTIVE)]: Sec. 1. The following definitions
	2056	+	21 apply throughout this chapter:
	2057	+	22 (1) "Adjustment year" means the partnership taxable year
	2058	+	23 described in Section 6225(d)(2) of the Internal Revenue Code.
	2059	+	24 (2) "Administrative adjustment request" means an administrative
	2060	+	25 adjustment request filed by a partnership under Section 6227 of
	2061	+	26 the Internal Revenue Code.
	2062	+	27 (3) "Affected year" means any taxable year for a taxpayer that is
	2063	+	28 affected by an adjustment under this chapter, regardless of
	2064	+	29 whether the partnership has received an adjustment for that
	2065	+	30 taxable year.
	2066	+	31 (4) "Audited partnership" means a partnership subject to a
	2067	+	32 partnership level audit resulting in a federal adjustment.
	2068	+	33 (5) "Corporate partner" means a partner that is subject to the state
	2069	+	34 adjusted gross income tax under IC 6-3-2-1(b) or the financial
	2070	+	35 institutions tax under IC 6-5.5-2-1. In the case of a partner that is
	2071	+	36 a corporation described in IC 6-3-2-2.8(2) that also is subject to
	2072	+	37 tax under IC 6-3-2-1(b), the corporation is a corporate partner
	2073	+	38 only to the extent that its income is subject to tax under
	2074	+	39 IC 6-3-2-1(b).
	2075	+	40 (6) "Direct partner" means a partner that holds an interest directly
	2076	+	41 in a partnership or pass through entity.
	2077	+	42 (7) "Exempt partner" means a partner that is exempt from the
	2078	+	SB 382—LS 7170/DI 120 48
	2079	+	1 adjusted gross income tax under IC 6-3-2-2.8(1) or the financial
	2080	+	2 institutions tax under IC 6-5.5-2-7(4), except to the extent of
	2081	+	3 unrelated business taxable income.
	2082	+	4 (8) "Federal adjustment" means a change to an item or amount
	2083	+	5 determined under the Internal Revenue Code or a change to any
	2084	+	6 other tax attribute that is used by a taxpayer to compute state
	2085	+	7 adjusted gross income taxes or financial institutions tax owed,
	2086	+	8 whether that change results from action by the Internal Revenue
	2087	+	9 Service, including a partnership level audit, or the filing of an
	2088	+	10 amended federal return, a federal refund claim, or an
	2089	+	11 administrative adjustment request by the taxpayer. A federal
	2090	+	12 adjustment is positive to the extent that it increases state adjusted
	2091	+	13 gross income as determined under IC 6-3 or IC 6-5.5 and is
	2092	+	14 negative to the extent that it decreases state adjusted gross income
	2093	+	15 as determined under IC 6-3 or IC 6-5.5.
	2094	+	16 (9) "Federal adjustment reports" includes methods or forms
	2095	+	17 required by the department for use by a taxpayer to report final
	2096	+	18 federal adjustments for purposes of this chapter, including an
	2097	+	19 amended Indiana tax return, information return, or uniform
	2098	+	20 multistate report.
	2099	+	21 (10) "Federal partnership representative" means a person the
	2100	+	22 partnership designates for the taxable year as the partnership's
	2101	+	23 representative, or the person the Internal Revenue Service has
	2102	+	24 appointed to act as the federal partnership representative,
	2103	+	25 pursuant to Section 6223(a) of the Internal Revenue Code.
	2104	+	26 (11) "Final determination date" means the following:
	2105	+	27 (A) Except as provided in clause (B) or (C), if the federal
	2106	+	28 adjustment arises from an Internal Revenue Service audit or
	2107	+	29 other action by the Internal Revenue Service, the final
	2108	+	30 determination date is the date on which the federal adjustment
	2109	+	31 is a final determination under IC 6-3-4-6(d).
	2110	+	32 (B) For federal adjustments arising from an Internal Revenue
	2111	+	33 Service audit or other action by the Internal Revenue Service,
	2112	+	34 if the taxpayer filed as a member of a consolidated tax return
	2113	+	35 filed under IC 6-3-4-14, a combined return filed under
	2114	+	36 IC 6-3-2-2 or IC 6-5.5-5-1, or a return combined by the
	2115	+	37 department under IC 6-3-2-2(p), the final determination date
	2116	+	38 means the first date on which no related federal adjustments
	2117	+	39 arising from that audit remain to be finally determined, as
	2118	+	40 described in clause (A), for the entire group.
	2119	+	41 (C) If the federal adjustment results from filing an amended
	2120	+	42 federal return, a federal refund claim, or an administrative
	2121	+	SB 382—LS 7170/DI 120 49
	2122	+	1 adjustment request, the final determination date means the day
	2123	+	2 on which the amended return, refund claim, administrative
	2124	+	3 adjustment request, or other similar report was filed.
	2125	+	4 (12) "Final federal adjustment" means a federal adjustment after
	2126	+	5 the final determination date for that federal adjustment has
	2127	+	6 passed.
	2128	+	7 (13) "Indirect partner" means a partner in a partnership or pass
	2129	+	8 through entity that itself holds an interest directly, or through
	2130	+	9 another indirect partner, in a partnership or pass through entity.
	2131	+	10 (14) "Internal Revenue Code" has the meaning set forth in
	2132	+	11 IC 6-3-1-11.
	2133	+	12 (15) "Nonresident partner" has the meaning provided in
	2134	+	13 IC 6-3-4-12(n).
	2135	+	14 (16) "Partner" means a person or entity that holds an interest
	2136	+	15 directly or indirectly in a partnership or other pass through entity.
	2137	+	16 (17) "Partner level adjustments report" means a report provided
	2138	+	17 by a partnership to its partners as a result of a department action
	2139	+	18 with regard to the partnership. A partner level adjustments report
	2140	+	19 does not include an amended statement provided by a partnership
	2141	+	20 or other entity as a result of an adjustment reported by the
	2142	+	21 partnership.
	2143	+	22 (18) "Partnership" has the meaning set forth in IC 6-3-1-19.
	2144	+	23 (19) "Partnership level audit" means an examination by the
	2145	+	24 Internal Revenue Service at the partnership level under Sections
	2146	+	25 6221 through 6241 of the Internal Revenue Code, as enacted by
	2147	+	26 the Bipartisan Budget Act of 2015, Public Law 114-74, which
	2148	+	27 results in federal adjustments.
	2149	+	28 (20) "Partnership return" means a return required to be filed by a
	2150	+	29 partnership pursuant to IC 6-3-4-10. In the case of a partnership
	2151	+	30 that is required to withhold tax or file a composite return pursuant
	2152	+	31 to IC 6-3-4-12 or IC 6-5.5-2-8, the term also includes the returns
	2153	+	32 or schedules required for tax withholding or composite filing.
	2154	+	33 (21) "Pass through entity" means an entity defined in IC 6-3-1-35,
	2155	+	34 other than a partnership, that is not subject to tax under IC 6-3.
	2156	+	35 (22) "Reallocation adjustment" means a federal adjustment
	2157	+	36 resulting from a partnership level audit or an administrative
	2158	+	37 adjustment request that changes the shares of one (1) or more
	2159	+	38 items of partnership income, gain, loss, expense, or credit
	2160	+	39 allocated to direct partners. A positive reallocation adjustment
	2161	+	40 means the portion of a reallocation adjustment that would
	2162	+	41 increase federal adjusted gross income or federal taxable income
	2163	+	SB 382—LS 7170/DI 120 50
	2164	+	1 for one (1) or more direct partners, and a negative reallocation
	2165	+	2 adjustment means the portion of a reallocation adjustment that
	2166	+	3 would decrease federal adjusted gross income or federal taxable
	2167	+	4 income for one (1) or more direct partners, according to Section
	2168	+	5 6225 of the Internal Revenue Code and the regulations under that
	2169	+	6 section.
	2170	+	7 (23) "Resident partner" means a partner that is not a nonresident
	2171	+	8 partner.
	2172	+	9 (24) "Review year" means the taxable year of a partnership that
	2173	+	10 is subject to a partnership level audit that results in federal
	2174	+	11 adjustments.
	2175	+	12 (25) "Statement" means a form or schedule prescribed by the
	2176	+	13 department through which a partnership or pass through entity
	2177	+	14 reports tax attributes to its owners or beneficiaries.
	2178	+	15 (26) "Tax attribute" means any item of income, deduction, credit,
	2179	+	16 receipts for apportionment, or other amount or status that
	2180	+	17 determines a partner's liability under IC 6-3, IC 6-3.6, or IC 6-5.5.
	2181	+	18 (27) "Taxable year" means, in the case of a partnership, the year
	2182	+	19 or partial year for which a partnership files a return for state and
	2183	+	20 federal purposes and, in the case of a partner, the taxable year in
	2184	+	21 which the partner reports tax attributes from the partnership.
	2185	+	22 (28) "Taxpayer" has the meaning set forth in IC 6-3-1-15 (in the
	2186	+	23 case of the adjusted gross income tax) and IC 6-5.5-1-17 (in the
	2187	+	24 case of the financial institutions tax) and, unless the context
	2188	+	25 clearly indicates otherwise, includes a partnership subject to a
	2189	+	26 partnership level audit or a partnership that has made an
	2190	+	27 administrative adjustment request, as well as a tiered partner of
	2191	+	28 that partnership.
	2192	+	29 (29) "Tiered partner" means any partner that is a partnership or
	2193	+	30 pass through entity.
	2194	+	31 (30) "Unrelated business taxable income" has the meaning set
	2195	+	32 forth in Section 512 of the Internal Revenue Code.
	2196	+	33 SECTION 36. IC 6-3-4.5-2, AS ADDED BY P.L.159-2021,
	2197	+	34 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2198	+	35 JULY 1, 2021 (RETROACTIVE)]: Sec. 2. The following apply for
	2199	+	36 purposes of this chapter:
	2200	+	37 (1) If a taxpayer has not filed a return under IC 6-3 or IC 6-5.5 for
	2201	+	38 a taxable year, review year, or adjustment year, any reference to
	2202	+	39 an amended return shall be a reference to an original return that
	2203	+	40 includes any adjustments under this chapter.
	2204	+	41 (2) If a taxpayer is a partnership or pass through entity and has
	2205	+	SB 382—LS 7170/DI 120 51
	2206	+	1 not issued a statement to its owners or beneficiaries, any reference
	2207	+	2 to an amended statement shall be a reference to an original
	2208	+	3 statement that includes any adjustment under this chapter.
	2209	+	4 (3) Any reference to tax shall include interest under IC 6-8.1-10-1
	2210	+	5 and penalties under IC 6-8.1.
	2211	+	6 (4) In the case of an adjustment for a review year that is required
	2212	+	7 to be paid or otherwise reported for federal purposes in an
	2213	+	8 adjustment year, the adjustment shall be treated as:
	2214	+	9 (A) occurring in the review year, if any tax, interest, or
	2215	+	10 penalties are based on the review year for federal purposes; or
	2216	+	11 (B) occurring in:
	2217	+	12 (i) the adjustment year, if the item is required to be reported
	2218	+	13 for federal purposes on the federal tax return or in any other
	2219	+	14 manner for the adjustment year; or
	2220	+	15 (ii) any other year, if the item is required to be reported for
	2221	+	16 federal purposes on the federal tax return or in any other
	2222	+	17 manner for such other year;
	2223	+	18 and is not described in clause (A).
	2224	+	19 (5) In the case of a state adjustment, the change shall be treated
	2225	+	20 as occurring in the taxable year to which the state adjustment
	2226	+	21 relates, unless the adjustment is treated as occurring in a different
	2227	+	22 year as a result of subdivision (4).
	2228	+	23 (6) For taxable years beginning before January 1, 2017, any
	2229	+	24 reference to IC 6-3.6 shall be construed to include IC 6-3.5-1.1,
	2230	+	25 IC 6-3.5-6, and IC 6-3.5-7, prior to their repeal.
	2231	+	26 (7) With respect to partnerships and tiered partners:
	2232	+	27 (A) a partner that is a partnership that receives a report of
	2233	+	28 partnership adjustments, receives a final federal adjustment, or
	2234	+	29 files an amended return is considered a tier one (1) entity;
	2235	+	30 (B) a tiered partner that is a direct partner of a tier one (1)
	2236	+	31 entity is considered a tier two (2) entity; and
	2237	+	32 (C) each tiered partner that is an owner, beneficiary, or partner
	2238	+	33 of an entity that is a tier two (2) entity or higher shall be
	2239	+	34 assigned a tier number that is one (1) tier higher and is
	2240	+	35 considered an entity in that tier.
	2241	+	36 If, after application of this subdivision, a tiered partner is assigned
	2242	+	37 to more than one (1) tier, the tiered partner shall be treated as
	2243	+	38 being assigned to the highest numerical tier to which the tiered
	2244	+	39 partner could be assigned.
	2245	+	40 (8) In the case of a partnership or tiered partner that is assigned a
	2246	+	41 numerical tier, the applicable deadline for purposes of this chapter
	2247	+	SB 382—LS 7170/DI 120 52
	2248	+	1 is:
	2249	+	2 (A) in the case of a tier one (1) entity receiving a report of
	2250	+	3 partnership adjustments, ninety (90) days from the date the
	2251	+	4 report of partnership adjustments is final;
	2252	+	5 (B) in the case of a tier one (1) entity that has received a final
	2253	+	6 federal determination, one hundred eighty (180) days from the
	2254	+	7 final determination date;
	2255	+	8 (C) in the case of a tier one (1) entity that has filed an
	2256	+	9 amended return under this chapter other than an amended
	2257	+	10 return resulting from a final federal determination, zero (0)
	2258	+	11 days; and
	2259	+	12 (D) in the case of a tiered partner that has received
	2260	+	13 adjustments resulting from a tier one (1) partnership, a number
	2261	+	14 of days equal to:
	2262	+	15 (i) the number of days described in clauses (A) through (C),
	2263	+	16 as applicable; plus
	2264	+	17 (ii) thirty (30) multiplied by the tier number assigned to the
	2265	+	18 tiered partner; minus
	2266	+	19 (iii) thirty (30).
	2267	+	20 However, if a tiered partner receives an adjustment reported on a
	2268	+	21 partnership audit tracking report under Section 6226 of the
	2269	+	22 Internal Revenue Code, the time period applicable for the tiered
	2270	+	23 partner is the longer of the time period described in clause (D) or
	2271	+	24 ninety (90) days from the date prescribed in Section
	2272	+	25 6226(b)(4)(B) of the Internal Revenue Code, and any other
	2273	+	26 applicable deadlines under this subdivision or subdivision (9).
	2274	+	27 (9) In the case of a direct partner or indirect partner that is not a
	2275	+	28 tiered partner, the applicable deadline for purposes of this chapter
	2276	+	29 is ninety (90) days after the applicable deadline that is determined
	2277	+	30 for the partnership or tiered partner under subdivision (8). If a
	2278	+	31 direct partner or indirect partner described in this subdivision is
	2279	+	32 subject to more than one (1) applicable deadline, the applicable
	2280	+	33 deadline is the latest date determined under this subdivision.
	2281	+	34 SECTION 37. IC 6-3-4.5-3, AS ADDED BY P.L.159-2021,
	2282	+	35 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2283	+	36 JULY 1, 2021 (RETROACTIVE)]: Sec. 3. (a) If the department
	2284	+	37 conducts an audit or investigation of a partnership, and the department
	2285	+	38 determines that the partnership:
	2286	+	39 (1) did not correctly report any tax attribute for a taxable year; or
	2287	+	40 (2) did not correctly allocate any tax attribute for a taxable year;
	2288	+	41 the department may adjust or reallocate the tax attribute. If the
	2289	+	SB 382—LS 7170/DI 120 53
	2290	+	1 department makes an adjustment or reallocation to one (1) or more tax
	2291	+	2 attributes, the department shall provide a report of proposed
	2292	+	3 partnership adjustments for the taxable year to the partnership.
	2293	+	4 (b) The preliminary report of proposed partnership adjustments
	2294	+	5 shall list:
	2295	+	6 (1) the department's adjustments to tax attributes; and
	2296	+	7 (2) the allocation of the department's adjustments to all affected
	2297	+	8 direct partners.
	2298	+	9 (c) If the preliminary report of proposed partnership adjustments for
	2299	+	10 a taxable year results in either:
	2300	+	11 (1) a potential increase in tax to one (1) or more direct partners;
	2301	+	12 or
	2302	+	13 (2) if the partnership reported tax attributes that would result in a
	2303	+	14 refund of tax to one (1) or more partners, a reduction in that
	2304	+	15 refund;
	2305	+	16 such report shall be treated as a proposed assessment under IC 6-8.1-5
	2306	+	17 to the partnership.
	2307	+	18 (d) If the result for partnership adjustments for a taxable year results
	2308	+	19 in:
	2309	+	20 (1) no direct increase in tax to any direct partner; and
	2310	+	21 (2) a change in tax attributes to one (1) or more direct partners
	2311	+	22 that would result in a refund in excess of any refund claimed;
	2312	+	23 the department shall issue a report of proposed partnership adjustments
	2313	+	24 to the partnership reflecting such adjustments. Any refund arising from
	2314	+	25 a report of proposed partnership adjustments shall be issued to the
	2315	+	26 partners, subject to the partner claiming the refund and any statute of
	2316	+	27 limitations on such refunds. In the case of partnership adjustments
	2317	+	28 otherwise described in this subsection that result from a partnership
	2318	+	29 adjustment described in subsection (c), all such partnership
	2319	+	30 adjustments shall be treated as adjustments to which subsection (c)
	2320	+	31 applies.
	2321	+	32 SECTION 38. IC 6-3-4.5-5, AS ADDED BY P.L.159-2021,
	2322	+	33 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2323	+	34 JULY 1, 2021 (RETROACTIVE)]: Sec. 5. (a) For purposes of this
	2324	+	35 chapter, a report of proposed partnership adjustments for a taxable
	2325	+	36 year is considered a final report of final partnership adjustments upon
	2326	+	37 the latest of:
	2327	+	38 (1) the last day a protest of the report of proposed partnership
	2328	+	39 adjustments could have been filed by the partnership, if no protest
	2329	+	40 is filed;
	2330	+	41 (2) if a protest is filed, but no original tax appeal is filed pursuant
	2331	+	SB 382—LS 7170/DI 120 54
	2332	+	1 to IC 6-8.1-5, the last day on which an original tax appeal could
	2333	+	2 have been filed;
	2334	+	3 (3) if an original tax appeal has been filed, the last day on which
	2335	+	4 no further appeal may be taken from a decision requested; or
	2336	+	5 (4) the date set in subsection (b).
	2337	+	6 (b) If, upon protest or appeal, an adjustment in a report of proposed
	2338	+	7 partnership adjustments is determined to be incorrect, the department
	2339	+	8 shall issue a report of final partnership adjustments consistent with the
	2340	+	9 determination not more than one hundred eighty (180) days after the
	2341	+	10 determination is otherwise determined to be final under subsection
	2342	+	11 (a)(1) through (a)(3). If the report of final partnership adjustments is
	2343	+	12 not issued within one hundred eighty (180) days, one (1) day for each
	2344	+	13 day that the report of final partnership adjustments is issued after the
	2345	+	14 one hundred eighty (180) day deadline is added to the deadline for
	2346	+	15 which a partnership or tiered partner may act without being subject to
	2347	+	16 assessment under section 18 of this chapter. In the case of a partnership
	2348	+	17 with multiple tiers, this extension applies to each tier.
	2349	+	18 (c) Notwithstanding subsection (a), if the partnership and the
	2350	+	19 department enter into a settlement agreement under IC 6-8.1-3-17 to
	2351	+	20 resolve all matters related to the report of proposed partnership
	2352	+	21 adjustments for a taxable year, the report of final partnership
	2353	+	22 adjustments for that taxable year reflected in the agreement shall be
	2354	+	23 issued final one hundred eighty (180) days after the date of the
	2355	+	24 signature of the last party required to sign the agreement.
	2356	+	25 SECTION 39. IC 6-3-4.5-9, AS ADDED BY P.L.159-2021,
	2357	+	26 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2358	+	27 JULY 1, 2021 (RETROACTIVE)]: Sec. 9. (a) Partnerships and
	2359	+	28 partners shall report final federal adjustments arising from a
	2360	+	29 partnership level audit or an administrative adjustment request and
	2361	+	30 make payments as required under this section.
	2362	+	31 (b) Final federal adjustments subject to the requirements of this
	2363	+	32 section, except those subject to a properly made election under
	2364	+	33 subsection (c), shall be reported as follows:
	2365	+	34 (1) Not later than the applicable deadline, the partnership shall:
	2366	+	35 (A) file an amended partnership return for the review year and
	2367	+	36 any other taxable year affected by the final federal adjustments
	2368	+	37 with the department as provided in section 8 of this chapter
	2369	+	38 and provide any other information required by the department;
	2370	+	39 (B) notify each of its direct partners of their distributive share
	2371	+	40 of the final federal adjustments as provided in section 8 of this
	2372	+	41 chapter for all affected taxable years for which the partnership
	2373	+	SB 382—LS 7170/DI 120 55
	2374	+	1 filed an amended partnership return by an amended statement
	2375	+	2 or a report in the form and manner prescribed by the
	2376	+	3 department; and
	2377	+	4 (C) file an amended composite return for direct partners and
	2378	+	5 an amended withholding return for direct partners for the
	2379	+	6 review year and any affected taxable years as otherwise
	2380	+	7 required by IC 6-3-4-12 or IC 6-5.5-2-8 and pay any tax due
	2381	+	8 for the taxable years.
	2382	+	9 (2) Each direct partner that is subject to tax under IC 6-3,
	2383	+	10 IC 6-3.6, or IC 6-5.5 shall, on or before the applicable deadline:
	2384	+	11 (A) file an amended return as provided in section 8 of this
	2385	+	12 chapter reporting their distributive share of the adjustments
	2386	+	13 reported to them under subdivision (1)(B) for the taxable year
	2387	+	14 in which affected taxable year attributes would be reported by
	2388	+	15 the direct partner as provided in section 8 of this chapter; and
	2389	+	16 (B) pay any additional amount of tax due as if final federal
	2390	+	17 partnership adjustments had been properly reported, less any
	2391	+	18 credit for related amounts paid or withheld and remitted on
	2392	+	19 behalf of the direct partner.
	2393	+	20 (3) Each tiered partner shall treat any final federal partnership
	2394	+	21 adjustments under this section in a manner consistent with the
	2395	+	22 treatment of tiered partners under section 8 of this chapter.
	2396	+	23 (c) Except as provided in subsection (d), an audited partnership
	2397	+	24 making an election under this subsection shall:
	2398	+	25 (1) not later than the applicable deadline, file an amended
	2399	+	26 partnership return for the review year and for any other affected
	2400	+	27 taxable year elected by the audited partnership, including
	2401	+	28 information as required by the department, and notify the
	2402	+	29 department that it is making the election under this subsection;
	2403	+	30 and
	2404	+	31 (2) not later than ninety (90) days after the applicable deadline,
	2405	+	32 pay an amount, determined as follows, in lieu of taxes owed by its
	2406	+	33 direct or indirect partners:
	2407	+	34 (A) Exclude from final federal adjustments the distributive
	2408	+	35 share of these adjustments reported to a direct exempt partner
	2409	+	36 that is not unrelated business income.
	2410	+	37 (B) For the total distributive shares of the remaining final
	2411	+	38 federal adjustments reported to direct corporate partners and
	2412	+	39 to direct exempt partners, apportion and allocate such
	2413	+	40 adjustments as provided under IC 6-3-2-2 or IC 6-3-2-2.2 (in
	2414	+	41 the case of the adjusted gross income tax) or IC 6-5.5-4 (in the
	2415	+	SB 382—LS 7170/DI 120 56
	2416	+	1 case of the financial institutions tax), and multiply the
	2417	+	2 resulting amount by the tax rate for the taxable year under
	2418	+	3 IC 6-3-2-1(b), IC 6-3-2-1.5, or IC 6-5.5-2-1, as applicable.
	2419	+	4 (C) For the total distributive shares of the remaining final
	2420	+	5 federal adjustments reported to nonresident direct partners
	2421	+	6 other than tiered partners or corporate partners, determine
	2422	+	7 the amount of such adjustments which is Indiana source
	2423	+	8 income under IC 6-3-2-2 or IC 6-3-2-2.2, and multiply the
	2424	+	9 resulting amount by the tax rate under IC 6-3-2-1(a), and if
	2425	+	10 applicable IC 6-3.6. If a partnership is unable to determine
	2426	+	11 whether a nonresident is subject to tax under IC 6-3.6, or to
	2427	+	12 determine in what county the nonresident is subject to tax
	2428	+	13 under IC 6-3.6, tax shall also be imposed at the highest rate for
	2429	+	14 which a county imposes a tax under IC 6-3.6 for the taxable
	2430	+	15 year.
	2431	+	16 (D) For the total distributive shares of the remaining final
	2432	+	17 federal adjustments reported to tiered partners:
	2433	+	18 (i) determine the amount of any adjustment that is of a type
	2434	+	19 that it would be subject to sourcing in Indiana under
	2435	+	20 IC 6-3-2-2, IC 6-3-2-2.2, or IC 6-5.5-4, as applicable, and
	2436	+	21 determine the portion of this amount that would be sourced
	2437	+	22 to Indiana;
	2438	+	23 (ii) determine the amount of any adjustment that is of a type
	2439	+	24 that it would not be subject to sourcing to Indiana by a
	2440	+	25 nonresident partner under IC 6-3-2-2, IC 6-3-2-2.2, or
	2441	+	26 IC 6-5.5-4, as applicable;
	2442	+	27 (iii) determine the portion of the amount determined under
	2443	+	28 item (ii) that can be established, as prescribed by the
	2444	+	29 department by rule under IC 4-22-2, to be properly allocable
	2445	+	30 to nonresident indirect partners or other partners not subject
	2446	+	31 to tax on the adjustments; and
	2447	+	32 (iv) multiply the sum of the amounts determined in items (i)
	2448	+	33 and (ii) reduced by the amount determined in item (iii) by
	2449	+	34 the highest combined rate for the review taxable year under
	2450	+	35 IC 6-3-2-1(a) and IC 6-3.6 for any county, the rate under
	2451	+	36 IC 6-3-2-1(b), or the rate under 6-5.5-2-1 for the taxable
	2452	+	37 year, whichever is highest.
	2453	+	38 (E) For the total distributive shares of the remaining final
	2454	+	39 federal adjustments reported to resident individual, estate, or
	2455	+	40 trust direct partners, multiply that amount by the tax rate under
	2456	+	41 IC 6-3-2-1(a) and IC 6-3.6. If a partnership does not
	2457	+	42 reasonably ascertain the county of residence for an individual
	2458	+	SB 382—LS 7170/DI 120 57
	2459	+	1 direct partner, the rate under IC 6-3.6 for that partner shall be
	2460	+	2 treated as the highest rate imposed in any county under
	2461	+	3 IC 6-3.6 for the taxable year.
	2462	+	4 (F) Add an amount equal to any credit reduction under
	2463	+	5 IC 6-3-3, IC 6-3.1, and IC 6-5.5 attributable as a result of
	2464	+	6 final federal adjustments.
	2465	+	7 (F) (G) Add the amounts determined in clauses (B), (C),
	2466	+	8 (D)(iv), and (E), and (F). For purposes of determining interest
	2467	+	9 and penalties, the due date of payment shall be the due date of
	2468	+	10 the partnership's return under IC 6-3-4-10 for the taxable year,
	2469	+	11 determined without regard to any extensions.
	2470	+	12 If a partnership has made an election under this chapter to report and
	2471	+	13 remit all tax otherwise due at the partnership level for a taxable year,
	2472	+	14 the partnership shall be considered to have made a timely election
	2473	+	15 under this subsection with regard to any changes arising from an
	2474	+	16 amended return under this section for that taxable year.
	2475	+	17 (d) Final federal adjustments subject to an election under subsection
	2476	+	18 (c) shall not include:
	2477	+	19 (1) the distributive share of final federal adjustments that would
	2478	+	20 constitute income derived from a partnership to any direct or
	2479	+	21 indirect partner that is a corporation taxable under IC 6-3-2-1(b),
	2480	+	22 IC 6-3-2-1.5, or IC 6-5.5-2-1 and is considered unitary to the
	2481	+	23 partnership;
	2482	+	24 (2) any final federal adjustments resulting from an administrative
	2483	+	25 adjustment request; or
	2484	+	26 (3) any other circumstances that the department determines would
	2485	+	27 result in avoidance or evasion of any tax otherwise due from one
	2486	+	28 (1) or more partners under IC 6-3 or IC 6-5.5.
	2487	+	29 (e) Notwithstanding IC 6-3-4-11, an audited partnership not
	2488	+	30 otherwise subject to any reporting or payment obligations to Indiana
	2489	+	31 that makes an election under subsection (c) consents to be subject to
	2490	+	32 Indiana law related to reporting, assessment, payment, and collection
	2491	+	33 of Indiana tax calculated under the election.
	2492	+	34 SECTION 40. IC 6-3-4.5-14, AS ADDED BY P.L.159-2021,
	2493	+	35 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2494	+	36 JULY 1, 2021 (RETROACTIVE)]: Sec. 14. For purposes of this
	2495	+	37 chapter and IC 6-8.1-5-2, an assessment may not be issued against a
	2496	+	38 direct or indirect partner or partnership with regard to changes related
	2497	+	39 to a proposed or report of final partnership adjustments if the report of
	2498	+	40 proposed partnership adjustments is issued by the department to a
	2499	+	41 partnership after the latest of:
	2500	+	SB 382—LS 7170/DI 120 58
	2501	+	1 (1) three (3) years after the due date of the partnership's return,
	2502	+	2 including any valid extension granted under IC 6-8.1-6-1;
	2503	+	3 (2) three (3) years after the date the partnership's return is filed
	2504	+	4 with the department;
	2505	+	5 (3) in the case of the partnership's underreporting of its adjusted
	2506	+	6 gross income by more than twenty-five percent (25%), the periods
	2507	+	7 provided in subdivisions (1) and (2) shall be six (6) years;
	2508	+	8 (4) if the partnership fails to file a return required under
	2509	+	9 IC 6-3-4-10, files a fraudulent return, or files a substantially blank
	2510	+	10 return, no time limit;
	2511	+	11 (5) in the case of a report of proposed partnership adjustments
	2512	+	12 arising from final federal adjustments:
	2513	+	13 (A) one hundred eighty (180) days after the date on which the
	2514	+	14 department receives the final federal adjustments from the
	2515	+	15 partnership in the manner prescribed by the department; or
	2516	+	16 (B) December 31, 2021;
	2517	+	17 whichever is later; or
	2518	+	18 (6) in the case of a report of proposed partnership adjustments
	2519	+	19 issued to a tiered partner that is a partnership as a direct or
	2520	+	20 indirect result of another partnership's report of final partnership
	2521	+	21 adjustments, final federal adjustments, or an amended return, one
	2522	+	22 hundred eighty (180) days after the applicable deadline for the
	2523	+	23 tiered partner or the date otherwise determined under this section
	2524	+	24 for the partnership, whichever is later.
	2525	+	25 SECTION 41. IC 6-3-4.5-15, AS ADDED BY P.L.159-2021,
	2526	+	26 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2527	+	27 JULY 1, 2021 (RETROACTIVE)]: Sec. 15. (a) If the department
	2528	+	28 receives the partner level adjustments report, amended statement, or
	2529	+	29 similar report required to be provided under section 6 of this chapter
	2530	+	30 and the department determines that a taxpayer has not reported the
	2531	+	31 correct amount of tax to the department for a taxable year of the
	2532	+	32 taxpayer affected by the partner level adjustments report, the
	2533	+	33 department shall issue a proposed assessment to the taxpayer not later
	2534	+	34 than:
	2535	+	35 (1) one hundred eighty (180) days after the department receives
	2536	+	36 the partner level adjustments report or amended statement arising
	2537	+	37 from the partner level adjustments report from the entity required
	2538	+	38 to provide the report or statement to the department;
	2539	+	39 (2) one hundred eighty (180) days after the applicable deadline
	2540	+	40 for the taxpayer; or
	2541	+	41 (3) the period during which the taxpayer could otherwise be
	2542	+	SB 382—LS 7170/DI 120 59
	2543	+	1 issued a proposed assessment under IC 6-8.1-5-2;
	2544	+	2 whichever is latest.
	2545	+	3 (b) If a taxpayer receives multiple partner level adjustments reports
	2546	+	4 or amended statements relating to the same final report of final
	2547	+	5 partnership adjustments, the last day for issuing a proposed assessment
	2548	+	6 to the taxpayer is the latest time for which the department could issue
	2549	+	7 an assessment for any partner level adjustments report or amended
	2550	+	8 statement arising from the report of partnership adjustments as
	2551	+	9 determined under this section.
	2552	+	10 (c) The taxpayer may protest or appeal the proposed assessment or
	2553	+	11 refund denial in the same manner as prescribed in IC 6-8.1-5 or
	2554	+	12 IC 6-8.1-9-1, whichever is applicable. However, any adjustments made
	2555	+	13 pursuant to a final report of final partnership adjustments shall be
	2556	+	14 considered final as to the taxpayer.
	2557	+	15 SECTION 42. IC 6-3-4.5-17, AS ADDED BY P.L.159-2021,
	2558	+	16 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2559	+	17 JULY 1, 2021 (RETROACTIVE)]: Sec. 17. (a) If the department
	2560	+	18 determines that a taxpayer reported a tax attribute in an inconsistent
	2561	+	19 manner with the partnership's reporting of the tax attribute and the
	2562	+	20 taxpayer does not disclose the inconsistent reporting in a manner
	2563	+	21 prescribed by the department, the department may issue a proposed
	2564	+	22 assessment against the taxpayer as a result of the inconsistent reporting
	2565	+	23 not later than:
	2566	+	24 (1) three (3) years after the due date of the partnership's return,
	2567	+	25 including any valid extensions granted under IC 6-8.1-6-1;
	2568	+	26 (2) three (3) years after the partnership's return is filed with the
	2569	+	27 department;
	2570	+	28 (3) in the case of the partnership's underreporting of its adjusted
	2571	+	29 gross income by more than twenty-five percent (25%), the periods
	2572	+	30 provided in subdivisions (1) and (2) shall be six (6) years;
	2573	+	31 (4) if the partnership fails to file a return required under
	2574	+	32 IC 6-3-4-10, files a fraudulent return, or files a substantially blank
	2575	+	33 return, no time limit; or
	2576	+	34 (5) the latest date for which the taxpayer could be assessed under
	2577	+	35 IC 6-8.1-5-2;
	2578	+	36 whichever date is latest.
	2579	+	37 (b) For purposes of this section:
	2580	+	38 (1) if a partnership is required to file a return under IC 6-3-4-10
	2581	+	39 and fails to file such return or fails to provide the partner with a
	2582	+	40 statement setting forth the tax attributes from the partnership, the
	2583	+	41 taxpayer will be considered to have reported all tax attributes
	2584	+	SB 382—LS 7170/DI 120 60
	2585	+	1 from the partnership in an inconsistent manner with the
	2586	+	2 partnership's reporting of the tax attributes;
	2587	+	3 (2) in the case of a partner who owns a direct or indirect
	2588	+	4 interest in a partnership that has made a valid election under
	2589	+	5 Section 6221(b) of the Internal Revenue Code and has
	2590	+	6 received a final federal adjustment with regard to an item of
	2591	+	7 the partnership:
	2592	+	8 (A) the partner shall be considered to have reported items
	2593	+	9 consistently with the partnership only if the partner
	2594	+	10 properly reports the federal adjustment in a manner
	2595	+	11 consistent with the federal treatment of such adjustment;
	2596	+	12 and
	2597	+	13 (B) for purposes of this chapter, IC 6-8.1-5-2, and
	2598	+	14 IC 6-8.1-9-1, the federal adjustment shall be considered a
	2599	+	15 final federal adjustment with regard to such partner; and
	2600	+	16 (3) for purposes of any protest or appeal with regard to a proposed
	2601	+	17 assessment under this section, any reporting by the partnership
	2602	+	18 shall be considered conclusive with regard to the direct or indirect
	2603	+	19 partners of the partnership, provided that the reporting by the
	2604	+	20 partnership is determined to be neither fraudulent nor in bad faith.
	2605	+	21 SECTION 43. IC 6-3-4.5-18, AS ADDED BY P.L.159-2021,
	2606	+	22 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2607	+	23 JULY 1, 2021 (RETROACTIVE)]: Sec. 18. (a) If a partnership or
	2608	+	24 tiered partner is required to issue a report, issue an amended statement,
	2609	+	25 or issue other information to a partner, owner, or beneficiary under this
	2610	+	26 chapter, and does not issue such report, statement, or information
	2611	+	27 within the period such issuance is required under this chapter, the
	2612	+	28 partnership or tiered partner shall be liable for any tax that otherwise
	2613	+	29 may be due from the partner, owner, or beneficiary, notwithstanding
	2614	+	30 any other provision in IC 6-3 or IC 6-5.5. The tax rate under this
	2615	+	31 section shall be computed at the highest rate for the taxable year under:
	2616	+	32 (1) IC 6-3-2-1(a), plus the highest rate imposed in any county
	2617	+	33 under IC 6-3.6;
	2618	+	34 (2) IC 6-3-2-1(b); or
	2619	+	35 (3) IC 6-5.5-2-1;
	2620	+	36 unless the partnership or tiered partner can establish that a lower rate
	2621	+	37 should apply, the partnership or tiered partner has made an election to
	2622	+	38 be subject to tax under sections 6, 8, or 9 of this chapter, or to the
	2623	+	39 extent the partnership, tiered partner, or the department can determine
	2624	+	40 that the tax was otherwise properly reported and remitted. Such tax
	2625	+	41 shall be considered to be due on the due date of the partnership's or
	2626	+	42 tiered partner's return for the taxable year, determined without regard
	2627	+	SB 382—LS 7170/DI 120 61
	2628	+	1 to extensions.
	2629	+	2 (b) If a partnership or tiered partner issues the report, amended
	2630	+	3 statement, or other information:
	2631	+	4 (1) to an address that the partnership or tiered partner knows or
	2632	+	5 reasonably should know is incorrect; or
	2633	+	6 (2) if the report, amended statement, or other information not
	2634	+	7 described in subdivision (1) is returned and the partnership or
	2635	+	8 tiered partner:
	2636	+	9 (A) fails to take reasonable steps to determine a proper address
	2637	+	10 for reissuance within thirty (30) days after the report, amended
	2638	+	11 statement, or other information is returned; or
	2639	+	12 (B) takes such steps and fails to reissue the report, amended
	2640	+	13 statement, or other information to a proper address within
	2641	+	14 thirty (30) days after the report, amended statement, or other
	2642	+	15 information is returned;
	2643	+	16 such report, amended statement, or other information shall be
	2644	+	17 considered to have not been issued for purposes of this section.
	2645	+	18 (c) The department may issue a proposed assessment under this
	2646	+	19 section not later than three (3) years after the department receives a
	2647	+	20 return or amended return from the partnership or tiered partner for
	2648	+	21 which the partnership or tiered partner fails to issue reports, amended
	2649	+	22 statements, or other information, or from the date a partnership is
	2650	+	23 required to issue partner level adjustments reports to its partners.
	2651	+	24 (d) If:
	2652	+	25 (1) a direct or indirect partner files and remits the tax otherwise
	2653	+	26 due under this section, the assessment to the partnership or tiered
	2654	+	27 partner under this section shall be reduced by the portion of the
	2655	+	28 tax attributable to the direct or indirect partner; and
	2656	+	29 (2) a partnership or tiered partner files and remits the tax under
	2657	+	30 this section, such tax shall be treated as payment of tax to the
	2658	+	31 direct or indirect partners. However, in no event shall the direct
	2659	+	32 or indirect partners be permitted a refund of tax paid by a
	2660	+	33 partnership or tiered partner under this section unless otherwise
	2661	+	34 permitted under this chapter or IC 6-8.1-9-1.
	2662	+	35 (e) Nothing in this section shall be construed to relieve a partnership
	2663	+	36 or tiered partner from any duty to issue a report, amended statement, or
	2664	+	37 other information otherwise required under this chapter or under any
	2665	+	38 other provision of IC 6-3 or IC 6-5.5. If a partnership or tiered partner
	2666	+	39 issues a report, amended statement, or other information provided
	2667	+	40 under this chapter after the date otherwise required for issuance, the
	2668	+	41 department may grant relief to any tiered partner, direct partner, or
	2669	+	SB 382—LS 7170/DI 120 62
	2670	+	1 indirect partner affected by the late issuance, including extension of
	2671	+	2 applicable deadlines.
	2672	+	3 SECTION 44. IC 6-3-4.5-20, AS ADDED BY P.L.159-2021,
	2673	+	4 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2674	+	5 JULY 1, 2021 (RETROACTIVE)]: Sec. 20. (a) Notwithstanding any
	2675	+	6 other provision of this chapter or IC 6-8.1, if, before the end of the time
	2676	+	7 period within which the department may take an action under this
	2677	+	8 chapter:
	2678	+	9 (1) in the case of a partnership or tiered partner that has more than
	2679	+	10 ten thousand (10,000) direct owners, the department shall extend
	2680	+	11 the time period one (1) time by sixty (60) days upon written
	2681	+	12 request of the partnership or tiered partner, regardless of whether
	2682	+	13 the department signs the extension;
	2683	+	14 (2) in the case of an action required to be taken with regard to a
	2684	+	15 partnership under this chapter, the department and the partnership
	2685	+	16 agree to extend that period, the period may be extended according
	2686	+	17 to the terms of a written agreement signed by both the department
	2687	+	18 and the partnership; and
	2688	+	19 (3) in the case of an action required to be taken with regard to a
	2689	+	20 tiered partner, direct partner, or indirect partner under this
	2690	+	21 chapter, the department and the tiered partner, direct partner, or
	2691	+	22 indirect partner, as applicable, agree to extend that period, the
	2692	+	23 period may be extended according to the terms of a written
	2693	+	24 agreement signed by both the department and the tiered partner,
	2694	+	25 direct partner, or indirect partner, as appropriate.
	2695	+	26 (b) If an extension is entered into under subsection (a), the request
	2696	+	27 for automatic extension or agreement must contain:
	2697	+	28 (1) the date to which the extension is made; and
	2698	+	29 (2) a statement that the person or entity agrees to preserve the
	2699	+	30 person's or entity's records until the extension terminates.
	2700	+	31 (c) If an extension is entered into under subsection (a), the
	2701	+	32 applicable deadlines and statute of limitations for any actions arising
	2702	+	33 from an action required by a partnership, tiered partner, direct partner,
	2703	+	34 or indirect partner shall be extended in a manner consistent with the
	2704	+	35 extension under subsection (a)(1) or (a)(2). (a).
	2705	+	36 (d) The department and a partnership, tiered partner, direct partner,
	2706	+	37 or indirect partner may enter into more than one (1) extension
	2707	+	38 agreement under this section.
	2708	+	39 (e) The department may, by rules adopted under IC 4-22-2 or by
	2709	+	40 guidelines published in the Indiana Register, provide for automatic
	2710	+	41 extensions or relief from liability and reporting for certain situations.
	2711	+	SB 382—LS 7170/DI 120 63
	2712	+	1 The following apply:
	2713	+	2 (1) In the case of an automatic extension, the extension shall be
	2714	+	3 considered signed by both the department and the partnership,
	2715	+	4 tiered partner, direct partner, or indirect partner before the time
	2716	+	5 the department may take an action under this section. In addition,
	2717	+	6 the partnership, tiered partner, direct partner, or indirect partner
	2718	+	7 shall preserve the person's or entity's records until the automatic
	2719	+	8 extension terminates.
	2720	+	9 (2) In the case of relief from liability, such relief shall be granted
	2721	+	10 only under the situations specifically granted by the rules or
	2722	+	11 guidelines.
	2723	+	12 (3) The department may adopt rules or guidelines to establish a de
	2724	+	13 minimis amount upon which a taxpayer shall not be required to
	2725	+	14 comply with specified provisions of this chapter.
	2726	+	15 SECTION 45. IC 6-3.6-6-2.7, AS AMENDED BY P.L.257-2019,
	2727	+	16 SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2728	+	17 JULY 1, 2022]: Sec. 2.7. (a) A county fiscal body may adopt an
	2729	+	18 ordinance to impose a tax rate for correctional facilities and
	2730	+	19 rehabilitation facilities in the county. The tax rate must be in
	2731	+	20 increments of one-hundredth of one percent (0.01%) and may not
	2732	+	21 exceed two-tenths of one percent (0.2%). The tax rate may not be in
	2733	+	22 effect for more than:
	2734	+	23 (1) twenty-two (22) years, in the case of a tax rate imposed in
	2735	+	24 an ordinance adopted before July 1, 2022; or
	2736	+	25 (2) twenty-five (25) years, in the case of a tax rate imposed in
	2737	+	26 an ordinance adopted after June 30, 2022.
	2738	+	27 If an ordinance is adopted after June 30, 2019, to impose a tax rate
	2739	+	28 under this section, not more than twenty percent (20%) of the revenue
	2740	+	29 from the tax rate under this section may be used for operating expenses
	2741	+	30 for correctional facilities and rehabilitation facilities in the county.
	2742	+	31 (b) The revenue generated by a tax rate imposed under this section
	2743	+	32 must be distributed directly to the county before the remainder of the
	2744	+	33 expenditure rate revenue is distributed. The revenue shall be
	2745	+	34 maintained in a separate dedicated county fund and used by the county
	2746	+	35 only for paying for correctional facilities and rehabilitation facilities in
	2747	+	36 the county.
	2748	+	37 SECTION 46. IC 6-3.6-9-4, AS AMENDED BY P.L.165-2021,
	2749	+	38 SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2750	+	39 JULY 1, 2022]: Sec. 4. Revenue derived from the imposition of the tax
	2751	+	40 shall, in the manner prescribed by this chapter, be distributed to the
	2752	+	41 county that imposed it. The amount that is to be distributed to a county
	2753	+	SB 382—LS 7170/DI 120 64
	2754	+	1 during an ensuing calendar year equals the amount of tax revenue that
	2755	+	2 the budget agency determines has been:
	2756	+	3 (1) received from attributed to that county for a taxable year
	2757	+	4 ending in a calendar year preceding the calendar year in which the
	2758	+	5 determination is made; and
	2759	+	6 (2) reported on an annual return or amended return filed by or for
	2760	+	7 a county taxpayer and processed by the department in the state
	2761	+	8 fiscal year ending before July 1, or for a federal income tax
	2762	+	9 deadline set after July 1, a date set by the department for a period
	2763	+	10 of not more than sixty (60) days beyond the federal deadline, of
	2764	+	11 the calendar year in which the determination is made.
	2765	+	12 as adjusted for refunds of tax made in the state fiscal year.
	2766	+	13 SECTION 47. IC 6-5.5-6-2, AS AMENDED BY P.L.239-2017,
	2767	+	14 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2768	+	15 JANUARY 1, 2023]: Sec. 2. (a) Annual returns required by this
	2769	+	16 chapter shall be filed with the department on or before the later of the
	2770	+	17 following:
	2771	+	18 (1) the fifteenth day of the fourth fifth month following the close
	2772	+	19 of the taxpayer's taxable year.
	2773	+	20 (2) For a taxpayer whose federal tax return is due on or after the
	2774	+	21 date set forth in subdivision (1), as determined without regard to
	2775	+	22 any extensions, weekends, or holidays, the fifteenth day of the
	2776	+	23 month following the due date of the federal tax return.
	2777	+	24 However, if a taxpayer receives an extension of time from the United
	2778	+	25 States Internal Revenue Service for the filing of its federal income tax
	2779	+	26 return for a taxable year, the department shall grant a similar an
	2780	+	27 extension of time to the taxpayer for the filing of a return required by
	2781	+	28 this chapter for that taxable year to the date otherwise provided by
	2782	+	29 IC 6-8.1-6-1. In addition, the department may grant an additional
	2783	+	30 reasonable extension of time for filing a return required by this chapter
	2784	+	31 as provided by IC 6-8.1-6-1.
	2785	+	32 (b) If the due date for a federal income tax return is extended by
	2786	+	33 the Internal Revenue Service to a date that is later than the date
	2787	+	34 specified in subsection (a), the department may extend the due date
	2788	+	35 of a return required to be made under this chapter to reflect the
	2789	+	36 due date permitted for the federal income tax return.
	2790	+	37 (c) If the due date for a federal income tax return in the Internal
	2791	+	38 Revenue Code, as determined without regard to any extensions,
	2792	+	39 Saturdays, Sundays, or holidays, is later than the date provided in
	2793	+	40 subsection (a), the due date for the return made pursuant to this
	2794	+	41 section shall be the later of the due date for the federal income tax
	2795	+	SB 382—LS 7170/DI 120 65
	2796	+	1 return or the due date provided under this section.
	2797	+	2 SECTION 48. IC 6-7-1-2, AS AMENDED BY P.L.191-2016,
	2798	+	3 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2799	+	4 JULY 1, 2022]: Sec. 2. Unless the context requires otherwise,
	2800	+	5 "cigarette" shall mean and include any roll for smoking or heating
	2801	+	6 made wholly or in part of tobacco, irrespective of size or shape and
	2802	+	7 irrespective of tobacco being flavored, adulterated, or mixed with any
	2803	+	8 other ingredient, where such roll has a wrapper or cover made of paper
	2804	+	9 or any other material not containing tobacco. Provided the definition
	2805	+	10 in this section shall not be construed to include cigars (as defined in
	2806	+	11 IC 6-7-2-0.3). Excepting where context clearly shows that cigarettes
	2807	+	12 alone are intended, the term "cigarettes" shall mean and include
	2808	+	13 cigarettes upon which a tax is imposed by sections 12 and 13 of this
	2809	+	14 chapter.
	2810	+	15 SECTION 49. IC 6-7-1-15 IS AMENDED TO READ AS
	2811	+	16 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 15. (a) The department
	2812	+	17 is the official agent of the state for the administration and enforcement
	2813	+	18 of this chapter. A sufficient sum to pay salaries and expenses is
	2814	+	19 appropriated to the department out of the monies received by virtue of
	2815	+	20 this chapter.
	2816	+	21 (b) The department may issue registration certificates, upon the
	2817	+	22 terms and conditions provided in this chapter, and may revoke or
	2818	+	23 suspend the same upon the violation of this chapter or a violation of
	2819	+	24 IC 24-3-5.4-17 by the holder of such a certificate.
	2820	+	25 (c) The department may apply for membership in the National
	2821	+	26 Tobacco Tax Association.
	2822	+	27 (d) The department may design and have printed or manufactured
	2823	+	28 stamps of sizes and denominations to be affixed to each individual
	2824	+	29 package. The stamps shall be firmly affixed on each individual package
	2825	+	30 in such a manner that the stamps can not be removed without being
	2826	+	31 mutilated or destroyed; however, the department may by regulation
	2827	+	32 designate some other manner for cancelation cancellation of stamps.
	2828	+	33 In addition to the stamps, the department may by rules and regulations
	2829	+	34 authorize distributors to use metered stamping machines or other
	2830	+	35 devices which will imprint distinctive indicia evidencing the payment
	2831	+	36 of the tax upon each individual package. The machines shall be
	2832	+	37 constructed in such a manner as will accurately record or meter the
	2833	+	38 number of impressions or tax stamps made. The tax meter machines or
	2834	+	39 other devices shall be kept available at all reasonable times for
	2835	+	40 inspection by the department, and the machines shall be maintained in
	2836	+	41 proper operating condition. A person who knowingly tampers with the
	2837	+	42 printing or recording mechanism of such a machine commits a Class
	2838	+	SB 382—LS 7170/DI 120 66
	2839	+	1 B misdemeanor.
	2840	+	2 SECTION 50. IC 6-7-1-38 IS ADDED TO THE INDIANA CODE
	2841	+	3 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	2842	+	4 1, 2022]: Sec. 38. A retailer who purchases cigarettes from a
	2843	+	5 distributor who has not obtained a registration certificate required
	2844	+	6 under section 16 of this chapter or whose registration certificate
	2845	+	7 has been suspended or revoked by the department is subject to a
	2846	+	8 penalty not to exceed the greater of:
	2847	+	9 (1) one hundred percent (100%) of the retail value of the
	2848	+	10 cigarettes described in this section; or
	2849	+	11 (2) five thousand dollars ($5,000);
	2850	+	12 on each such purchase.
	2851	+	13 SECTION 51. IC 6-7-2-0.1 IS ADDED TO THE INDIANA CODE
	2852	+	14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	2853	+	15 1, 2023]: Sec. 0.1. As used in this chapter:
	2854	+	16 (1) "actual cost" means the price paid by a remote seller for
	2855	+	17 an individual tobacco product; and
	2856	+	18 (2) "actual cost list" means an annual list (prepared,
	2857	+	19 maintained, and certified by each remote seller) of the cost of
	2858	+	20 each individual tobacco product. For purposes of this
	2859	+	21 subdivision, the actual cost for each individual product in a
	2860	+	22 cost list shall be the average of the actual price paid by a
	2861	+	23 remote seller for the individual product over the twelve (12)
	2862	+	24 calendar months prior to January 1 of the year in which the
	2863	+	25 sale by the remote seller occurs.
	2864	+	26 SECTION 52. IC 6-7-2-0.2 IS ADDED TO THE INDIANA CODE
	2865	+	27 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	2866	+	28 1, 2023]: Sec. 0.2. As used in this chapter, "alternative nicotine
	2867	+	29 product" means a noncombustible product containing nicotine that
	2868	+	30 is intended for human consumption, whether chewed, absorbed,
	2869	+	31 dissolved, or ingested by any means. The term does not include
	2870	+	32 cigarettes (as defined in IC 6-7-1-2), tobacco products, closed
	2871	+	33 system cartridges, consumable material, open system containers
	2872	+	34 (as defined in IC 6-7-4-5), vapor products (as defined in
	2873	+	35 IC 6-7-4-8), or any product regulated as a drug or device by the
	2874	+	36 United States Food and Drug Administration under 21 U.S.C. 351
	2875	+	37 to 360fff-7.
	2876	+	38 SECTION 53. IC 6-7-2-0.3 IS ADDED TO THE INDIANA CODE
	2877	+	39 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	2878	+	40 1, 2023]: Sec. 0.3. As used in this chapter, "cigar" means a tobacco
	2879	+	41 product that is a roll of tobacco wrapped in leaf tobacco or in any
	2880	+	42 substance containing tobacco (other than any roll of tobacco that
	2881	+	SB 382—LS 7170/DI 120 67
	2882	+	1 is a cigarette within the meaning of IC 6-7-1-2). The term includes
	2883	+	2 tobacco products commonly known as "little cigars", which are
	2884	+	3 cigars with an integrated cellulose acetate filter and that are
	2885	+	4 wrapped in a substance containing tobacco.
	2886	+	5 SECTION 54. IC 6-7-2-2, AS AMENDED BY P.L.165-2021,
	2887	+	6 SECTION 103, IS AMENDED TO READ AS FOLLOWS
	2888	+	7 [EFFECTIVE JULY 1, 2023]: Sec. 2. used in this chapter, "distributor"
	2889	+	8 means a person who:
	2890	+	9 (1) manufactures, sells, barters, exchanges, or distributes taxable
	2891	+	10 products or alternative nicotine products in Indiana to retail
	2892	+	11 dealers for the purpose of resale;
	2893	+	12 (2) purchases taxable products or alternative nicotine products
	2894	+	13 directly from a manufacturer of taxable products; or
	2895	+	14 (3) purchases for resale taxable products or alternative nicotine
	2896	+	15 products from a wholesaler, jobber, or distributor outside of
	2897	+	16 Indiana who is not a distributor holding a license issued under this
	2898	+	17 chapter.
	2899	+	18 SECTION 55. IC 6-7-2-3.1 IS ADDED TO THE INDIANA CODE
	2900	+	19 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	2901	+	20 1, 2023]: Sec. 3.1. As used in this chapter, "pipe tobacco" means a
	2902	+	21 tobacco product that, because of its appearance, type, packaging,
	2903	+	22 or labeling, is suitable and likely to be smoked in a pipe.
	2904	+	23 SECTION 56. IC 6-7-2-3.3 IS ADDED TO THE INDIANA CODE
	2905	+	24 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	2906	+	25 1, 2023]: Sec. 3.3. As used in this chapter, "remote seller" means a
	2907	+	26 retail dealer that meets one (1) or both of the economic thresholds
	2908	+	27 under IC 6-2.5-2-1(d) and sells tobacco products to an ultimate
	2909	+	28 consumer under either of the following circumstances:
	2910	+	29 (1) By means of a telephone or other method of voice
	2911	+	30 transmission, the mail, or the Internet or other electronic
	2912	+	31 service.
	2913	+	32 (2) When the taxable products are delivered to the consumer
	2914	+	33 by common carrier, private delivery service, or other method
	2915	+	34 of delivery.
	2916	+	35 SECTION 57. IC 6-7-2-4, AS AMENDED BY P.L.165-2021,
	2917	+	36 SECTION 105, IS AMENDED TO READ AS FOLLOWS
	2918	+	37 [EFFECTIVE JULY 1, 2023]: Sec. 4. As used in this chapter, "retail
	2919	+	38 dealer" means a person engaged in the business of selling taxable
	2920	+	39 products to ultimate consumers, including a retail merchant that
	2921	+	40 meets one (1) or both of the economic thresholds under
	2922	+	41 IC 6-2.5-2-1(d).
	2923	+	SB 382—LS 7170/DI 120 68
	2924	+	1 SECTION 58. IC 6-7-2-5, AS AMENDED BY P.L.172-2011,
	2925	+	2 SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	2926	+	3 JULY 1, 2023]: Sec. 5. (a) As used in this chapter, "tobacco product"
	2927	+	4 means
	2928	+	5 (1) any product made from tobacco, other than a cigarette (as
	2929	+	6 defined in IC 6-7-1-2), that is made for smoking, chewing, or
	2930	+	7 both; or
	2931	+	8 (2) snuff, including moist snuff.
	2932	+	9 any product containing, made, or derived from tobacco, or that
	2933	+	10 contains nicotine whether natural or synthetic, that is intended for
	2934	+	11 human consumption, or is likely to be consumed, whether chewed,
	2935	+	12 smoked, heated, absorbed, dissolved, inhaled, snorted, sniffed, or
	2936	+	13 ingested by any other means, or any component, part, or accessory
	2937	+	14 of a tobacco product.
	2938	+	15 (b) The term includes, but is not limited to:
	2939	+	16 (1) cigars;
	2940	+	17 (2) pipe tobacco;
	2941	+	18 (3) chewing tobacco;
	2942	+	19 (4) moist snuff;
	2943	+	20 (5) snus; and
	2944	+	21 (6) other similar kinds and forms of tobacco.
	2945	+	22 (c) The term does not include:
	2946	+	23 (1) cigarettes (as defined in IC 6-7-1-2);
	2947	+	24 (2) closed system cartridges;
	2948	+	25 (3) consumable material;
	2949	+	26 (4) open system containers (as defined in IC 6-7-4-5);
	2950	+	27 (5) vapor products (as defined in IC 6-7-4-8); or
	2951	+	28 (6) any drugs, devices, or combination products authorized
	2952	+	29 for sale by the United States Food and Drug Administration
	2953	+	30 and defined in the Federal Food, Drug, and Cosmetic Act.
	2954	+	31 SECTION 59. IC 6-7-2-7, AS AMENDED BY P.L.165-2021,
	2955	+	32 SECTION 107, IS AMENDED TO READ AS FOLLOWS
	2956	+	33 [EFFECTIVE JULY 1, 2022]: Sec. 7. (a) A tax is imposed on the
	2957	+	34 distribution of tobacco products in Indiana at the rate of: following
	2958	+	35 rates:
	2959	+	36 (1) Twenty-four percent (24%) of the wholesale price of tobacco
	2960	+	37 products other than:
	2961	+	38 (A) moist snuff; and
	2962	+	39 (B) beginning after December 31, 2022, cigars. or
	2963	+	40 (2) For moist snuff, forty cents ($0.40) per ounce, and a
	2964	+	41 proportionate tax at the same rate on all fractional parts of an
	2965	+	SB 382—LS 7170/DI 120 69
	2966	+	1 ounce. If the tax calculated for a fractional part of an ounce
	2967	+	2 carried to the third decimal place results in the numeral in the
	2968	+	3 third decimal place being greater than four (4), the amount of the
	2969	+	4 tax shall be rounded to the next additional cent.
	2970	+	5 (3) Beginning after December 31, 2022, for cigars:
	2971	+	6 (A) twenty-four percent (24%) of the wholesale price of a
	2972	+	7 cigar for cigars having a wholesale price not exceeding
	2973	+	8 three dollars ($3) per cigar; or
	2974	+	9 (B) seventy-two cents ($0.72) per cigar for cigars having a
	2975	+	10 wholesale price exceeding three dollars ($3) per cigar.
	2976	+	11 (b) A tax is imposed on the distribution of alternative nicotine
	2977	+	12 products in Indiana at a rate of forty cents ($0.40) per ounce,
	2978	+	13 calculated based upon the product weight as listed by the
	2979	+	14 manufacturer.
	2980	+	15 (b) (c) The distributor of the tobacco products or alternative
	2981	+	16 nicotine products, including a person that sells tobacco products or
	2982	+	17 alternative nicotine products through an Internet web site, is liable
	2983	+	18 for the tax imposed under subsection subsections (a) and (b). The tax
	2984	+	19 is imposed at the time the distributor:
	2985	+	20 (1) brings or causes tobacco products or alternative nicotine
	2986	+	21 products to be brought into Indiana for distribution;
	2987	+	22 (2) manufactures tobacco products or alternative nicotine
	2988	+	23 products in Indiana for distribution; or
	2989	+	24 (3) transports tobacco products or alternative nicotine products
	2990	+	25 to retail dealers in Indiana for resale by those retail dealers; or
	2991	+	26 (4) first receives the tobacco products or alternative nicotine
	2992	+	27 products in Indiana in the case of a distributor or distributor
	2993	+	28 transactions.
	2994	+	29 (c) (d) The Indiana general assembly finds that the tax rate on
	2995	+	30 smokeless tobacco should reflect the relative risk between such
	2996	+	31 products and cigarettes.
	2997	+	32 (d) (e) A consumer who purchases untaxed tobacco products or
	2998	+	33 alternative nicotine products from a distributor or retailer, including
	2999	+	34 through an Internet web site, a catalog, or other similar means, is liable
	3000	+	35 for the tax imposed under subsection subsections (a) and (b).
	3001	+	36 SECTION 60. IC 6-7-2-7.5, AS ADDED BY P.L.165-2021,
	3002	+	37 SECTION 108, IS AMENDED TO READ AS FOLLOWS
	3003	+	38 [EFFECTIVE JULY 1, 2022]: Sec. 7.5. (a) A tax is imposed on the
	3004	+	39 distribution of closed system cartridges in Indiana at the rate of
	3005	+	40 twenty-five percent (25%) fifteen percent (15%) of the wholesale
	3006	+	41 price of the closed system cartridge.
	3007	+	SB 382—LS 7170/DI 120 70
	3008	+	1 (b) The distributor of closed system cartridges, including a person
	3009	+	2 that sells closed system cartridges through an Internet web site, is liable
	3010	+	3 for the tax imposed under subsection (a). The tax is imposed at the time
	3011	+	4 the distributor:
	3012	+	5 (1) brings or causes closed system cartridges to be brought into
	3013	+	6 Indiana for distribution;
	3014	+	7 (2) manufactures closed system cartridges in Indiana for
	3015	+	8 distribution; or
	3016	+	9 (3) transports closed system cartridges to retail dealers in Indiana
	3017	+	10 for resale by those retail dealers.
	3018	+	11 (c) A consumer who purchases untaxed closed system cartridges
	3019	+	12 from a distributor or retailer, including closed system cartridges
	3020	+	13 purchased through an Internet web site, a catalog, or other similar
	3021	+	14 means, is liable for the tax imposed under subsection (a).
	3022	+	15 SECTION 61. IC 6-7-2-7.7 IS ADDED TO THE INDIANA CODE
	3023	+	16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	3024	+	17 1, 2023]: Sec. 7.7. (a) The tax imposed under sections 7(a)(1) and
	3025	+	18 7.5(a) of this chapter shall also be imposed on the sale of taxable
	3026	+	19 tobacco products in Indiana by remote sellers, and shall be
	3027	+	20 calculated based on one (1) of the following methods:
	3028	+	21 (1) For remote sellers using an actual cost method, the tax
	3029	+	22 shall be calculated by applying the rate to the actual cost of
	3030	+	23 each individual product.
	3031	+	24 (2) For remote sellers using an actual cost list method, the tax
	3032	+	25 shall be calculated by applying the rate to the cost established
	3033	+	26 for each individual product in the remote seller's actual cost
	3034	+	27 list.
	3035	+	28 (b) The tax imposed under section 7(b) of this chapter shall also
	3036	+	29 be imposed on the sale of taxable alternative nicotine products in
	3037	+	30 Indiana by remote sellers.
	3038	+	31 (c) The remote seller of taxable products, including a person
	3039	+	32 that sells taxable products through an Internet web site, is liable
	3040	+	33 for the tax imposed under section 7(a)(1) or 7.5(a) of this chapter.
	3041	+	34 (d) The tax under this section shall be imposed at the time of
	3042	+	35 purchase by an ultimate consumer.
	3043	+	36 SECTION 62. IC 6-7-2-8, AS AMENDED BY P.L.165-2021,
	3044	+	37 SECTION 109, IS AMENDED TO READ AS FOLLOWS
	3045	+	38 [EFFECTIVE JULY 1, 2023]: Sec. 8. (a) A distributor, including a
	3046	+	39 person that sells taxable products or alternative nicotine products
	3047	+	40 through an Internet web site, must obtain a license under this section
	3048	+	41 before it distributes taxable products or alternative nicotine products
	3049	+	SB 382—LS 7170/DI 120 71
	3050	+	1 in Indiana. The department shall issue licenses to applicants that
	3051	+	2 qualify under this section. A license issued under this section is valid
	3052	+	3 for one (1) year unless revoked or suspended by the department and is
	3053	+	4 not transferable.
	3054	+	5 (b) An applicant for a license under this section must submit proof
	3055	+	6 to the department of the appointment of an agent for service of process
	3056	+	7 in Indiana if the applicant is:
	3057	+	8 (1) an individual whose principal place of residence is outside
	3058	+	9 Indiana; or
	3059	+	10 (2) a person, other than an individual, that has its principal place
	3060	+	11 of business outside Indiana.
	3061	+	12 (c) To obtain or renew a license under this section, a person must:
	3062	+	13 (1) submit, for each location where it intends to distribute taxable
	3063	+	14 products or alternative nicotine products, an application that
	3064	+	15 includes all information required by the department;
	3065	+	16 (2) pay a fee of twenty-five dollars ($25) at the time of
	3066	+	17 application; and
	3067	+	18 (3) at the time of application, post a bond, issued by a surety
	3068	+	19 company approved by the department, in an amount not less than
	3069	+	20 one thousand dollars ($1,000) and conditioned on the applicant's
	3070	+	21 compliance with this chapter.
	3071	+	22 (d) If business is transacted at two (2) or more places by one (1)
	3072	+	23 distributor, a separate license must be obtained for each place of
	3073	+	24 business.
	3074	+	25 (e) Each license must be numbered, show the name and address of
	3075	+	26 the distributor, and be posted in a conspicuous place at the place of
	3076	+	27 business for which it is issued.
	3077	+	28 (f) If the department determines that a bond provided by a licensee
	3078	+	29 is inadequate, the department may require a new bond in the amount
	3079	+	30 necessary to fully protect the state.
	3080	+	31 SECTION 63. IC 6-7-2-8.5 IS ADDED TO THE INDIANA CODE
	3081	+	32 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	3082	+	33 1, 2023]: Sec. 8.5. (a) A remote seller, including a person that sells
	3083	+	34 taxable products through an Internet web site, must obtain a
	3084	+	35 license under this section before a remote seller can sell taxable
	3085	+	36 products in Indiana. The department shall issue licenses to
	3086	+	37 applicants that qualify under this section. A license issued under
	3087	+	38 this section is valid for one (1) year unless revoked or suspended by
	3088	+	39 the department and is not transferable.
	3089	+	40 (b) An applicant for a license under this section must submit
	3090	+	41 proof to the department of the appointment of an agent for service
	3091	+	SB 382—LS 7170/DI 120 72
	3092	+	1 of process in Indiana if the applicant is:
	3093	+	2 (1) an individual whose principal place of residence is outside
	3094	+	3 Indiana; or
	3095	+	4 (2) a person, other than an individual, that has its principal
	3096	+	5 place of business outside Indiana.
	3097	+	6 (c) To obtain or renew a license under this section, a person
	3098	+	7 must:
	3099	+	8 (1) submit an application that includes all information
	3100	+	9 required by the department;
	3101	+	10 (2) meet one (1) or both of the economic thresholds under
	3102	+	11 IC 6-2.5-2-1(d) and obtain a registered retail merchant
	3103	+	12 certificate;
	3104	+	13 (3) attest that the person uses third party age verification
	3105	+	14 technology as described in subsection (d);
	3106	+	15 (4) pay a fee of twenty-five dollars ($25) at the time of
	3107	+	16 application; and
	3108	+	17 (5) at the time of application, post a bond, issued by a surety
	3109	+	18 company approved by the department, in an amount not less
	3110	+	19 than one thousand dollars ($1,000) and conditioned on the
	3111	+	20 applicant's compliance with this chapter.
	3112	+	21 (d) A remote seller must use age verification through an
	3113	+	22 independent, third party age verification service that compares:
	3114	+	23 (1) information available from a commercially available data
	3115	+	24 base (or aggregate of data bases) that are regularly used by
	3116	+	25 government agencies and businesses for the purpose of age
	3117	+	26 and identity verification; and
	3118	+	27 (2) personal information entered by the individual during the
	3119	+	28 ordering process;
	3120	+	29 that establishes that the individual is of the required minimum age.
	3121	+	30 (e) A remote seller that collects the tax imposed under section
	3122	+	31 7.7 of this chapter using the actual cost list method to calculate the
	3123	+	32 tax must provide to the department a certified actual cost list for
	3124	+	33 each individual product offered for sale in the subsequent calendar
	3125	+	34 year. The actual cost list shall be updated annually as new products
	3126	+	35 are added to a remote seller's inventory. New products must be
	3127	+	36 added to the actual cost list using the actual cost first paid for each
	3128	+	37 individual product.
	3129	+	38 (f) If a business owns multiple entities that qualify as a remote
	3130	+	39 seller, a separate license must be obtained for each remote seller.
	3131	+	40 (g) Each license must be numbered, show the name and address
	3132	+	41 of the remote seller, and be kept at the place of business for which
	3133	+	42 it is issued.
	3134	+	SB 382—LS 7170/DI 120 73
	3135	+	1 (h) If the department determines that a bond provided by a
	3136	+	2 licensee is inadequate, the department may require a new bond in
	3137	+	3 the amount necessary to fully protect the state.
	3138	+	4 (i) A license issued under this section does not permit the remote
	3139	+	5 seller to sell cigarettes, vapor products, or other products subject
	3140	+	6 to tax under IC 6-7-1 or IC 6-7-4.
	3141	+	7 SECTION 64. IC 6-7-2-9 IS AMENDED TO READ AS FOLLOWS
	3142	+	8 [EFFECTIVE JULY 1, 2023]: Sec. 9. A distributor or remote seller
	3143	+	9 that changes its place of business shall return its license, and the
	3144	+	10 department shall issue, free of charge, a new license for the new place
	3145	+	11 of business.
	3146	+	12 SECTION 65. IC 6-7-2-10 IS AMENDED TO READ AS
	3147	+	13 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 10. A license issued
	3148	+	14 under this chapter may be surrendered to the department at any time
	3149	+	15 before its expiration, and the department shall refund an amount of
	3150	+	16 money that bears the same proportion to the fee originally paid as the
	3151	+	17 unexpired period of the permit bears to one (1) year. No refund may be
	3152	+	18 allowed if a license is suspended or revoked. and no refund may be
	3153	+	19 made that is:
	3154	+	20 (1) greater than seventy-five dollars ($75); or
	3155	+	21 (2) less than twenty-five dollars ($25).
	3156	+	22 SECTION 66. IC 6-7-2-11 IS AMENDED TO READ AS
	3157	+	23 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 11. The department:
	3158	+	24 (1) may revoke or suspend a license issued under this chapter for
	3159	+	25 any violation of this chapter, or IC 6-7-1-18, or IC 24-3-5.4-17 by
	3160	+	26 the licensee; and
	3161	+	27 (2) may not issue a license under this chapter to an applicant
	3162	+	28 within six (6) months after the revocation of that applicant's
	3163	+	29 license.
	3164	+	30 SECTION 67. IC 6-7-2-11.5 IS ADDED TO THE INDIANA CODE
	3165	+	31 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	3166	+	32 1, 2022]: Sec. 11.5. (a) The department may refuse to issue or
	3167	+	33 renew a license issued under this chapter if:
	3168	+	34 (1) the application is filed by a person whose license has
	3169	+	35 previously been canceled for cause (including a similar license
	3170	+	36 issued by another state);
	3171	+	37 (2) the application is not filed in good faith, as determined by
	3172	+	38 the department;
	3173	+	39 (3) the application is filed by a person as a subterfuge for the
	3174	+	40 real person in interest whose license has previously been
	3175	+	41 canceled for cause;
	3176	+	SB 382—LS 7170/DI 120 74
	3177	+	1 (4) the applicant has been convicted of fraud,
	3178	+	2 misrepresentation, or any other offense that indicates the
	3179	+	3 applicant may not comply with this chapter if issued a license;
	3180	+	4 (5) the applicant has an outstanding listed tax liability; or
	3181	+	5 (6) the applicant has not complied with a filing requirement
	3182	+	6 of the department.
	3183	+	7 (b) Before being denied a license as a distributor, the applicant
	3184	+	8 is entitled to a hearing with five (5) days written notice. At the
	3185	+	9 hearing the applicant may appear in person or by counsel and
	3186	+	10 present testimony.
	3187	+	11 SECTION 68. IC 6-7-2-12, AS AMENDED BY P.L.165-2021,
	3188	+	12 SECTION 110, IS AMENDED TO READ AS FOLLOWS
	3189	+	13 [EFFECTIVE JANUARY 1, 2023]: Sec. 12. Before the fifteenth day
	3190	+	14 of each month, each distributor (and remote seller beginning July 1,
	3191	+	15 2023) liable for a tax imposed by this chapter shall:
	3192	+	16 (1) file a return with the department that includes all information
	3193	+	17 required by the department including, but not limited to:
	3194	+	18 (A) name of distributor (or remote seller beginning July 1,
	3195	+	19 2023);
	3196	+	20 (B) address of distributor (or remote seller beginning July 1,
	3197	+	21 2023);
	3198	+	22 (C) license number of distributor (or remote seller beginning
	3199	+	23 July 1, 2023);
	3200	+	24 (D) invoice date;
	3201	+	25 (E) invoice number;
	3202	+	26 (F) name and address of person from whom taxable products
	3203	+	27 or alternative nicotine products were purchased or name and
	3204	+	28 address of person to whom taxable products were sold (except
	3205	+	29 in the case of sales to an end consumer beginning July 1,
	3206	+	30 2023);
	3207	+	31 (G) the wholesale price for tobacco products other than moist
	3208	+	32 snuff and cigars (or the actual cost in the case of remote
	3209	+	33 sellers beginning July 1, 2023);
	3210	+	34 (H) for moist snuff, the weight of the moist snuff; and
	3211	+	35 (I) for cigars, the wholesale price of the cigars;
	3212	+	36 (J) for alternative nicotine products, the weight of the
	3213	+	37 alternative nicotine products; and
	3214	+	38 (I) (K) for closed system cartridges, the wholesale price of
	3215	+	39 closed system cartridges sold; and
	3216	+	40 (2) pay the taxes for which it is liable under this chapter for the
	3217	+	41 preceding month minus the amount specified in section 13 of this
	3218	+	SB 382—LS 7170/DI 120 75
	3219	+	1 chapter.
	3220	+	2 All returns required to be filed and taxes required to be paid under this
	3221	+	3 chapter must be made in an electronic format prescribed by the
	3222	+	4 department.
	3223	+	5 SECTION 69. IC 6-7-2-13, AS AMENDED BY P.L.165-2021,
	3224	+	6 SECTION 111, IS AMENDED TO READ AS FOLLOWS
	3225	+	7 [EFFECTIVE JULY 1, 2023]: Sec. 13. A distributor or remote seller
	3226	+	8 that files a complete return and pays the taxes due within the time
	3227	+	9 specified in section 12 of this chapter is entitled to deduct and retain
	3228	+	10 from the tax a collection allowance of seven-thousandths (0.007) of the
	3229	+	11 amount due. If a distributor or remote seller files an incomplete report,
	3230	+	12 the department may reduce the collection allowance by an amount that
	3231	+	13 does not exceed the lesser of:
	3232	+	14 (1) ten percent (10%) of the collection allowance; or
	3233	+	15 (2) fifty dollars ($50).
	3234	+	16 SECTION 70. IC 6-7-2-14, AS AMENDED BY P.L.165-2021,
	3235	+	17 SECTION 112, IS AMENDED TO READ AS FOLLOWS
	3236	+	18 [EFFECTIVE JULY 1, 2023]: Sec. 14. The department shall credit or
	3237	+	19 refund to a distributor or remote seller the taxes paid under this
	3238	+	20 chapter on taxable products or alternative nicotine products that are:
	3239	+	21 (1) shipped outside Indiana;
	3240	+	22 (2) returned to the manufacturer; or
	3241	+	23 (3) destroyed by the distributor in the presence of an employee or
	3242	+	24 agent of the department.
	3243	+	25 SECTION 71. IC 6-7-2-20 IS AMENDED TO READ AS
	3244	+	26 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 20. A distributor or
	3245	+	27 remote seller who does not comply with the requirements of
	3246	+	28 IC 6-8.1-5-4 commits a Class B misdemeanor.
	3247	+	29 SECTION 72. IC 6-7-2-21, AS AMENDED BY P.L.165-2021,
	3248	+	30 SECTION 118, IS AMENDED TO READ AS FOLLOWS
	3249	+	31 [EFFECTIVE JULY 1, 2023]: Sec. 21. (a) A distributor or remote
	3250	+	32 seller who knowingly:
	3251	+	33 (1) acts as a distributor or remote seller without a license;
	3252	+	34 (2) makes a false statement in a report under this chapter; or
	3253	+	35 (3) does not pay a tax for which the distributor or remote seller
	3254	+	36 is liable under this chapter;
	3255	+	37 commits a Class B misdemeanor. However, the offense is a Level 6
	3256	+	38 felony if it is committed with intent to evade the tax imposed by this
	3257	+	39 chapter or to defraud the state.
	3258	+	40 (b) Violations of this chapter described in subsection (a) may be
	3259	+	41 reported to the department or the office of the attorney general.
	3260	+	SB 382—LS 7170/DI 120 76
	3261	+	1 SECTION 73. IC 6-7-2-24 IS ADDED TO THE INDIANA CODE
	3262	+	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	3263	+	3 1, 2022]: Sec. 24. A retailer (except a remote seller that is required
	3264	+	4 to remit tax imposed by this chapter) who purchases a tobacco
	3265	+	5 product or alternative nicotine product from a distributor who has
	3266	+	6 not obtained a license required under section 8 of this chapter or
	3267	+	7 whose license has been suspended or revoked by the department is
	3268	+	8 subject to a penalty not to exceed the greater of:
	3269	+	9 (1) one hundred percent (100%) of the retail value of the
	3270	+	10 tobacco product or alternative nicotine product; or
	3271	+	11 (2) five thousand dollars ($5,000);
	3272	+	12 on the purchase.
	3273	+	13 SECTION 74. IC 6-8.1-1-9 IS ADDED TO THE INDIANA CODE
	3274	+	14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
	3275	+	15 JANUARY 1, 2023]: Sec. 9. (a) If any due date or date required for
	3276	+	16 a particular act by the taxpayer or the department falls on
	3277	+	17 Saturday, Sunday, a national legal holiday recognized by the
	3278	+	18 federal government, or a statewide holiday, the act by the taxpayer
	3279	+	19 or the department that must be performed by that date is timely if
	3280	+	20 performed by the next succeeding day that is not a Saturday, a
	3281	+	21 Sunday, or one of those holidays.
	3282	+	22 (b) If the due date of a particular act is later than the date
	3283	+	23 otherwise provided for the act as a result to the due date falling on
	3284	+	24 Saturday, Sunday, a national legal holiday recognized by the
	3285	+	25 federal government, or a statewide holiday, the last date on which
	3286	+	26 a proposed assessment or demand notice must be issued or the last
	3287	+	27 day on which a refund claim may be filed shall be determined
	3288	+	28 without regard to the original due date (including allowable
	3289	+	29 extensions) falling on a Saturday, Sunday, or holiday.
	3290	+	30 SECTION 75. IC 6-8.1-1-10 IS ADDED TO THE INDIANA CODE
	3291	+	31 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
	3292	+	32 JANUARY 1, 2020 (RETROACTIVE)]: Sec. 10. (a) This section
	3293	+	33 applies for purposes of determining:
	3294	+	34 (1) the last date on which a proposed assessment can be issued
	3295	+	35 under IC 6-8.1-5;
	3296	+	36 (2) the date by which withholding payments were required to
	3297	+	37 be made to meet the safe harbor requirements under
	3298	+	38 IC 6-3-4-12 or IC 6-3-4-13;
	3299	+	39 (3) the date by which ninety percent (90%) of tax reasonably
	3300	+	40 expected to be due under IC 6-8.1-6-1 is required to be paid;
	3301	+	41 (4) the last date on which a demand notice or tax warrant can
	3302	+	42 be issued under IC 6-8.1-8;
	3303	+	SB 382—LS 7170/DI 120 77
	3304	+	1 (5) the last date on which a refund claim can be filed under
	3305	+	2 IC 6-8.1-9-1;
	3306	+	3 (6) the first date on which interest can accrue on refunds
	3307	+	4 under IC 6-8.1-9-2;
	3308	+	5 (7) the first date on which interest can be assessed under
	3309	+	6 IC 6-8.1-10-1; and
	3310	+	7 (8) the due date for a return or payment under IC 6-2.3-6-1,
	3311	+	8 IC 6-3-4-4.1, IC 6-5.5-6-3, or IC 6-8.1-10-2.1.
	3312	+	9 (b) For an estimated tax payment under IC 6-2.3-6-1,
	3313	+	10 IC 6-3-4-4.1, or IC 6-5.5-6-3 that otherwise was due after March
	3314	+	11 23, 2020, and before July 15, 2020, the due date of the payment
	3315	+	12 shall be treated as July 15, 2020.
	3316	+	13 (c) For a return or other tax payment under IC 6-2.3, IC 6-3, or
	3317	+	14 IC 6-5.5, that otherwise was due after March 23, 2020, and before
	3318	+	15 May 1, 2020, the due date of the return or tax payment shall be
	3319	+	16 treated as July 15, 2020.
	3320	+	17 (d) For a return or other tax payment under IC 6-3 or IC 6-5.5
	3321	+	18 that otherwise was due after April 30, 2020, and before July 16,
	3322	+	19 2020, the due date of the return or tax payment shall be treated as:
	3323	+	20 (1) August 15, 2020, to the extent an action is determined
	3324	+	21 without regard to a Saturday; or
	3325	+	22 (2) August 17, 2020, to the extent an action is permitted to be
	3326	+	23 delayed due to a Saturday.
	3327	+	24 (e) A due date for payment determined under subsection (c) or
	3328	+	25 (d) shall be treated as the due date by which a tax payment is
	3329	+	26 required by meet minimum payment requirements for penalty
	3330	+	27 deferment under:
	3331	+	28 (1) IC 6-3-4-12(k);
	3332	+	29 (2) IC 6-3-4-13(l); and
	3333	+	30 (3) IC 6-8.1-6-1(d).
	3334	+	31 (f) For a return or payment with regard to individual adjusted
	3335	+	32 gross income tax under IC 6-3 for taxable years ending December
	3336	+	33 31, 2020, the due date shall be treated as:
	3337	+	34 (1) May 15, 2021, to the extent an action is determined
	3338	+	35 without regard to a Saturday; or
	3339	+	36 (2) May 17, 2021, to the extent an action is permitted to be
	3340	+	37 delayed due to a Saturday.
	3341	+	38 (g) This section expires December 31, 2024.
	3342	+	39 SECTION 76. IC 6-8.1-3-28 IS ADDED TO THE INDIANA CODE
	3343	+	40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	3344	+	41 1, 2022]: Sec. 28. (a) If the department determines that an amount
	3345	+	SB 382—LS 7170/DI 120 78
	3346	+	1 of a listed tax has been distributed to a county, taxing district, or
	3347	+	2 taxing unit in error or determines that all or part of the
	3348	+	3 distribution was refunded subsequent to the distribution, the
	3349	+	4 department shall notify the county treasurer and the county
	3350	+	5 auditor of the excess distribution and request that the excess
	3351	+	6 distribution be repaid to the department or that the department be
	3352	+	7 permitted to offset the excess distribution against listed taxes. The
	3353	+	8 notification under this section shall consist of:
	3354	+	9 (1) the listed tax for which the excess distribution occurred;
	3355	+	10 (2) the period to which the excess distribution relates; and
	3356	+	11 (3) the county, taxing district, or taxing unit that received the
	3357	+	12 excess distribution.
	3358	+	13 (b) If the department is unable to obtain repayment from the
	3359	+	14 county or obtain an agreement to offset against other listed taxes
	3360	+	15 after a request by the department is made under subsection (a), the
	3361	+	16 department may offset distributions of that listed tax or other
	3362	+	17 listed taxes distributable to that county upon notification of:
	3363	+	18 (1) the listed tax from which the offset will be applied;
	3364	+	19 (2) in the case of an offset applied against local income tax, the
	3365	+	20 particular share from which the offset will be obtained; and
	3366	+	21 (3) the amount of the repayment to be obtained.
	3367	+	22 The department may recover any excess distribution over a period
	3368	+	23 of multiple distributions.
	3369	+	24 (c) The department shall attempt to apply any offset against the
	3370	+	25 same listed tax as the over distribution or other listed taxes
	3371	+	26 otherwise distributable to the county, taxing district, or taxing unit
	3372	+	27 as closely as possible. If the department determines that such an
	3373	+	28 offset is not practicable, the department shall offset the distribution
	3374	+	29 against the local income tax distributions otherwise required under
	3375	+	30 IC 6-3.6 and the state budget agency shall adjust the distributions
	3376	+	31 of local income tax for the calendar year in which the offset occurs
	3377	+	32 or will occur to reflect such distribution.
	3378	+	33 SECTION 77. IC 6-8.1-6-1, AS AMENDED BY P.L.190-2014,
	3379	+	34 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3380	+	35 JANUARY 1, 2023]: Sec. 1. (a) This subsection does not apply to a
	3381	+	36 person's Indiana adjusted gross income tax return or a person's financial
	3382	+	37 institutions tax return. If a person responsible for filing a tax return is
	3383	+	38 unable to file the return by the appropriate due date, the person may
	3384	+	39 petition the department, before that due date, for a filing extension.
	3385	+	40 When the department receives the petition, the department shall grant
	3386	+	41 the person a sixty (60) day extension.
	3387	+	42 (b) If a person responsible for filing a tax return has received an
	3388	+	SB 382—LS 7170/DI 120 79
	3389	+	1 extension of the due date and is still unable to file the return by the
	3390	+	2 extended due date, the person may petition the department for another
	3391	+	3 extension. The person must include in the petition a statement of the
	3392	+	4 reasons for the person's inability to file the return by the due date. If the
	3393	+	5 department finds that the person's petition is proper and that the person
	3394	+	6 has good cause for requesting the extension, the department may
	3395	+	7 extend the person's due date for any period that the department deems
	3396	+	8 reasonable under the circumstances. The department may allow
	3397	+	9 additional, successive extensions if the person properly petitions for the
	3398	+	10 extension before the end of the person's current extension period.
	3399	+	11 (c) The following apply only to a person's Indiana adjusted gross
	3400	+	12 income tax return or a person's financial institutions tax return:
	3401	+	13 (1) If the Internal Revenue Service allows a person an extension
	3402	+	14 on the person's federal income tax return, the corresponding due
	3403	+	15 dates for the person's Indiana income tax returns are automatically
	3404	+	16 extended for the same period to the last day as the federal
	3405	+	17 extension, plus thirty (30) days. one (1) month. For purposes of
	3406	+	18 this subdivision, if the last day of the federal extension is a
	3407	+	19 Saturday, Sunday, a national legal holiday recognized by the
	3408	+	20 federal government, or a statewide holiday, the last day of the
	3409	+	21 federal extension shall be determined without regard to
	3410	+	22 Saturdays, Sundays, or holidays.
	3411	+	23 (2) If a person petitions the department for a filing extension for
	3412	+	24 the person's Indiana adjusted gross income tax return or financial
	3413	+	25 institutions tax return without obtaining an extension for filing the
	3414	+	26 person's federal income tax return, the department shall extend
	3415	+	27 the person's due date for the person's Indiana adjusted gross
	3416	+	28 income tax return or financial institutions tax return for the same
	3417	+	29 period that the person would have been allowed under subdivision
	3418	+	30 (1) if the person had been granted an extension by the Internal
	3419	+	31 Revenue Service. For purposes of this subdivision, if a person
	3420	+	32 files an extension request for the person's federal income tax
	3421	+	33 return for a taxable year but the extension is denied by the
	3422	+	34 Internal Revenue Service, the department shall consider the
	3423	+	35 person to have filed an extension under this subsection for
	3424	+	36 that taxable year, provided that the person did not have a
	3425	+	37 previous extension request denied by the Internal Revenue
	3426	+	38 Service for that taxable year.
	3427	+	39 (d) A person submitting a petition for an extension under this
	3428	+	40 section is not required to include any payment of tax with the petition.
	3429	+	41 However, a person obtaining an extension under this section must pay
	3430	+	42 at least ninety percent (90%) of the tax that is reasonably expected to
	3431	+	SB 382—LS 7170/DI 120 80
	3432	+	1 be due on the original due date by that due date, or the person may be
	3433	+	2 subject to the penalties imposed for failure to pay the tax. This
	3434	+	3 subsection does not apply to payments required under
	3435	+	4 IC 6-3-4-12(k) and IC 6-3-4-13(l).
	3436	+	5 (e) Any tax that remains unpaid during an extension period accrues
	3437	+	6 interest at a rate established under IC 6-8.1-10-1 from the original due
	3438	+	7 date, but that tax will not accrue any late payment penalties until the
	3439	+	8 extension period has ended. Any penalties must be determined based
	3440	+	9 on the amount of tax not paid on or before the end of the extension
	3441	+	10 period after application of payments provided under IC 6-8.1-8-1.5 and
	3442	+	11 determined as of the deadline of the extension period.
	3443	+	12 SECTION 78. IC 6-8.1-6-2 IS REPEALED [EFFECTIVE
	3444	+	13 JANUARY 1, 2023]. Sec. 2. If any due date falls on a Saturday, a
	3445	+	14 Sunday, a national legal holiday recognized by the federal government,
	3446	+	15 or a statewide holiday, the act that must be performed by that date is
	3447	+	16 timely if performed by the next succeeding day that is not a Saturday,
	3448	+	17 a Sunday, or one of those holidays.
	3449	+	18 SECTION 79. IC 6-8.1-7-1, AS AMENDED BY P.L.159-2021,
	3450	+	19 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3451	+	20 JULY 1, 2022]: Sec. 1. (a) This subsection does not apply to the
	3452	+	21 disclosure of information concerning a conviction on a tax evasion
	3453	+	22 charge. Unless in accordance with a judicial order or as otherwise
	3454	+	23 provided in this chapter, the department, its employees, former
	3455	+	24 employees, counsel, agents, or any other person may not divulge the
	3456	+	25 amount of tax paid by any taxpayer, terms of a settlement agreement
	3457	+	26 executed between a taxpayer and the department, investigation records,
	3458	+	27 investigation reports, or any other information disclosed by the reports
	3459	+	28 filed under the provisions of the law relating to any of the listed taxes,
	3460	+	29 including required information derived from a federal return, except to
	3461	+	30 any of the following when it is agreed that the information is to be
	3462	+	31 confidential and to be used solely for official purposes:
	3463	+	32 (1) Members and employees of the department.
	3464	+	33 (2) The governor.
	3465	+	34 (3) A member of the general assembly or an employee of the
	3466	+	35 house of representatives or the senate when acting on behalf of a
	3467	+	36 taxpayer located in the member's legislative district who has
	3468	+	37 provided sufficient information to the member or employee for
	3469	+	38 the department to determine that the member or employee is
	3470	+	39 acting on behalf of the taxpayer.
	3471	+	40 (4) An employee of the legislative services agency to carry out the
	3472	+	41 responsibilities of the legislative services agency under
	3473	+	42 IC 2-5-1.1-7 or another law.
	3474	+	SB 382—LS 7170/DI 120 81
	3475	+	1 (5) The attorney general or any other legal representative of the
	3476	+	2 state in any action in respect to the amount of tax due under the
	3477	+	3 provisions of the law relating to any of the listed taxes.
	3478	+	4 (6) Any authorized officers of the United States.
	3479	+	5 (b) The information described in subsection (a) may be revealed
	3480	+	6 upon the receipt of a certified request of any designated officer of the
	3481	+	7 state tax department of any other state, district, territory, or possession
	3482	+	8 of the United States when:
	3483	+	9 (1) the state, district, territory, or possession permits the exchange
	3484	+	10 of like information with the taxing officials of the state; and
	3485	+	11 (2) it is agreed that the information is to be confidential and to be
	3486	+	12 used solely for tax collection purposes.
	3487	+	13 (c) The information described in subsection (a) relating to a person
	3488	+	14 on public welfare or a person who has made application for public
	3489	+	15 welfare may be revealed to the director of the division of family
	3490	+	16 resources, and to any director of a county office of the division of
	3491	+	17 family resources located in Indiana, upon receipt of a written request
	3492	+	18 from either director for the information. The information shall be
	3493	+	19 treated as confidential by the directors. In addition, the information
	3494	+	20 described in subsection (a) relating to a person who has been
	3495	+	21 designated as an absent parent by the state Title IV-D agency shall be
	3496	+	22 made available to the state Title IV-D agency upon request. The
	3497	+	23 information shall be subject to the information safeguarding provisions
	3498	+	24 of the state and federal Title IV-D programs.
	3499	+	25 (d) The name, address, Social Security number, and place of
	3500	+	26 employment relating to any individual who is delinquent in paying
	3501	+	27 educational loans owed to a postsecondary educational institution may
	3502	+	28 be revealed to that institution if it provides proof to the department that
	3503	+	29 the individual is delinquent in paying for educational loans. This
	3504	+	30 information shall be provided free of charge to approved postsecondary
	3505	+	31 educational institutions (as defined by IC 21-7-13-6(a)). The
	3506	+	32 department shall establish fees that all other institutions must pay to the
	3507	+	33 department to obtain information under this subsection. However, these
	3508	+	34 fees may not exceed the department's administrative costs in providing
	3509	+	35 the information to the institution.
	3510	+	36 (e) The information described in subsection (a) relating to reports
	3511	+	37 submitted under IC 6-6-1.1-502 concerning the number of gallons of
	3512	+	38 gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
	3513	+	39 gallons of special fuel sold by a supplier and the number of gallons of
	3514	+	40 special fuel exported by a licensed exporter or imported by a licensed
	3515	+	41 transporter may be released by the commissioner upon receipt of a
	3516	+	42 written request for the information.
	3517	+	SB 382—LS 7170/DI 120 82
	3518	+	1 (f) The information described in subsection (a) may be revealed
	3519	+	2 upon the receipt of a written request from the administrative head of a
	3520	+	3 state agency of Indiana when:
	3521	+	4 (1) the state agency shows an official need for the information;
	3522	+	5 and
	3523	+	6 (2) the administrative head of the state agency agrees that any
	3524	+	7 information released will be kept confidential and will be used
	3525	+	8 solely for official purposes.
	3526	+	9 (g) The information described in subsection (a) may be revealed
	3527	+	10 upon the receipt of a written request from the chief law enforcement
	3528	+	11 officer of a state or local law enforcement agency in Indiana when it is
	3529	+	12 agreed that the information is to be confidential and to be used solely
	3530	+	13 for official purposes.
	3531	+	14 (h) The name and address of retail merchants, including township,
	3532	+	15 as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
	3533	+	16 purposes to township assessors and county assessors.
	3534	+	17 (i) The department shall notify the appropriate innkeeper's tax
	3535	+	18 board, bureau, or commission that a taxpayer is delinquent in remitting
	3536	+	19 innkeepers' taxes under IC 6-9.
	3537	+	20 (j) All information relating to the delinquency or evasion of the
	3538	+	21 vehicle excise tax may be disclosed to the bureau of motor vehicles in
	3539	+	22 Indiana and may be disclosed to another state, if the information is
	3540	+	23 disclosed for the purpose of the enforcement and collection of the taxes
	3541	+	24 imposed by IC 6-6-5.
	3542	+	25 (k) All information relating to the delinquency or evasion of
	3543	+	26 commercial vehicle excise taxes payable to the bureau of motor
	3544	+	27 vehicles in Indiana may be disclosed to the bureau and may be
	3545	+	28 disclosed to another state, if the information is disclosed for the
	3546	+	29 purpose of the enforcement and collection of the taxes imposed by
	3547	+	30 IC 6-6-5.5.
	3548	+	31 (l) All information relating to the delinquency or evasion of
	3549	+	32 commercial vehicle excise taxes payable under the International
	3550	+	33 Registration Plan may be disclosed to another state, if the information
	3551	+	34 is disclosed for the purpose of the enforcement and collection of the
	3552	+	35 taxes imposed by IC 6-6-5.5.
	3553	+	36 (m) All information relating to the delinquency or evasion of the
	3554	+	37 excise taxes imposed on recreational vehicles and truck campers that
	3555	+	38 are payable to the bureau of motor vehicles in Indiana may be disclosed
	3556	+	39 to the bureau and may be disclosed to another state if the information
	3557	+	40 is disclosed for the purpose of the enforcement and collection of the
	3558	+	41 taxes imposed by IC 6-6-5.1.
	3559	+	SB 382—LS 7170/DI 120 83
	3560	+	1 (n) This section does not apply to:
	3561	+	2 (1) the beer excise tax, including brand and packaged type
	3562	+	3 (IC 7.1-4-2);
	3563	+	4 (2) the liquor excise tax (IC 7.1-4-3);
	3564	+	5 (3) the wine excise tax (IC 7.1-4-4);
	3565	+	6 (4) the hard cider excise tax (IC 7.1-4-4.5);
	3566	+	7 (5) the vehicle excise tax (IC 6-6-5);
	3567	+	8 (6) the commercial vehicle excise tax (IC 6-6-5.5); and
	3568	+	9 (7) the fees under IC 13-23.
	3569	+	10 (o) The name and business address of retail merchants within each
	3570	+	11 county that sell tobacco products may be released to the division of
	3571	+	12 mental health and addiction and the alcohol and tobacco commission
	3572	+	13 solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
	3573	+	14 (p) The name and business address of a person licensed by the
	3574	+	15 department under IC 6-6 or IC 6-7, or issued a registered retail
	3575	+	16 merchant's certificate under IC 6-2.5, may be released for the purpose
	3576	+	17 of reporting the status of the person's license or certificate.
	3577	+	18 (q) The department may release information concerning total
	3578	+	19 incremental tax amounts under:
	3579	+	20 (1) IC 5-28-26;
	3580	+	21 (2) IC 36-7-13;
	3581	+	22 (3) IC 36-7-26;
	3582	+	23 (4) IC 36-7-27;
	3583	+	24 (5) IC 36-7-31;
	3584	+	25 (6) IC 36-7-31.3; or
	3585	+	26 (7) any other statute providing for the calculation of incremental
	3586	+	27 state taxes that will be distributed to or retained by a political
	3587	+	28 subdivision or other entity;
	3588	+	29 to the fiscal officer of the political subdivision or other entity that
	3589	+	30 established the district or area from which the incremental taxes were
	3590	+	31 received if that fiscal officer enters into an agreement with the
	3591	+	32 department specifying that the political subdivision or other entity will
	3592	+	33 use the information solely for official purposes.
	3593	+	34 (r) The department may release the information as required in
	3594	+	35 IC 6-8.1-3-7.1 concerning:
	3595	+	36 (1) an innkeeper's tax, a food and beverage tax, or an admissions
	3596	+	37 tax under IC 6-9;
	3597	+	38 (2) the supplemental auto rental excise tax under IC 6-6-9.7; and
	3598	+	39 (3) the covered taxes allocated to a professional sports
	3599	+	40 development area fund, sports and convention facilities operating
	3600	+	41 fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
	3601	+	SB 382—LS 7170/DI 120 84
	3602	+	1 (s) Information concerning state gross retail tax exemption
	3603	+	2 certificates that relate to a person who is exempt from the state gross
	3604	+	3 retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
	3605	+	4 defined in IC 6-2.5-4-5) IC 6-2.5-1-22.5) or a person selling the
	3606	+	5 services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 for the
	3607	+	6 purpose of enforcing and collecting the state gross retail and use taxes
	3608	+	7 under IC 6-2.5.
	3609	+	8 (t) The department may release a statement of tax withholding or
	3610	+	9 other tax information statement provided on behalf of a taxpayer to the
	3611	+	10 department to:
	3612	+	11 (1) the taxpayer on whose behalf the tax withholding or other tax
	3613	+	12 information statement was provided to the department;
	3614	+	13 (2) the taxpayer's spouse, if:
	3615	+	14 (A) the taxpayer is deceased or incapacitated; and
	3616	+	15 (B) the taxpayer's spouse is filing a joint income tax return
	3617	+	16 with the taxpayer; or
	3618	+	17 (3) an administrator, executor, trustee, or other fiduciary acting on
	3619	+	18 behalf of the taxpayer if the taxpayer is deceased.
	3620	+	19 (u) Information related to a listed tax regarding a taxpayer may be
	3621	+	20 disclosed to an individual without a power of attorney under
	3622	+	21 IC 6-8.1-3-8(a)(2) if:
	3623	+	22 (1) the individual is authorized to file returns and remit payments
	3624	+	23 for one (1) or more listed taxes on behalf of the taxpayer through
	3625	+	24 the department's online tax system before September 8, 2020;
	3626	+	25 (2) the information relates to a listed tax described in subdivision
	3627	+	26 (1) for which the individual is authorized to file returns and remit
	3628	+	27 payments;
	3629	+	28 (3) the taxpayer has been notified by the department of the
	3630	+	29 individual's ability to access the taxpayer's information for the
	3631	+	30 listed taxes described in subdivision (1) and the taxpayer has not
	3632	+	31 objected to the individual's access;
	3633	+	32 (4) the individual's authorization or right to access the taxpayer's
	3634	+	33 information for a listed tax described in subdivision (1) has not
	3635	+	34 been withdrawn by the taxpayer; and
	3636	+	35 (5) disclosure of the information to the individual is not
	3637	+	36 prohibited by federal law.
	3638	+	37 Except as otherwise provided by this article, this subsection does not
	3639	+	38 authorize the disclosure of any correspondence from the department
	3640	+	39 that is mailed or otherwise delivered to the taxpayer relating to the
	3641	+	40 specified listed taxes for which the individual was given authorization
	3642	+	41 by the taxpayer. The department shall establish a date, which may be
	3643	+	SB 382—LS 7170/DI 120 85
	3644	+	1 earlier but not later than September 1, 2023, after which a taxpayer's
	3645	+	2 information concerning returns and remittances for a listed tax may not
	3646	+	3 be disclosed to an individual without a power of attorney under
	3647	+	4 IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
	3648	+	5 previously authorized individuals, including notification published on
	3649	+	6 the department's Internet web site. After the earlier of the date
	3650	+	7 established by the department or September 1, 2023, the department
	3651	+	8 may not disclose a taxpayer's information concerning returns and
	3652	+	9 remittances for a listed tax to an individual unless the individual has a
	3653	+	10 power of attorney under IC 6-8.1-3-8(a)(2) or the disclosure is
	3654	+	11 otherwise allowed under this article.
	3655	+	12 SECTION 80. IC 6-8.1-10-2.1, AS AMENDED BY P.L.159-2021,
	3656	+	13 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3657	+	14 JANUARY 1, 2023]: Sec. 2.1. (a) Except as provided in IC 6-3-4-12(k)
	3658	+	15 and IC 6-3-4-13(l), a person that:
	3659	+	16 (1) fails to file a return for any of the listed taxes;
	3660	+	17 (2) fails to pay the full amount of tax shown on the person's return
	3661	+	18 on or before the due date for the return or payment;
	3662	+	19 (3) incurs, upon examination by the department, a deficiency that
	3663	+	20 is due to negligence;
	3664	+	21 (4) fails to timely remit any tax held in trust for the state;
	3665	+	22 (5) fails to file a return in the electronic manner required by the
	3666	+	23 department if such return is required to be filed electronically; or
	3667	+	24 (6) is required to make a payment by electronic funds transfer (as
	3668	+	25 defined in IC 4-8.1-2-7), overnight courier, personal delivery, or
	3669	+	26 any other electronic means and the payment is not received by the
	3670	+	27 department by the due date in such manner and in funds
	3671	+	28 acceptable to the department;
	3672	+	29 is subject to a penalty.
	3673	+	30 (b) Except as provided in subsection (g), the penalty described in
	3674	+	31 subsection (a) is ten percent (10%) of:
	3675	+	32 (1) the full amount of the tax due if the person failed to file the
	3676	+	33 return or, in the case of a return required to be filed electronically,
	3677	+	34 the return is not filed in the electronic manner required by the
	3678	+	35 department;
	3679	+	36 (2) the amount of the tax not paid, if the person filed the return
	3680	+	37 but failed to pay the full amount of the tax shown on the return;
	3681	+	38 (3) the amount of the tax held in trust that is not timely remitted;
	3682	+	39 (4) the amount of deficiency as finally determined by the
	3683	+	40 department; or
	3684	+	41 (5) the amount of tax due if a person failed to make payment
	3685	+	SB 382—LS 7170/DI 120 86
	3686	+	1 required to be made by electronic funds transfer, overnight
	3687	+	2 courier, personal delivery, or any other electronic means by the
	3688	+	3 due date in such manner.
	3689	+	4 (c) For purposes of this section, the filing of a substantially blank or
	3690	+	5 unsigned return does not constitute a return.
	3691	+	6 (d) If a person subject to the penalty imposed under this section can
	3692	+	7 show that the failure to file a return, pay the full amount of tax shown
	3693	+	8 on the person's return, timely remit tax held in trust, or pay the
	3694	+	9 deficiency determined by the department was due to reasonable cause
	3695	+	10 and not due to willful neglect, the department shall waive the penalty.
	3696	+	11 (e) A person who wishes to avoid the penalty imposed under this
	3697	+	12 section must make an affirmative showing of all facts alleged as a
	3698	+	13 reasonable cause for the person's failure to file the return, pay the
	3699	+	14 amount of tax shown on the person's return, pay the deficiency, or
	3700	+	15 timely remit tax held in trust, in a written statement containing a
	3701	+	16 declaration that the statement is made under penalty of perjury. The
	3702	+	17 statement must be filed with the return or payment within the time
	3703	+	18 prescribed for protesting departmental assessments. A taxpayer may
	3704	+	19 also avoid the penalty imposed under this section by obtaining a ruling
	3705	+	20 from the department before the end of a particular tax period on the
	3706	+	21 amount of tax due for that tax period.
	3707	+	22 (f) The department shall adopt rules under IC 4-22-2 to prescribe the
	3708	+	23 circumstances that constitute reasonable cause and negligence for
	3709	+	24 purposes of this section.
	3710	+	25 (g) A person who fails to file a return for a listed tax that shows no
	3711	+	26 tax liability for a taxable year, other than an information return (as
	3712	+	27 defined in section 6 of this chapter), on or before the due date of the
	3713	+	28 return shall pay a penalty of ten dollars ($10) for each day that the
	3714	+	29 return is past due, up to a maximum of two hundred fifty dollars
	3715	+	30 ($250).
	3716	+	31 (h) A:
	3717	+	32 (1) corporation which otherwise qualifies under IC 6-3-2-2.8(2);
	3718	+	33 (2) partnership; or
	3719	+	34 (3) trust;
	3720	+	35 that fails to withhold and pay any amount of tax required to be withheld
	3721	+	36 under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15 shall pay a penalty
	3722	+	37 equal to twenty percent (20%) of the amount of tax required to be
	3723	+	38 withheld under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15. This penalty
	3724	+	39 shall be in addition to any penalty imposed by section 6 of this chapter.
	3725	+	40 (i) Subsections (a) through (c) do not apply to a motor carrier fuel
	3726	+	41 tax return.
	3727	+	SB 382—LS 7170/DI 120 87
	3728	+	1 (j) If a partnership or an S corporation pass through entity (as
	3729	+	2 defined in IC 6-3-1-35) fails to include all nonresidential individual
	3730	+	3 nonresident partners, or nonresidential individual nonresident
	3731	+	4 shareholders, or nonresident beneficiaries in a composite return as
	3732	+	5 required by IC 6-3-4-12(i), or IC 6-3-4-13(j), or IC 6-3-4-15(h), a
	3733	+	6 penalty of five hundred dollars ($500) per partnership or S corporation
	3734	+	7 pass through entity is imposed on the partnership or S corporation.
	3735	+	8 pass through entity.
	3736	+	9 (k) If a person subject to the penalty imposed under this section
	3737	+	10 provides the department with documentation showing that the person
	3738	+	11 is or has been subject to incarceration for a period of a least one
	3739	+	12 hundred eighty (180) days, the department shall waive any penalty
	3740	+	13 under this section and interest that accrues during the time the person
	3741	+	14 was incarcerated, but not to an extent greater than the penalty or
	3742	+	15 interest relief to which a person would otherwise have been entitled
	3743	+	16 under the federal Servicemembers Civil Relief Act (50 U.S.C.
	3744	+	17 3901-4043), if the person was in military service. Nothing in this
	3745	+	18 subsection shall preclude the department from issuing a proposed
	3746	+	19 assessment, demand notice, jeopardy proposed assessment, jeopardy
	3747	+	20 demand notice, or warrant otherwise permitted by law.
	3748	+	21 SECTION 81. IC 6-9-29-1.5, AS AMENDED BY P.L.122-2021,
	3749	+	22 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3750	+	23 JULY 1, 2022]: Sec. 1.5. (a) Unless otherwise provided in this article,
	3751	+	24 a county fiscal body that adopts an ordinance to impose, rescind, or
	3752	+	25 increase or decrease the rate of a county innkeeper's tax, or to make a
	3753	+	26 change between collection of the tax by the county treasurer or the
	3754	+	27 department of state revenue, must specify the effective date of the
	3755	+	28 ordinance to provide that the ordinance takes effect:
	3756	+	29 (1) at least thirty (30) days after the adoption of the ordinance;
	3757	+	30 and
	3758	+	31 (2) on the first day of a month.
	3759	+	32 (b) If a county fiscal body adopts an ordinance described in
	3760	+	33 subsection (a), it must immediately send a certified copy of the
	3761	+	34 ordinance to the commissioner of the department of state revenue.
	3762	+	35 Notwithstanding subsection (a), if the department of state revenue
	3763	+	36 collects the revenue from the county innkeeper's tax, the department of
	3764	+	37 state revenue shall begin collecting the tax at the rate as provided in the
	3765	+	38 ordinance for periods beginning on or after on the later of:
	3766	+	39 (1) the first day of the month that is not less than thirty (30) days
	3767	+	40 after the ordinance is sent to the commissioner of the department
	3768	+	41 of state revenue; or
	3769	+	SB 382—LS 7170/DI 120 88
	3770	+	1 (2) the effective date specified in the ordinance.
	3771	+	2 The department shall collect the tax at the rate in the ordinance
	3772	+	3 unless the rate is not authorized under this article.
	3773	+	4 (c) If an ordinance does not specify an effective date, the ordinance
	3774	+	5 shall be considered effective on the earliest date allowable under this
	3775	+	6 section.
	3776	+	7 SECTION 82. IC 6-9-29.5-4 IS ADDED TO THE INDIANA CODE
	3777	+	8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	3778	+	9 1, 2022]: Sec. 4. (a) If an ordinance is adopted under this article,
	3779	+	10 the adopting body must immediately send a certified copy of the
	3780	+	11 ordinance to the commissioner of the department of state revenue.
	3781	+	12 Notwithstanding any other provision in this article, if the
	3782	+	13 department of state revenue collects the revenue from the food and
	3783	+	14 beverage tax, the department of state revenue shall begin collecting
	3784	+	15 the tax as provided in the ordinance for periods beginning on or
	3785	+	16 after the later of:
	3786	+	17 (1) the first day of the month that is not less than thirty (30)
	3787	+	18 days after the ordinance is sent to the commissioner of the
	3788	+	19 department of state revenue; or
	3789	+	20 (2) the effective date specified in the ordinance.
	3790	+	21 (b) If an ordinance does not specify an effective date, the
	3791	+	22 ordinance shall be considered effective on the earliest date
	3792	+	23 allowable under this section.
	3793	+	24 SECTION 83. IC 7.1-4-6-3.5, AS AMENDED BY P.L.166-2014,
	3794	+	25 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	3795	+	26 JULY 1, 2022]: Sec. 3.5. (a) A person who is liable for the payment of
	3796	+	27 an excise tax levied by this title shall file a monthly return with the
	3797	+	28 department on or before the twentieth day of the month following the
	3798	+	29 month in which the liability for the tax accrues by reason of the
	3799	+	30 manufacture, sale, gift, or the withdrawal for sale or gift, of alcoholic
	3800	+	31 beverages within this state.
	3801	+	32 (b) The department may require the reporting of any
	3802	+	33 information reasonably necessary to determine the amount of
	3803	+	34 excise tax due.
	3804	+	35 (c) The return required by this section must be filed in an
	3805	+	36 electronic format as prescribed by the department. Payment of the
	3806	+	37 excise tax due shall accompany the return, and shall be remitted
	3807	+	38 electronically. Any other returns or forms required to be filed under
	3808	+	39 this title must also be filed in an electronic format and on a date
	3809	+	40 prescribed by the department.
	3810	+	41 SECTION 84. IC 7.1-4-7-9, AS AMENDED BY P.L.86-2018,
	3811	+	42 SECTION 135, IS AMENDED TO READ AS FOLLOWS
	3812	+	SB 382—LS 7170/DI 120 89
	3813	+	1 [EFFECTIVE UPON PASSAGE]: Sec. 9. The auditor of state shall, on
	3814	+	2 or before the first tenth day of April of each year and quarterly on or
	3815	+	3 before the tenth day of the month thereafter, distribute the funds set
	3816	+	4 aside in accordance with the provisions of section 7 of this chapter or
	3817	+	5 the portion of them as reported to the auditor of state, to the general
	3818	+	6 fund of the treasury of the city or town on the basis provided for in this
	3819	+	7 chapter.
	3820	+	8 SECTION 85. [EFFECTIVE JULY 1, 2022] (a) IC 6-3-2-1.7, as
	3821	+	9 added by this act, is effective for taxable years beginning after June
	3822	+	10 30, 2022.
	3823	+	11 (b) This SECTION expires July 1, 2025.
	3824	+	12 SECTION 86. An emergency is declared for this act.
	3825	+	SB 382—LS 7170/DI 120 90
	3826	+	COMMITTEE REPORT
	3827	+	Madam President: The Senate Committee on Tax and Fiscal Policy,
	3828	+	to which was referred Senate Bill No. 382, has had the same under
	3829	+	consideration and begs leave to report the same back to the Senate with
	3830	+	the recommendation that said bill be AMENDED as follows:
	3831	+	Page 1, line 3, delete "2022," and insert "2023,".
	3832	+	Page 33, line 37, delete "excusable neglect." and insert "reasonable
	3833	+	cause.".
	3834	+	Page 37, delete lines 15 through 41.
	3835	+	Delete pages 38 through 82.
	3836	+	Page 83, delete lines 1 through 21.
	3837	+	Page 87, delete lines 14 through 42.
	3838	+	Delete pages 88 through 134.
	3839	+	Page 135, delete lines 1 through 23.
	3840	+	Page 136, delete lines 8 through 42.
	3841	+	Delete pages 137 through 140.
	3842	+	Page 141, delete lines 1 through 33.
	3843	+	Page 148, line 38, reset in roman "IC 6-3-2-2(p),".
	3844	+	Page 148, line 38, delete "IC 6-3-2-2(k),".
	3845	+	Page 155, line 35, reset in roman "IC 6-3-2-2.2".
	3846	+	Page 155, line 36, delete "IC 6-3-2.6".
	3847	+	Page 156, line 3, reset in roman "IC 6-3-2-2.2,".
	3848	+	Page 156, line 3, delete "IC 6-3-2.6,".
	3849	+	Page 156, line 15, reset in roman "IC 6-3-2-2.2,".
	3850	+	Page 156, line 15, delete "IC 6-3-2.6,".
	3851	+	Page 156, line 20, reset in roman "IC 6-3-2-2.2,".
	3852	+	Page 156, line 21, delete "IC 6-3-2.6,".
	3853	+	Page 163, delete lines 5 through 28.
	3854	+	Page 164, delete lines 26 through 42.
	3855	+	Delete pages 165 through 174.
	3856	+	Page 175, delete line 1.
	3857	+	Page 175, line 35, after "smoking" insert "or heating".
	3858	+	Page 177, line 4, after "individual" insert "tobacco".
	3859	+	Page 177, line 7, after "individual" insert "tobacco".
	3860	+	Page 177, between lines 12 and 13, begin a new paragraph and
	3861	+	insert:
	3862	+	"SECTION 94. IC 6-7-2-0.2 IS ADDED TO THE INDIANA CODE
735	3863		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
736		-	1, 2022]: Sec. 46. (a) This section applies to assessment dates after
737		-	December 31, 2022.
738		-	(b) As used in this section, "self-service storage facility" means
739		-	any real property designed and used for the renting of space under
740		-	a rental agreement that provides a renter access to rented space for
741		-	the storage and retrieval of the renter's property.
742		-	(c) The true tax value of a self-service storage facility must be
743		-	determined based solely on the land and the improvements, less
744		-	normal depreciation and normal obsolescence, and must exclude
745		-	business intangible value. Business intangible value is any value of
746		-	the self-service storage facility and related business operations in
747		-	excess of the depreciated replacement cost of the improvements
748		-	and the value of the land.
749		-	(d) The true tax value of a self-service storage facility is the
750		-	lowest valuation determined by applying each of the following
751		-	appraisal approaches and excluding business intangible value:
752		-	(1) Cost approach that includes an estimated reproduction or
753		-	replacement cost of buildings and land improvements as of
754		-	the date of valuation, together with estimates of the losses in
755		-	value that have taken place due to wear and tear, design and
756		-	plan, and other depreciation and obsolescence.
757		-	(2) Sales comparison approach, using data for generally
758		-	comparable property.
759		-	(3) Income capitalization approach, using an applicable
760		-	capitalization method and appropriate capitalization rates
761		-	that are developed and used in computations that lead to an
762		-	indication of value commensurate with the risks for the
763		-	subject property use.
764		-	SECTION 13. IC 6-2.5-1-2 IS AMENDED TO READ AS
765		-	FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) "Retail
766		-	transaction" means a transaction of a retail merchant that constitutes
767		-	SEA 382 — CC 1 19
768		-	selling at retail as described in IC 6-2.5-4-1 that constitutes making a
769		-	wholesale sale as described in IC 6-2.5-4-2, or that is described in any
770		-	other section of IC 6-2.5-4.
771		-	(b) "Retail unitary transaction" means a unitary transaction that is
772		-	also a retail transaction.
773		-	SECTION 14. IC 6-2.5-1-22.5 IS ADDED TO THE INDIANA
774		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
775		-	[EFFECTIVE JULY 1, 2022]: Sec. 22.5. "Power subsidiary" means
776		-	a corporation which is owned or controlled by one (1) or more
777		-	public utilities that furnish or sell electrical energy, natural or
778		-	artificial gas, water, steam, or steam heat and which produces
779		-	power exclusively for the use of those public utilities.
780		-	SECTION 15. IC 6-2.5-1-25.5 IS ADDED TO THE INDIANA
781		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
782		-	[EFFECTIVE JULY 1, 2022]: Sec. 25.5. "Public utility" means any
783		-	organization of any kind or nature that:
784		-	(1) sells electricity, gas, or water for consumption; and
785		-	(2) has the right of eminent domain or is otherwise subject to
786		-	governmental regulation in any phase of its operation.
787		-	SECTION 16. IC 6-2.5-3-4, AS AMENDED BY P.L.146-2020,
788		-	SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
789		-	JULY 1, 2022]: Sec. 4. (a) The storage, use, and consumption of
790		-	tangible personal property in Indiana is exempt from the use tax if:
791		-	(1) the property was acquired in a retail transaction and the state
792		-	gross retail tax has been paid on the acquisition of that property;
793		-	or
794		-	(2) the property was acquired in a transaction that is wholly or
795		-	partially exempt from the state gross retail tax under any part of
796		-	IC 6-2.5-5 except IC 6-2.5-5-24(b), and the property is being
797		-	used, stored, or consumed for the purpose for which it was
798		-	exempted.
799		-	(b) If a person issues a state gross retail or use tax exemption
800		-	certificate for the acquisition of tangible personal property and
801		-	subsequently uses, stores, or consumes that property for a nonexempt
802		-	purpose, then the person shall pay the use tax.
803		-	SECTION 17. IC 6-2.5-4-1, AS AMENDED BY P.L.146-2020,
804		-	SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
805		-	JULY 1, 2022]: Sec. 1. (a) A person is a retail merchant making a retail
806		-	transaction when the person engages in selling at retail.
807		-	(b) A person is engaged in selling at retail when, in the ordinary
808		-	course of the person's regularly conducted trade or business, the
809		-	person:
810		-	SEA 382 — CC 1 20
811		-	(1) acquires tangible personal property for the purpose of resale;
812		-	and
813		-	(2) transfers that property to another person for consideration.
814		-	(c) For purposes of determining what constitutes selling at retail, it
815		-	does not matter whether:
816		-	(1) the property is transferred in the same form as when it was
817		-	acquired;
818		-	(2) the property is transferred alone or in conjunction with other
819		-	property or services; or
820		-	(3) the property is transferred conditionally or otherwise.
821		-	(d) Notwithstanding subsection (b), a person is not selling at retail
822		-	if the person is making a wholesale sale as described in section 2 of this
823		-	chapter. However, in the case of sales of gasoline (as defined in
824		-	IC 6-6-1.1-103), a person shall collect the gasoline use tax as provided
825		-	in IC 6-2.5-3.5.
826		-	(d) Notwithstanding any provision of this article, a person is not
827		-	making a retail transaction when the person:
828		-	(1) acquires tangible personal property owned by another
829		-	person;
830		-	(2) provides industrial processing or servicing, including
831		-	enameling or plating, on the property; and
832		-	(3) transfers the property back to the owner to be sold by that
833		-	owner either in the same form or as a part of other tangible
834		-	personal property produced by that owner in the owner's
835		-	business of manufacturing, assembling, constructing, refining,
836		-	or processing.
837		-	SECTION 18. IC 6-2.5-4-2 IS REPEALED [EFFECTIVE JULY 1,
838		-	2022]. Sec. 2. (a) A person is a retail merchant making a retail
839		-	transaction when he is making wholesale sales.
840		-	(b) For purposes of this section, a person is making wholesale sales
841		-	when he:
842		-	(1) sells tangible personal property, other than capital assets or
843		-	depreciable property, to a person who purchases the property for
844		-	the purpose of reselling it without changing its form;
845		-	(2) sells tangible personal property to a person who purchases the
846		-	property for direct consumption as a material in the direct
847		-	production of other tangible personal property produced by the
848		-	person in his business of manufacturing, processing, refining,
849		-	repairing, mining, agriculture, or horticulture;
850		-	(3) sells tangible personal property to a person who purchases the
851		-	property for incorporation as a material or integral part of tangible
852		-	SEA 382 — CC 1 21
853		-	personal property produced by the person in his business of
854		-	manufacturing, assembling, constructing, refining, or processing;
855		-	(4) sells drugs, medical or dental preparations, or other similar
856		-	materials to a person who purchases the materials for direct
857		-	consumption in professional use by a physician, hospital,
858		-	embalmer, funeral director, or tonsorial parlor;
859		-	(5) sells tangible personal property to a person who purchases the
860		-	property for direct consumption in his business of industrial
861		-	cleaning; or
862		-	(6) sells tangible personal property to a person who purchases the
863		-	property for direct consumption in the person's business in the
864		-	direct rendering of public utility service.
865		-	(c) Notwithstanding any provision of this article, a person is not
866		-	making a retail transaction when he:
867		-	(1) acquires tangible personal property owned by another person;
868		-	(2) provides industrial processing or servicing, including
869		-	enameling or plating, on the property; and
870		-	(3) transfers the property back to the owner to be sold by that
871		-	owner either in the same form or as a part of other tangible
872		-	personal property produced by that owner in his business of
873		-	manufacturing, assembling, constructing, refining, or processing.
874		-	SECTION 19. IC 6-2.5-4-5, AS AMENDED BY P.L.288-2013,
875		-	SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
876		-	JULY 1, 2022]: Sec. 5. (a) As used in this section, a "power subsidiary"
877		-	means a corporation which is owned or controlled by one (1) or more
878		-	public utilities that furnish or sell electrical energy, natural or artificial
879		-	gas, water, steam, or steam heat and which produces power exclusively
880		-	for the use of those public utilities.
881		-	(b) A power subsidiary or a person engaged as a public utility is a
882		-	retail merchant making a retail transaction when the subsidiary or
883		-	person furnishes or sells electrical energy, natural or artificial gas,
884		-	water, steam, or steam heating service to a person for commercial or
885		-	domestic consumption.
886		-	(c) Notwithstanding subsection (b), a power subsidiary or a person
887		-	engaged as a public utility is not a retail merchant making a retail
888		-	transaction in any of the following transactions:
889		-	(1) The power subsidiary or person provides, installs, constructs,
890		-	services, or removes tangible personal property which is used in
891		-	connection with the furnishing of the services or commodities
892		-	listed in subsection (b).
893		-	(2) The power subsidiary or person sells the services or
894		-	SEA 382 — CC 1 22
895		-	commodities listed in subsection (b) to another public utility or
896		-	power subsidiary described in this section or a person described
897		-	in section 6 of this chapter.
898		-	(3) The power subsidiary or person sells the services or
899		-	commodities listed in subsection (b) to a person for use in
900		-	manufacturing, mining, production, processing (after December
901		-	31, 2012), repairing (after December 31, 2012), refining,
902		-	recycling (as defined in IC 6-2.5-5-45.8), oil extraction, mineral
903		-	extraction, irrigation, agriculture, floriculture (after December 31,
904		-	2012), arboriculture (after December 31, 2012), or horticulture.
905		-	However, this exclusion for sales of the services and commodities
906		-	only applies if the services are consumed as an essential and
907		-	integral part of an integrated process that produces tangible
908		-	personal property and those sales are separately metered for the
909		-	excepted uses listed in this subdivision, or if those sales are not
910		-	separately metered but are predominately used by the purchaser
911		-	for the excepted uses listed in this subdivision.
912		-	(4) The power subsidiary or person sells the services or
913		-	commodities listed in subsection (b) and all the following
914		-	conditions are satisfied:
915		-	(A) The services or commodities are sold to a business that:
916		-	(i) relocates all or part of its operations to a facility; or
917		-	(ii) expands all or part of its operations in a facility;
918		-	located in a military base (as defined in IC 36-7-30-1(c)), a
919		-	military base reuse area established under IC 36-7-30, the part
920		-	of an economic development area established under
921		-	IC 36-7-14.5-12.5 that is or formerly was a military base (as
922		-	defined in IC 36-7-30-1(c)), or a qualified military base
923		-	enhancement area established under IC 36-7-34.
924		-	(B) The business uses the services or commodities in the
925		-	facility described in clause (A) not later than five (5) years
926		-	after the operations that are relocated to the facility or
927		-	expanded in the facility commence.
928		-	(C) The sales of the services or commodities are separately
929		-	metered for use by the relocated or expanded operations.
930		-	(D) In the case of a business that uses the services or
931		-	commodities in a qualified military base enhancement area
932		-	established under IC 36-7-34-4(1), the business must satisfy at
933		-	least one (1) of the following criteria:
934		-	(i) The business is a participant in the technology transfer
935		-	program conducted by the qualified military base (as defined
936		-	SEA 382 — CC 1 23
937		-	in IC 36-7-34-3).
938		-	(ii) The business is a United States Department of Defense
939		-	contractor.
940		-	(iii) The business and the qualified military base have a
941		-	mutually beneficial relationship evidenced by a
942		-	memorandum of understanding between the business and
943		-	the United States Department of Defense.
944		-	(E) In the case of a business that uses the services or
945		-	commodities in a qualified military base enhancement area
946		-	established under IC 36-7-34-4(2), the business must satisfy at
947		-	least one (1) of the following criteria:
948		-	(i) The business is a participant in the technology transfer
949		-	program conducted by the qualified military base (as defined
950		-	in IC 36-7-34-3).
951		-	(ii) The business and the qualified military base have a
952		-	mutually beneficial relationship evidenced by a
953		-	memorandum of understanding between the business and
954		-	the qualified military base (as defined in IC 36-7-34-3).
955		-	However, this subdivision does not apply to a business that
956		-	substantially reduces or ceases its operations at another location
957		-	in Indiana in order to relocate its operations in an area described
958		-	in this subdivision, unless the department determines that the
959		-	business had existing operations in the area described in this
960		-	subdivision and that the operations relocated to the area are an
961		-	expansion of the business's operations in the area.
962		-	SECTION 20. IC 6-2.5-4-18, AS AMENDED BY P.L.146-2020,
963		-	SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
964		-	JULY 1, 2022]: Sec. 18. (a) A marketplace facilitator shall be
965		-	considered the retail merchant of each retail transaction (including a
966		-	retail transaction under section 4 of this chapter) that is facilitated for
967		-	sellers on its marketplace, regardless as to whether the marketplace
968		-	facilitator has a contractual relationship with the seller, when it
969		-	does any of the following: on behalf of the seller:
970		-	(1) Collects the sales price or purchase price of the seller's
971		-	products.
972		-	(2) Provides access to payment processing services, either directly
973		-	or indirectly.
974		-	(3) Charges, collects, or otherwise receives fees or other
975		-	consideration from the purchaser for transactions made on its
976		-	electronic marketplace.
977		-	(b) Regardless of whether a transaction under subsection (a) was
978		-	SEA 382 — CC 1 24
979		-	made by the marketplace facilitator on its own behalf or facilitated on
980		-	behalf of a seller, A marketplace facilitator is required to do the
981		-	following with each retail transaction made on its marketplace:
982		-	(1) Collect and remit the gross retail tax, even if a seller for whom
983		-	a transaction was facilitated:
984		-	(A) does not have a registered retail merchant certificate; or
985		-	(B) would not have been required to collect gross retail tax had
986		-	the transaction not been facilitated by the marketplace
987		-	facilitator.
988		-	(2) Comply with all applicable procedures and requirements
989		-	imposed under this article as the retail merchant in such
990		-	transaction.
991		-	(c) The gross retail income from a transaction under this section is
992		-	equal to the total amount of consideration paid by the purchaser,
993		-	including the payment of any fee, commission, or other charge by the
994		-	marketplace facilitator, except that the gross retail income does not
995		-	include any taxes on the transaction that are imposed directly on the
996		-	consumer other than taxes described under IC 6-2.5-1-5(c)(2).
997		-	SECTION 21. IC 6-2.5-5-5.1, AS AMENDED BY P.L.239-2017,
998		-	SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
999		-	JULY 1, 2022]: Sec. 5.1. (a) As used in this section, "tangible personal
1000		-	property" includes electrical energy, natural or artificial electricity,
1001		-	gas, water, steam, and steam. heat.
1002		-	(b) Transactions involving tangible personal property are exempt
1003		-	from the state gross retail tax if the person acquiring the property
1004		-	acquires it for direct consumption as a material to be consumed in the
1005		-	direct production of other tangible personal property in the person's
1006		-	business of manufacturing, mining, production, processing,
1007		-	repairing, recycling (as defined in section 45.8 of this chapter),
1008		-	refining, repairing, mining, oil extraction, mineral extraction,
1009		-	irrigation, agriculture, floriculture, arboriculture, or horticulture.
1010		-	floriculture, or arboriculture. This exemption includes transactions
1011		-	involving acquisitions of tangible personal property used in
1012		-	commercial printing.
1013		-	(c) Transactions involving tangible personal property are exempt
1014		-	from the state gross retail tax if the person acquiring that property:
1015		-	(1) acquires it for the person's direct consumption as a material to
1016		-	be consumed in an industrial processing service; and
1017		-	(2) is an industrial processor.
1018		-	(d) Transactions involving tangible personal property are exempt
1019		-	from the state gross retail tax if the person acquiring the property:
1020		-	SEA 382 — CC 1 25
1021		-	(1) acquires it for the person's direct consumption as a material to
1022		-	be consumed in:
1023		-	(A) the direct application of fertilizers, pesticides, fungicides,
1024		-	seeds, and other tangible personal property; or
1025		-	(B) the direct extraction, harvesting, or processing of
1026		-	agricultural commodities;
1027		-	for consideration; and
1028		-	(2) is occupationally engaged in providing the services described
1029		-	in subdivision (1) on property that is:
1030		-	(A) owned or rented by another person occupationally engaged
1031		-	in agricultural production; and
1032		-	(B) used for agricultural production.
1033		-	(e) Transactions involving electricity, gas, water, and steam
1034		-	delivered through a single meter provided by a public utility are
1035		-	exempt if the electrical energy, natural or artificial gas, water,
1036		-	steam, or steam heat is consumed for a purpose exempted pursuant
1037		-	to this section and the electricity, gas, water, or steam is
1038		-	predominately used by the purchaser for one (1) or more of the
1039		-	purposes exempted by this section.
1040		-	SECTION 22. IC 6-2.5-5-8, AS AMENDED BY P.L.156-2020,
1041		-	SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1042		-	JULY 1, 2022]: Sec. 8. (a) As used in this section, "new motor vehicle"
1043		-	has the meaning set forth in IC 9-13-2-111.
1044		-	(b) Except as provided in subsection (j), (e), transactions involving
1045		-	tangible personal property other than a new motor vehicle are exempt
1046		-	from the state gross retail tax if the person acquiring the property
1047		-	acquires it for resale, rental, or leasing in the ordinary course of the
1048		-	person's business without changing the form of the property.
1049		-	(c) The following transactions involving a new motor vehicle are
1050		-	exempt from the state gross retail tax:
1051		-	(1) A transaction in which a person that has a franchise in effect
1052		-	at the time of the transaction for the vehicle trade name, trade or
1053		-	service mark, or related characteristics acquires a new motor
1054		-	vehicle for resale, rental, or leasing in the ordinary course of the
1055		-	person's business.
1056		-	(2) A transaction in which a person that is a franchisee appointed
1057		-	by a manufacturer or converter manufacturer licensed under
1058		-	IC 9-23 (before July 1, 2013) or licensed under IC 9-32 (after
1059		-	June 30, 2013) acquires a new motor vehicle that has at least one
1060		-	(1) trade name, service mark, or related characteristic as a result
1061		-	of modification or further manufacture by the manufacturer or
1062		-	SEA 382 — CC 1 26
1063		-	converter manufacturer for resale, rental, or leasing in the
1064		-	ordinary course of the person's business.
1065		-	(3) A transaction in which a person acquires a new motor vehicle
1066		-	for rental or leasing in the ordinary course of the person's business
1067		-	as a rental company (either as defined in IC 24-4-9-7).
1068		-	IC 24-4-9-7 or as approved by the department).
1069		-	(d) The rental or leasing of accommodations to a promoter by a
1070		-	political subdivision (including a capital improvement board) or the
1071		-	state fair commission is not exempt from the state gross retail tax, if the
1072		-	rental or leasing of the property by the promoter is exempt under
1073		-	IC 6-2.5-4-4.
1074		-	(e) This subsection applies only to aircraft acquired after June 30,
1075		-	2008. Except as provided in subsection (h), a transaction in which a
1076		-	person acquires an aircraft for rental or leasing in the ordinary course
1077		-	of the person's business is not exempt from the state gross retail tax
1078		-	unless the person establishes, under guidelines adopted by the
1079		-	department in the manner provided in IC 4-22-2-37.1 for the adoption
1080		-	of emergency rules, that the annual amount of the gross lease revenue
1081		-	derived from leasing or rental of the aircraft, which may include
1082		-	revenue from related party transactions, is equal to or greater than
1083		-	seven and five-tenths percent (7.5%) of the:
1084		-	(1) book value of the aircraft, as published in the Vref Aircraft
1085		-	Value Reference guide for the aircraft; or
1086		-	(2) net acquisition price for the aircraft.
1087		-	If a person acquires an aircraft below the Vref Aircraft Value
1088		-	Reference guide book value, the person may appeal to the department
1089		-	for a lower lease or rental threshold equal to the actual acquisition price
1090		-	paid if the person demonstrates that the transaction was completed in
1091		-	a commercially reasonable manner based on the aircraft's age,
1092		-	condition, and equipment. The department may request the person to
1093		-	submit to the department supporting documents showing the aircraft is
1094		-	available for general public lease or rental, copies of business and
1095		-	aircraft insurance policies, and other documents that assist the
1096		-	department in determining if an aircraft is exempt from the state gross
1097		-	retail tax.
1098		-	(f) A person is required to meet the requirements of subsection (e)
1099		-	until the earlier of the date the aircraft has generated sales tax on leases
1100		-	or rental income that is equal to the amount of the original sales tax
1101		-	exemption or the elapse of thirteen (13) years. If the aircraft is sold by
1102		-	the person before meeting the requirements of this section and before
1103		-	the sale the aircraft was exempt from gross retail tax under subsection
1104		-	(e), the sale of the aircraft shall not result in the assessment or
1105		-	SEA 382 — CC 1 27
1106		-	collection of gross retail tax for the period from the date of acquisition
1107		-	to the date of sale by the person.
1108		-	(g) The person is required to remit the gross retail tax on taxable
1109		-	lease and rental transactions no matter how long the aircraft is used for
1110		-	lease and rental.
1111		-	(h) This subsection applies only to aircraft acquired after December
1112		-	31, 2007. A transaction in which a person acquires an aircraft to rent
1113		-	or lease the aircraft to another person for predominant use in public
1114		-	transportation by the other person or by an affiliate of the other person
1115		-	is exempt from the state gross retail tax. The department may not
1116		-	require a person to meet the revenue threshold in subsection (e) with
1117		-	respect to the person's leasing or rental of the aircraft to receive or
1118		-	maintain the exemption. To maintain the exemption provided under
1119		-	this subsection, the department may require the person to submit only
1120		-	annual reports showing that the aircraft is predominantly used to
1121		-	provide public transportation.
1122		-	(i) The exemptions allowed under subsections (e) and (h) apply
1123		-	regardless of the relationship, if any, between the person or lessor and
1124		-	the lessee or renter of the aircraft.
1125		-	(j) (e) A person who purchases a motor vehicle for sharing through
1126		-	a peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) is
1127		-	not eligible for the exemption under this section.
1128		-	SECTION 23. IC 6-2.5-5-8.2 IS ADDED TO THE INDIANA
1129		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
1130		-	[EFFECTIVE JULY 1, 2022]: Sec. 8.2. (a) Except as provided in
1131		-	subsection (f), a transaction in which a person acquires an aircraft
1132		-	for rental or leasing in the ordinary course of the person's business
1133		-	is not exempt from the state gross retail tax unless the person
1134		-	establishes, under guidelines adopted by the department in the
1135		-	manner provided in IC 4-22-2 (including the adoption of
1136		-	emergency rules under IC 4-22-2-37.1), that the annual amount of
1137		-	the gross lease revenue derived from leasing or rental of the
1138		-	aircraft, which may include revenue from related party
1139		-	transactions, is equal to or greater than seven and five-tenths
1140		-	percent (7.5%) of the:
1141		-	(1) book value of the aircraft, as published in the VREF
1142		-	Aircraft Value Reference guide for the aircraft; or
1143		-	(2) net acquisition price for the aircraft, which shall include
1144		-	the value of any trade or exchange and excluding any sales
1145		-	commissions paid to third parties.
1146		-	(b) If a person acquires an aircraft below the VREF Aircraft
1147		-	Value Reference guide book value as set forth in subsection (a)(1),
1148		-	SEA 382 — CC 1 28
1149		-	the person may appeal to the department for a lower lease or
1150		-	rental threshold equal to the actual acquisition price paid if the
1151		-	person demonstrates that the transaction was completed in a
1152		-	commercially reasonable manner based on the aircraft's age,
1153		-	condition, and equipment.
1154		-	(c) For purposes of this section, the department may request the
1155		-	person to submit to the department supporting documents showing
1156		-	that the aircraft is available for general public lease or rental,
1157		-	copies of business and aircraft insurance policies, and other
1158		-	documents that assist the department in determining if an aircraft
1159		-	is exempt from the state gross retail tax.
1160		-	(d) A person is required to meet the requirements of subsection
1161		-	(a) until the earlier of the date the aircraft has generated sales tax
1162		-	on leases or rental income that is equal to the amount of the
1163		-	original sales tax exemption, the elapse of thirteen (13) years, or
1164		-	the date the aircraft is sold. No additional sales or use tax is due
1165		-	from the seller on the seller's original purchase when the aircraft
1166		-	is sold if the person has met the terms of this section for all periods
1167		-	prior to the sale.
1168		-	(e) A person is required to remit the gross retail tax on taxable
1169		-	lease and rental transactions the entire time the aircraft is used for
1170		-	lease and rental, even if the aircraft is used for lease and rental
1171		-	beyond a thirteen (13) year period.
1172		-	(f) A transaction in which a person acquires an aircraft to rent
1173		-	or lease the aircraft to another person for predominant use in
1174		-	public transportation (as provided for in section 27 of this chapter)
1175		-	by the other person or by an affiliate of the other person is exempt
1176		-	from the state gross retail tax. The department may not require a
1177		-	person to meet the revenue threshold in subsection (a) with respect
1178		-	to the person's leasing or rental of the aircraft to receive or
1179		-	maintain the exemption. To maintain the exemption provided
1180		-	under this subsection, the department may require the person to
1181		-	submit annual reports showing that the aircraft is predominantly
1182		-	used to provide public transportation.
1183		-	(g) The exemptions allowed under subsections (a) and (f) apply
1184		-	regardless of the relationship, if any, between the person or lessor
1185		-	and the lessee or renter of the aircraft.
1186		-	SECTION 24. IC 6-2.5-5-8.5 IS ADDED TO THE INDIANA
1187		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
1188		-	[EFFECTIVE JULY 1, 2022]: Sec. 8.5. Transactions involving
1189		-	electrical energy, natural or artificial gas, water, steam, or steam
1190		-	heating service sold or furnished by a power subsidiary or a person
1191		-	SEA 382 — CC 1 29
1192		-	engaged as a public utility are exempt from the state gross retail
1193		-	tax when:
1194		-	(1) the power subsidiary or person provides, installs,
1195		-	constructs, services, or removes tangible personal property
1196		-	which is used in connection with the furnishing of the services
1197		-	or commodities listed in IC 6-2.5-4-5;
1198		-	(2) the power subsidiary or person sells the services or
1199		-	commodities listed in IC 6-2.5-4-5 to another public utility or
1200		-	power subsidiary or a person described in IC 6-2.5-4-6; or
1201		-	(3) the power subsidiary or person sells the services or
1202		-	commodities listed in IC 6-2.5-4-5 and all of the following
1203		-	conditions are satisfied:
1204		-	(A) The services or commodities are sold to a business
1205		-	that:
1206		-	(i) relocates all or part of its operations to a facility; or
1207		-	(ii) expands all or part of its operations in a facility;
1208		-	located in a military base (as defined in IC 36-7-30-1(c)), a
1209		-	military base reuse area established under
1210		-	IC 36-7-14.5-12.5 that is or formerly was a military base
1211		-	(as defined in IC 36-7-30-1(c)), or a qualified military base
1212		-	enhancement area established under IC 36-7-34.
1213		-	(B) The business uses the services or commodities in the
1214		-	facility described in clause (A) not later than five (5) years
1215		-	after the operation that relocated to the facility, or
1216		-	expanded in the facility, commence.
1217		-	(C) The sales of the services or commodities are separately
1218		-	metered for use by the relocated or expanded operations.
1219		-	(D) In the case of a business that uses the services or
1220		-	commodities in a qualified military base enhancement area
1221		-	established under IC 36-7-34-4(1), the business must satisfy
1222		-	at least one (1) of the following criteria:
1223		-	(i) The business is a participant in the technology
1224		-	transfer program conducted by the qualified military
1225		-	base (as defined in IC 36-7-34-3).
1226		-	(ii) The business is a United States Department of
1227		-	Defense contractor.
1228		-	(iii) The business and the qualified military base have a
1229		-	mutually beneficial relationship evidenced by a
1230		-	memorandum of understanding between the business
1231		-	and the United States Department of Defense.
1232		-	(E) In the case of a business that uses the services and
1233		-	commodities in a qualified military base enhancement area
1234		-	SEA 382 — CC 1 30
1235		-	established under IC 36-7-34-4(2), the business must satisfy
1236		-	at least one (1) of the following criteria:
1237		-	(i) The business is a participant in the technology
1238		-	transfer program conducted by the qualified military
1239		-	base (as defined in IC 36-7-34-3).
1240		-	(ii) The business and the qualified miliary base have a
1241		-	mutually beneficial relationship evidenced by a
1242		-	memorandum of understanding between the business
1243		-	and the qualified military base (as defined in
1244		-	IC 36-7-34-3).
1245		-	However, this subdivision does not apply to a business that
1246		-	substantially reduces or ceases its operations at another
1247		-	location in Indiana in order to relocate its operations in an
1248		-	area described in this subdivision, unless the department
1249		-	determines that the business had existing operations in the
1250		-	area described in this subdivision and that the operations
1251		-	relocated to the area are an expansion of the business's
1252		-	operations in the area.
1253		-	SECTION 25. IC 6-2.5-5-10 IS AMENDED TO READ AS
1254		-	FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 10. Transactions
1255		-	involving tangible personal property are exempt from the state gross
1256		-	retail tax, if:
1257		-	(1) the property is classified as production plant or power
1258		-	production expenses, according to the uniform system of accounts
1259		-	which was adopted and prescribed for the utility by the Indiana
1260		-	utility regulatory commission; and
1261		-	(2) the person acquiring the property is:
1262		-	(A) a public utility that furnishes or sells electrical energy,
1263		-	steam, or steam heat in a retail transaction described in
1264		-	IC 6-2.5-4-5; or
1265		-	(B) a power subsidiary (as defined in IC 6-2.5-4-5(a))
1266		-	IC 6-2.5-1-22.5) that furnishes or sells electrical energy,
1267		-	steam, or steam heat to a public utility described in clause (A).
1268		-	SECTION 26. IC 6-2.5-5-10.5, AS ADDED BY P.L.159-2021,
1269		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1270		-	JULY 1, 2022]: Sec. 10.5. (a) Transactions occurring on or after May
1271		-	1, 2021, involving tangible personal property are exempt from the state
1272		-	gross retail tax, if:
1273		-	(1) the property is classified as a utility scale battery energy
1274		-	storage system as defined in subsection (b);
1275		-	(2) the person acquiring the property is:
1276		-	(A) a public utility that furnishes or sells electrical energy; or
1277		-	SEA 382 — CC 1 31
1278		-	(B) a power subsidiary (as defined in IC 6-2.5-4-5(a))
1279		-	IC 6-2.5-1-22.5) that furnishes or sells electrical energy to a
1280		-	public utility described in clause (A); and
1281		-	(3) the person acquiring the property uses the property to store
1282		-	electrical energy in-front of the customer's meter.
1283		-	(b) As used in this section, a "utility scale battery energy storage
1284		-	system" means a system capable of storing and releasing greater than
1285		-	1MW of electrical energy for a minimum of one (1) hour utilizing an
1286		-	AC inverter and DC storage, or equipment which receives, stores, and
1287		-	delivers energy using batteries, compressed air, pumped hydropower,
1288		-	hydrogen storage (including hydrolysis), thermal energy storage,
1289		-	regenerative fuel cells, flywheels, capacitors, and superconducting
1290		-	magnets, but does not include foundations or property used to directly
1291		-	or indirectly connect the AC inverter or DC storage of such system to
1292		-	electrical energy production equipment or the customer's meter.
1293		-	SECTION 27. IC 6-2.5-5-21, AS AMENDED BY P.L.293-2013(ts),
1294		-	SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1295		-	JULY 1, 2022]: Sec. 21. (a) For purposes of this section, "private
1296		-	benefit or gain" does not include reasonable compensation paid to an
1297		-	employee for work or services actually performed.
1298		-	(b) Sales of food and food ingredients are exempt from the state
1299		-	gross retail tax if:
1300		-	(1) the seller meets the filing requirements under subsection (d)
1301		-	and is any of the following:
1302		-	(A) A fraternity, a sorority, or a student cooperative housing
1303		-	organization that is connected with and under the supervision
1304		-	of a postsecondary educational institution if no part of its
1305		-	income is used for the private benefit or gain of any member,
1306		-	trustee, shareholder, employee, or associate.
1307		-	(B) Any:
1308		-	(i) institution;
1309		-	(ii) trust;
1310		-	(iii) group;
1311		-	(iv) united fund;
1312		-	(v) affiliated agency of a united fund;
1313		-	(vi) nonprofit corporation;
1314		-	(vii) cemetery association; or
1315		-	(viii) organization;
1316		-	that is organized and operated exclusively for religious,
1317		-	charitable, scientific, literary, educational, or civic purposes if
1318		-	no part of its income is used for the private benefit or gain of
1319		-	SEA 382 — CC 1 32
1320		-	any member, trustee, shareholder, employee, or associate.
1321		-	(C) A group, an organization, or a nonprofit corporation that
1322		-	is organized and operated for fraternal or social purposes, or
1323		-	as a business league or association, and not for the private
1324		-	benefit or gain of any member, trustee, shareholder, employee,
1325		-	or associate.
1326		-	(D) A:
1327		-	(i) hospital licensed by the state department of health;
1328		-	(ii) shared hospital services organization exempt from
1329		-	federal income taxation by Section 501(c)(3) or 501(e) of
1330		-	the Internal Revenue Code;
1331		-	(iii) labor union;
1332		-	(iv) church;
1333		-	(v) monastery;
1334		-	(vi) convent;
1335		-	(vii) school that is a part of the Indiana public school
1336		-	system;
1337		-	(viii) parochial school regularly maintained by a recognized
1338		-	religious denomination; or
1339		-	(ix) trust created for the purpose of paying pensions to
1340		-	members of a particular profession or business who created
1341		-	the trust for the purpose of paying pensions to each other;
1342		-	if the taxpayer is not organized or operated for private profit or
1343		-	gain; an organization described in section 25(a)(1) of this
1344		-	chapter;
1345		-	(2) the purchaser is a person confined to the purchaser's home
1346		-	because of age, sickness, or infirmity;
1347		-	(3) the seller delivers the food and food ingredients to the
1348		-	purchaser; and
1349		-	(4) the delivery is prescribed as medically necessary by a
1350		-	physician licensed to practice medicine in Indiana.
1351		-	(c) Sales of food and food ingredients are exempt from the state
1352		-	gross retail tax if the seller is an organization described in subsection
1353		-	(b)(1), section 25(a)(1) of this chapter, and the purchaser is a patient
1354		-	in a hospital operated by the seller.
1355		-	(d) To obtain the exemption provided by this section, a taxpayer
1356		-	must file an application for exemption with the department not later
1357		-	than one hundred twenty (120) days after the taxpayer's formation. In
1358		-	addition, the taxpayer must file an annual report with the department
1359		-	on or before the fifteenth day of the fifth month following the close of
1360		-	each taxable year. If a taxpayer fails to file the report, the department
1361		-	SEA 382 — CC 1 33
1362		-	shall notify the taxpayer of the failure. If within sixty (60) days after
1363		-	receiving such notice the taxpayer does not provide the report, the
1364		-	taxpayer's exemption shall be canceled. However, the department may
1365		-	reinstate the taxpayer's exemption if the taxpayer shows by petition that
1366		-	the failure was due to excusable neglect. follow the procedures set
1367		-	forth in section 25(c) of this chapter.
1368		-	SECTION 28. IC 6-2.5-5-22 IS AMENDED TO READ AS
1369		-	FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 22. (a) Sales of school
1370		-	meals are exempt from the state gross retail tax if:
1371		-	(1) the seller is a school containing students in any grade, one (1)
1372		-	through twelve (12);
1373		-	(2) the purchaser is one (1) of those students or a school
1374		-	employee; and
1375		-	(3) the school furnishes the food and food ingredients on its
1376		-	premises.
1377		-	(b) Sales of food and food ingredients by not-for-profit colleges or
1378		-	universities are exempt from the state gross retail tax, if the purchaser
1379		-	is a student at the college or university.
1380		-	(c) Sales of meals after December 31, 1976, by a fraternity, sorority,
1381		-	or student cooperative housing organization described in section
1382		-	21(b)(1)(A) 25(a)(1)(A) of this chapter are exempt from the state gross
1383		-	retail tax, if the purchaser:
1384		-	(1) is a member of the fraternity, sorority, or student cooperative
1385		-	housing organization; and
1386		-	(2) is enrolled in the college, university, or educational institution
1387		-	with which the fraternity, sorority, or student cooperative housing
1388		-	organization is connected and by which it is supervised.
1389		-	SECTION 29. IC 6-2.5-5-24 IS AMENDED TO READ AS
1390		-	FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 24. (a) Transactions are
1391		-	exempt from the state gross retail tax to the extent that the gross retail
1392		-	income from those transactions is derived from gross receipts that are:
1393		-	(1) derived from sales to the United States government, to the
1394		-	extent the state is prohibited by the Constitution of the United
1395		-	States; from taxing that gross income;
1396		-	(2) derived from commercial printing that results in printed
1397		-	materials, excluding the business of photocopying, that are
1398		-	shipped, mailed, or delivered outside Indiana;
1399		-	(3) United States or Indiana taxes received or collected as a
1400		-	collecting agent explicitly designated as a collecting agent for a
1401		-	tax by statute for the state or the United States;
1402		-	(4) collections by a retail merchant of a retailer's excise tax
1403		-	SEA 382 — CC 1 34
1404		-	imposed by the United States if:
1405		-	(A) the tax is imposed solely on the sale at retail of tangible
1406		-	personal property;
1407		-	(B) the tax is remitted to the appropriate taxing authority; and
1408		-	(C) the retail merchant collects the tax separately as an
1409		-	addition to the price of the property sold;
1410		-	(5) collections of a manufacturer's excise tax imposed by the
1411		-	United States on motor vehicles, motor vehicle bodies and
1412		-	chassis, parts and accessories for motor vehicles, tires, tubes for
1413		-	tires, or tread rubber and laminated tires, if the excise tax is
1414		-	separately stated by the collecting taxpayer as either an addition
1415		-	to or an inclusion in the price of the property sold; or
1416		-	(6) amounts represented by an encumbrance of any kind on
1417		-	tangible personal property received by a retail merchant in
1418		-	reciprocal exchange for tangible personal property of like kind.
1419		-	(b) Transactions are exempt from the state gross retail tax to the
1420		-	extent that the gross retail income from those transactions is derived
1421		-	from gross receipts that are:
1422		-	(1) interest or other earnings paid on bonds or other securities
1423		-	issued by the United States, to the extent the Constitution of the
1424		-	United States prohibits the taxation of that gross income; or
1425		-	(2) derived from business conducted in commerce between the
1426		-	state and either another state or a foreign country, to the extent the
1427		-	state is prohibited from taxing that gross income by the
1428		-	Constitution of the United States.
1429		-	SECTION 30. IC 6-2.5-5-25, AS AMENDED BY P.L.293-2013(ts),
1430		-	SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1431		-	JULY 1, 2022]: Sec. 25. (a) Transactions involving tangible personal
1432		-	property, accommodations, or service are exempt from the state gross
1433		-	retail tax, if the person acquiring the property, accommodations, or
1434		-	service:
1435		-	(1) is an organization described in section 21(b)(1) of this
1436		-	chapter; any of the following types of organizations:
1437		-	(A) A fraternity, a sorority, or a student cooperative
1438		-	housing organization that is connected with and under the
1439		-	supervision of a postsecondary educational institution if no
1440		-	part of its income is used for the private benefit or gain of
1441		-	any member, trustee, shareholder, employee, or associate.
1442		-	(B) Any:
1443		-	(i) institution;
1444		-	(ii) trust;
1445		-	SEA 382 — CC 1 35
1446		-	(iii) group;
1447		-	(iv) united fund;
1448		-	(v) affiliated agency of a united fund;
1449		-	(vi) nonprofit corporation;
1450		-	(vii) cemetery association; or
1451		-	(viii) organization;
1452		-	that is organized and operated exclusively for religious,
1453		-	charitable, scientific, literary, educational, or civic
1454		-	purposes if no part of its income is used for the private
1455		-	benefit or gain of any member, trustee, shareholder,
1456		-	employee, or associate.
1457		-	(C) A group, an organization, or a nonprofit corporation
1458		-	that is organized and operated for fraternal or social
1459		-	purposes, or as a business league or association, and not
1460		-	for the private benefit or gain of any member, trustee,
1461		-	shareholder, employee, or associate.
1462		-	(D) A:
1463		-	(i) hospital licensed by the state department of health;
1464		-	(ii) shared hospital services organization exempt from
1465		-	federal income taxation by Section 501(c)(3) or 501(e) of
1466		-	the Internal Revenue Code;
1467		-	(iii) labor union;
1468		-	(iv) church;
1469		-	(v) monastery;
1470		-	(vi) convent;
1471		-	(vii) school that is a part of the Indiana public school
1472		-	system;
1473		-	(viii) parochial school regularly maintained by a
1474		-	recognized religious denomination; or
1475		-	(ix) trust created for the purpose of paying pensions to
1476		-	members of a particular profession or business who
1477		-	created the trust for the purpose of paying pensions to
1478		-	each other;
1479		-	if the taxpayer is not organized or operated for private
1480		-	profit or gain;
1481		-	(2) primarily uses the property, accommodations, or service to
1482		-	carry on or to raise money to carry on its not-for-profit purpose;
1483		-	and
1484		-	(3) is not an organization operated predominantly for social
1485		-	purposes.
1486		-	(b) Transactions involving tangible personal property or service are
1487		-	SEA 382 — CC 1 36
1488		-	exempt from the state gross retail tax, if the person acquiring the
1489		-	property or service:
1490		-	(1) is a fraternity, sorority, or student cooperative housing
1491		-	organization described in section 21(b)(1)(A) of this chapter;
1492		-	subsection (a)(1)(A); and
1493		-	(2) uses the property or service to carry on its ordinary and usual
1494		-	activities and operations as a fraternity, sorority, or student
1495		-	cooperative housing organization.
1496		-	(c) To obtain the exemption provided by this section, a taxpayer
1497		-	must file an application for exemption with the department not
1498		-	later than one hundred twenty (120) days after the taxpayer's
1499		-	formation. In addition, the taxpayer must file a report with the
1500		-	department on or before the fifteenth day of the fifth month every
1501		-	five (5) years following the date of its formation. The report must
1502		-	be filed electronically with the department in the manner
1503		-	determined by the department. If a taxpayer fails to file the report,
1504		-	the department shall notify the taxpayer of the failure. If within
1505		-	sixty (60) days after receiving such notice the taxpayer does not
1506		-	provide the report, the taxpayer's exemption shall be canceled.
1507		-	However, the department may reinstate the taxpayer's exemption
1508		-	if the taxpayer shows by petition that the failure was due to
1509		-	reasonable cause.
1510		-	(d) Notwithstanding subsection (c), a taxpayer filing a report
1511		-	under this subsection or section 21(d) of this chapter (prior to
1512		-	recodification) after December 31, 2021, and before January 1,
1513		-	2023, will be required to file the next required report on or before
1514		-	the following dates:
1515		-	(1) May 15, 2024, if the taxpayer does not have a federal
1516		-	employer identification number or has a federal employer
1517		-	identification number ending in 00 through 24, inclusive.
1518		-	(2) May 15, 2025, if the taxpayer has a federal employer
1519		-	identification number ending in 25 through 49, inclusive.
1520		-	(3) May 15, 2026, if the taxpayer has a federal employer
1521		-	identification number ending in 50 through 74, inclusive.
1522		-	(4) May 15, 2027, if the taxpayer has a federal employer
1523		-	identification number ending in 75 through 99 inclusive.
1524		-	SECTION 31. IC 6-2.5-5-26, AS AMENDED BY P.L.214-2018(ss),
1525		-	SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1526		-	JULY 1, 2022]: Sec. 26. (a) Sales of tangible personal property by an
1527		-	organization described in section 25(a)(1) of this chapter are exempt
1528		-	from the state gross retail tax, if:
1529		-	(1) the seller is an organization that is described in section
1530		-	SEA 382 — CC 1 37
1531		-	21(b)(1) of this chapter;
1532		-	(2) (1) the organization makes the sale to make money to carry on
1533		-	a not-for-profit purpose; and
1534		-	(3) (2) the organization does not make those sales during more
1535		-	than thirty (30) days twenty thousand dollars ($20,000) in sales
1536		-	in a calendar year.
1537		-	Once sales of an organization exceed the amount described in
1538		-	subdivision (2), the organization is required to collect state gross
1539		-	retail tax on sales on an ongoing basis for the remainder of the
1540		-	calendar year.
1541		-	(b) For purposes of subsection (a), the sales of an organization
1542		-	include sales made by all units operating under the organization's
1543		-	registration pursuant to section 25(c) of this chapter.
1544		-	(b) (c) If the qualifications of subsection (a) are not met, sales of
1545		-	tangible personal property by an organization described in section
1546		-	25(a)(1) of this chapter are exempt from the state gross retail tax, if:
1547		-	(1) the seller is an organization described in section 21(b)(1) of
1548		-	this chapter;
1549		-	(2) (1) the seller organization is not operated predominantly for
1550		-	social purposes;
1551		-	(3) (2) the property sold is designed and intended primarily either
1552		-	for the organization's educational, cultural, or religious purposes,
1553		-	or for improvement of the work skills or professional
1554		-	qualifications of the organization's members; and
1555		-	(4) (3) the property sold is not designed or intended primarily for
1556		-	use in carrying on a private or proprietary business.
1557		-	(c) (d) Sales of tangible personal property by a public library, or a
1558		-	charitable organization described in section 21(b)(1) 25(a)(1) of this
1559		-	chapter formed to support a public library, are exempt from the state
1560		-	gross retail tax if the property sold consists of:
1561		-	(1) items in the library's circulated and publicly available
1562		-	collections, including items from the library's holdings; or
1563		-	(2) items that would typically be included in the library's
1564		-	circulated and publicly available collections and that are donated
1565		-	by individuals or organizations to a public library or to a
1566		-	charitable organization described in section 21(b)(1) 25(a)(1) of
1567		-	this chapter formed to support a public library.
1568		-	The exemption provided by this subsection does not apply to any other
1569		-	sales of tangible personal property by a public library.
1570		-	(d) (e) The exemption provided by this section does not apply to an
1571		-	accredited college or university's sales of books, stationery,
1572		-	SEA 382 — CC 1 38
1573		-	haberdashery, supplies, or other property.
1574		-	(f) To obtain the exemption provided by this section, a taxpayer
1575		-	must follow the procedures set forth in section 25(c) of this chapter.
1576		-	SECTION 32. IC 6-2.5-8-8, AS AMENDED BY P.L.159-2021,
1577		-	SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1578		-	JULY 1, 2022]: Sec. 8. (a) A person, authorized under subsection (b),
1579		-	who makes a purchase in a transaction which is exempt from the state
1580		-	gross retail and use taxes, may issue an exemption certificate to the
1581		-	seller instead of paying the tax. Except as provided in subsection (c),
1582		-	the person shall issue the certificate on forms and in the manner
1583		-	prescribed by the department on the department's Internet web site.
1584		-	A seller accepting a proper exemption certificate under this section has
1585		-	no duty to collect or remit the state gross retail or use tax on that
1586		-	purchase.
1587		-	(b) The following are the only persons authorized to issue
1588		-	exemption certificates:
1589		-	(1) Retail merchants, wholesalers, and manufacturers, who are
1590		-	registered with the department under this chapter.
1591		-	(2) Organizations which are exempt from the state gross retail tax
1592		-	under IC 6-2.5-5-21, IC 6-2.5-5-25, or IC 6-2.5-5-26 and which
1593		-	are registered with the department under this chapter.
1594		-	(3) (2) Persons who are exempt from the state gross retail tax
1595		-	under IC 6-2.5-4-5 and who receive an exemption certificate from
1596		-	the department.
1597		-	(4) (3) Other persons who are exempt from the state gross retail
1598		-	tax with respect to any part of their purchases.
1599		-	(c) Organizations that are exempt from the state gross retail tax
1600		-	under IC 6-2.5-5-21, IC 6-2.5-5-25, or IC 6-2.5-5-26 and that are
1601		-	registered with the department pursuant to IC 6-2.5-5-25(c) shall
1602		-	be electronically issued an exemption certificate by the department.
1603		-	(c) (d) The department may also allow a person to issue a blanket
1604		-	exemption certificate to cover exempt purchases over a stated period
1605		-	of time. The department may impose conditions on the use of the
1606		-	blanket exemption certificate and restrictions on the kind or category
1607		-	of purchases that are exempt.
1608		-	(d) (e) A seller that accepts an incomplete exemption certificate
1609		-	under subsection (a) is not relieved of the duty to collect gross retail or
1610		-	use tax on the sale unless the seller obtains:
1611		-	(1) a fully completed exemption certificate; or
1612		-	(2) the relevant data to complete the exemption certificate;
1613		-	within ninety (90) days after the sale.
1614		-	SEA 382 — CC 1 39
1615		-	(e) (f) If a seller has accepted an incomplete exemption certificate
1616		-	under subsection (a) and the department requests that the seller
1617		-	substantiate the exemption, within one hundred twenty (120) days after
1618		-	the department makes the request the seller shall:
1619		-	(1) obtain a fully completed exemption certificate; or
1620		-	(2) prove by other means that the transaction was not subject to
1621		-	state gross retail or use tax.
1622		-	(f) (g) A power subsidiary (as defined in IC 6-2.5-4-5)
1623		-	IC 6-2.5-1-22.5) or a person selling the services or commodities listed
1624		-	in IC 6-2.5-4-5(b) IC 6-2.5-4-5 who accepts an exemption certificate
1625		-	issued by the department to a person who is exempt from the state
1626		-	gross retail tax under IC 6-2.5-4-5 is relieved from the duty to collect
1627		-	state gross retail or use tax on the sale of the services or commodities
1628		-	listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 until notified by the department
1629		-	that the exemption certificate has expired or has been revoked. If the
1630		-	department notifies a power subsidiary or a person selling the services
1631		-	or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 that a person's
1632		-	exemption certificate has expired or has been revoked, the power
1633		-	subsidiary or person selling the services or commodities listed in
1634		-	IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall begin collecting state gross retail tax
1635		-	on the sale of the services or commodities listed in IC 6-2.5-4-5(b)
1636		-	IC 6-2.5-4-5 to the person whose exemption certificate has expired or
1637		-	been revoked not later than thirty (30) days after the date of the
1638		-	department's notice. An exemption certificate issued by the department
1639		-	to a person who is exempt from the state gross retail tax under
1640		-	IC 6-2.5-4-5 remains valid for that person regardless of any subsequent
1641		-	one (1) for one (1) meter number changes with respect to that person
1642		-	that are required, made, or initiated by a power subsidiary or a person
1643		-	selling the services or commodities listed in IC 6-2.5-4-5(b),
1644		-	IC 6-2.5-4-5, unless the department revokes the exemption certificate.
1645		-	Within thirty (30) days after the final day of each calendar year quarter,
1646		-	a power subsidiary or a person selling the services or commodities
1647		-	listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall report to the department any
1648		-	meter number changes made during the immediately preceding
1649		-	calendar year quarter and distinguish between the one (1) for one (1)
1650		-	meter changes and the one (1) for multiple meter changes made during
1651		-	the calendar year quarter. A power subsidiary or a person selling the
1652		-	services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 shall
1653		-	maintain records sufficient to document each one (1) to one (1) meter
1654		-	change. A person may request the department to reissue an exemption
1655		-	certificate with a new meter number in the event of a one (1) to one (1)
1656		-	meter change. Except for a person to whom a blanket utility exemption
1657		-	SEA 382 — CC 1 40
1658		-	applies, any meter number changes not involving a one (1) to one (1)
1659		-	relationship will no longer be exempt and will require the person to
1660		-	submit a new utility exemption application for the new meters. Until an
1661		-	application for a new meter is approved, the new meter is subject to the
1662		-	state gross retail tax and the power subsidiary or the person selling the
1663		-	services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 is
1664		-	required to collect the state gross retail tax from the date of the meter
1665		-	change.
1666		-	SECTION 33. IC 6-3-1-3.5, AS AMENDED BY P.L.159-2021,
1667		-	SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1668		-	JANUARY 1, 2021 (RETROACTIVE)]: Sec. 3.5. When used in this
1669		-	article, the term "adjusted gross income" shall mean the following:
1670		-	(a) In the case of all individuals, "adjusted gross income" (as
1671		-	defined in Section 62 of the Internal Revenue Code), modified as
1672		-	follows:
1673		-	(1) Subtract income that is exempt from taxation under this article
1674		-	by the Constitution and statutes of the United States.
1675		-	(2) Except as provided in subsection (c), add an amount equal to
1676		-	any deduction or deductions allowed or allowable pursuant to
1677		-	Section 62 of the Internal Revenue Code for taxes based on or
1678		-	measured by income and levied at the state level by any state of
1679		-	the United States.
1680		-	(3) Subtract one thousand dollars ($1,000), or in the case of a
1681		-	joint return filed by a husband and wife, subtract for each spouse
1682		-	one thousand dollars ($1,000).
1683		-	(4) Subtract one thousand dollars ($1,000) for:
1684		-	(A) each of the exemptions provided by Section 151(c) of the
1685		-	Internal Revenue Code (as effective January 1, 2017);
1686		-	(B) each additional amount allowable under Section 63(f) of
1687		-	the Internal Revenue Code; and
1688		-	(C) the spouse of the taxpayer if a separate return is made by
1689		-	the taxpayer and if the spouse, for the calendar year in which
1690		-	the taxable year of the taxpayer begins, has no gross income
1691		-	and is not the dependent of another taxpayer.
1692		-	(5) Subtract:
1693		-	(A) one thousand five hundred dollars ($1,500) for each of the
1694		-	exemptions allowed under Section 151(c)(1)(B) of the Internal
1695		-	Revenue Code (as effective January 1, 2004);
1696		-	(B) one thousand five hundred dollars ($1,500) for each
1697		-	exemption allowed under Section 151(c) of the Internal
1698		-	Revenue Code (as effective January 1, 2017) for an individual:
1699		-	SEA 382 — CC 1 41
1700		-	(i) who is less than nineteen (19) years of age or is a
1701		-	full-time student who is less than twenty-four (24) years of
1702		-	age;
1703		-	(ii) for whom the taxpayer is the legal guardian; and
1704		-	(iii) for whom the taxpayer does not claim an exemption
1705		-	under clause (A); and
1706		-	(C) five hundred dollars ($500) for each additional amount
1707		-	allowable under Section 63(f)(1) of the Internal Revenue Code
1708		-	if the federal adjusted gross income of the taxpayer, or the
1709		-	taxpayer and the taxpayer's spouse in the case of a joint return,
1710		-	is less than forty thousand dollars ($40,000). In the case of a
1711		-	married individual filing a separate return, the qualifying
1712		-	income amount in this clause is equal to twenty thousand
1713		-	dollars ($20,000).
1714		-	This amount is in addition to the amount subtracted under
1715		-	subdivision (4).
1716		-	(6) Subtract any amounts included in federal adjusted gross
1717		-	income under Section 111 of the Internal Revenue Code as a
1718		-	recovery of items previously deducted as an itemized deduction
1719		-	from adjusted gross income.
1720		-	(7) Subtract any amounts included in federal adjusted gross
1721		-	income under the Internal Revenue Code which amounts were
1722		-	received by the individual as supplemental railroad retirement
1723		-	annuities under 45 U.S.C. 231 and which are not deductible under
1724		-	subdivision (1).
1725		-	(8) Subtract an amount equal to the amount of federal Social
1726		-	Security and Railroad Retirement benefits included in a taxpayer's
1727		-	federal gross income by Section 86 of the Internal Revenue Code.
1728		-	(9) In the case of a nonresident taxpayer or a resident taxpayer
1729		-	residing in Indiana for a period of less than the taxpayer's entire
1730		-	taxable year, the total amount of the deductions allowed pursuant
1731		-	to subdivisions (3), (4), and (5) shall be reduced to an amount
1732		-	which bears the same ratio to the total as the taxpayer's income
1733		-	taxable in Indiana bears to the taxpayer's total income.
1734		-	(10) In the case of an individual who is a recipient of assistance
1735		-	under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
1736		-	subtract an amount equal to that portion of the individual's
1737		-	adjusted gross income with respect to which the individual is not
1738		-	allowed under federal law to retain an amount to pay state and
1739		-	local income taxes.
1740		-	(11) In the case of an eligible individual, subtract the amount of
1741		-	SEA 382 — CC 1 42
1742		-	a Holocaust victim's settlement payment included in the
1743		-	individual's federal adjusted gross income.
1744		-	(12) Subtract an amount equal to the portion of any premiums
1745		-	paid during the taxable year by the taxpayer for a qualified long
1746		-	term care policy (as defined in IC 12-15-39.6-5) for the taxpayer
1747		-	or the taxpayer's spouse if the taxpayer and the taxpayer's spouse
1748		-	file a joint income tax return or the taxpayer is otherwise entitled
1749		-	to a deduction under this subdivision for the taxpayer's spouse, or
1750		-	both.
1751		-	(13) Subtract an amount equal to the lesser of:
1752		-	(A) two thousand five hundred dollars ($2,500), or one
1753		-	thousand two hundred fifty dollars ($1,250) in the case of a
1754		-	married individual filing a separate return; or
1755		-	(B) the amount of property taxes that are paid during the
1756		-	taxable year in Indiana by the individual on the individual's
1757		-	principal place of residence.
1758		-	(14) Subtract an amount equal to the amount of a September 11
1759		-	terrorist attack settlement payment included in the individual's
1760		-	federal adjusted gross income.
1761		-	(15) Add or subtract the amount necessary to make the adjusted
1762		-	gross income of any taxpayer that owns property for which bonus
1763		-	depreciation was allowed in the current taxable year or in an
1764		-	earlier taxable year equal to the amount of adjusted gross income
1765		-	that would have been computed had an election not been made
1766		-	under Section 168(k) of the Internal Revenue Code to apply bonus
1767		-	depreciation to the property in the year that it was placed in
1768		-	service.
1769		-	(16) Add an amount equal to any deduction allowed under
1770		-	Section 172 of the Internal Revenue Code (concerning net
1771		-	operating losses).
1772		-	(17) Add or subtract the amount necessary to make the adjusted
1773		-	gross income of any taxpayer that placed Section 179 property (as
1774		-	defined in Section 179 of the Internal Revenue Code) in service
1775		-	in the current taxable year or in an earlier taxable year equal to
1776		-	the amount of adjusted gross income that would have been
1777		-	computed had an election for federal income tax purposes not
1778		-	been made for the year in which the property was placed in
1779		-	service to take deductions under Section 179 of the Internal
1780		-	Revenue Code in a total amount exceeding the sum of:
1781		-	(A) twenty-five thousand dollars ($25,000) to the extent
1782		-	deductions under Section 179 of the Internal Revenue Code
1783		-	were not elected as provided in clause (B); and
1784		-	SEA 382 — CC 1 43
1785		-	(B) for taxable years beginning after December 31, 2017, the
1786		-	deductions elected under Section 179 of the Internal Revenue
1787		-	Code on property acquired in an exchange if:
1788		-	(i) the exchange would have been eligible for
1789		-	nonrecognition of gain or loss under Section 1031 of the
1790		-	Internal Revenue Code in effect on January 1, 2017;
1791		-	(ii) the exchange is not eligible for nonrecognition of gain or
1792		-	loss under Section 1031 of the Internal Revenue Code; and
1793		-	(iii) the taxpayer made an election to take deductions under
1794		-	Section 179 of the Internal Revenue Code with regard to the
1795		-	acquired property in the year that the property was placed
1796		-	into service.
1797		-	The amount of deductions allowable for an item of property
1798		-	under this clause may not exceed the amount of adjusted gross
1799		-	income realized on the property that would have been deferred
1800		-	under the Internal Revenue Code in effect on January 1, 2017.
1801		-	(18) Subtract an amount equal to the amount of the taxpayer's
1802		-	qualified military income that was not excluded from the
1803		-	taxpayer's gross income for federal income tax purposes under
1804		-	Section 112 of the Internal Revenue Code.
1805		-	(19) Subtract income that is:
1806		-	(A) exempt from taxation under IC 6-3-2-21.7 (certain income
1807		-	derived from patents); and
1808		-	(B) included in the individual's federal adjusted gross income
1809		-	under the Internal Revenue Code.
1810		-	(20) Add an amount equal to any income not included in gross
1811		-	income as a result of the deferral of income arising from business
1812		-	indebtedness discharged in connection with the reacquisition after
1813		-	December 31, 2008, and before January 1, 2011, of an applicable
1814		-	debt instrument, as provided in Section 108(i) of the Internal
1815		-	Revenue Code. Subtract the amount necessary from the adjusted
1816		-	gross income of any taxpayer that added an amount to adjusted
1817		-	gross income in a previous year to offset the amount included in
1818		-	federal gross income as a result of the deferral of income arising
1819		-	from business indebtedness discharged in connection with the
1820		-	reacquisition after December 31, 2008, and before January 1,
1821		-	2011, of an applicable debt instrument, as provided in Section
1822		-	108(i) of the Internal Revenue Code.
1823		-	(21) Add the amount excluded from federal gross income under
1824		-	Section 103 of the Internal Revenue Code for interest received on
1825		-	an obligation of a state other than Indiana, or a political
1826		-	SEA 382 — CC 1 44
1827		-	subdivision of such a state, that is acquired by the taxpayer after
1828		-	December 31, 2011.
1829		-	(22) Subtract an amount as described in Section 1341(a)(2) of the
1830		-	Internal Revenue Code to the extent, if any, that the amount was
1831		-	previously included in the taxpayer's adjusted gross income for a
1832		-	prior taxable year.
1833		-	(23) For taxable years beginning after December 25, 2016, add an
1834		-	amount equal to the deduction for deferred foreign income that
1835		-	was claimed by the taxpayer for the taxable year under Section
1836		-	965(c) of the Internal Revenue Code.
1837		-	(24) Subtract any interest expense paid or accrued in the current
1838		-	taxable year but not deducted as a result of the limitation imposed
1839		-	under Section 163(j)(1) of the Internal Revenue Code. Add any
1840		-	interest expense paid or accrued in a previous taxable year but
1841		-	allowed as a deduction under Section 163 of the Internal Revenue
1842		-	Code in the current taxable year. For purposes of this subdivision,
1843		-	an interest expense is considered paid or accrued only in the first
1844		-	taxable year the deduction would have been allowable under
1845		-	Section 163 of the Internal Revenue Code if the limitation under
1846		-	Section 163(j)(1) of the Internal Revenue Code did not exist.
1847		-	(25) Subtract the amount that would have been excluded from
1848		-	gross income but for the enactment of Section 118(b)(2) of the
1849		-	Internal Revenue Code for taxable years ending after December
1850		-	22, 2017.
1851		-	(26) For taxable years beginning after December 31, 2019, and
1852		-	before January 1, 2021, add an amount of the deduction claimed
1853		-	under Section 62(a)(22) of the Internal Revenue Code.
1854		-	(27) For taxable years beginning after December 31, 2019, for
1855		-	payments made by an employer under an education assistance
1856		-	program after March 27, 2020:
1857		-	(A) add the amount of payments by an employer that are
1858		-	excluded from the taxpayer's federal gross income under
1859		-	Section 127(c)(1)(B) of the Internal Revenue Code; and
1860		-	(B) deduct the interest allowable under Section 221 of the
1861		-	Internal Revenue Code, if the disallowance under Section
1862		-	221(e)(1) of the Internal Revenue Code did not apply to the
1863		-	payments described in clause (A). For purposes of applying
1864		-	Section 221(b) of the Internal Revenue Code to the amount
1865		-	allowable under this clause, the amount under clause (A) shall
1866		-	not be added to adjusted gross income.
1867		-	(28) Add an amount equal to the remainder of:
1868		-	SEA 382 — CC 1 45
1869		-	(A) the amount allowable as a deduction under Section 274(n)
1870		-	of the Internal Revenue Code; minus
1871		-	(B) the amount otherwise allowable as a deduction under
1872		-	Section 274(n) of the Internal Revenue Code, if Section
1873		-	274(n)(2)(D) of the Internal Revenue Code was not in effect
1874		-	for amounts paid or incurred after December 31, 2020.
1875		-	(29) For taxable years beginning after December 31, 2017, and
1876		-	before January 1, 2021, add an amount equal to the excess
1877		-	business loss of the taxpayer as defined in Section 461(l)(3) of the
1878		-	Internal Revenue Code. In addition:
1879		-	(A) If a taxpayer has an excess business loss under this
1880		-	subdivision and also has modifications under subdivisions (15)
1881		-	and (17) for property placed in service during the taxable year,
1882		-	the taxpayer shall treat a portion of the taxable year
1883		-	modifications for that property as occurring in the taxable year
1884		-	the property is placed in service and a portion of the
1885		-	modifications as occurring in the immediately following
1886		-	taxable year.
1887		-	(B) The portion of the modifications under subdivisions (15)
1888		-	and (17) for property placed in service during the taxable year
1889		-	treated as occurring in the taxable year in which the property
1890		-	is placed in service equals:
1891		-	(i) the modification for the property otherwise determined
1892		-	under this section; minus
1893		-	(ii) the excess business loss disallowed under this
1894		-	subdivision;
1895		-	but not less than zero (0).
1896		-	(C) The portion of the modifications under subdivisions (15)
1897		-	and (17) for property placed in service during the taxable year
1898		-	treated as occurring in the taxable year immediately following
1899		-	the taxable year in which the property is placed in service
1900		-	equals the modification for the property otherwise determined
1901		-	under this section minus the amount in clause (B).
1902		-	(D) Any reallocation of modifications between taxable years
1903		-	under clauses (B) and (C) shall be first allocated to the
1904		-	modification under subdivision (15), then to the modification
1905		-	under subdivision (17).
1906		-	(30) Add an amount equal to the amount excluded from federal
1907		-	gross income under Section 108(f)(5) of the Internal Revenue
1908		-	Code. For purposes of this subdivision:
1909		-	(A) if an amount excluded under Section 108(f)(5) of the
1910		-	SEA 382 — CC 1 46
1911		-	Internal Revenue Code would be excludible under Section
1912		-	108(a)(1)(B) of the Internal Revenue Code, the exclusion
1913		-	under Section 108(a)(1)(B) of the Internal Revenue Code shall
1914		-	take precedence; and
1915		-	(B) if an amount would have been excludible under Section
1916		-	108(f)(5) of the Internal Revenue Code as in effect on
1917		-	January 1, 2020, the amount is not required to be added
1918		-	back under this subdivision.
1919		-	(31) For taxable years ending after March 12, 2020, subtract an
1920		-	amount equal to the deduction disallowed pursuant to:
1921		-	(A) Section 2301(e) of the CARES Act (Public Law 116-136),
1922		-	as modified by Sections 206 and 207 of the Taxpayer Certainty
1923		-	and Disaster Relief Tax Act (Division EE of Public Law
1924		-	116-260); and
1925		-	(B) Section 3134(e) of the Internal Revenue Code.
1926		-	(32) Subtract the amount of an annual grant amount distributed to
1927		-	a taxpayer's Indiana education scholarship account under
1928		-	IC 20-51.4-4-2 that is used for a qualified expense (as defined in
1929		-	IC 20-51.4-2-9), to the extent the distribution used for the
1930		-	qualified expense is included in the taxpayer's federal adjusted
1931		-	gross income under the Internal Revenue Code.
1932		-	(33) For taxable years beginning after December 31, 2019, and
1933		-	before January 1, 2021, add an amount equal to the amount of
1934		-	unemployment compensation excluded from federal gross income
1935		-	under Section 85(c) of the Internal Revenue Code.
1936		-	(34) For taxable years beginning after December 31, 2022,
1937		-	subtract an amount equal to the deduction disallowed under
1938		-	Section 280C(h) of the Internal Revenue Code.
1939		-	(34) (35) Subtract any other amounts the taxpayer is entitled to
1940		-	deduct under IC 6-3-2.
1941		-	(b) In the case of corporations, the same as "taxable income" (as
1942		-	defined in Section 63 of the Internal Revenue Code) adjusted as
1943		-	follows:
1944		-	(1) Subtract income that is exempt from taxation under this article
1945		-	by the Constitution and statutes of the United States.
1946		-	(2) Add an amount equal to any deduction or deductions allowed
1947		-	or allowable pursuant to Section 170 of the Internal Revenue
1948		-	Code (concerning charitable contributions).
1949		-	(3) Except as provided in subsection (c), add an amount equal to
1950		-	any deduction or deductions allowed or allowable pursuant to
1951		-	Section 63 of the Internal Revenue Code for taxes based on or
1952		-	SEA 382 — CC 1 47
1953		-	measured by income and levied at the state level by any state of
1954		-	the United States.
1955		-	(4) Subtract an amount equal to the amount included in the
1956		-	corporation's taxable income under Section 78 of the Internal
1957		-	Revenue Code (concerning foreign tax credits).
1958		-	(5) Add or subtract the amount necessary to make the adjusted
1959		-	gross income of any taxpayer that owns property for which bonus
1960		-	depreciation was allowed in the current taxable year or in an
1961		-	earlier taxable year equal to the amount of adjusted gross income
1962		-	that would have been computed had an election not been made
1963		-	under Section 168(k) of the Internal Revenue Code to apply bonus
1964		-	depreciation to the property in the year that it was placed in
1965		-	service.
1966		-	(6) Add an amount equal to any deduction allowed under Section
1967		-	172 of the Internal Revenue Code (concerning net operating
1968		-	losses).
1969		-	(7) Add or subtract the amount necessary to make the adjusted
1970		-	gross income of any taxpayer that placed Section 179 property (as
1971		-	defined in Section 179 of the Internal Revenue Code) in service
1972		-	in the current taxable year or in an earlier taxable year equal to
1973		-	the amount of adjusted gross income that would have been
1974		-	computed had an election for federal income tax purposes not
1975		-	been made for the year in which the property was placed in
1976		-	service to take deductions under Section 179 of the Internal
1977		-	Revenue Code in a total amount exceeding the sum of:
1978		-	(A) twenty-five thousand dollars ($25,000) to the extent
1979		-	deductions under Section 179 of the Internal Revenue Code
1980		-	were not elected as provided in clause (B); and
1981		-	(B) for taxable years beginning after December 31, 2017, the
1982		-	deductions elected under Section 179 of the Internal Revenue
1983		-	Code on property acquired in an exchange if:
1984		-	(i) the exchange would have been eligible for
1985		-	nonrecognition of gain or loss under Section 1031 of the
1986		-	Internal Revenue Code in effect on January 1, 2017;
1987		-	(ii) the exchange is not eligible for nonrecognition of gain or
1988		-	loss under Section 1031 of the Internal Revenue Code; and
1989		-	(iii) the taxpayer made an election to take deductions under
1990		-	Section 179 of the Internal Revenue Code with regard to the
1991		-	acquired property in the year that the property was placed
1992		-	into service.
1993		-	The amount of deductions allowable for an item of property
1994		-	SEA 382 — CC 1 48
1995		-	under this clause may not exceed the amount of adjusted gross
1996		-	income realized on the property that would have been deferred
1997		-	under the Internal Revenue Code in effect on January 1, 2017.
1998		-	(8) Add to the extent required by IC 6-3-2-20:
1999		-	(A) the amount of intangible expenses (as defined in
2000		-	IC 6-3-2-20) for the taxable year that reduced the corporation's
2001		-	taxable income (as defined in Section 63 of the Internal
2002		-	Revenue Code) for federal income tax purposes; and
2003		-	(B) any directly related interest expenses (as defined in
2004		-	IC 6-3-2-20) that reduced the corporation's adjusted gross
2005		-	income (determined without regard to this subdivision). For
2006		-	purposes of this clause, any directly related interest expense
2007		-	that constitutes business interest within the meaning of Section
2008		-	163(j) of the Internal Revenue Code shall be considered to
2009		-	have reduced the taxpayer's federal taxable income only in the
2010		-	first taxable year in which the deduction otherwise would have
2011		-	been allowable under Section 163 of the Internal Revenue
2012		-	Code if the limitation under Section 163(j)(1) of the Internal
2013		-	Revenue Code did not exist.
2014		-	(9) Add an amount equal to any deduction for dividends paid (as
2015		-	defined in Section 561 of the Internal Revenue Code) to
2016		-	shareholders of a captive real estate investment trust (as defined
2017		-	in section 34.5 of this chapter).
2018		-	(10) Subtract income that is:
2019		-	(A) exempt from taxation under IC 6-3-2-21.7 (certain income
2020		-	derived from patents); and
2021		-	(B) included in the corporation's taxable income under the
2022		-	Internal Revenue Code.
2023		-	(11) Add an amount equal to any income not included in gross
2024		-	income as a result of the deferral of income arising from business
2025		-	indebtedness discharged in connection with the reacquisition after
2026		-	December 31, 2008, and before January 1, 2011, of an applicable
2027		-	debt instrument, as provided in Section 108(i) of the Internal
2028		-	Revenue Code. Subtract from the adjusted gross income of any
2029		-	taxpayer that added an amount to adjusted gross income in a
2030		-	previous year the amount necessary to offset the amount included
2031		-	in federal gross income as a result of the deferral of income
2032		-	arising from business indebtedness discharged in connection with
2033		-	the reacquisition after December 31, 2008, and before January 1,
2034		-	2011, of an applicable debt instrument, as provided in Section
2035		-	108(i) of the Internal Revenue Code.
2036		-	(12) Add the amount excluded from federal gross income under
2037		-	SEA 382 — CC 1 49
2038		-	Section 103 of the Internal Revenue Code for interest received on
2039		-	an obligation of a state other than Indiana, or a political
2040		-	subdivision of such a state, that is acquired by the taxpayer after
2041		-	December 31, 2011.
2042		-	(13) For taxable years beginning after December 25, 2016:
2043		-	(A) for a corporation other than a real estate investment trust,
2044		-	add:
2045		-	(i) an amount equal to the amount reported by the taxpayer
2046		-	on IRC 965 Transition Tax Statement, line 1; or
2047		-	(ii) if the taxpayer deducted an amount under Section 965(c)
2048		-	of the Internal Revenue Code in determining the taxpayer's
2049		-	taxable income for purposes of the federal income tax, the
2050		-	amount deducted under Section 965(c) of the Internal
2051		-	Revenue Code; and
2052		-	(B) for a real estate investment trust, add an amount equal to
2053		-	the deduction for deferred foreign income that was claimed by
2054		-	the taxpayer for the taxable year under Section 965(c) of the
2055		-	Internal Revenue Code, but only to the extent that the taxpayer
2056		-	included income pursuant to Section 965 of the Internal
2057		-	Revenue Code in its taxable income for federal income tax
2058		-	purposes or is required to add back dividends paid under
2059		-	subdivision (9).
2060		-	(14) Add an amount equal to the deduction that was claimed by
2061		-	the taxpayer for the taxable year under Section 250(a)(1)(B) of the
2062		-	Internal Revenue Code (attributable to global intangible
2063		-	low-taxed income). The taxpayer shall separately specify the
2064		-	amount of the reduction under Section 250(a)(1)(B)(i) of the
2065		-	Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
2066		-	Internal Revenue Code.
2067		-	(15) Subtract any interest expense paid or accrued in the current
2068		-	taxable year but not deducted as a result of the limitation imposed
2069		-	under Section 163(j)(1) of the Internal Revenue Code. Add any
2070		-	interest expense paid or accrued in a previous taxable year but
2071		-	allowed as a deduction under Section 163 of the Internal Revenue
2072		-	Code in the current taxable year. For purposes of this subdivision,
2073		-	an interest expense is considered paid or accrued only in the first
2074		-	taxable year the deduction would have been allowable under
2075		-	Section 163 of the Internal Revenue Code if the limitation under
2076		-	Section 163(j)(1) of the Internal Revenue Code did not exist.
2077		-	(16) Subtract the amount that would have been excluded from
2078		-	gross income but for the enactment of Section 118(b)(2) of the
2079		-	Internal Revenue Code for taxable years ending after December
2080		-	SEA 382 — CC 1 50
2081		-	22, 2017.
2082		-	(17) Add an amount equal to the remainder of:
2083		-	(A) the amount allowable as a deduction under Section 274(n)
2084		-	of the Internal Revenue Code; minus
2085		-	(B) the amount otherwise allowable as a deduction under
2086		-	Section 274(n) of the Internal Revenue Code, if Section
2087		-	274(n)(2)(D) of the Internal Revenue Code was not in effect
2088		-	for amounts paid or incurred after December 31, 2020.
2089		-	(18) For taxable years ending after March 12, 2020, subtract an
2090		-	amount equal to the deduction disallowed pursuant to:
2091		-	(A) Section 2301(e) of the CARES Act (Public Law 116-136),
2092		-	as modified by Sections 206 and 207 of the Taxpayer Certainty
2093		-	and Disaster Relief Tax Act (Division EE of Public Law
2094		-	116-260); and
2095		-	(B) Section 3134(e) of the Internal Revenue Code.
2096		-	(19) For taxable years beginning after December 31, 2022,
2097		-	subtract an amount equal to the deduction disallowed under
2098		-	Section 280C(h) of the Internal Revenue Code.
2099		-	(19) (20) Add or subtract any other amounts the taxpayer is:
2100		-	(A) required to add or subtract; or
2101		-	(B) entitled to deduct;
2102		-	under IC 6-3-2.
2103		-	(c) The following apply to taxable years beginning after December
2104		-	31, 2018, for purposes of the add back of any deduction allowed on the
2105		-	taxpayer's federal income tax return for wagering taxes, as provided in
2106		-	subsection (a)(2) if the taxpayer is an individual or subsection (b)(3) if
2107		-	the taxpayer is a corporation:
2108		-	(1) For taxable years beginning after December 31, 2018, and
2109		-	before January 1, 2020, a taxpayer is required to add back under
2110		-	this section eighty-seven and five-tenths percent (87.5%) of any
2111		-	deduction allowed on the taxpayer's federal income tax return for
2112		-	wagering taxes.
2113		-	(2) For taxable years beginning after December 31, 2019, and
2114		-	before January 1, 2021, a taxpayer is required to add back under
2115		-	this section seventy-five percent (75%) of any deduction allowed
2116		-	on the taxpayer's federal income tax return for wagering taxes.
2117		-	(3) For taxable years beginning after December 31, 2020, and
2118		-	before January 1, 2022, a taxpayer is required to add back under
2119		-	this section sixty-two and five-tenths percent (62.5%) of any
2120		-	deduction allowed on the taxpayer's federal income tax return for
2121		-	wagering taxes.
2122		-	SEA 382 — CC 1 51
2123		-	(4) For taxable years beginning after December 31, 2021, and
2124		-	before January 1, 2023, a taxpayer is required to add back under
2125		-	this section fifty percent (50%) of any deduction allowed on the
2126		-	taxpayer's federal income tax return for wagering taxes.
2127		-	(5) For taxable years beginning after December 31, 2022, and
2128		-	before January 1, 2024, a taxpayer is required to add back under
2129		-	this section thirty-seven and five-tenths percent (37.5%) of any
2130		-	deduction allowed on the taxpayer's federal income tax return for
2131		-	wagering taxes.
2132		-	(6) For taxable years beginning after December 31, 2023, and
2133		-	before January 1, 2025, a taxpayer is required to add back under
2134		-	this section twenty-five percent (25%) of any deduction allowed
2135		-	on the taxpayer's federal income tax return for wagering taxes.
2136		-	(7) For taxable years beginning after December 31, 2024, and
2137		-	before January 1, 2026, a taxpayer is required to add back under
2138		-	this section twelve and five-tenths percent (12.5%) of any
2139		-	deduction allowed on the taxpayer's federal income tax return for
2140		-	wagering taxes.
2141		-	(8) For taxable years beginning after December 31, 2025, a
2142		-	taxpayer is not required to add back under this section any amount
2143		-	of a deduction allowed on the taxpayer's federal income tax return
2144		-	for wagering taxes.
2145		-	(d) In the case of life insurance companies (as defined in Section
2146		-	816(a) of the Internal Revenue Code) that are organized under Indiana
2147		-	law, the same as "life insurance company taxable income" (as defined
2148		-	in Section 801 of the Internal Revenue Code), adjusted as follows:
2149		-	(1) Subtract income that is exempt from taxation under this article
2150		-	by the Constitution and statutes of the United States.
2151		-	(2) Add an amount equal to any deduction allowed or allowable
2152		-	under Section 170 of the Internal Revenue Code (concerning
2153		-	charitable contributions).
2154		-	(3) Add an amount equal to a deduction allowed or allowable
2155		-	under Section 805 or Section 832(c) of the Internal Revenue Code
2156		-	for taxes based on or measured by income and levied at the state
2157		-	level by any state.
2158		-	(4) Subtract an amount equal to the amount included in the
2159		-	company's taxable income under Section 78 of the Internal
2160		-	Revenue Code (concerning foreign tax credits).
2161		-	(5) Add or subtract the amount necessary to make the adjusted
2162		-	gross income of any taxpayer that owns property for which bonus
2163		-	depreciation was allowed in the current taxable year or in an
2164		-	SEA 382 — CC 1 52
2165		-	earlier taxable year equal to the amount of adjusted gross income
2166		-	that would have been computed had an election not been made
2167		-	under Section 168(k) of the Internal Revenue Code to apply bonus
2168		-	depreciation to the property in the year that it was placed in
2169		-	service.
2170		-	(6) Add an amount equal to any deduction allowed under Section
2171		-	172 of the Internal Revenue Code (concerning net operating
2172		-	losses).
2173		-	(7) Add or subtract the amount necessary to make the adjusted
2174		-	gross income of any taxpayer that placed Section 179 property (as
2175		-	defined in Section 179 of the Internal Revenue Code) in service
2176		-	in the current taxable year or in an earlier taxable year equal to
2177		-	the amount of adjusted gross income that would have been
2178		-	computed had an election for federal income tax purposes not
2179		-	been made for the year in which the property was placed in
2180		-	service to take deductions under Section 179 of the Internal
2181		-	Revenue Code in a total amount exceeding the sum of:
2182		-	(A) twenty-five thousand dollars ($25,000) to the extent
2183		-	deductions under Section 179 of the Internal Revenue Code
2184		-	were not elected as provided in clause (B); and
2185		-	(B) for taxable years beginning after December 31, 2017, the
2186		-	deductions elected under Section 179 of the Internal Revenue
2187		-	Code on property acquired in an exchange if:
2188		-	(i) the exchange would have been eligible for
2189		-	nonrecognition of gain or loss under Section 1031 of the
2190		-	Internal Revenue Code in effect on January 1, 2017;
2191		-	(ii) the exchange is not eligible for nonrecognition of gain or
2192		-	loss under Section 1031 of the Internal Revenue Code; and
2193		-	(iii) the taxpayer made an election to take deductions under
2194		-	Section 179 of the Internal Revenue Code with regard to the
2195		-	acquired property in the year that the property was placed
2196		-	into service.
2197		-	The amount of deductions allowable for an item of property
2198		-	under this clause may not exceed the amount of adjusted gross
2199		-	income realized on the property that would have been deferred
2200		-	under the Internal Revenue Code in effect on January 1, 2017.
2201		-	(8) Subtract income that is:
2202		-	(A) exempt from taxation under IC 6-3-2-21.7 (certain income
2203		-	derived from patents); and
2204		-	(B) included in the insurance company's taxable income under
2205		-	the Internal Revenue Code.
2206		-	SEA 382 — CC 1 53
2207		-	(9) Add an amount equal to any income not included in gross
2208		-	income as a result of the deferral of income arising from business
2209		-	indebtedness discharged in connection with the reacquisition after
2210		-	December 31, 2008, and before January 1, 2011, of an applicable
2211		-	debt instrument, as provided in Section 108(i) of the Internal
2212		-	Revenue Code. Subtract from the adjusted gross income of any
2213		-	taxpayer that added an amount to adjusted gross income in a
2214		-	previous year the amount necessary to offset the amount included
2215		-	in federal gross income as a result of the deferral of income
2216		-	arising from business indebtedness discharged in connection with
2217		-	the reacquisition after December 31, 2008, and before January 1,
2218		-	2011, of an applicable debt instrument, as provided in Section
2219		-	108(i) of the Internal Revenue Code.
2220		-	(10) Add an amount equal to any exempt insurance income under
2221		-	Section 953(e) of the Internal Revenue Code that is active
2222		-	financing income under Subpart F of Subtitle A, Chapter 1,
2223		-	Subchapter N of the Internal Revenue Code.
2224		-	(11) Add the amount excluded from federal gross income under
2225		-	Section 103 of the Internal Revenue Code for interest received on
2226		-	an obligation of a state other than Indiana, or a political
2227		-	subdivision of such a state, that is acquired by the taxpayer after
2228		-	December 31, 2011.
2229		-	(12) For taxable years beginning after December 25, 2016, add:
2230		-	(A) an amount equal to the amount reported by the taxpayer on
2231		-	IRC 965 Transition Tax Statement, line 1; or
2232		-	(B) if the taxpayer deducted an amount under Section 965(c)
2233		-	of the Internal Revenue Code in determining the taxpayer's
2234		-	taxable income for purposes of the federal income tax, the
2235		-	amount deducted under Section 965(c) of the Internal Revenue
2236		-	Code.
2237		-	(13) Add an amount equal to the deduction that was claimed by
2238		-	the taxpayer for the taxable year under Section 250(a)(1)(B) of the
2239		-	Internal Revenue Code (attributable to global intangible
2240		-	low-taxed income). The taxpayer shall separately specify the
2241		-	amount of the reduction under Section 250(a)(1)(B)(i) of the
2242		-	Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
2243		-	Internal Revenue Code.
2244		-	(14) Subtract any interest expense paid or accrued in the current
2245		-	taxable year but not deducted as a result of the limitation imposed
2246		-	under Section 163(j)(1) of the Internal Revenue Code. Add any
2247		-	interest expense paid or accrued in a previous taxable year but
2248		-	allowed as a deduction under Section 163 of the Internal Revenue
2249		-	SEA 382 — CC 1 54
2250		-	Code in the current taxable year. For purposes of this subdivision,
2251		-	an interest expense is considered paid or accrued only in the first
2252		-	taxable year the deduction would have been allowable under
2253		-	Section 163 of the Internal Revenue Code if the limitation under
2254		-	Section 163(j)(1) of the Internal Revenue Code did not exist.
2255		-	(15) Subtract the amount that would have been excluded from
2256		-	gross income but for the enactment of Section 118(b)(2) of the
2257		-	Internal Revenue Code for taxable years ending after December
2258		-	22, 2017.
2259		-	(16) Add an amount equal to the remainder of:
2260		-	(A) the amount allowable as a deduction under Section 274(n)
2261		-	of the Internal Revenue Code; minus
2262		-	(B) the amount otherwise allowable as a deduction under
2263		-	Section 274(n) of the Internal Revenue Code, if Section
2264		-	274(n)(2)(D) of the Internal Revenue Code was not in effect
2265		-	for amounts paid or incurred after December 31, 2020.
2266		-	(17) For taxable years ending after March 12, 2020, subtract an
2267		-	amount equal to the deduction disallowed pursuant to:
2268		-	(A) Section 2301(e) of the CARES Act (Public Law 116-136),
2269		-	as modified by Sections 206 and 207 of the Taxpayer Certainty
2270		-	and Disaster Relief Tax Act (Division EE of Public Law
2271		-	116-260); and
2272		-	(B) Section 3134(e) of the Internal Revenue Code.
2273		-	(18) For taxable years beginning after December 31, 2022,
2274		-	subtract an amount equal to the deduction disallowed under
2275		-	Section 280C(h) of the Internal Revenue Code.
2276		-	(18) (19) Add or subtract any other amounts the taxpayer is:
2277		-	(A) required to add or subtract; or
2278		-	(B) entitled to deduct;
2279		-	under IC 6-3-2.
2280		-	(e) In the case of insurance companies subject to tax under Section
2281		-	831 of the Internal Revenue Code and organized under Indiana law, the
2282		-	same as "taxable income" (as defined in Section 832 of the Internal
2283		-	Revenue Code), adjusted as follows:
2284		-	(1) Subtract income that is exempt from taxation under this article
2285		-	by the Constitution and statutes of the United States.
2286		-	(2) Add an amount equal to any deduction allowed or allowable
2287		-	under Section 170 of the Internal Revenue Code (concerning
2288		-	charitable contributions).
2289		-	(3) Add an amount equal to a deduction allowed or allowable
2290		-	under Section 805 or Section 832(c) of the Internal Revenue Code
2291		-	SEA 382 — CC 1 55
2292		-	for taxes based on or measured by income and levied at the state
2293		-	level by any state.
2294		-	(4) Subtract an amount equal to the amount included in the
2295		-	company's taxable income under Section 78 of the Internal
2296		-	Revenue Code (concerning foreign tax credits).
2297		-	(5) Add or subtract the amount necessary to make the adjusted
2298		-	gross income of any taxpayer that owns property for which bonus
2299		-	depreciation was allowed in the current taxable year or in an
2300		-	earlier taxable year equal to the amount of adjusted gross income
2301		-	that would have been computed had an election not been made
2302		-	under Section 168(k) of the Internal Revenue Code to apply bonus
2303		-	depreciation to the property in the year that it was placed in
2304		-	service.
2305		-	(6) Add an amount equal to any deduction allowed under Section
2306		-	172 of the Internal Revenue Code (concerning net operating
2307		-	losses).
2308		-	(7) Add or subtract the amount necessary to make the adjusted
2309		-	gross income of any taxpayer that placed Section 179 property (as
2310		-	defined in Section 179 of the Internal Revenue Code) in service
2311		-	in the current taxable year or in an earlier taxable year equal to
2312		-	the amount of adjusted gross income that would have been
2313		-	computed had an election for federal income tax purposes not
2314		-	been made for the year in which the property was placed in
2315		-	service to take deductions under Section 179 of the Internal
2316		-	Revenue Code in a total amount exceeding the sum of:
2317		-	(A) twenty-five thousand dollars ($25,000) to the extent
2318		-	deductions under Section 179 of the Internal Revenue Code
2319		-	were not elected as provided in clause (B); and
2320		-	(B) for taxable years beginning after December 31, 2017, the
2321		-	deductions elected under Section 179 of the Internal Revenue
2322		-	Code on property acquired in an exchange if:
2323		-	(i) the exchange would have been eligible for
2324		-	nonrecognition of gain or loss under Section 1031 of the
2325		-	Internal Revenue Code in effect on January 1, 2017;
2326		-	(ii) the exchange is not eligible for nonrecognition of gain or
2327		-	loss under Section 1031 of the Internal Revenue Code; and
2328		-	(iii) the taxpayer made an election to take deductions under
2329		-	Section 179 of the Internal Revenue Code with regard to the
2330		-	acquired property in the year that the property was placed
2331		-	into service.
2332		-	The amount of deductions allowable for an item of property
2333		-	SEA 382 — CC 1 56
2334		-	under this clause may not exceed the amount of adjusted gross
2335		-	income realized on the property that would have been deferred
2336		-	under the Internal Revenue Code in effect on January 1, 2017.
2337		-	(8) Subtract income that is:
2338		-	(A) exempt from taxation under IC 6-3-2-21.7 (certain income
2339		-	derived from patents); and
2340		-	(B) included in the insurance company's taxable income under
2341		-	the Internal Revenue Code.
2342		-	(9) Add an amount equal to any income not included in gross
2343		-	income as a result of the deferral of income arising from business
2344		-	indebtedness discharged in connection with the reacquisition after
2345		-	December 31, 2008, and before January 1, 2011, of an applicable
2346		-	debt instrument, as provided in Section 108(i) of the Internal
2347		-	Revenue Code. Subtract from the adjusted gross income of any
2348		-	taxpayer that added an amount to adjusted gross income in a
2349		-	previous year the amount necessary to offset the amount included
2350		-	in federal gross income as a result of the deferral of income
2351		-	arising from business indebtedness discharged in connection with
2352		-	the reacquisition after December 31, 2008, and before January 1,
2353		-	2011, of an applicable debt instrument, as provided in Section
2354		-	108(i) of the Internal Revenue Code.
2355		-	(10) Add an amount equal to any exempt insurance income under
2356		-	Section 953(e) of the Internal Revenue Code that is active
2357		-	financing income under Subpart F of Subtitle A, Chapter 1,
2358		-	Subchapter N of the Internal Revenue Code.
2359		-	(11) Add the amount excluded from federal gross income under
2360		-	Section 103 of the Internal Revenue Code for interest received on
2361		-	an obligation of a state other than Indiana, or a political
2362		-	subdivision of such a state, that is acquired by the taxpayer after
2363		-	December 31, 2011.
2364		-	(12) For taxable years beginning after December 25, 2016, add:
2365		-	(A) an amount equal to the amount reported by the taxpayer on
2366		-	IRC 965 Transition Tax Statement, line 1; or
2367		-	(B) if the taxpayer deducted an amount under Section 965(c)
2368		-	of the Internal Revenue Code in determining the taxpayer's
2369		-	taxable income for purposes of the federal income tax, the
2370		-	amount deducted under Section 965(c) of the Internal Revenue
2371		-	Code.
2372		-	(13) Add an amount equal to the deduction that was claimed by
2373		-	the taxpayer for the taxable year under Section 250(a)(1)(B) of the
2374		-	Internal Revenue Code (attributable to global intangible
2375		-	SEA 382 — CC 1 57
2376		-	low-taxed income). The taxpayer shall separately specify the
2377		-	amount of the reduction under Section 250(a)(1)(B)(i) of the
2378		-	Internal Revenue Code and under Section 250(a)(1)(B)(ii) of the
2379		-	Internal Revenue Code.
2380		-	(14) Subtract any interest expense paid or accrued in the current
2381		-	taxable year but not deducted as a result of the limitation imposed
2382		-	under Section 163(j)(1) of the Internal Revenue Code. Add any
2383		-	interest expense paid or accrued in a previous taxable year but
2384		-	allowed as a deduction under Section 163 of the Internal Revenue
2385		-	Code in the current taxable year. For purposes of this subdivision,
2386		-	an interest expense is considered paid or accrued only in the first
2387		-	taxable year the deduction would have been allowable under
2388		-	Section 163 of the Internal Revenue Code if the limitation under
2389		-	Section 163(j)(1) of the Internal Revenue Code did not exist.
2390		-	(15) Subtract the amount that would have been excluded from
2391		-	gross income but for the enactment of Section 118(b)(2) of the
2392		-	Internal Revenue Code for taxable years ending after December
2393		-	22, 2017.
2394		-	(16) Add an amount equal to the remainder of:
2395		-	(A) the amount allowable as a deduction under Section 274(n)
2396		-	of the Internal Revenue Code; minus
2397		-	(B) the amount otherwise allowable as a deduction under
2398		-	Section 274(n) of the Internal Revenue Code, if Section
2399		-	274(n)(2)(D) of the Internal Revenue Code was not in effect
2400		-	for amounts paid or incurred after December 31, 2020.
2401		-	(17) For taxable years ending after March 12, 2020, subtract an
2402		-	amount equal to the deduction disallowed pursuant to:
2403		-	(A) Section 2301(e) of the CARES Act (Public Law 116-136),
2404		-	as modified by Sections 206 and 207 of the Taxpayer Certainty
2405		-	and Disaster Relief Tax Act (Division EE of Public Law
2406		-	116-260); and
2407		-	(B) Section 3134(e) of the Internal Revenue Code.
2408		-	(18) For taxable years beginning after December 31, 2022,
2409		-	subtract an amount equal to the deduction disallowed under
2410		-	Section 280C(h) of the Internal Revenue Code.
2411		-	(18) (19) Add or subtract any other amounts the taxpayer is:
2412		-	(A) required to add or subtract; or
2413		-	(B) entitled to deduct;
2414		-	under IC 6-3-2.
2415		-	(f) In the case of trusts and estates, "taxable income" (as defined for
2416		-	trusts and estates in Section 641(b) of the Internal Revenue Code)
2417		-	SEA 382 — CC 1 58
2418		-	adjusted as follows:
2419		-	(1) Subtract income that is exempt from taxation under this article
2420		-	by the Constitution and statutes of the United States.
2421		-	(2) Subtract an amount equal to the amount of a September 11
2422		-	terrorist attack settlement payment included in the federal
2423		-	adjusted gross income of the estate of a victim of the September
2424		-	11 terrorist attack or a trust to the extent the trust benefits a victim
2425		-	of the September 11 terrorist attack.
2426		-	(3) Add or subtract the amount necessary to make the adjusted
2427		-	gross income of any taxpayer that owns property for which bonus
2428		-	depreciation was allowed in the current taxable year or in an
2429		-	earlier taxable year equal to the amount of adjusted gross income
2430		-	that would have been computed had an election not been made
2431		-	under Section 168(k) of the Internal Revenue Code to apply bonus
2432		-	depreciation to the property in the year that it was placed in
2433		-	service.
2434		-	(4) Add an amount equal to any deduction allowed under Section
2435		-	172 of the Internal Revenue Code (concerning net operating
2436		-	losses).
2437		-	(5) Add or subtract the amount necessary to make the adjusted
2438		-	gross income of any taxpayer that placed Section 179 property (as
2439		-	defined in Section 179 of the Internal Revenue Code) in service
2440		-	in the current taxable year or in an earlier taxable year equal to
2441		-	the amount of adjusted gross income that would have been
2442		-	computed had an election for federal income tax purposes not
2443		-	been made for the year in which the property was placed in
2444		-	service to take deductions under Section 179 of the Internal
2445		-	Revenue Code in a total amount exceeding the sum of:
2446		-	(A) twenty-five thousand dollars ($25,000) to the extent
2447		-	deductions under Section 179 of the Internal Revenue Code
2448		-	were not elected as provided in clause (B); and
2449		-	(B) for taxable years beginning after December 31, 2017, the
2450		-	deductions elected under Section 179 of the Internal Revenue
2451		-	Code on property acquired in an exchange if:
2452		-	(i) the exchange would have been eligible for
2453		-	nonrecognition of gain or loss under Section 1031 of the
2454		-	Internal Revenue Code in effect on January 1, 2017;
2455		-	(ii) the exchange is not eligible for nonrecognition of gain or
2456		-	loss under Section 1031 of the Internal Revenue Code; and
2457		-	(iii) the taxpayer made an election to take deductions under
2458		-	Section 179 of the Internal Revenue Code with regard to the
2459		-	SEA 382 — CC 1 59
2460		-	acquired property in the year that the property was placed
2461		-	into service.
2462		-	The amount of deductions allowable for an item of property
2463		-	under this clause may not exceed the amount of adjusted gross
2464		-	income realized on the property that would have been deferred
2465		-	under the Internal Revenue Code in effect on January 1, 2017.
2466		-	(6) Subtract income that is:
2467		-	(A) exempt from taxation under IC 6-3-2-21.7 (certain income
2468		-	derived from patents); and
2469		-	(B) included in the taxpayer's taxable income under the
2470		-	Internal Revenue Code.
2471		-	(7) Add an amount equal to any income not included in gross
2472		-	income as a result of the deferral of income arising from business
2473		-	indebtedness discharged in connection with the reacquisition after
2474		-	December 31, 2008, and before January 1, 2011, of an applicable
2475		-	debt instrument, as provided in Section 108(i) of the Internal
2476		-	Revenue Code. Subtract from the adjusted gross income of any
2477		-	taxpayer that added an amount to adjusted gross income in a
2478		-	previous year the amount necessary to offset the amount included
2479		-	in federal gross income as a result of the deferral of income
2480		-	arising from business indebtedness discharged in connection with
2481		-	the reacquisition after December 31, 2008, and before January 1,
2482		-	2011, of an applicable debt instrument, as provided in Section
2483		-	108(i) of the Internal Revenue Code.
2484		-	(8) Add the amount excluded from federal gross income under
2485		-	Section 103 of the Internal Revenue Code for interest received on
2486		-	an obligation of a state other than Indiana, or a political
2487		-	subdivision of such a state, that is acquired by the taxpayer after
2488		-	December 31, 2011.
2489		-	(9) For taxable years beginning after December 25, 2016, add an
2490		-	amount equal to:
2491		-	(A) the amount reported by the taxpayer on IRC 965
2492		-	Transition Tax Statement, line 1;
2493		-	(B) if the taxpayer deducted an amount under Section 965(c)
2494		-	of the Internal Revenue Code in determining the taxpayer's
2495		-	taxable income for purposes of the federal income tax, the
2496		-	amount deducted under Section 965(c) of the Internal Revenue
2497		-	Code; and
2498		-	(C) with regard to any amounts of income under Section 965
2499		-	of the Internal Revenue Code distributed by the taxpayer, the
2500		-	deduction under Section 965(c) of the Internal Revenue Code
2501		-	SEA 382 — CC 1 60
2502		-	attributable to such distributed amounts and not reported to the
2503		-	beneficiary.
2504		-	For purposes of this article, the amount required to be added back
2505		-	under clause (B) is not considered to be distributed or
2506		-	distributable to a beneficiary of the estate or trust for purposes of
2507		-	Sections 651 and 661 of the Internal Revenue Code.
2508		-	(10) Subtract any interest expense paid or accrued in the current
2509		-	taxable year but not deducted as a result of the limitation imposed
2510		-	under Section 163(j)(1) of the Internal Revenue Code. Add any
2511		-	interest expense paid or accrued in a previous taxable year but
2512		-	allowed as a deduction under Section 163 of the Internal Revenue
2513		-	Code in the current taxable year. For purposes of this subdivision,
2514		-	an interest expense is considered paid or accrued only in the first
2515		-	taxable year the deduction would have been allowable under
2516		-	Section 163 of the Internal Revenue Code if the limitation under
2517		-	Section 163(j)(1) of the Internal Revenue Code did not exist.
2518		-	(11) Add an amount equal to the deduction for qualified business
2519		-	income that was claimed by the taxpayer for the taxable year
2520		-	under Section 199A of the Internal Revenue Code.
2521		-	(12) Subtract the amount that would have been excluded from
2522		-	gross income but for the enactment of Section 118(b)(2) of the
2523		-	Internal Revenue Code for taxable years ending after December
2524		-	22, 2017.
2525		-	(13) Add an amount equal to the remainder of:
2526		-	(A) the amount allowable as a deduction under Section 274(n)
2527		-	of the Internal Revenue Code; minus
2528		-	(B) the amount otherwise allowable as a deduction under
2529		-	Section 274(n) of the Internal Revenue Code, if Section
2530		-	274(n)(2)(D) of the Internal Revenue Code was not in effect
2531		-	for amounts paid or incurred after December 31, 2020.
2532		-	(14) For taxable years beginning after December 31, 2017, and
2533		-	before January 1, 2021, add an amount equal to the excess
2534		-	business loss of the taxpayer as defined in Section 461(l)(3) of the
2535		-	Internal Revenue Code. In addition:
2536		-	(A) If a taxpayer has an excess business loss under this
2537		-	subdivision and also has modifications under subdivisions (3)
2538		-	and (5) for property placed in service during the taxable year,
2539		-	the taxpayer shall treat a portion of the taxable year
2540		-	modifications for that property as occurring in the taxable year
2541		-	the property is placed in service and a portion of the
2542		-	modifications as occurring in the immediately following
2543		-	taxable year.
2544		-	SEA 382 — CC 1 61
2545		-	(B) The portion of the modifications under subdivisions (3)
2546		-	and (5) for property placed in service during the taxable year
2547		-	treated as occurring in the taxable year in which the property
2548		-	is placed in service equals:
2549		-	(i) the modification for the property otherwise determined
2550		-	under this section; minus
2551		-	(ii) the excess business loss disallowed under this
2552		-	subdivision;
2553		-	but not less than zero (0).
2554		-	(C) The portion of the modifications under subdivisions (3)
2555		-	and (5) for property placed in service during the taxable year
2556		-	treated as occurring in the taxable year immediately following
2557		-	the taxable year in which the property is placed in service
2558		-	equals the modification for the property otherwise determined
2559		-	under this section minus the amount in clause (B).
2560		-	(D) Any reallocation of modifications between taxable years
2561		-	under clauses (B) and (C) shall be first allocated to the
2562		-	modification under subdivision (3), then to the modification
2563		-	under subdivision (5).
2564		-	(15) For taxable years ending after March 12, 2020, subtract an
2565		-	amount equal to the deduction disallowed pursuant to:
2566		-	(A) Section 2301(e) of the CARES Act (Public Law 116-136),
2567		-	as modified by Sections 206 and 207 of the Taxpayer Certainty
2568		-	and Disaster Relief Tax Act (Division EE of Public Law
2569		-	116-260); and
2570		-	(B) Section 3134(e) of the Internal Revenue Code.
2571		-	(16) For taxable years beginning after December 31, 2022,
2572		-	subtract an amount equal to the deduction disallowed under
2573		-	Section 280C(h) of the Internal Revenue Code.
2574		-	(16) (17) Add or subtract any other amounts the taxpayer is:
2575		-	(A) required to add or subtract; or
2576		-	(B) entitled to deduct;
2577		-	under IC 6-3-2.
2578		-	(g) Subsections (a)(34), (b)(19), (d)(18), (e)(18), or (f)(16) (a)(35),
2579		-	(b)(20), (d)(19), (e)(19), or (f)(17) may not be construed to require an
2580		-	add back or allow a deduction or exemption more than once for a
2581		-	particular add back, deduction, or exemption.
2582		-	(h) For taxable years beginning after December 25, 2016, if:
2583		-	(1) a taxpayer is a shareholder, either directly or indirectly, in a
2584		-	corporation that is an E&P deficit foreign corporation as defined
2585		-	in Section 965(b)(3)(B) of the Internal Revenue Code, and the
2586		-	SEA 382 — CC 1 62
2587		-	earnings and profit deficit, or a portion of the earnings and profit
2588		-	deficit, of the E&P deficit foreign corporation is permitted to
2589		-	reduce the federal adjusted gross income or federal taxable
2590		-	income of the taxpayer, the deficit, or the portion of the deficit,
2591		-	shall also reduce the amount taxable under this section to the
2592		-	extent permitted under the Internal Revenue Code, however, in no
2593		-	case shall this permit a reduction in the amount taxable under
2594		-	Section 965 of the Internal Revenue Code for purposes of this
2595		-	section to be less than zero (0); and
2596		-	(2) the Internal Revenue Service issues guidance that such an
2597		-	income or deduction is not reported directly on a federal tax
2598		-	return or is to be reported in a manner different than specified in
2599		-	this section, this section shall be construed as if federal adjusted
2600		-	gross income or federal taxable income included the income or
2601		-	deduction.
2602		-	(i) If a partner is required to include an item of income, a deduction,
2603		-	or another tax attribute in the partner's adjusted gross income tax return
2604		-	pursuant to IC 6-3-4.5, such item shall be considered to be includible
2605		-	in the partner's federal adjusted gross income or federal taxable
2606		-	income, regardless of whether such item is actually required to be
2607		-	reported by the partner for federal income tax purposes. For purposes
2608		-	of this subsection:
2609		-	(1) items for which a valid election is made under IC 6-3-4.5-6,
2610		-	IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
2611		-	in the partner's adjusted gross income or taxable income; and
2612		-	(2) items for which the partnership did not make an election under
2613		-	IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
2614		-	partnership is required to remit tax pursuant to IC 6-3-4.5-18,
2615		-	shall be included in the partner's adjusted gross income or taxable
2616		-	income.
2617		-	SECTION 34. IC 6-3-2-1.7 IS ADDED TO THE INDIANA CODE
2618		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2619		-	1, 2022]: Sec. 1.7. (a) For purposes of this section:
2620		-	(1) "Distributor" means a person or entity located in this state
2621		-	that purchases tangible personal property from an eligible
2622		-	corporation for purposes of resale. For purposes of this
2623		-	section, a distributor is not a person or entity that has a
2624		-	relationship described in Section 267(b) of the Internal
2625		-	Revenue Code with the eligible corporation.
2626		-	(2) "Eligible corporation" means a corporation otherwise
2627		-	subject to tax under section 1(b) of this chapter. An eligible
2628		-	corporation shall not include a corporation described in
2629		-	SEA 382 — CC 1 63
2630		-	section 2.8(2) of this chapter or a corporation subject to tax
2631		-	under IC 6-5.5.
2632		-	(3) "Qualifying distribution sale" means a sale of tangible
2633		-	personal property by an eligible corporation to a distributor
2634		-	that:
2635		-	(A) is a purchase for resale by the distributor as defined in
2636		-	IC 6-2.5-5-8; and
2637		-	(B) for which the sourcing of the sale of the property to an
2638		-	ultimate customer outside Indiana is agreed to by the
2639		-	department and the eligible corporation, or, in the absence
2640		-	of an agreement, sourced by the ratio of the population of
2641		-	Indiana compared to the population of all states in which
2642		-	the qualified distribution sales are sold to an ultimate
2643		-	customer.
2644		-	For purposes of this section, a qualifying distribution sale
2645		-	shall not include any sale for which the distributor does not
2646		-	issue an exemption certificate in the manner provided by the
2647		-	department under IC 6-2.5-8-8 or a purchase by the
2648		-	distributor for the distributor's own use other than for resale.
2649		-	A qualifying distribution sale shall not include any sale made
2650		-	by a pass through entity that would otherwise be attributable
2651		-	under this article to the eligible corporation.
2652		-	(4) "Ultimate customer" means a purchaser of tangible
2653		-	personal property who purchases the tangible personal
2654		-	property without an intent of future resale of property.
2655		-	(b) If an eligible corporation has greater than one billion dollars
2656		-	($1,000,000,000) of tangible personal property sales that otherwise
2657		-	would be sourced to this state under section 2(e) of this chapter,
2658		-	and would have an apportionment percentage under section 2 of
2659		-	this chapter of greater than ten percent (10%) prior to application
2660		-	of this section the eligible corporation may elect to determine its
2661		-	tax as follows:
2662		-	STEP ONE: Determine the apportionment percentage under
2663		-	sections 2 and 2.2 of this chapter, treating qualifying
2664		-	distribution sales as if they were not receipts for purposes of
2665		-	the apportionment numerator, but treating the portion where
2666		-	the ultimate customer would be located in Indiana as part of
2667		-	the receipts numerator.
2668		-	STEP TWO: Determine Indiana adjusted gross income in the
2669		-	manner otherwise provided in this article, applying the
2670		-	apportionment percentage in STEP ONE. For purposes of this
2671		-	STEP, any adjusted gross income arising from qualified
2672		-	SEA 382 — CC 1 64
2673		-	distribution sales shall be treated as business income of the
2674		-	eligible corporation.
2675		-	STEP THREE: Determine the tax due under this chapter on
2676		-	the amount computed in STEP TWO, reduced by any
2677		-	nonrefundable credits under IC 6-3-3 or IC 6-3.1, but not less
2678		-	than zero (0). For purposes of this article, any application of
2679		-	a credit under this STEP shall reduce the amount available
2680		-	for carryforward in the same manner as otherwise provided
2681		-	under IC 6-3-3 or IC 6-3.1.
2682		-	STEP FOUR:
2683		-	(A) If the eligible corporation's qualified distribution sales
2684		-	are not in excess of two billion dollars ($2,000,000,000),
2685		-	determine one-half of one percent (0.5%) of the qualified
2686		-	distribution sales.
2687		-	(B) If the eligible corporation's qualified distribution sales
2688		-	are in excess of two billion dollars ($2,000,000,000) but not
2689		-	in excess of three billion dollars ($3,000,000,000),
2690		-	determine three-eighths of one percent (0.375%) of the
2691		-	qualified distribution sales in excess of two billion dollars
2692		-	($2,000,000,000) plus ten million dollars ($10,000,000).
2693		-	(C) If the eligible corporation's qualified distribution sales
2694		-	are in excess of three billion dollars ($3,000,000,000) but
2695		-	not in excess of four billion dollars ($4,000,000,000),
2696		-	determine one-fourth of one percent (0.25%) of the
2697		-	qualified distribution sales in excess of three billion dollars
2698		-	($3,000,000,000) plus thirteen million seven hundred fifty
2699		-	thousand dollars ($13,750,000).
2700		-	(D) If the eligible corporation's qualified distribution sales
2701		-	are in excess of four billion dollars ($4,000,000,000),
2702		-	determine one-eighth of one percent (0.125%) of the
2703		-	qualified distribution sales in excess of four billion dollars
2704		-	($4,000,000,000) plus sixteen million two hundred fifty
2705		-	thousand dollars ($16,250,000).
2706		-	STEP FIVE: Add the amounts determined under STEP
2707		-	THREE and STEP FOUR.
2708		-	(c) Notwithstanding any other provision of this section, for an
2709		-	eligible corporation that makes an election:
2710		-	(1) if the tax for a taxable year covered by the election as
2711		-	computed under subsection (b) is less than twenty-six million
2712		-	dollars ($26,000,000), the tax shall be twenty-six million
2713		-	dollars ($26,000,000); and
2714		-	(2) if the tax for the taxable year covered by an election as
2715		-	SEA 382 — CC 1 65
2716		-	computed under subsection (b) is greater than the amount
2717		-	specified in clauses (A) through (C), the amount of tax shall be
2718		-	the following amounts:
2719		-	(A) For a taxable year ending after December 31, 2018,
2720		-	and before January 1, 2025, forty million dollars
2721		-	($40,000,000).
2722		-	(B) For a taxable year ending after December 31, 2024, and
2723		-	before January 1, 2026, forty-two million dollars
2724		-	($42,000,000).
2725		-	(C) For each taxable year ending after December 31, 2025,
2726		-	forty-two million dollars ($42,000,000) plus one million
2727		-	dollars ($1,000,000) for each taxable year ending after
2728		-	December 31, 2025.
2729		-	For purposes of this subsection, the tax for a taxable year under
2730		-	this section shall be determined after application of any credit
2731		-	allowable under IC 6-3-3 and IC 6-3.1.
2732		-	(d) If an eligible corporation makes an election under this
2733		-	section, the following apply:
2734		-	(1) The eligible corporation shall be subject to the election for
2735		-	the taxable year of the election and each taxable year
2736		-	thereafter until the first taxable year ending ten (10) years
2737		-	after the first year in which an election is made under this
2738		-	section, even if the corporation would not be an eligible
2739		-	corporation for a taxable year after the taxable year in which
2740		-	the election is made, and shall be binding on any successor
2741		-	corporation or group of corporations to the eligible
2742		-	corporation.
2743		-	(2) After the period of the initial election under subdivision
2744		-	(1), the department may permit a taxpayer to make an
2745		-	election under this section for each subsequent taxable year
2746		-	after the election expires under subdivision (1). However:
2747		-	(A) an election under this subdivision is only permitted for
2748		-	one (1) taxable year; and
2749		-	(B) if an eligible corporation does make an election for a
2750		-	taxable year, the eligible corporation may only make a new
2751		-	election if the new election is subject to the terms of
2752		-	subdivision (1).
2753		-	(e) If two (2) or more eligible corporations are part of a
2754		-	consolidated return or combined return, the computation under
2755		-	STEP FOUR of subsection (b) shall be determined separately for
2756		-	each corporation.
2757		-	(f) For purposes of computing net operating losses for the
2758		-	SEA 382 — CC 1 66
2759		-	taxable year under section 2.6 of this chapter and the deduction
2760		-	allowable against adjusted gross income under section 2.6 of this
2761		-	chapter, the loss for the taxable year or deduction allowable shall
2762		-	be computed pursuant to STEP TWO of subsection (b).
2763		-	(g) An election under this section shall be in the form and
2764		-	manner prescribed by the department. The election must be
2765		-	completed and filed with the department on or before the date of
2766		-	filing of the original return for a taxable year to be effective
2767		-	beginning with that taxable year. In addition, if an eligible
2768		-	corporation files a consolidated return or combined return for the
2769		-	first taxable year of the election, or for any year subsequent to the
2770		-	first taxable year of the election, the eligible corporation and the
2771		-	department shall enter into an agreement regarding issues specific
2772		-	to consolidated or combined returns. In the absence of such an
2773		-	agreement, any such issues shall be treated in a manner prescribed
2774		-	by the department and published in the Indiana Register. If the
2775		-	original return for a taxable year is filed after the due date for the
2776		-	original return, including any extensions, an election will not be
2777		-	allowed for that taxable year or any subsequent year to which the
2778		-	election otherwise would apply. However, the eligible corporation
2779		-	may file an election for subsequent taxable years, provided the
2780		-	eligible corporation otherwise meets the requirements of this
2781		-	section.
2782		-	SECTION 35. IC 6-3-2-2.5, AS AMENDED BY P.L.165-2021,
2783		-	SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2784		-	JANUARY 1, 2023]: Sec. 2.5. (a) This section applies to a resident
2785		-	person.
2786		-	(b) Resident persons are entitled to a net operating loss deduction.
2787		-	The amount of the deduction taken in a taxable year may not exceed
2788		-	the taxpayer's unused Indiana net operating losses carried over to that
2789		-	year. A taxpayer is not entitled to carryback any net operating losses
2790		-	after December 31, 2011.
2791		-	(c) An Indiana net operating loss equals the sum of:
2792		-	(1) the taxpayer's federal net operating loss for a taxable year as
2793		-	calculated under Section 172 of the Internal Revenue Code,
2794		-	adjusted for certain modifications required by IC 6-3-1-3.5 as set
2795		-	forth in subsection (d)(1) and, in the case of an individual,
2796		-	reduced by any deductions allowable in determining the federal
2797		-	net operating loss for the taxable year, but not allowable in
2798		-	determining federal adjusted gross income;
2799		-	(2) the excess business loss deduction disallowed under
2800		-	IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14); and
2801		-	SEA 382 — CC 1 67
2802		-	(3) for taxable years beginning after December 31, 2020, a loss
2803		-	for a taxable year disallowed because of Section 461(l) of the
2804		-	Internal Revenue Code, without any modifications under
2805		-	subsection (d).
2806		-	(d) The following provisions apply for purposes of subsection (c):
2807		-	(1) The modifications that are to be applied are those
2808		-	modifications required under IC 6-3-1-3.5 for the same taxable
2809		-	year in which each net operating loss was incurred, except that the
2810		-	modifications do not include the modifications required under:
2811		-	(A) IC 6-3-1-3.5(a)(3);
2812		-	(B) IC 6-3-1-3.5(a)(4);
2813		-	(C) IC 6-3-1-3.5(a)(5);
2814		-	(D) IC 6-3-1-3.5(a)(34); IC 6-3-1-3.5(a)(35);
2815		-	(E) IC 6-3-1-3.5(f)(11); and
2816		-	(F) IC 6-3-1-3.5(f)(16). IC 6-3-1-3.5(f)(17).
2817		-	(2) An Indiana net operating loss includes a net operating loss that
2818		-	arises when the applicable modifications required by IC 6-3-1-3.5
2819		-	as set forth in subdivision (1) exceed the sum of the taxpayer's
2820		-	federal adjusted gross income (as defined in Section 62 of the
2821		-	Internal Revenue Code) if the taxpayer is an individual, or federal
2822		-	taxable income (as defined in Section 63 of the Internal Revenue
2823		-	Code) if the taxpayer is a trust or an estate for the taxable year in
2824		-	which the Indiana net operating loss is determined and the
2825		-	modifications otherwise required for federal net operating losses
2826		-	for the taxable year by Section 172(d) of the Internal Revenue
2827		-	Code. A modification that reduces a federal net operating loss
2828		-	shall be treated as a positive number for purposes of this
2829		-	subdivision, and a modification that increases a federal net
2830		-	operating loss shall be treated as a negative number for purposes
2831		-	of this subdivision.
2832		-	(e) Subject to the limitations contained in subsection (g), an Indiana
2833		-	net operating loss carryover shall be available as a deduction from the
2834		-	taxpayer's adjusted gross income (as defined in IC 6-3-1-3.5) in the
2835		-	carryover year provided in subsection (f), but not in excess of the
2836		-	taxpayer's adjusted gross income (as defined in IC 6-3-1-3.5) in the
2837		-	carryover year determined without regard to this section.
2838		-	(f) Carryovers shall be determined under this subsection as follows:
2839		-	(1) An Indiana net operating loss shall be an Indiana net operating
2840		-	loss carryover to each of the carryover years following the taxable
2841		-	year of the loss.
2842		-	(2) An Indiana net operating loss may not be carried over for
2843		-	SEA 382 — CC 1 68
2844		-	more than twenty (20) taxable years after the taxable year of the
2845		-	loss.
2846		-	(g) The entire amount of the Indiana net operating loss for any
2847		-	taxable year shall be carried to the earliest of the taxable years to which
2848		-	(as determined under subsection (f)) the loss may be carried. The
2849		-	amount of the Indiana net operating loss remaining after the deduction
2850		-	is taken under this section in a taxable year may be carried over as
2851		-	provided in subsection (f). The amount of the Indiana net operating loss
2852		-	carried over from year to year shall be reduced to the extent that the
2853		-	Indiana net operating loss carryover is used by the taxpayer to obtain
2854		-	a deduction in a taxable year until the occurrence of the earlier of the
2855		-	following:
2856		-	(1) The entire amount of the Indiana net operating loss has been
2857		-	used as a deduction.
2858		-	(2) The Indiana net operating loss has been carried over to each
2859		-	of the carryover years provided by subsection (f).
2860		-	SECTION 36. IC 6-3-2-2.6, AS AMENDED BY P.L.165-2021,
2861		-	SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2862		-	JANUARY 1, 2023]: Sec. 2.6. (a) This section applies to a corporation
2863		-	or a nonresident person.
2864		-	(b) Corporations and nonresident persons are entitled to a net
2865		-	operating loss deduction. The amount of the deduction taken in a
2866		-	taxable year may not exceed the taxpayer's unused Indiana net
2867		-	operating losses carried over to that year. A taxpayer is not entitled to
2868		-	carryback any net operating losses after December 31, 2011.
2869		-	(c) An Indiana net operating loss equals the sum of:
2870		-	(1) the taxpayer's federal net operating loss for a taxable year as
2871		-	calculated under Section 172 of the Internal Revenue Code,
2872		-	derived from sources within Indiana and adjusted for certain
2873		-	modifications required by IC 6-3-1-3.5 as set forth in subsection
2874		-	(d)(1) and, for a nonresident individual, reduced by any
2875		-	deductions from Indiana sources allowable in determining the
2876		-	federal net operating loss for the taxable year, but not allowable
2877		-	in determining federal adjusted gross income;
2878		-	(2) the excess business loss deduction disallowed under
2879		-	IC 6-3-1-3.5(a)(29) and IC 6-3-1-3.5(f)(14) and incurred from
2880		-	Indiana sources; and
2881		-	(3) for taxable years beginning after December 31, 2020, the
2882		-	portion of the loss for a taxable year disallowed because of
2883		-	Section 461(l) of the Internal Revenue Code and incurred from
2884		-	Indiana sources, without any modifications under subsection (d).
2885		-	Any net operating loss under this subdivision shall be computed
2886		-	SEA 382 — CC 1 69
2887		-	in a manner consistent with the computation of adjusted gross
2888		-	income under IC 6-3.
2889		-	(d) The following provisions apply for purposes of subsection (c):
2890		-	(1) The modifications that are to be applied are those
2891		-	modifications required under IC 6-3-1-3.5 for the same taxable
2892		-	year in which each net operating loss was incurred, except that the
2893		-	modifications do not include the modifications required under:
2894		-	(A) IC 6-3-1-3.5(a)(3);
2895		-	(B) IC 6-3-1-3.5(a)(4);
2896		-	(C) IC 6-3-1-3.5(a)(5);
2897		-	(D) IC 6-3-1-3.5(a)(34); IC 6-3-1-3.5(a)(35);
2898		-	(E) IC 6-3-1-3.5(b)(14);
2899		-	(F) IC 6-3-1-3.5(b)(19); IC 6-3-1-3.5(b)(20);
2900		-	(G) IC 6-3-1-3.5(d)(13);
2901		-	(H) IC 6-3-1-3.5(d)(18); IC 6-3-1-3.5(d)(19);
2902		-	(I) IC 6-3-1-3.5(e)(13);
2903		-	(J) IC 6-3-1-3.5(e)(18); IC 6-3-1-3.5(e)(19);
2904		-	(K) IC 6-3-1-3.5(f)(11); and
2905		-	(L) IC 6-3-1-3.5(f)(16). IC 6-3-1-3.5(f)(17).
2906		-	(2) The amount of the taxpayer's net operating loss that is derived
2907		-	from sources within Indiana shall be determined in the same
2908		-	manner that the amount of the taxpayer's adjusted gross income
2909		-	derived from sources within Indiana is determined under section
2910		-	2 of this chapter for the same taxable year during which each loss
2911		-	was incurred.
2912		-	(3) An Indiana net operating loss includes a net operating loss that
2913		-	arises when the applicable modifications required by IC 6-3-1-3.5
2914		-	as set forth in subdivision (1) exceed the sum of:
2915		-	(A) either:
2916		-	(i) the taxpayer's federal taxable income (as defined in
2917		-	Section 63 of the Internal Revenue Code), if the taxpayer is
2918		-	a corporation, nonresident estate, or nonresident trust; or
2919		-	(ii) the taxpayer's federal adjusted gross income (as defined
2920		-	by Section 62 of the Internal Revenue Code), if the taxpayer
2921		-	is a nonresident individual;
2922		-	for the taxable year in which the Indiana net operating loss is
2923		-	determined; and
2924		-	(B) the modifications otherwise required for federal net
2925		-	operating losses for the taxable year of the Indiana net
2926		-	operating loss under Section 172(d) of the Internal Revenue
2927		-	Code or Section 512(b) of the Internal Revenue Code. A
2928		-	SEA 382 — CC 1 70
2929		-	modification that reduces a federal net operating loss shall be
2930		-	treated as a positive number for purposes of this subdivision,
2931		-	and a modification that increases a federal net operating loss
2932		-	shall be treated as a negative number for purposes of this
2933		-	subdivision.
2934		-	(e) Subject to the limitations contained in subsection (g), an Indiana
2935		-	net operating loss carryover shall be available as a deduction from the
2936		-	taxpayer's adjusted gross income derived from sources within Indiana
2937		-	(as defined in section 2 of this chapter) in the carryover year provided
2938		-	in subsection (f), but not in excess of the taxpayer's adjusted gross
2939		-	income (as defined in IC 6-3-1-3.5) in the carryover year determined
2940		-	without regard to the deduction allowable under this section.
2941		-	(f) Carryovers shall be determined under this subsection as follows:
2942		-	(1) An Indiana net operating loss shall be an Indiana net operating
2943		-	loss carryover to each of the carryover years following the taxable
2944		-	year of the loss.
2945		-	(2) An Indiana net operating loss may not be carried over for
2946		-	more than twenty (20) taxable years after the taxable year of the
2947		-	loss.
2948		-	(g) The entire amount of the Indiana net operating loss for any
2949		-	taxable year shall be carried to the earliest of the taxable years to which
2950		-	(as determined under subsection (f)) the loss may be carried. The
2951		-	amount of the Indiana net operating loss remaining after the deduction
2952		-	is taken under this section in a taxable year may be carried over as
2953		-	provided in subsection (f). The amount of the Indiana net operating loss
2954		-	carried over from year to year shall be reduced to the extent that the
2955		-	Indiana net operating loss carryover is used by the taxpayer to obtain
2956		-	a deduction in a taxable year until the occurrence of the earlier of the
2957		-	following:
2958		-	(1) The entire amount of the Indiana net operating loss has been
2959		-	used as a deduction.
2960		-	(2) The Indiana net operating loss has been carried over to each
2961		-	of the carryover years provided by subsection (f).
2962		-	(h) An Indiana net operating loss deduction determined under this
2963		-	section shall be allowed notwithstanding the fact that in the year the
2964		-	taxpayer incurred the net operating loss the taxpayer was not subject to
2965		-	the tax imposed under section 1 of this chapter because the taxpayer
2966		-	was:
2967		-	(1) a life insurance company (as defined in Section 816(a) of the
2968		-	Internal Revenue Code); or
2969		-	(2) an insurance company subject to tax under Section 831 of the
2970		-	SEA 382 — CC 1 71
2971		-	Internal Revenue Code.
2972		-	(i) In the case of a life insurance company, this section shall be
2973		-	applied by substituting life insurance company taxable income (as
2974		-	defined in Section 801 the Internal Revenue Code) in place of
2975		-	references to taxable income (as defined in Section 63 of the Internal
2976		-	Revenue Code).
2977		-	SECTION 37. IC 6-3-4-3, AS AMENDED BY P.L.212-2018(ss),
2978		-	SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2979		-	JANUARY 1, 2023]: Sec. 3. (a) Returns required to be made pursuant
2980		-	to section 1 of this chapter shall be filed with the department on or
2981		-	before the later of the following:
2982		-	(1) The 15th day of the fourth month following the close of the
2983		-	taxable year.
2984		-	(2) For a corporation whose federal tax return is due on or after
2985		-	the date set forth in subdivision (1), as determined without regard
2986		-	to any extensions, weekends, Saturdays, Sundays, or holidays
2987		-	recognized by the Internal Revenue Service, the 15th day of the
2988		-	fifth month following the due date of the federal tax return. close
2989		-	of the taxable year.
2990		-	(b) However, If the due date for a federal income tax return is
2991		-	extended by the Internal Revenue Service to a date that is later than the
2992		-	date specified in subdivision (1) or (2) subsection (a)(1) or (a)(2) (as
2993		-	applicable), the department may extend the due date of a return
2994		-	required to be made under section 1 of this chapter to reflect the due
2995		-	date permitted for the federal income tax return.
2996		-	(c) If the due date for a federal income tax return in the Internal
2997		-	Revenue Code, as determined without regard to any extensions,
2998		-	Saturdays, Sundays, or holidays recognized by the Internal
2999		-	Revenue Service, is later than the date provided in subsection (a),
3000		-	the due date for the return made pursuant to section 1 of this
3001		-	chapter shall be the later of the due date for the federal income tax
3002		-	return or the due date provided under this section.
3003		-	SECTION 38. IC 6-3-4-12, AS AMENDED BY P.L.85-2017,
3004		-	SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3005		-	JULY 1, 2022]: Sec. 12. (a) Every partnership shall, at the time that the
3006		-	partnership pays or credits amounts to any of its nonresident partners
3007		-	on account of their distributive shares of partnership income, for a
3008		-	taxable year of the partnership, deduct and retain therefrom the amount
3009		-	prescribed in the withholding instructions referred to in section 8 of
3010		-	this chapter. Such partnership so paying or crediting any nonresident
3011		-	partner:
3012		-	(1) shall be liable to the state of Indiana for the payment of the tax
3013		-	SEA 382 — CC 1 72
3014		-	required to be deducted and retained under this section and shall
3015		-	not be liable to such partner for the amount deducted from such
3016		-	payment or credit and paid over in compliance or intended
3017		-	compliance with this section; and
3018		-	(2) shall make return of and payment to the department monthly
3019		-	whenever the amount of tax due under IC 6-3 and IC 6-3.6
3020		-	exceeds an aggregate amount of fifty dollars ($50) per month with
3021		-	such payment due on the thirtieth day of the following month,
3022		-	unless an earlier date is specified by section 8.1 of this chapter.
3023		-	Where the aggregate amount due under IC 6-3 and IC 6-3.6 does not
3024		-	exceed fifty dollars ($50) per month, then such partnership shall make
3025		-	return and payment to the department quarterly, on such dates and in
3026		-	such manner as the department shall prescribe, of the amount of tax
3027		-	which, under IC 6-3 and IC 6-3.6, it is required to withhold.
3028		-	(b) Every partnership shall, at the time of each payment made by it
3029		-	to the department pursuant to this section, deliver to the department a
3030		-	return upon such form as shall be prescribed by the department
3031		-	showing the total amounts paid or credited to its nonresident partners,
3032		-	the amount deducted therefrom in accordance with the provisions of
3033		-	this section, and such other information as the department may require.
3034		-	Every partnership making the deduction and retention provided in this
3035		-	section shall furnish to its nonresident partners annually, but not later
3036		-	than the fifteenth day of the third month after the end of its taxable
3037		-	year, a record of the amount of tax deducted and retained from such
3038		-	partners on forms to be prescribed by the department.
3039		-	(c) All money deducted and retained by the partnership, as provided
3040		-	in this section, shall immediately upon such deduction be the money of
3041		-	the state of Indiana and every partnership which deducts and retains
3042		-	any amount of money under the provisions of IC 6-3 shall hold the
3043		-	same in trust for the state of Indiana and for payment thereof to the
3044		-	department in the manner and at the times provided in IC 6-3. Any
3045		-	partnership may be required to post a surety bond in such sum as the
3046		-	department shall determine to be appropriate to protect the state of
3047		-	Indiana with respect to money deducted and retained pursuant to this
3048		-	section.
3049		-	(d) The provisions of IC 6-8.1 relating to additions to tax in case of
3050		-	delinquency and penalties shall apply to partnerships subject to the
3051		-	provisions of this section, and for these purposes any amount deducted,
3052		-	or required to be deducted and remitted to the department under this
3053		-	section, shall be considered to be the tax of the partnership, and with
3054		-	respect to such amount it shall be considered the taxpayer.
3055		-	(e) Amounts deducted from payments or credits to a nonresident
3056		-	SEA 382 — CC 1 73
3057		-	partner during any taxable year of the partnership in accordance with
3058		-	the provisions of this section shall be considered to be in part payment
3059		-	of the tax imposed on such nonresident partner for the nonresident
3060		-	partner's taxable year within or with which the partnership's taxable
3061		-	year ends. A return made by the partnership under subsection (b) shall
3062		-	be accepted by the department as evidence in favor of the nonresident
3063		-	partner of the amount so deducted for the nonresident partner's
3064		-	distributive share.
3065		-	(f) This section shall in no way relieve any nonresident partner from
3066		-	the nonresident partner's obligations of filing a return or returns at the
3067		-	time required under IC 6-3 or IC 6-3.6, and any unpaid tax shall be paid
3068		-	at the time prescribed by section 5 of this chapter.
3069		-	(g) Instead of the reporting periods required under subsection (a),
3070		-	the department may permit a partnership to file one (1) return and
3071		-	payment each year if the partnership pays or credits amounts to its
3072		-	nonresident partners only one (1) time each year. The return and
3073		-	payment are due on or before the fifteenth day of the fourth month after
3074		-	the end of the year. However, if a partnership is permitted an extension
3075		-	to file its income tax return under IC 6-8.1-6-1, the return and payment
3076		-	due under this subsection shall be allowed the same treatment as an
3077		-	extended income tax return with respect to due dates, interest, and
3078		-	penalties under IC 6-8.1-6-1.
3079		-	(h) If a partnership fails to withhold and pay any amount of tax
3080		-	required to be withheld under this section and thereafter the tax is paid
3081		-	by the partners, the amounts of tax as paid by the partners shall not be
3082		-	collected from the partnership but it may not be relieved from liability
3083		-	for interest or penalty otherwise due in respect to the failure to
3084		-	withhold under IC 6-8.1-10.
3085		-	(i) A partnership shall file a composite adjusted gross income tax
3086		-	return on behalf of all nonresident partners. The composite return must
3087		-	include each nonresident partner regardless of whether or not the
3088		-	nonresident partner has other Indiana source income.
3089		-	(j) If a partnership does not include all nonresident partners in the
3090		-	composite return, the partnership is subject to the penalty imposed
3091		-	under IC 6-8.1-10-2.1(j).
3092		-	(k) For taxable years beginning after December 31, 2013, the
3093		-	department may not impose a late payment penalty on a partnership for
3094		-	the failure to file a return, pay the full amount of the tax shown on the
3095		-	partnership's return, or pay the deficiency of the withholding taxes due
3096		-	under this section if the partnership pays the department before the
3097		-	fifteenth day of the fourth month after the end of the partnership's
3098		-	taxable year at least:
3099		-	SEA 382 — CC 1 74
3100		-	(1) eighty percent (80%) of the withholding tax due for the
3101		-	current year; or
3102		-	(2) one hundred percent (100%) of the withholding tax due for the
3103		-	preceding year.
3104		-	(l) Notwithstanding subsection (a) or (i), a pass through entity
3105		-	partnership is not required to withhold tax or file a composite adjusted
3106		-	gross income tax return for a nonresident member partner if the entity:
3107		-	partnership:
3108		-	(1) is a publicly traded partnership as defined by Section 7704(b)
3109		-	of the Internal Revenue Code;
3110		-	(2) meets the exception for partnerships under Section 7704(c) of
3111		-	the Internal Revenue Code; and
3112		-	(3) has agreed to file an annual information return reporting the
3113		-	name, address, taxpayer identification number, and other
3114		-	information requested by the department of each unit holder.
3115		-	The department may issue written guidance explaining circumstances
3116		-	under which limited partnerships or limited liability companies owned
3117		-	by a publicly traded partnership may be excluded from the withholding
3118		-	requirements of this section.
3119		-	(m) Notwithstanding subsection (k), a partnership is subject to a late
3120		-	payment penalty for the failure to file a return, pay the full amount of
3121		-	the tax shown on the partnership's return, or pay the deficiency of the
3122		-	withholding taxes due under this section for any amounts of
3123		-	withholding tax, including any interest under IC 6-8.1-10-1, reported
3124		-	or paid after the due date of the return, as adjusted by any extension
3125		-	under IC 6-8.1-6-1.
3126		-	(n) For purposes of this section, a "nonresident partner" is:
3127		-	(1) an individual who does not reside in Indiana;
3128		-	(2) a trust that does not reside in Indiana;
3129		-	(3) an estate that does not reside in Indiana;
3130		-	(4) a partnership not domiciled in Indiana;
3131		-	(5) a C corporation not domiciled in Indiana; or
3132		-	(6) an S corporation not domiciled in Indiana.
3133		-	SECTION 39. IC 6-3-4-14, AS AMENDED BY P.L.136-2018,
3134		-	SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3135		-	JULY 1, 2022]: Sec. 14. (a) An affiliated group of corporations shall
3136		-	have the privilege of making a consolidated return with respect to the
3137		-	taxes imposed by IC 6-3. The making of a consolidated return shall be
3138		-	upon the condition that all corporations which at any time during the
3139		-	taxable year have been members of the affiliated group consent to all
3140		-	of the provisions of this section including all provisions of the
3141		-	SEA 382 — CC 1 75
3142		-	consolidated return regulations prescribed pursuant to Section 1502 of
3143		-	the Internal Revenue Code and incorporated in this section by reference
3144		-	and all regulations promulgated by the department implementing this
3145		-	section prior to the last day prescribed by law for the filing of such
3146		-	return. The making of a consolidated return shall be considered as such
3147		-	consent. In the case of a corporation which is a member of the affiliated
3148		-	group for a fractional part of the year, the consolidated return shall
3149		-	include the income of such corporation for such part of the year as it is
3150		-	a member of the affiliated group.
3151		-	(b) For the purposes of this section the term "affiliated group" shall
3152		-	mean an "affiliated group" as defined in Section 1504 of the Internal
3153		-	Revenue Code with the exception that the affiliated group shall not
3154		-	include any corporation which does not have adjusted gross income
3155		-	derived from sources within the state of Indiana.
3156		-	(c) For purposes of IC 6-3-1-3.5(b), the determination of "taxable
3157		-	income," as defined in Section 63 of the Internal Revenue Code, of any
3158		-	affiliated group of corporations making a consolidated return and of
3159		-	each corporation in the group, both during and after the period of
3160		-	affiliation, shall be determined pursuant to the regulations prescribed
3161		-	under Section 1502 of the Internal Revenue Code.
3162		-	(d) Any credit against the taxes imposed by IC 6-3 which is
3163		-	available to any corporation which is a member of an affiliated group
3164		-	of corporations making a consolidated return shall be applied against
3165		-	the tax liability of the affiliated group.
3166		-	(e) For purposes of this section, the following rules shall apply:
3167		-	(1) In the case of the sale of a corporation, the filing status of
3168		-	the remaining members of the consolidated group shall
3169		-	continue absent an election by those consolidated members to
3170		-	file separately or on a combined basis.
3171		-	(2) In the case of a merger, the previous filing status of the
3172		-	surviving corporation shall continue. If the surviving
3173		-	corporation is part of an affiliated group that filed a
3174		-	consolidated return in the immediately preceding taxable
3175		-	year, the surviving corporation shall be considered to be part
3176		-	of the consolidated return, provided that the surviving
3177		-	corporation would otherwise be part of the affiliated group
3178		-	under subsection (b).
3179		-	(3) In the case of an acquisition of a corporation, the filing
3180		-	status of the acquiring group shall continue absent an election
3181		-	by the corporations to file separately or on a combined basis.
3182		-	(4) In the case of a corporation that was previously part of a
3183		-	consolidated return but ceased to be part of a consolidated
3184		-	SEA 382 — CC 1 76
3185		-	return for any other reason, the election to be part of a
3186		-	consolidated return shall be considered to continue for all
3187		-	corporations.
3188		-	Provided, however, that if a consolidated election is discontinued
3189		-	as a result of sale, merger, acquisition, or any other reason, nothing
3190		-	in this section shall be construed to prevent a new election to file a
3191		-	consolidated return under this section.
3192		-	SECTION 40. IC 6-3-4-15.1, AS ADDED BY P.L.159-2021,
3193		-	SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3194		-	JULY 1, 2022]: Sec. 15.1. For purposes of IC 6-3-4-12, IC 6-3-4-13,
3195		-	and IC 6-3-4-15, the department may:
3196		-	(1) prescribe procedures by which a pass through entity remits tax
3197		-	on behalf of partners, shareholders, and beneficiaries who are
3198		-	considered residents for purposes of those sections in the same
3199		-	manner as tax is remitted for partners, shareholders, and
3200		-	beneficiaries who are considered nonresidents for purposes of
3201		-	those sections, provided that such procedures do not relieve filing
3202		-	requirements otherwise applicable to partners, shareholders, and
3203		-	beneficiaries who are considered residents for purposes of those
3204		-	sections;
3205		-	(2) prescribe special procedures for persons or entities that are
3206		-	otherwise subject to withholding under those sections but who
3207		-	may have circumstances such that a standard tax computation
3208		-	may result in excess withholding;
3209		-	(3) prescribe procedures for individuals and trusts that are
3210		-	residents for part of the taxable year and nonresidents for part of
3211		-	the taxable year; and
3212		-	(4) prescribe procedures by which an entity subject to those
3213		-	sections may request alternative withholding arrangements,
3214		-	provided that such arrangements do not jeopardize the tax
3215		-	otherwise due under IC 6-3 or IC 6-5.5; and
3216		-	(5) prescribe procedures and guidelines by which a partner,
3217		-	shareholder, or beneficiary may elect to not be subject to
3218		-	withholding, in whole or in part, provided that:
3219		-	(A) the election by the partner, shareholder, or beneficiary
3220		-	lists the conditions of the election and that the election is
3221		-	signed under penalty of perjury prior to the due date for
3222		-	the pass through entity to remit tax for the taxable year;
3223		-	(B) the election states that partner, shareholder, or
3224		-	beneficiary has adequate funds to remit any tax due under
3225		-	this article or IC 6-5.5;
3226		-	(C) the election provides any periods for which
3227		-	SEA 382 — CC 1 77
3228		-	withholding is not required or is reduced;
3229		-	(D) the election provides that the partner, shareholder, or
3230		-	beneficiary agree to be subject to the jurisdiction of the
3231		-	state of Indiana and shall be liable to file any returns
3232		-	otherwise due under this article or IC 6-5.5, including any
3233		-	composite and withholding returns, and to remit any tax
3234		-	otherwise due, including any interest or penalties due on
3235		-	any tax due;
3236		-	(E) the election provides that the election is subject to
3237		-	department approval and that the department may revoke
3238		-	the election at any time for any reason; and
3239		-	(F) the election is attached to the returns of the pass
3240		-	through entity and of the partner, shareholder, or
3241		-	beneficiary required under this article or IC 6-5.5.
3242		-	A failure by the pass through entity to obtain an election for
3243		-	a taxable year or to attach the election to the pass through
3244		-	entity's return for a taxable year shall be treated as if the
3245		-	election was not made for the taxable year.
3246		-	SECTION 41. IC 6-3-4.5-1, AS ADDED BY P.L.159-2021,
3247		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3248		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 1. The following definitions
3249		-	apply throughout this chapter:
3250		-	(1) "Adjustment year" means the partnership taxable year
3251		-	described in Section 6225(d)(2) of the Internal Revenue Code.
3252		-	(2) "Administrative adjustment request" means an administrative
3253		-	adjustment request filed by a partnership under Section 6227 of
3254		-	the Internal Revenue Code.
3255		-	(3) "Affected year" means any taxable year for a taxpayer that is
3256		-	affected by an adjustment under this chapter, regardless of
3257		-	whether the partnership has received an adjustment for that
3258		-	taxable year.
3259		-	(4) "Audited partnership" means a partnership subject to a
3260		-	partnership level audit resulting in a federal adjustment.
3261		-	(5) "Corporate partner" means a partner that is subject to the state
3262		-	adjusted gross income tax under IC 6-3-2-1(b) or the financial
3263		-	institutions tax under IC 6-5.5-2-1. In the case of a partner that is
3264		-	a corporation described in IC 6-3-2-2.8(2) that also is subject to
3265		-	tax under IC 6-3-2-1(b), the corporation is a corporate partner
3266		-	only to the extent that its income is subject to tax under
3267		-	IC 6-3-2-1(b).
3268		-	(6) "Direct partner" means a partner that holds an interest directly
3269		-	in a partnership or pass through entity.
3270		-	SEA 382 — CC 1 78
3271		-	(7) "Exempt partner" means a partner that is exempt from the
3272		-	adjusted gross income tax under IC 6-3-2-2.8(1) or the financial
3273		-	institutions tax under IC 6-5.5-2-7(4), except to the extent of
3274		-	unrelated business taxable income.
3275		-	(8) "Federal adjustment" means a change to an item or amount
3276		-	determined under the Internal Revenue Code or a change to any
3277		-	other tax attribute that is used by a taxpayer to compute state
3278		-	adjusted gross income taxes or financial institutions tax owed,
3279		-	whether that change results from action by the Internal Revenue
3280		-	Service, including a partnership level audit, or the filing of an
3281		-	amended federal return, a federal refund claim, or an
3282		-	administrative adjustment request by the taxpayer. A federal
3283		-	adjustment is positive to the extent that it increases state adjusted
3284		-	gross income as determined under IC 6-3 or IC 6-5.5 and is
3285		-	negative to the extent that it decreases state adjusted gross income
3286		-	as determined under IC 6-3 or IC 6-5.5.
3287		-	(9) "Federal adjustment reports" includes methods or forms
3288		-	required by the department for use by a taxpayer to report final
3289		-	federal adjustments for purposes of this chapter, including an
3290		-	amended Indiana tax return, information return, or uniform
3291		-	multistate report.
3292		-	(10) "Federal partnership representative" means a person the
3293		-	partnership designates for the taxable year as the partnership's
3294		-	representative, or the person the Internal Revenue Service has
3295		-	appointed to act as the federal partnership representative,
3296		-	pursuant to Section 6223(a) of the Internal Revenue Code.
3297		-	(11) "Final determination date" means the following:
3298		-	(A) Except as provided in clause (B) or (C), if the federal
3299		-	adjustment arises from an Internal Revenue Service audit or
3300		-	other action by the Internal Revenue Service, the final
3301		-	determination date is the date on which the federal adjustment
3302		-	is a final determination under IC 6-3-4-6(d).
3303		-	(B) For federal adjustments arising from an Internal Revenue
3304		-	Service audit or other action by the Internal Revenue Service,
3305		-	if the taxpayer filed as a member of a consolidated tax return
3306		-	filed under IC 6-3-4-14, a combined return filed under
3307		-	IC 6-3-2-2 or IC 6-5.5-5-1, or a return combined by the
3308		-	department under IC 6-3-2-2(p), the final determination date
3309		-	means the first date on which no related federal adjustments
3310		-	arising from that audit remain to be finally determined, as
3311		-	described in clause (A), for the entire group.
3312		-	(C) If the federal adjustment results from filing an amended
3313		-	SEA 382 — CC 1 79
3314		-	federal return, a federal refund claim, or an administrative
3315		-	adjustment request, the final determination date means the day
3316		-	on which the amended return, refund claim, administrative
3317		-	adjustment request, or other similar report was filed.
3318		-	(12) "Final federal adjustment" means a federal adjustment after
3319		-	the final determination date for that federal adjustment has
3320		-	passed.
3321		-	(13) "Indirect partner" means a partner in a partnership or pass
3322		-	through entity that itself holds an interest directly, or through
3323		-	another indirect partner, in a partnership or pass through entity.
3324		-	(14) "Internal Revenue Code" has the meaning set forth in
3325		-	IC 6-3-1-11.
3326		-	(15) "Nonresident partner" has the meaning provided in
3327		-	IC 6-3-4-12(n).
3328		-	(16) "Partner" means a person or entity that holds an interest
3329		-	directly or indirectly in a partnership or other pass through entity.
3330		-	(17) "Partner level adjustments report" means a report provided
3331		-	by a partnership to its partners as a result of a department action
3332		-	with regard to the partnership. A partner level adjustments report
3333		-	does not include an amended statement provided by a partnership
3334		-	or other entity as a result of an adjustment reported by the
3335		-	partnership.
3336		-	(18) "Partnership" has the meaning set forth in IC 6-3-1-19.
3337		-	(19) "Partnership level audit" means an examination by the
3338		-	Internal Revenue Service at the partnership level under Sections
3339		-	6221 through 6241 of the Internal Revenue Code, as enacted by
3340		-	the Bipartisan Budget Act of 2015, Public Law 114-74, which
3341		-	results in federal adjustments.
3342		-	(20) "Partnership return" means a return required to be filed by a
3343		-	partnership pursuant to IC 6-3-4-10. In the case of a partnership
3344		-	that is required to withhold tax or file a composite return pursuant
3345		-	to IC 6-3-4-12 or IC 6-5.5-2-8, the term also includes the returns
3346		-	or schedules required for tax withholding or composite filing.
3347		-	(21) "Pass through entity" means an entity defined in IC 6-3-1-35,
3348		-	other than a partnership, that is not subject to tax under IC 6-3.
3349		-	(22) "Reallocation adjustment" means a federal adjustment
3350		-	resulting from a partnership level audit or an administrative
3351		-	adjustment request that changes the shares of one (1) or more
3352		-	items of partnership income, gain, loss, expense, or credit
3353		-	allocated to direct partners. A positive reallocation adjustment
3354		-	means the portion of a reallocation adjustment that would
3355		-	SEA 382 — CC 1 80
3356		-	increase federal adjusted gross income or federal taxable income
3357		-	for one (1) or more direct partners, and a negative reallocation
3358		-	adjustment means the portion of a reallocation adjustment that
3359		-	would decrease federal adjusted gross income or federal taxable
3360		-	income for one (1) or more direct partners, according to Section
3361		-	6225 of the Internal Revenue Code and the regulations under that
3362		-	section.
3363		-	(23) "Resident partner" means a partner that is not a nonresident
3364		-	partner.
3365		-	(24) "Review year" means the taxable year of a partnership that
3366		-	is subject to a partnership level audit, an administrative
3367		-	adjustment request, or an amended federal return that results
3368		-	in federal adjustments, regardless of whether any federal tax
3369		-	determined to be due is the responsibility of the partnership
3370		-	or partners.
3371		-	(25) "Statement" means a form or schedule prescribed by the
3372		-	department through which a partnership or pass through entity
3373		-	reports tax attributes to its owners or beneficiaries.
3374		-	(26) "Tax attribute" means any item of income, deduction, credit,
3375		-	receipts for apportionment, or other amount or status that
3376		-	determines a partner's liability under IC 6-3, IC 6-3.6, or IC 6-5.5.
3377		-	(27) "Taxable year" means, in the case of a partnership, the year
3378		-	or partial year for which a partnership files a return for state and
3379		-	federal purposes and, in the case of a partner, the taxable year in
3380		-	which the partner reports tax attributes from the partnership.
3381		-	(28) "Taxpayer" has the meaning set forth in IC 6-3-1-15 (in the
3382		-	case of the adjusted gross income tax) and IC 6-5.5-1-17 (in the
3383		-	case of the financial institutions tax) and, unless the context
3384		-	clearly indicates otherwise, includes a partnership subject to a
3385		-	partnership level audit or a partnership that has made an
3386		-	administrative adjustment request, as well as a tiered partner of
3387		-	that partnership.
3388		-	(29) "Tiered partner" means any partner that is a partnership or
3389		-	pass through entity.
3390		-	(30) "Unrelated business taxable income" has the meaning set
3391		-	forth in Section 512 of the Internal Revenue Code.
3392		-	SECTION 42. IC 6-3-4.5-2, AS ADDED BY P.L.159-2021,
3393		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3394		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 2. The following apply for
3395		-	purposes of this chapter:
3396		-	(1) If a taxpayer has not filed a return under IC 6-3 or IC 6-5.5 for
3397		-	SEA 382 — CC 1 81
3398		-	a taxable year, review year, or adjustment year, any reference to
3399		-	an amended return shall be a reference to an original return that
3400		-	includes any adjustments under this chapter.
3401		-	(2) If a taxpayer is a partnership or pass through entity and has
3402		-	not issued a statement to its owners or beneficiaries, any reference
3403		-	to an amended statement shall be a reference to an original
3404		-	statement that includes any adjustment under this chapter.
3405		-	(3) Any reference to tax shall include interest under IC 6-8.1-10-1
3406		-	and penalties under IC 6-8.1.
3407		-	(4) In the case of an a final federal adjustment for a review year
3408		-	that is required, to be paid or otherwise reported for federal
3409		-	purposes in an adjustment year, the adjustment shall be treated as:
3410		-	(A) occurring in the review year, if any tax, interest, or if and
3411		-	to the extent the adjustment:
3412		-	(i) results in an imputed underpayment for federal
3413		-	purposes to the partnership;
3414		-	(ii) would result in an imputed underpayment for federal
3415		-	purposes to the partnership for the review year except
3416		-	that the adjustment is reported by the partners of the
3417		-	partnership in the manner provided under Section
3418		-	6225(c)(2) of the Internal Revenue Code; or
3419		-	(iii) results in an adjustment that is passed through to the
3420		-	review year partners for federal tax purposes, in the case
3421		-	of a partnership that makes a valid election pursuant to
3422		-	Section 6226 of the Internal Revenue Code; or penalties
3423		-	are based on the review year for federal purposes; or
3424		-	(B) occurring in the adjustment year, to the extent a tax
3425		-	attribute is taken into account by the partnership as
3426		-	provided under Section 6225(a)(2) of the Internal Revenue
3427		-	Code and regardless of whether the item is a separately
3428		-	stated item for partners for federal income tax purposes.
3429		-	(i) the adjustment year, if the item is required to be reported
3430		-	for federal purposes on the federal tax return or in any other
3431		-	manner for the adjustment year; or
3432		-	(ii) any other year, if the item is required to be reported for
3433		-	federal purposes on the federal tax return or in any other
3434		-	manner for such other year;
3435		-	and is not described in clause (A).
3436		-	(C) For purposes of clauses (A) and (B):
3437		-	(i) a federal adjustment netted against another federal
3438		-	adjustment for purposes of determining an imputed
3439		-	SEA 382 — CC 1 82
3440		-	underpayment for federal purposes to the partnership,
3441		-	or for purposes of determining a partner's federal tax
3442		-	due with respect to a review year, is considered to occur
3443		-	in the review year;
3444		-	(ii) a federal adjustment permitted to reduce the imputed
3445		-	underpayment for federal purposes for a partnership, or
3446		-	permitted for purposes of determining a partner's
3447		-	federal tax due or federal tax attributes with respect to
3448		-	a review year, and not otherwise described in item (i), is
3449		-	considered to occur in the review year; and
3450		-	(iii) if an adjustment related to a review year affects a
3451		-	tax attribute of a partner such that the partner is
3452		-	required to change one (1) or more tax attributes for
3453		-	federal purposes for a year other than the review year,
3454		-	the partner shall treat the change in the tax attribute as
3455		-	occurring for Indiana purposes in the same year as the
3456		-	change is required for federal purposes.
3457		-	(5) In the case of a state adjustment, the change shall be treated
3458		-	as occurring in the taxable year to which the state adjustment
3459		-	relates, unless the adjustment is treated as occurring in a different
3460		-	year as a result of subdivision (4).
3461		-	(6) For taxable years beginning before January 1, 2017, any
3462		-	reference to IC 6-3.6 shall be construed to include IC 6-3.5-1.1,
3463		-	IC 6-3.5-6, and IC 6-3.5-7, prior to their repeal.
3464		-	(7) With respect to partnerships and tiered partners:
3465		-	(A) a partner that is a partnership that receives a report of
3466		-	partnership adjustments, receives a final federal adjustment, or
3467		-	files an amended return is considered a tier one (1) entity;
3468		-	(B) a tiered partner that is a direct partner of a tier one (1)
3469		-	entity is considered a tier two (2) entity; and
3470		-	(C) each tiered partner that is an owner, beneficiary, or partner
3471		-	of an entity that is a tier two (2) entity or higher shall be
3472		-	assigned a tier number that is one (1) tier higher and is
3473		-	considered an entity in that tier.
3474		-	If, after application of this subdivision, a tiered partner is assigned
3475		-	to more than one (1) tier, the tiered partner shall be treated as
3476		-	being assigned to the highest numerical tier to which the tiered
3477		-	partner could be assigned.
3478		-	(8) In the case of a partnership or tiered partner that is assigned a
3479		-	numerical tier, the applicable deadline for purposes of this chapter
3480		-	is:
3481		-	(A) in the case of a tier one (1) entity receiving a report of
3482		-	SEA 382 — CC 1 83
3483		-	partnership adjustments, ninety (90) days from the date the
3484		-	report of partnership adjustments is final;
3485		-	(B) in the case of a tier one (1) entity that has received a final
3486		-	federal determination, adjustment, one hundred eighty (180)
3487		-	days from the final determination date;
3488		-	(C) in the case of a tier one (1) entity that has filed an
3489		-	amended return under this chapter other than an amended
3490		-	return resulting from a final federal determination,
3491		-	adjustment, zero (0) days; and
3492		-	(D) in the case of a tiered partner that has received
3493		-	adjustments resulting from a tier one (1) partnership, a number
3494		-	of days equal to:
3495		-	(i) the number of days described in clauses (A) through (C),
3496		-	as applicable; plus
3497		-	(ii) thirty (30) multiplied by the tier number assigned to the
3498		-	tiered partner; minus
3499		-	(iii) thirty (30).
3500		-	However, if a tiered partner receives an adjustment reported on a
3501		-	partnership audit tracking report under Section 6226 of the
3502		-	Internal Revenue Code, the time period applicable for the tiered
3503		-	partner is the longer of the time period described in clause (D) or
3504		-	ninety (90) days from the date prescribed in Section
3505		-	6226(b)(4)(B) of the Internal Revenue Code, and any other
3506		-	applicable deadlines under this subdivision or subdivision (9).
3507		-	(9) Any reference to an election under section 9(c) of this
3508		-	chapter includes an election under sections 6(d) and 8(c) of
3509		-	this chapter.
3510		-	(9) (10) In the case of a direct partner or indirect partner that is
3511		-	not a tiered partner, the applicable deadline for purposes of this
3512		-	chapter is ninety (90) days after the applicable deadline that is
3513		-	determined for the partnership or tiered partner under subdivision
3514		-	(8). If a direct partner or indirect partner described in this
3515		-	subdivision is subject to more than one (1) applicable deadline,
3516		-	the applicable deadline is the latest date determined under this
3517		-	subdivision.
3518		-	SECTION 43. IC 6-3-4.5-3, AS ADDED BY P.L.159-2021,
3519		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3520		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 3. (a) If the department
3521		-	conducts an audit or investigation of a partnership, and the department
3522		-	determines that the partnership:
3523		-	(1) did not correctly report any tax attribute for a taxable year; or
3524		-	SEA 382 — CC 1 84
3525		-	(2) did not correctly allocate any tax attribute for a taxable year;
3526		-	the department may adjust or reallocate the tax attribute. If the
3527		-	department makes an adjustment or reallocation to one (1) or more tax
3528		-	attributes, the department shall provide a report of proposed
3529		-	partnership adjustments for the taxable year to the partnership.
3530		-	(b) The preliminary report of proposed partnership adjustments
3531		-	shall list:
3532		-	(1) the department's adjustments to tax attributes; and
3533		-	(2) the allocation of the department's adjustments to all affected
3534		-	direct partners.
3535		-	(c) If the preliminary report of proposed partnership adjustments for
3536		-	a taxable year results in either:
3537		-	(1) a potential increase in tax to one (1) or more direct partners;
3538		-	or
3539		-	(2) if the partnership reported tax attributes that would result in a
3540		-	refund of tax to one (1) or more partners, a reduction in that
3541		-	refund;
3542		-	such report shall be treated as a proposed assessment under IC 6-8.1-5
3543		-	to the partnership.
3544		-	(d) If the result for partnership adjustments for a taxable year results
3545		-	in:
3546		-	(1) no direct increase in tax to any direct partner; and
3547		-	(2) a change in tax attributes to one (1) or more direct partners
3548		-	that would result in a refund in excess of any refund claimed;
3549		-	the department shall issue a report of proposed partnership adjustments
3550		-	to the partnership reflecting such adjustments. Any refund arising from
3551		-	a report of proposed partnership adjustments shall be issued to the
3552		-	partners, subject to the partner claiming the refund and any statute of
3553		-	limitations on such refunds. In the case of partnership adjustments
3554		-	otherwise described in this subsection that result from a partnership
3555		-	adjustment described in subsection (c), all such partnership
3556		-	adjustments shall be treated as adjustments to which subsection (c)
3557		-	applies.
3558		-	SECTION 44. IC 6-3-4.5-5, AS ADDED BY P.L.159-2021,
3559		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3560		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 5. (a) For purposes of this
3561		-	chapter, a report of proposed partnership adjustments for a taxable
3562		-	year is considered a final report of final partnership adjustments upon
3563		-	the latest of:
3564		-	(1) the last day a protest of the report of proposed partnership
3565		-	adjustments could have been filed by the partnership, if no protest
3566		-	SEA 382 — CC 1 85
3567		-	is filed;
3568		-	(2) if a protest is filed, but no original tax appeal is filed pursuant
3569		-	to IC 6-8.1-5, the last day on which an original tax appeal could
3570		-	have been filed;
3571		-	(3) if an original tax appeal has been filed, the last day on which
3572		-	no further appeal may be taken from a decision requested; or
3573		-	(4) the date set in subsection (b).
3574		-	(b) If, upon protest or appeal, an adjustment in a report of proposed
3575		-	partnership adjustments is determined to be incorrect, the department
3576		-	shall issue a report of final partnership adjustments consistent with the
3577		-	determination not more than one hundred eighty (180) days after the
3578		-	determination is otherwise determined to be final under subsection
3579		-	(a)(1) through (a)(3). If the report of final partnership adjustments is
3580		-	not issued within one hundred eighty (180) days, one (1) day for each
3581		-	day that the report of final partnership adjustments is issued after the
3582		-	one hundred eighty (180) day deadline is added to the deadline for
3583		-	which a partnership or tiered partner may act without being subject to
3584		-	assessment under section 18 of this chapter. In the case of a partnership
3585		-	with multiple tiers, this extension applies to each tier.
3586		-	(c) Notwithstanding subsection (a), if the partnership and the
3587		-	department enter into a settlement agreement under IC 6-8.1-3-17 to
3588		-	resolve all matters related to the report of proposed partnership
3589		-	adjustments for a taxable year, the report of final partnership
3590		-	adjustments for that taxable year reflected in the agreement shall be
3591		-	issued final one hundred eighty (180) days after the date of the
3592		-	signature of the last party required to sign the agreement.
3593		-	SECTION 45. IC 6-3-4.5-8, AS ADDED BY P.L.159-2021,
3594		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3595		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 8. (a) If a partnership:
3596		-	(1) determines that it did not correctly report any tax attribute for
3597		-	a taxable year;
3598		-	(2) determines that it did not correctly allocate any tax attribute
3599		-	for a taxable year; or
3600		-	(3) receives final federal adjustments as a result of a federal
3601		-	partnership audit or administrative adjustment request for a
3602		-	taxable year;
3603		-	the partnership shall file an amended partnership return with the
3604		-	department and provide its direct partners with amended statements or
3605		-	a report in the form and manner prescribed by the department reflecting
3606		-	the correctly reported and allocated tax attributes for any applicable
3607		-	year.
3608		-	SEA 382 — CC 1 86
3609		-	(b) If the partnership files an amended partnership return under this
3610		-	section for a taxable year:
3611		-	(1) the partnership shall remit any composite tax or withholding
3612		-	tax due under IC 6-3-4-12 or IC 6-5.5-2-8 on its direct partners
3613		-	resulting from the amended return at the time of filing;
3614		-	(2) any tiered partners shall, not later than the applicable deadline
3615		-	for the tiered partner:
3616		-	(A) file an amended return and, if applicable, remit any tax
3617		-	due under IC 6-3, IC 6-3.6, or IC 6-5.5, including any amounts
3618		-	due under IC 6-3-4-12, IC 6-3-4-13, IC 6-3-4-15, or
3619		-	IC 6-5.5-2-8; and
3620		-	(B) report any adjustments to the tiered partner's owners or
3621		-	beneficiaries by providing amended statements to the tiered
3622		-	partner's owners or beneficiaries, or a report in the form and
3623		-	manner prescribed by the department; and
3624		-	(3) any direct or indirect partners who are not tiered partners and
3625		-	who are required to file a return under IC 6-3 or IC 6-5.5 or who
3626		-	have filed a return under IC 6-3 or IC 6-5.5 shall file amended
3627		-	returns with the department for any taxable year affected by the
3628		-	amended partnership return and remit any tax due not later than
3629		-	the applicable deadline for the partner.
3630		-	(c) Notwithstanding any other provision of this chapter or
3631		-	IC 6-3-4-11:
3632		-	(1) A partnership that has filed an amended partnership return
3633		-	under this section, or a tiered partner that is a partnership and that
3634		-	is a partner of a partnership that has filed an amended partnership
3635		-	return under this section, may elect to pay any tax due arising
3636		-	from an amended partnership return.
3637		-	(2) Such election must be filed with the department not later than
3638		-	the date on which the amended partnership return is filed with the
3639		-	department or, in the case of an election by a tiered partner that is
3640		-	a partnership, not later than the date by which the tiered partner
3641		-	is required to file an amended return under this section.
3642		-	(3) The computation and payment of tax and other provisions
3643		-	governing this election shall be made in a manner consistent with
3644		-	an election under section 9(c) of this chapter.
3645		-	(4) If a partnership has made an election under this chapter to
3646		-	report and remit all tax otherwise due at the partnership level for
3647		-	a taxable year, the partnership shall be considered to have made
3648		-	a timely election under this subsection with regard to any changes
3649		-	arising from an amended return under this section for that taxable
3650		-	SEA 382 — CC 1 87
3651		-	year.
3652		-	(d) If the department determines that a partnership:
3653		-	(1) did not correctly report any tax attributes for a taxable year; or
3654		-	(2) did not correctly allocate any tax attributes for a taxable year;
3655		-	the department may proceed against the partnership in the manner
3656		-	provided under sections 3 through 6 of this chapter.
3657		-	SECTION 46. IC 6-3-4.5-9, AS ADDED BY P.L.159-2021,
3658		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3659		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 9. (a) Partnerships and
3660		-	partners shall report final federal adjustments arising from a
3661		-	partnership level audit or an administrative adjustment request and
3662		-	make payments as required under this section.
3663		-	(b) Final federal adjustments subject to the requirements of this
3664		-	section, except those subject to a properly made election under
3665		-	subsection (c), shall be reported as follows:
3666		-	(1) Not later than the applicable deadline, the partnership shall:
3667		-	(A) file an amended partnership return for the review year and
3668		-	any other taxable year affected by the final federal adjustments
3669		-	with the department as provided in section 8 of this chapter
3670		-	and provide any other information required by the department;
3671		-	(B) notify each of its direct partners of their distributive share
3672		-	of the final federal adjustments as provided in section 8 of this
3673		-	chapter for all affected taxable years for which the partnership
3674		-	filed an amended partnership return by an amended statement
3675		-	or a report in the form and manner prescribed by the
3676		-	department; and
3677		-	(C) file an amended composite return for direct partners and
3678		-	an amended withholding return for direct partners for the
3679		-	review year and any affected taxable years as otherwise
3680		-	required by IC 6-3-4-12 or IC 6-5.5-2-8 and pay any tax due
3681		-	for the taxable years.
3682		-	(2) Each direct partner that is subject to tax under IC 6-3,
3683		-	IC 6-3.6, or IC 6-5.5 shall, on or before the applicable deadline:
3684		-	(A) file an amended return as provided in section 8 of this
3685		-	chapter reporting their distributive share of the adjustments
3686		-	reported to them under subdivision (1)(B) for the taxable year
3687		-	in which affected taxable year attributes would be reported by
3688		-	the direct partner as provided in section 8 of this chapter; and
3689		-	(B) pay any additional amount of tax due as if final federal
3690		-	partnership adjustments had been properly reported, less any
3691		-	credit for related amounts paid or withheld and remitted on
3692		-	SEA 382 — CC 1 88
3693		-	behalf of the direct partner.
3694		-	(3) Each tiered partner shall treat any final federal partnership
3695		-	adjustments under this section in a manner consistent with the
3696		-	treatment of tiered partners under section 8 of this chapter.
3697		-	(c) Except as provided in subsection (d), an audited partnership
3698		-	making an election under this subsection shall:
3699		-	(1) not later than the applicable deadline, file an amended
3700		-	partnership return for the review year and for any other affected
3701		-	taxable year elected by the audited partnership, including
3702		-	information as required by the department, and notify the
3703		-	department that it is making the election under this subsection;
3704		-	and
3705		-	(2) not later than ninety (90) days after the applicable deadline,
3706		-	pay an amount, determined as follows, in lieu of taxes owed by its
3707		-	direct or indirect partners:
3708		-	(A) Exclude from final federal adjustments the distributive
3709		-	share of these adjustments reported to a direct exempt partner
3710		-	that is not unrelated business income.
3711		-	(B) For the total distributive shares of the remaining final
3712		-	federal adjustments reported to direct corporate partners and
3713		-	to direct exempt partners, apportion and allocate such
3714		-	adjustments as provided under IC 6-3-2-2 or IC 6-3-2-2.2 (in
3715		-	the case of the adjusted gross income tax) or IC 6-5.5-4 (in the
3716		-	case of the financial institutions tax), and multiply the
3717		-	resulting amount by the tax rate for the taxable year under
3718		-	IC 6-3-2-1(b), IC 6-3-2-1.5, or IC 6-5.5-2-1, as applicable.
3719		-	(C) For the total distributive shares of the remaining final
3720		-	federal adjustments reported to nonresident direct partners
3721		-	other than tiered partners or corporate partners, determine
3722		-	the amount of such adjustments which is Indiana source
3723		-	income under IC 6-3-2-2 or IC 6-3-2-2.2, and multiply the
3724		-	resulting amount by the tax rate under IC 6-3-2-1(a), and if
3725		-	applicable IC 6-3.6. If a partnership is unable to determine
3726		-	whether a nonresident is subject to tax under IC 6-3.6, or to
3727		-	determine in what county the nonresident is subject to tax
3728		-	under IC 6-3.6, tax shall also be imposed at the highest rate for
3729		-	which a county imposes a tax under IC 6-3.6 for the taxable
3730		-	year.
3731		-	(D) For the total distributive shares of the remaining final
3732		-	federal adjustments reported to tiered partners:
3733		-	(i) determine the amount of any adjustment that is of a type
3734		-	that it would be subject to sourcing in Indiana under
3735		-	SEA 382 — CC 1 89
3736		-	IC 6-3-2-2, IC 6-3-2-2.2, or IC 6-5.5-4, as applicable, and
3737		-	determine the portion of this amount that would be sourced
3738		-	to Indiana;
3739		-	(ii) determine the amount of any adjustment that is of a type
3740		-	that it would not be subject to sourcing to Indiana by a
3741		-	nonresident partner under IC 6-3-2-2, IC 6-3-2-2.2, or
3742		-	IC 6-5.5-4, as applicable;
3743		-	(iii) determine the portion of the amount determined under
3744		-	item (ii) that can be established, as prescribed by the
3745		-	department by rule under IC 4-22-2, to be properly allocable
3746		-	to nonresident indirect partners or other partners not subject
3747		-	to tax on the adjustments; and
3748		-	(iv) multiply the sum of the amounts determined in items (i)
3749		-	and (ii) reduced by the amount determined in item (iii) by
3750		-	the highest combined rate for the review taxable year under
3751		-	IC 6-3-2-1(a) and IC 6-3.6 for any county, the rate under
3752		-	IC 6-3-2-1(b), or the rate under 6-5.5-2-1 for the taxable
3753		-	year, whichever is highest.
3754		-	(E) For the total distributive shares of the remaining final
3755		-	federal adjustments reported to resident individual, estate, or
3756		-	trust direct partners, multiply that amount by the tax rate under
3757		-	IC 6-3-2-1(a) and IC 6-3.6. If a partnership does not
3758		-	reasonably ascertain the county of residence for an individual
3759		-	direct partner, the rate under IC 6-3.6 for that partner shall be
3760		-	treated as the highest rate imposed in any county under
3761		-	IC 6-3.6 for the taxable year.
3762		-	(F) Add an amount equal to any credit reduction under
3763		-	IC 6-3-3, IC 6-3.1, and IC 6-5.5 attributable as a result of
3764		-	final federal adjustments.
3765		-	(F) (G) Add the amounts determined in clauses (B), (C),
3766		-	(D)(iv), and (E), and (F). For purposes of determining interest
3767		-	and penalties, the due date of payment shall be the due date of
3768		-	the partnership's return under IC 6-3-4-10 for the taxable year,
3769		-	determined without regard to any extensions.
3770		-	If a partnership has made an election under this chapter to report and
3771		-	remit all tax otherwise due at the partnership level for a taxable year,
3772		-	the partnership shall be considered to have made a timely election
3773		-	under this subsection with regard to any changes arising from an
3774		-	amended return under this section for that taxable year.
3775		-	(d) Final federal adjustments subject to an election under subsection
3776		-	(c) shall not include:
3777		-	(1) the distributive share of final federal adjustments that would
3778		-	SEA 382 — CC 1 90
3779		-	constitute income derived from a partnership to any direct or
3780		-	indirect partner that is a corporation taxable under IC 6-3-2-1(b),
3781		-	IC 6-3-2-1.5, or IC 6-5.5-2-1 and is considered unitary to the
3782		-	partnership;
3783		-	(2) any final federal adjustments resulting from an administrative
3784		-	adjustment request; or
3785		-	(3) any other circumstances that the department determines would
3786		-	result in avoidance or evasion of any tax otherwise due from one
3787		-	(1) or more partners under IC 6-3 or IC 6-5.5.
3788		-	(e) Notwithstanding IC 6-3-4-11, an audited partnership not
3789		-	otherwise subject to any reporting or payment obligations to Indiana
3790		-	that makes an election under subsection (c) consents to be subject to
3791		-	Indiana law related to reporting, assessment, payment, and collection
3792		-	of Indiana tax calculated under the election.
3793		-	SECTION 47. IC 6-3-4.5-14, AS ADDED BY P.L.159-2021,
3794		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3795		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 14. For purposes of this
3796		-	chapter and IC 6-8.1-5-2, an assessment may not be issued against a
3797		-	direct or indirect partner or partnership with regard to changes related
3798		-	to a proposed or report of final partnership adjustments if the report of
3799		-	proposed partnership adjustments is issued by the department to a
3800		-	partnership after the latest of:
3801		-	(1) three (3) years after the due date of the partnership's return,
3802		-	including any valid extension granted under IC 6-8.1-6-1;
3803		-	(2) three (3) years after the date the partnership's return is filed
3804		-	with the department;
3805		-	(3) in the case of the partnership's underreporting of its adjusted
3806		-	gross income by more than twenty-five percent (25%), the periods
3807		-	provided in subdivisions (1) and (2) shall be six (6) years;
3808		-	(4) if the partnership fails to file a return required under
3809		-	IC 6-3-4-10, files a fraudulent return, or files a substantially blank
3810		-	return, no time limit;
3811		-	(5) in the case of a report of proposed partnership adjustments
3812		-	arising from final federal adjustments:
3813		-	(A) one hundred eighty (180) days after the date on which the
3814		-	department receives the final federal adjustments from the
3815		-	partnership in the manner prescribed by the department; or
3816		-	(B) December 31, 2021;
3817		-	whichever is later; or
3818		-	(6) in the case of a report of proposed partnership adjustments
3819		-	issued to a tiered partner that is a partnership as a direct or
3820		-	SEA 382 — CC 1 91
3821		-	indirect result of another partnership's report of final partnership
3822		-	adjustments, final federal adjustments, or an amended return, one
3823		-	hundred eighty (180) days after the applicable deadline for the
3824		-	tiered partner or the date otherwise determined under this section
3825		-	for the partnership, whichever is later.
3826		-	SECTION 48. IC 6-3-4.5-15, AS ADDED BY P.L.159-2021,
3827		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3828		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 15. (a) If the department
3829		-	receives the partner level adjustments report, amended statement, or
3830		-	similar report required to be provided under section 6 of this chapter
3831		-	and the department determines that a taxpayer has not reported the
3832		-	correct amount of tax to the department for a taxable year of the
3833		-	taxpayer affected by the partner level adjustments report, the
3834		-	department shall issue a proposed assessment to the taxpayer not later
3835		-	than:
3836		-	(1) one hundred eighty (180) days after the department receives
3837		-	the partner level adjustments report or amended statement arising
3838		-	from the partner level adjustments report from the entity required
3839		-	to provide the report or statement to the department;
3840		-	(2) one hundred eighty (180) days after the applicable deadline
3841		-	for the taxpayer; or
3842		-	(3) the period during which the taxpayer could otherwise be
3843		-	issued a proposed assessment under IC 6-8.1-5-2;
3844		-	whichever is latest.
3845		-	(b) If a taxpayer receives multiple partner level adjustments reports
3846		-	or amended statements relating to the same final report of final
3847		-	partnership adjustments, the last day for issuing a proposed assessment
3848		-	to the taxpayer is the latest time for which the department could issue
3849		-	an assessment for any partner level adjustments report or amended
3850		-	statement arising from the report of partnership adjustments as
3851		-	determined under this section.
3852		-	(c) The taxpayer may protest or appeal the proposed assessment or
3853		-	refund denial in the same manner as prescribed in IC 6-8.1-5 or
3854		-	IC 6-8.1-9-1, whichever is applicable. However, any adjustments made
3855		-	pursuant to a final report of final partnership adjustments shall be
3856		-	considered final as to the taxpayer.
3857		-	SECTION 49. IC 6-3-4.5-17, AS ADDED BY P.L.159-2021,
3858		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3859		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 17. (a) If the department
3860		-	determines that a taxpayer reported a tax attribute in an inconsistent
3861		-	manner with the partnership's reporting of the tax attribute and the
3862		-	taxpayer does not disclose the inconsistent reporting in a manner
3863		-	SEA 382 — CC 1 92
3864		-	prescribed by the department, the department may issue a proposed
3865		-	assessment against the taxpayer as a result of the inconsistent reporting
3866		-	not later than:
3867		-	(1) three (3) years after the due date of the partnership's return,
3868		-	including any valid extensions granted under IC 6-8.1-6-1;
3869		-	(2) three (3) years after the partnership's return is filed with the
3870		-	department;
3871		-	(3) in the case of the partnership's underreporting of its adjusted
3872		-	gross income by more than twenty-five percent (25%), the periods
3873		-	provided in subdivisions (1) and (2) shall be six (6) years;
3874		-	(4) if the partnership fails to file a return required under
3875		-	IC 6-3-4-10, files a fraudulent return, or files a substantially blank
3876		-	return, no time limit; or
3877		-	(5) the latest date for which the taxpayer could be assessed under
3878		-	IC 6-8.1-5-2;
3879		-	whichever date is latest.
3880		-	(b) For purposes of this section:
3881		-	(1) if a partnership is required to file a return under IC 6-3-4-10
3882		-	and fails to file such return or fails to provide the partner with a
3883		-	statement setting forth the tax attributes from the partnership, the
3884		-	taxpayer will be considered to have reported all tax attributes
3885		-	from the partnership in an inconsistent manner with the
3886		-	partnership's reporting of the tax attributes;
3887		-	(2) in the case of a partner who owns a direct or indirect
3888		-	interest in a partnership that has made a valid election under
3889		-	Section 6221(b) of the Internal Revenue Code and has
3890		-	received a final federal adjustment with regard to an item of
3891		-	the partnership:
3892		-	(A) the partner shall be considered to have reported items
3893		-	consistently with the partnership only if the partner
3894		-	properly reports the federal adjustment in a manner
3895		-	consistent with the federal treatment of such adjustment;
3896		-	and
3897		-	(B) for purposes of this chapter, IC 6-8.1-5-2, and
3898		-	IC 6-8.1-9-1, the federal adjustment shall be considered a
3899		-	final federal adjustment with regard to such partner; and
3900		-	(3) for purposes of any protest or appeal with regard to a proposed
3901		-	assessment under this section, any reporting by the partnership
3902		-	shall be considered conclusive with regard to the direct or indirect
3903		-	partners of the partnership, provided that the reporting by the
3904		-	partnership is determined to be neither fraudulent nor in bad faith.
3905		-	SEA 382 — CC 1 93
3906		-	SECTION 50. IC 6-3-4.5-18, AS ADDED BY P.L.159-2021,
3907		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3908		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 18. (a) If a partnership or
3909		-	tiered partner is required to issue a report, issue an amended statement,
3910		-	or issue other information to a partner, owner, or beneficiary under this
3911		-	chapter, and does not issue such report, statement, or information
3912		-	within the period such issuance is required under this chapter, the
3913		-	partnership or tiered partner shall be liable for any tax that otherwise
3914		-	may be due from the partner, owner, or beneficiary, notwithstanding
3915		-	any other provision in IC 6-3 or IC 6-5.5. The tax rate under this
3916		-	section shall be computed at the highest rate for the taxable year under:
3917		-	(1) IC 6-3-2-1(a), plus the highest rate imposed in any county
3918		-	under IC 6-3.6;
3919		-	(2) IC 6-3-2-1(b); or
3920		-	(3) IC 6-5.5-2-1;
3921		-	unless the partnership or tiered partner can establish that a lower rate
3922		-	should apply, the partnership or tiered partner has made an election to
3923		-	be subject to tax under sections 6, 8, or 9 of this chapter, or to the
3924		-	extent the partnership, tiered partner, or the department can determine
3925		-	that the tax was otherwise properly reported and remitted. Such tax
3926		-	shall be considered to be due on the due date of the partnership's or
3927		-	tiered partner's return for the taxable year, determined without regard
3928		-	to extensions.
3929		-	(b) If a partnership or tiered partner issues the report, amended
3930		-	statement, or other information:
3931		-	(1) to an address that the partnership or tiered partner knows or
3932		-	reasonably should know is incorrect; or
3933		-	(2) if the report, amended statement, or other information not
3934		-	described in subdivision (1) is returned and the partnership or
3935		-	tiered partner:
3936		-	(A) fails to take reasonable steps to determine a proper address
3937		-	for reissuance within thirty (30) days after the report, amended
3938		-	statement, or other information is returned; or
3939		-	(B) takes such steps and fails to reissue the report, amended
3940		-	statement, or other information to a proper address within
3941		-	thirty (30) days after the report, amended statement, or other
3942		-	information is returned;
3943		-	such report, amended statement, or other information shall be
3944		-	considered to have not been issued for purposes of this section.
3945		-	(c) The department may issue a proposed assessment under this
3946		-	section not later than three (3) years after the department receives a
3947		-	SEA 382 — CC 1 94
3948		-	return or amended return from the partnership or tiered partner for
3949		-	which the partnership or tiered partner fails to issue reports, amended
3950		-	statements, or other information, or from the date a partnership is
3951		-	required to issue partner level adjustments reports to its partners.
3952		-	(d) If:
3953		-	(1) a direct or indirect partner files and remits the tax otherwise
3954		-	due under this section, the assessment to the partnership or tiered
3955		-	partner under this section shall be reduced by the portion of the
3956		-	tax attributable to the direct or indirect partner; and
3957		-	(2) a partnership or tiered partner files and remits the tax under
3958		-	this section, such tax shall be treated as payment of tax to the
3959		-	direct or indirect partners. However, in no event shall the direct
3960		-	or indirect partners be permitted a refund of tax paid by a
3961		-	partnership or tiered partner under this section unless otherwise
3962		-	permitted under this chapter or IC 6-8.1-9-1.
3963		-	(e) Nothing in this section shall be construed to relieve a partnership
3964		-	or tiered partner from any duty to issue a report, amended statement, or
3965		-	other information otherwise required under this chapter or under any
3966		-	other provision of IC 6-3 or IC 6-5.5. If a partnership or tiered partner
3967		-	issues a report, amended statement, or other information provided
3968		-	under this chapter after the date otherwise required for issuance, the
3969		-	department may grant relief to any tiered partner, direct partner, or
3970		-	indirect partner affected by the late issuance, including extension of
3971		-	applicable deadlines.
3972		-	SECTION 51. IC 6-3-4.5-20, AS ADDED BY P.L.159-2021,
3973		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3974		-	JULY 1, 2021 (RETROACTIVE)]: Sec. 20. (a) Notwithstanding any
3975		-	other provision of this chapter or IC 6-8.1, if, before the end of the time
3976		-	period within which the department may take an action under this
3977		-	chapter:
3978		-	(1) in the case of a partnership or tiered partner that has more than
3979		-	ten thousand (10,000) direct owners, the department shall extend
3980		-	the time period one (1) time by sixty (60) days upon written
3981		-	request of the partnership or tiered partner, regardless of whether
3982		-	the department signs the extension;
3983		-	(2) in the case of an action required to be taken with regard to a
3984		-	partnership under this chapter, the department and the partnership
3985		-	agree to extend that period, the period may be extended according
3986		-	to the terms of a written agreement signed by both the department
3987		-	and the partnership; and
3988		-	(3) in the case of an action required to be taken with regard to a
3989		-	tiered partner, direct partner, or indirect partner under this
3990		-	SEA 382 — CC 1 95
3991		-	chapter, the department and the tiered partner, direct partner, or
3992		-	indirect partner, as applicable, agree to extend that period, the
3993		-	period may be extended according to the terms of a written
3994		-	agreement signed by both the department and the tiered partner,
3995		-	direct partner, or indirect partner, as appropriate.
3996		-	(b) If an extension is entered into under subsection (a), the request
3997		-	for automatic extension or agreement must contain:
3998		-	(1) the date to which the extension is made; and
3999		-	(2) a statement that the person or entity agrees to preserve the
4000		-	person's or entity's records until the extension terminates.
4001		-	(c) If an extension is entered into under subsection (a), the
4002		-	applicable deadlines and statute of limitations for any actions arising
4003		-	from an action required by a partnership, tiered partner, direct partner,
4004		-	or indirect partner shall be extended in a manner consistent with the
4005		-	extension under subsection (a)(1) or (a)(2). (a).
4006		-	(d) The department and a partnership, tiered partner, direct partner,
4007		-	or indirect partner may enter into more than one (1) extension
4008		-	agreement under this section.
4009		-	(e) The department may, by rules adopted under IC 4-22-2 or by
4010		-	guidelines published in the Indiana Register, provide for automatic
4011		-	extensions or relief from liability and reporting for certain situations.
4012		-	The following apply:
4013		-	(1) In the case of an automatic extension, the extension shall be
4014		-	considered signed by both the department and the partnership,
4015		-	tiered partner, direct partner, or indirect partner before the time
4016		-	the department may take an action under this section. In addition,
4017		-	the partnership, tiered partner, direct partner, or indirect partner
4018		-	shall preserve the person's or entity's records until the automatic
4019		-	extension terminates.
4020		-	(2) In the case of relief from liability, such relief shall be granted
4021		-	only under the situations specifically granted by the rules or
4022		-	guidelines.
4023		-	(3) The department may adopt rules or guidelines to establish a de
4024		-	minimis amount upon which a taxpayer shall not be required to
4025		-	comply with specified provisions of this chapter.
4026		-	SECTION 52. IC 6-3.1-35 IS ADDED TO THE INDIANA CODE
4027		-	AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
4028		-	JULY 1, 2023]:
4029		-	Chapter 35. Affordable and Workforce Housing Tax Credit
4030		-	Sec. 1. The state tax credit provided by this chapter applies only
4031		-	to taxable years beginning on or after January 1, 2024. However,
4032		-	SEA 382 — CC 1 96
4033		-	beginning July 1, 2023:
4034		-	(1) eligible applicants may submit applications to the
4035		-	authority for state tax credits for qualified projects; and
4036		-	(2) the authority may evaluate applications and issue
4037		-	eligibility statements;
4038		-	under section 7 of this chapter.
4039		-	Sec. 2. The following definitions apply throughout this chapter:
4040		-	(1) "Authority" refers to the Indiana housing and community
4041		-	development authority created by IC 5-20-1-3.
4042		-	(2) "Eligibility statement" refers to the statement issued by
4043		-	the authority to an eligible applicant under section 7 of this
4044		-	chapter.
4045		-	(3) "Eligible applicant" means a taxpayer who is:
4046		-	(A) an owner of a qualified project; or
4047		-	(B) a shareholder, member, or partner of an owner of a
4048		-	qualified project that is designated by the owner in the
4049		-	manner prescribed by the authority.
4050		-	(4) "Federal tax credit" means a federal low income housing
4051		-	credit under Section 42 of the Internal Revenue Code that is
4052		-	a thirty percent (30%) present value credit. The term does not
4053		-	include a seventy percent (70%) present value credit under
4054		-	Section 42 of the Internal Revenue Code for certain new
4055		-	buildings.
4056		-	(5) "Holder of a state tax credit" for a taxable year in a
4057		-	qualified project's state tax credit period means:
4058		-	(A) the eligible applicant for the qualified project;
4059		-	(B) a shareholder, member, or partner of the owner of the
4060		-	qualified project; or
4061		-	(C) a successor, assignee, or transferee of the eligible
4062		-	applicant under section 6 of this chapter;
4063		-	that has a right to claim all or part of the tax credit for the
4064		-	taxable year.
4065		-	(6) "Qualified basis" of a qualified project has the meaning
4066		-	set forth in Section 42 of the Internal Revenue Code.
4067		-	(7) "Qualified project" means a qualified low income building
4068		-	(as defined in Section 42(c) of the Internal Revenue Code):
4069		-	(A) that is located in Indiana;
4070		-	(B) for which a federal affordable housing tax credit was
4071		-	awarded using a thirty percent (30%) present value of the
4072		-	qualified basis of the building; and
4073		-	(C) that is financed by tax exempt bonds that are subject
4074		-	SEA 382 — CC 1 97
4075		-	to the private activity bond volume cap (under Section
4076		-	42(h)(4) of the Internal Revenue Code).
4077		-	(8) "State tax credit" means the tax credit provided by this
4078		-	chapter.
4079		-	(9) "State tax credit period" for a qualified project means the
4080		-	period of five (5) taxable years beginning with the taxable
4081		-	year in which any amount of the federal tax credit for the
4082		-	qualified project is first claimed by a taxpayer.
4083		-	(10) "State tax liability" means a taxpayer's total tax liability
4084		-	incurred under:
4085		-	(A) IC 6-3-1 through IC 6-3-7 (the adjusted gross income
4086		-	tax);
4087		-	(B) IC 6-5.5 (the financial institutions tax);
4088		-	(C) IC 27-1-18-2 (the insurance premiums tax); and
4089		-	(D) IC 27-1-20-12 (the insurance premiums retaliatory
4090		-	tax);
4091		-	as computed after the application of the credits that under
4092		-	IC 6-3.1-1-2 are to be applied before the credit provided by
4093		-	this chapter.
4094		-	(11) "Tax credit application" means an application submitted
4095		-	by an eligible applicant to the authority under section 7 of this
4096		-	chapter.
4097		-	(12) "Taxpayer" means an individual, a corporation, an S
4098		-	corporation, a partnership, a limited partnership, a limited
4099		-	liability partnership, a limited liability company, or a joint
4100		-	venture.
4101		-	Sec. 3. (a) Except as otherwise provided in this chapter, for each
4102		-	taxable year in the state tax credit period of a qualified project, the
4103		-	holder of a state tax credit awarded under this chapter for the
4104		-	qualified project is entitled to a credit against the holder's state tax
4105		-	liability for the taxable year in an amount equal to:
4106		-	(1) the percentage of the state tax credit for the taxable year
4107		-	that the holder retains at the end of the last day of the taxable
4108		-	year, as determined under subsection (c); multiplied by
4109		-	(2) the amount of the state tax credit for the qualified project
4110		-	for the taxable year, as determined under subsections (d) and
4111		-	(e).
4112		-	(b) At the time an eligibility statement is issued to an eligible
4113		-	applicant, the eligible applicant is considered to have acquired one
4114		-	hundred percent (100%) of the state tax credit for each taxable
4115		-	year in the state tax credit period of the qualified project.
4116		-	(c) The percentage of a state tax credit for a taxable year that a
4117		-	SEA 382 — CC 1 98
4118		-	holder retains at the end of the last day of a taxable year under
4119		-	subsection (a)(1) is equal to:
4120		-	(1) the sum of the percentages of the state tax credit for the
4121		-	taxable year that the holder acquires before the end of the last
4122		-	day of the taxable year; minus
4123		-	(2) the sum of the percentages of the state tax credit for the
4124		-	taxable year that the holder transfers before the end of the
4125		-	last day of the taxable year.
4126		-	(d) The amount of a state tax credit for a taxable year in the
4127		-	state tax credit period of a qualified project under subsection (a)(2)
4128		-	is equal to:
4129		-	(1) a factor equal to:
4130		-	(A) one (1); divided by
4131		-	(B) the number of taxable years in the state tax credit
4132		-	period for the qualified project; multiplied by
4133		-	(2) the lesser of:
4134		-	(A) the amount of the total federal credit allowed for the
4135		-	qualified project, as shown on Internal Revenue Service
4136		-	Form 8609, Line 1(b) for the qualified project; or
4137		-	(B) the maximum aggregate amount of state tax credits
4138		-	awarded for the qualified project, as stated in the
4139		-	eligibility statement issued under section 7 of this chapter.
4140		-	(e) The department shall determine the amounts of the state tax
4141		-	credits specified under subsection (d) for each taxable year in the
4142		-	state tax credit period of each qualified project as those amounts
4143		-	are able to be computed and promptly publish the amounts on the
4144		-	department's Internet web site to assist holders in claiming the
4145		-	state tax credit provided by this chapter.
4146		-	Sec. 4. (a) If a holder's state tax credit exceeds the holder's state
4147		-	tax liability for the taxable year, the excess may be carried forward
4148		-	for up to nine (9) consecutive taxable years immediately following
4149		-	the first taxable year of the holder's state tax credit period and
4150		-	may be used to reduce the holder's state tax liability during those
4151		-	taxable years. Only the unused part of a state tax credit may be
4152		-	carried forward and used in a subsequent taxable year.
4153		-	(b) The holder of a state tax credit is not entitled to a carryback
4154		-	or refund of any unused credit.
4155		-	Sec. 5. (a) If a pass through entity is entitled to a state tax credit
4156		-	but does not have state tax liability against which the state tax
4157		-	credit may be applied, the pass through entity may allocate or
4158		-	otherwise transfer the state tax credit among the shareholders,
4159		-	members, or partners of the pass through entity in any manner
4160		-	SEA 382 — CC 1 99
4161		-	agreed to by the shareholders, members, or partners, regardless of
4162		-	how the federal tax credit for the qualified project is allocated or
4163		-	transferred or whether the allocation or transfer of the state tax
4164		-	credit under the agreement has substantial economic effect under
4165		-	Section 704(b) of the Internal Revenue Code. A pass through entity
4166		-	or its designee shall certify to the department the amount of the
4167		-	state tax credit that is allocated or transferred to each shareholder,
4168		-	member, or partner of the pass through entity for the taxable year,
4169		-	if any, in the manner prescribed by the department.
4170		-	(b) The credit provided under subsection (a) is in addition to a
4171		-	state tax credit to which a shareholder, member, or partner of a
4172		-	pass through entity is otherwise entitled under this chapter.
4173		-	Sec. 6. (a) A holder of a state tax credit may transfer, sell, or
4174		-	assign all or part of a state tax credit for a taxable year in the state
4175		-	tax credit period of the associated qualified project if the holder of
4176		-	the state tax credit complies with this section.
4177		-	(b) A holder shall furnish the following to the transferee,
4178		-	purchaser, or assignee:
4179		-	(1) A copy of the eligibility statement for the qualified project.
4180		-	(2) A declaration, on a form prescribed by the department,
4181		-	that states:
4182		-	(A) the percentage of the state tax credit for the taxable
4183		-	year that was held by the transferor before the transfer;
4184		-	(B) the percentage of the state tax credit for the taxable
4185		-	year that will be held by the transferor after the transfer;
4186		-	(C) the percentage of the state tax credit for the taxable
4187		-	year that will be held by the transferee after the transfer;
4188		-	and
4189		-	(D) any other information required by the department.
4190		-	The percentage specified in clause (A) must equal the sum of
4191		-	the percentages specified in clauses (B) and (C).
4192		-	(3) Copies of other documents in the possession of the
4193		-	transferor that relate to the transferor's right to claim the
4194		-	state tax credit provided by this chapter, if any.
4195		-	(c) A transferor of all or part of a state tax credit for a taxable
4196		-	year under this section shall report the transaction to the
4197		-	department in the manner prescribed by the department.
4198		-	Sec. 7. (a) An eligible applicant who wishes to obtain the state
4199		-	tax credit provided by this chapter for a qualified project must
4200		-	submit an application to the authority after June 30, 2023, and
4201		-	before January 1, 2028, in the manner prescribed by the authority.
4202		-	(b) An application submitted under subsection (a) must include:
4203		-	SEA 382 — CC 1 100
4204		-	(1) the name and address of the qualified project;
4205		-	(2) the name and address of the owner of the qualified
4206		-	project; and
4207		-	(3) any other information required by the authority.
4208		-	(c) Subject to section 8 of this chapter, the authority may
4209		-	approve a tax credit application if:
4210		-	(1) the applicant is an eligible applicant;
4211		-	(2) the project identified in the application is a qualified
4212		-	project; and
4213		-	(3) the tax credit application meets any other requirements
4214		-	for receipt of state tax credits established by the authority.
4215		-	(d) If the authority approves a tax credit application for a
4216		-	qualified project, for each taxable year in the tax credit period the
4217		-	authority may approve a maximum amount of state tax credits.
4218		-	The maximum aggregate amount of state tax credits awarded by
4219		-	the authority for the state tax credit period of a qualified project
4220		-	is an amount that is the product of:
4221		-	(1) a percentage determined by the authority, which must be:
4222		-	(A) greater than or equal to forty percent (40%); and
4223		-	(B) less than or equal to one hundred percent (100%);
4224		-	multiplied by
4225		-	(2) the anticipated aggregate federal tax credits specified in a
4226		-	letter issued by the authority for the qualified project under
4227		-	Section 42(m) of the Internal Revenue Code.
4228		-	(e) If the authority approves a tax credit application for a
4229		-	qualified project, the authority shall issue an eligibility statement
4230		-	to the eligible applicant. The eligibility statement must specify at
4231		-	least the following:
4232		-	(1) A unique identification code for the eligibility statement,
4233		-	determined by the authority.
4234		-	(2) The name of the qualified project.
4235		-	(3) For each taxable year in the state tax credit period of the
4236		-	qualified project, the maximum amount of state tax credit
4237		-	that the authority is awarding to the eligible applicant for the
4238		-	qualified project.
4239		-	(f) The authority shall transmit a copy of each eligibility
4240		-	statement issued under subsection (e) to the department.
4241		-	Sec. 8. (a) For each state fiscal year beginning after June 30,
4242		-	2023, and before July 1, 2028, the aggregate amount of state tax
4243		-	credits awarded by the authority under this chapter may not
4244		-	exceed thirty million dollars ($30,000,000). For purposes of
4245		-	SEA 382 — CC 1 101
4246		-	calculating the aggregate state tax credit limit for a state fiscal
4247		-	year, the amounts awarded by the authority are considered to be
4248		-	awarded in the year the award is made to the state tax credit
4249		-	recipient by the authority, notwithstanding the fact that the
4250		-	awarded state tax credit is to be claimed over the state tax credit
4251		-	period.
4252		-	(b) To the extent that the tax credit applications requesting state
4253		-	tax credits exceed the amount of available state tax credits in a
4254		-	year, or the authority reasonably anticipates that the requests will
4255		-	exceed the state fiscal year limitation established in subsection (a),
4256		-	the authority may allocate the state tax credits in a manner that
4257		-	furthers the mission and purpose of the authority and otherwise
4258		-	promotes the establishment of qualified projects.
4259		-	Sec. 9. To receive the state tax credit provided by this chapter,
4260		-	a holder of a state tax credit must claim the credit on the holder's
4261		-	annual state tax return in the manner prescribed by the
4262		-	department. The holder of the state tax credit shall submit to the
4263		-	department all information that the department determines is
4264		-	necessary for the calculation of the state tax credit.
4265		-	Sec. 10. The department or the authority, or both, may adopt
4266		-	rules to implement this chapter.
4267		-	Sec. 11. This chapter is subject to review under IC 2-5-3.2-1 to
4268		-	evaluate the effectiveness of the state tax credit one (1) year prior
4269		-	to its expiration under section 12 of this chapter.
4270		-	Sec. 12. This chapter expires July 1, 2028.
4271		-	SECTION 53. IC 6-3.6-6-2.7, AS AMENDED BY P.L.257-2019,
4272		-	SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4273		-	JULY 1, 2022]: Sec. 2.7. (a) A county fiscal body may adopt an
4274		-	ordinance to impose a tax rate for correctional facilities and
4275		-	rehabilitation facilities in the county. The tax rate must be in
4276		-	increments of one-hundredth of one percent (0.01%) and may not
4277		-	exceed two-tenths of one percent (0.2%). The tax rate may not be in
4278		-	effect for more than:
4279		-	(1) twenty-two (22) years, in the case of a tax rate imposed in
4280		-	an ordinance adopted before January 1, 2019; or
4281		-	(2) twenty-five (25) years, in the case of a tax rate imposed in
4282		-	an ordinance adopted on or after January 1, 2019.
4283		-	If an ordinance is adopted after June 30, 2019, to impose a tax rate
4284		-	under this section, not more than twenty percent (20%) of the revenue
4285		-	from the tax rate under this section may be used for operating expenses
4286		-	for correctional facilities and rehabilitation facilities in the county.
4287		-	(b) The revenue generated by a tax rate imposed under this section
4288		-	SEA 382 — CC 1 102
4289		-	must be distributed directly to the county before the remainder of the
4290		-	expenditure rate revenue is distributed. The revenue shall be
4291		-	maintained in a separate dedicated county fund and used by the county
4292		-	only for paying for correctional facilities and rehabilitation facilities in
4293		-	the county.
4294		-	SECTION 54. IC 6-3.6-9-4, AS AMENDED BY P.L.165-2021,
4295		-	SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4296		-	JULY 1, 2022]: Sec. 4. Revenue derived from the imposition of the tax
4297		-	shall, in the manner prescribed by this chapter, be distributed to the
4298		-	county that imposed it. The amount that is to be distributed to a county
4299		-	during an ensuing calendar year equals the amount of tax revenue that
4300		-	the budget agency determines has been:
4301		-	(1) received from attributed to that county for a taxable year
4302		-	ending in a calendar year preceding the calendar year in which the
4303		-	determination is made; and
4304		-	(2) reported on an annual return or amended return filed by or for
4305		-	a county taxpayer and processed by the department in the state
4306		-	fiscal year ending before July 1, or for a federal income tax
4307		-	deadline set after July 1, a date set by the department for a period
4308		-	of not more than sixty (60) days beyond the federal deadline, of
4309		-	the calendar year in which the determination is made.
4310		-	as adjusted for refunds of tax made in the state fiscal year.
4311		-	SECTION 55. IC 6-5.5-1-2, AS AMENDED BY P.L.199-2021,
4312		-	SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4313		-	JANUARY 1, 2023]: Sec. 2. (a) Except as provided in subsections (b)
4314		-	through (d), "adjusted gross income" means taxable income as defined
4315		-	in Section 63 of the Internal Revenue Code, adjusted as follows:
4316		-	(1) Add the following amounts:
4317		-	(A) An amount equal to a deduction allowed or allowable
4318		-	under Section 166, Section 585, or Section 593 of the Internal
4319		-	Revenue Code.
4320		-	(B) An amount equal to a deduction allowed or allowable
4321		-	under Section 170 of the Internal Revenue Code.
4322		-	(C) An amount equal to a deduction or deductions allowed or
4323		-	allowable under Section 63 of the Internal Revenue Code for
4324		-	taxes based on or measured by income and levied at the state
4325		-	level by a state of the United States or levied at the local level
4326		-	by any subdivision of a state of the United States.
4327		-	(D) The amount of interest excluded under Section 103 of the
4328		-	Internal Revenue Code or under any other federal law, minus
4329		-	the associated expenses disallowed in the computation of
4330		-	SEA 382 — CC 1 103
4331		-	taxable income under Section 265 of the Internal Revenue
4332		-	Code.
4333		-	(E) An amount equal to the deduction allowed under Section
4334		-	172 or 1212 of the Internal Revenue Code for net operating
4335		-	losses or net capital losses.
4336		-	(F) For a taxpayer that is not a large bank (as defined in
4337		-	Section 585(c)(2) of the Internal Revenue Code), an amount
4338		-	equal to the recovery of a debt, or part of a debt, that becomes
4339		-	worthless to the extent a deduction was allowed from gross
4340		-	income in a prior taxable year under Section 166(a) of the
4341		-	Internal Revenue Code.
4342		-	(G) Add the amount necessary to make the adjusted gross
4343		-	income of any taxpayer that owns property for which bonus
4344		-	depreciation was allowed in the current taxable year or in an
4345		-	earlier taxable year equal to the amount of adjusted gross
4346		-	income that would have been computed had an election not
4347		-	been made under Section 168(k) of the Internal Revenue Code
4348		-	to apply bonus depreciation to the property in the year that it
4349		-	was placed in service.
4350		-	(H) Add the amount necessary to make the adjusted gross
4351		-	income of any taxpayer that placed Section 179 property (as
4352		-	defined in Section 179 of the Internal Revenue Code) in
4353		-	service in the current taxable year or in an earlier taxable year
4354		-	equal to the amount of adjusted gross income that would have
4355		-	been computed had an election for federal income tax
4356		-	purposes not been made for the year in which the property was
4357		-	placed in service to take deductions under Section 179 of the
4358		-	Internal Revenue Code in a total amount exceeding the sum of:
4359		-	(i) twenty-five thousand dollars ($25,000) to the extent
4360		-	deductions under Section 179 of the Internal Revenue Code
4361		-	were not elected as provided in item (ii); and
4362		-	(ii) for taxable years beginning after December 31, 2017, the
4363		-	deductions elected under Section 179 of the Internal
4364		-	Revenue Code on property acquired in an exchange if the
4365		-	exchange would have been eligible for nonrecognition of
4366		-	gain or loss under Section 1031 of the Internal Revenue
4367		-	Code in effect on January 1, 2017, the exchange is not
4368		-	eligible for nonrecognition of gain or loss under Section
4369		-	1031 of the Internal Revenue Code, and the taxpayer made
4370		-	an election to take deductions under Section 179 of the
4371		-	Internal Revenue Code with regard to the acquired property
4372		-	in the year that the property was placed into service. The
4373		-	SEA 382 — CC 1 104
4374		-	amount of deductions allowable for an item of property
4375		-	under this item may not exceed the amount of adjusted gross
4376		-	income realized on the property that would have been
4377		-	deferred under the Internal Revenue Code in effect on
4378		-	January 1, 2017.
4379		-	(I) Add an amount equal to any income not included in gross
4380		-	income as a result of the deferral of income arising from
4381		-	business indebtedness discharged in connection with the
4382		-	reacquisition after December 31, 2008, and before January 1,
4383		-	2011, of an applicable debt instrument, as provided in Section
4384		-	108(i) of the Internal Revenue Code. Subtract from the
4385		-	adjusted gross income of any taxpayer that added an amount
4386		-	to adjusted gross income in a previous year the amount
4387		-	necessary to offset the amount included in federal gross
4388		-	income as a result of the deferral of income arising from
4389		-	business indebtedness discharged in connection with the
4390		-	reacquisition after December 31, 2008, and before January 1,
4391		-	2011, of an applicable debt instrument, as provided in Section
4392		-	108(i) of the Internal Revenue Code.
4393		-	(J) Add an amount equal to any exempt insurance income
4394		-	under Section 953(e) of the Internal Revenue Code for active
4395		-	financing income under Subpart F, Subtitle A, Chapter 1,
4396		-	Subchapter N of the Internal Revenue Code.
4397		-	(K) Add an amount equal to the remainder of:
4398		-	(i) the amount allowable as a deduction under Section
4399		-	274(n) of the Internal Revenue Code; minus
4400		-	(ii) the amount otherwise allowable as a deduction under
4401		-	Section 274(n) of the Internal Revenue Code, if Section
4402		-	274(n)(2)(D) of the Internal Revenue Code was not in effect
4403		-	for amounts paid or incurred after December 31, 2020.
4404		-	(2) Subtract the following amounts:
4405		-	(A) Income that the United States Constitution or any statute
4406		-	of the United States prohibits from being used to measure the
4407		-	tax imposed by this chapter.
4408		-	(B) Income that is derived from sources outside the United
4409		-	States, as defined by the Internal Revenue Code.
4410		-	(C) An amount equal to a debt or part of a debt that becomes
4411		-	worthless, as permitted under Section 166(a) of the Internal
4412		-	Revenue Code.
4413		-	(D) An amount equal to any bad debt reserves that are
4414		-	included in federal income because of accounting method
4415		-	SEA 382 — CC 1 105
4416		-	changes required by Section 585(c)(3)(A) or Section 593 of
4417		-	the Internal Revenue Code.
4418		-	(E) The amount necessary to make the adjusted gross income
4419		-	of any taxpayer that owns property for which bonus
4420		-	depreciation was allowed in the current taxable year or in an
4421		-	earlier taxable year equal to the amount of adjusted gross
4422		-	income that would have been computed had an election not
4423		-	been made under Section 168(k) of the Internal Revenue Code
4424		-	to apply bonus depreciation.
4425		-	(F) The amount necessary to make the adjusted gross income
4426		-	of any taxpayer that placed Section 179 property (as defined
4427		-	in Section 179 of the Internal Revenue Code) in service in the
4428		-	current taxable year or in an earlier taxable year equal to the
4429		-	amount of adjusted gross income that would have been
4430		-	computed had an election for federal income tax purposes not
4431		-	been made for the year in which the property was placed in
4432		-	service to take deductions under Section 179 of the Internal
4433		-	Revenue Code in a total amount exceeding the sum of:
4434		-	(i) twenty-five thousand dollars ($25,000) to the extent
4435		-	deductions under Section 179 of the Internal Revenue Code
4436		-	were not elected as provided in item (ii); and
4437		-	(ii) for taxable years beginning after December 31, 2017, the
4438		-	deductions elected under Section 179 of the Internal
4439		-	Revenue Code on property acquired in an exchange if the
4440		-	exchange would have been eligible for nonrecognition of
4441		-	gain or loss under Section 1031 of the Internal Revenue
4442		-	Code in effect on January 1, 2017, the exchange is not
4443		-	eligible for nonrecognition of gain or loss under Section
4444		-	1031 of the Internal Revenue Code, and the taxpayer made
4445		-	an election to take deductions under Section 179 of the
4446		-	Internal Revenue Code with regard to the acquired property
4447		-	in the year that the property was placed into service. The
4448		-	amount of deductions allowable for an item of property
4449		-	under this item may not exceed the amount of adjusted gross
4450		-	income realized on the property that would have been
4451		-	deferred under the Internal Revenue Code in effect on
4452		-	January 1, 2017.
4453		-	(G) Income that is:
4454		-	(i) exempt from taxation under IC 6-3-2-21.7; and
4455		-	(ii) included in the taxpayer's taxable income under the
4456		-	Internal Revenue Code.
4457		-	(H) The amount that would have been excluded from gross
4458		-	SEA 382 — CC 1 106
4459		-	income but for the enactment of Section 118(b)(2) of the
4460		-	Internal Revenue Code for taxable years ending after
4461		-	December 22, 2017.
4462		-	(I) For taxable years ending after March 12, 2020, an amount
4463		-	equal to the deduction disallowed pursuant to:
4464		-	(i) Section 2301(e) of the CARES Act (Public Law
4465		-	116-136), as modified by Sections 206 and 207 of the
4466		-	Taxpayer Certainty and Disaster Relief Tax Act (Division
4467		-	EE of Public Law 116-260); and
4468		-	(ii) Section 3134(e) of the Internal Revenue Code.
4469		-	(J) Subtract an amount equal to the deduction disallowed
4470		-	under Section 280C(h) of the Internal Revenue Code.
4471		-	(3) Make the following adjustments:
4472		-	(A) Subtract the amount of any interest expense paid or
4473		-	accrued in the current taxable year but not deducted as a result
4474		-	of the limitation imposed under Section 163(j)(1) of the
4475		-	Internal Revenue Code.
4476		-	(B) Add any interest expense paid or accrued in a previous
4477		-	taxable year but allowed as a deduction under Section 163 of
4478		-	the Internal Revenue Code in the current taxable year.
4479		-	For purposes of this subdivision, an interest expense is considered
4480		-	paid or accrued only in the first taxable year the deduction would
4481		-	have been allowable under Section 163 of the Internal Revenue
4482		-	Code if the limitation under Section 163(j)(1) of the Internal
4483		-	Revenue Code did not exist.
4484		-	(b) In the case of a credit union, "adjusted gross income" for a
4485		-	taxable year means the total transfers to undivided earnings minus
4486		-	dividends for that taxable year after statutory reserves are set aside
4487		-	under IC 28-7-1-24.
4488		-	(c) In the case of an investment company, "adjusted gross income"
4489		-	means the company's federal taxable income adjusted as follows:
4490		-	(1) Add the amount excluded from federal gross income under
4491		-	Section 103 of the Internal Revenue Code for interest received on
4492		-	an obligation of a state other than Indiana, or a political
4493		-	subdivision of such a state, that is acquired by the taxpayer after
4494		-	December 31, 2011.
4495		-	(2) Make the following adjustments:
4496		-	(A) Subtract the amount of any interest expense paid or
4497		-	accrued in the current taxable year but not deducted as a result
4498		-	of the limitation imposed under Section 163(j)(1) of the
4499		-	Internal Revenue Code.
4500		-	SEA 382 — CC 1 107
4501		-	(B) Add any interest expense paid or accrued in a previous
4502		-	taxable year but allowed as a deduction under Section 163 of
4503		-	the Internal Revenue Code in the current taxable year.
4504		-	For purposes of this subdivision, an interest expense is considered
4505		-	paid or accrued only in the first taxable year the deduction would
4506		-	have been allowable under Section 163 of the Internal Revenue
4507		-	Code if the limitation under Section 163(j)(1) of the Internal
4508		-	Revenue Code did not exist.
4509		-	(3) Multiply the amount determined after the adjustments in
4510		-	subdivisions (1) and (2) by the quotient of:
4511		-	(A) the aggregate of the gross payments collected by the
4512		-	company during the taxable year from old and new business
4513		-	upon investment contracts issued by the company and held by
4514		-	residents of Indiana; divided by
4515		-	(B) the total amount of gross payments collected during the
4516		-	taxable year by the company from the business upon
4517		-	investment contracts issued by the company and held by
4518		-	persons residing within Indiana and elsewhere.
4519		-	(d) As used in subsection (c), "investment company" means a
4520		-	person, copartnership, association, limited liability company, or
4521		-	corporation, whether domestic or foreign, that:
4522		-	(1) is registered under the Investment Company Act of 1940 (15
4523		-	U.S.C. 80a-1 et seq.); and
4524		-	(2) solicits or receives a payment to be made to itself and issues
4525		-	in exchange for the payment:
4526		-	(A) a so-called bond;
4527		-	(B) a share;
4528		-	(C) a coupon;
4529		-	(D) a certificate of membership;
4530		-	(E) an agreement;
4531		-	(F) a pretended agreement; or
4532		-	(G) other evidences of obligation;
4533		-	entitling the holder to anything of value at some future date, if the
4534		-	gross payments received by the company during the taxable year
4535		-	on outstanding investment contracts, plus interest and dividends
4536		-	earned on those contracts (by prorating the interest and dividends
4537		-	earned on investment contracts by the same proportion that
4538		-	certificate reserves (as defined by the Investment Company Act
4539		-	of 1940) is to the company's total assets) is at least fifty percent
4540		-	(50%) of the company's gross payments upon investment
4541		-	contracts plus gross income from all other sources except
4542		-	SEA 382 — CC 1 108
4543		-	dividends from subsidiaries for the taxable year. The term
4544		-	"investment contract" means an instrument listed in clauses (A)
4545		-	through (G).
4546		-	(e) If a partner is required to include an item of income, a deduction,
4547		-	or another tax attribute in the partner's adjusted gross income tax return
4548		-	pursuant to IC 6-3-4.5, such item shall be considered to be includible
4549		-	in the partner's federal adjusted gross income or federal taxable
4550		-	income, regardless of whether such item is actually required to be
4551		-	reported by the partner for federal income tax purposes. For purposes
4552		-	of this subsection:
4553		-	(1) items for which a valid election is made under IC 6-3-4.5-6,
4554		-	IC 6-3-4.5-8, or IC 6-3-4.5-9 shall not be required to be included
4555		-	in the partner's adjusted gross income or taxable income; and
4556		-	(2) items for which the partnership did not make an election under
4557		-	IC 6-3-4.5-6, IC 6-3-4.5-8, or IC 6-3-4.5-9, but for which the
4558		-	partnership is required to remit tax pursuant to IC 6-3-4.5-18,
4559		-	shall be included in the partner's adjusted gross income or taxable
4560		-	income.
4561		-	SECTION 56. IC 6-5.5-6-2, AS AMENDED BY P.L.239-2017,
4562		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4563		-	JANUARY 1, 2023]: Sec. 2. (a) Annual returns required by this
4564		-	chapter shall be filed with the department on or before the later of the
4565		-	following:
4566		-	(1) the fifteenth day of the fourth fifth month following the close
4567		-	of the taxpayer's taxable year.
4568		-	(2) For a taxpayer whose federal tax return is due on or after the
4569		-	date set forth in subdivision (1), as determined without regard to
4570		-	any extensions, weekends, or holidays, the fifteenth day of the
4571		-	month following the due date of the federal tax return.
4572		-	However, if a taxpayer receives an extension of time from the United
4573		-	States Internal Revenue Service for the filing of its federal income tax
4574		-	return for a taxable year, the department shall grant a similar an
4575		-	extension of time to the taxpayer for the filing of a return required by
4576		-	this chapter for that taxable year to the date otherwise provided by
4577		-	IC 6-8.1-6-1. In addition, the department may grant an additional
4578		-	reasonable extension of time for filing a return required by this chapter
4579		-	as provided by IC 6-8.1-6-1.
4580		-	(b) If the due date for a federal income tax return is extended by
4581		-	the Internal Revenue Service to a date that is later than the date
4582		-	specified in subsection (a), the department may extend the due date
4583		-	of a return required to be made under this chapter to reflect the
4584		-	due date permitted for the federal income tax return.
4585		-	SEA 382 — CC 1 109
4586		-	(c) If the due date for a federal income tax return in the Internal
4587		-	Revenue Code, as determined without regard to any extensions,
4588		-	Saturdays, Sundays, or holidays, is later than the date provided in
4589		-	subsection (a), the due date for the return made pursuant to this
4590		-	section shall be the later of the due date for the federal income tax
4591		-	return or the due date provided under this section.
4592		-	SECTION 57. IC 6-7-1-2, AS AMENDED BY P.L.191-2016,
4593		-	SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4594		-	JULY 1, 2022]: Sec. 2. Unless the context requires otherwise,
4595		-	"cigarette" shall mean and include any roll for smoking or heating
4596		-	made wholly or in part of tobacco, irrespective of size or shape and
4597		-	irrespective of tobacco being flavored, adulterated, or mixed with any
4598		-	other ingredient, where such roll has a wrapper or cover made of paper
4599		-	or any other material not containing tobacco. Provided the definition
4600		-	in this section shall not be construed to include cigars (as defined in
4601		-	IC 6-7-2-0.3). Excepting where context clearly shows that cigarettes
4602		-	alone are intended, the term "cigarettes" shall mean and include
4603		-	cigarettes upon which a tax is imposed by sections 12 and 13 of this
4604		-	chapter.
4605		-	SECTION 58. IC 6-7-1-15 IS AMENDED TO READ AS
4606		-	FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 15. (a) The department
4607		-	is the official agent of the state for the administration and enforcement
4608		-	of this chapter. A sufficient sum to pay salaries and expenses is
4609		-	appropriated to the department out of the monies received by virtue of
4610		-	this chapter.
4611		-	(b) The department may issue registration certificates, upon the
4612		-	terms and conditions provided in this chapter, and may revoke or
4613		-	suspend the same upon the violation of this chapter or a violation of
4614		-	IC 24-3-5.4-17 by the holder of such a certificate.
4615		-	(c) The department may apply for membership in the National
4616		-	Tobacco Tax Association.
4617		-	(d) The department may design and have printed or manufactured
4618		-	stamps of sizes and denominations to be affixed to each individual
4619		-	package. The stamps shall be firmly affixed on each individual package
4620		-	in such a manner that the stamps can not be removed without being
4621		-	mutilated or destroyed; however, the department may by regulation
4622		-	designate some other manner for cancelation cancellation of stamps.
4623		-	In addition to the stamps, the department may by rules and regulations
4624		-	authorize distributors to use metered stamping machines or other
4625		-	devices which will imprint distinctive indicia evidencing the payment
4626		-	of the tax upon each individual package. The machines shall be
4627		-	constructed in such a manner as will accurately record or meter the
4628		-	SEA 382 — CC 1 110
4629		-	number of impressions or tax stamps made. The tax meter machines or
4630		-	other devices shall be kept available at all reasonable times for
4631		-	inspection by the department, and the machines shall be maintained in
4632		-	proper operating condition. A person who knowingly tampers with the
4633		-	printing or recording mechanism of such a machine commits a Class
4634		-	B misdemeanor.
4635		-	SECTION 59. IC 6-7-1-38 IS ADDED TO THE INDIANA CODE
4636		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4637		-	1, 2022]: Sec. 38. A retailer who purchases cigarettes from a
4638		-	distributor who has not obtained a registration certificate required
4639		-	under section 16 of this chapter or whose registration certificate
4640		-	has been suspended or revoked by the department is subject to a
4641		-	penalty not to exceed the greater of:
4642		-	(1) one hundred percent (100%) of the retail value of the
4643		-	cigarettes described in this section; or
4644		-	(2) five thousand dollars ($5,000);
4645		-	on each such purchase.
4646		-	SECTION 60. IC 6-7-2-0.1 IS ADDED TO THE INDIANA CODE
4647		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4648		-	1, 2023]: Sec. 0.1. As used in this chapter:
4649		-	(1) "actual cost" means the price paid by a remote seller for
4650		-	an individual taxable product; and
4651		-	(2) "actual cost list" means an annual list (prepared,
4652		-	maintained, and certified by each remote seller) of the cost of
4653		-	each individual taxable product. For purposes of this
4654		-	subdivision, the actual cost for each individual product in a
4655		-	cost list shall be the average of the actual price paid by a
4656		-	remote seller for the individual product over the twelve (12)
4657		-	calendar months prior to January 1 of the year in which the
4658		-	sale by the remote seller occurs.
4659		-	SECTION 61. IC 6-7-2-0.2 IS ADDED TO THE INDIANA CODE
4660		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4661		-	1, 2022]: Sec. 0.2. As used in this chapter, "alternative nicotine
	3864	+	1, 2023]: Sec. 0.2. As used in this chapter, "alternative nicotine
4662	3865		product" means a noncombustible product containing nicotine that
	3866	+	SB 382—LS 7170/DI 120 91
4663	3867		is intended for human consumption, whether chewed, absorbed,
4664	3868		dissolved, or ingested by any means. The term does not include
4665	3869		cigarettes (as defined in IC 6-7-1-2), tobacco products, closed
4666	3870		system cartridges, consumable material, open system containers
4667	3871		(as defined in IC 6-7-4-5), vapor products (as defined in
4668	3872		IC 6-7-4-8), or any product regulated as a drug or device by the
4669	3873		United States Food and Drug Administration under 21 U.S.C. 351
4670		-	to 360fff-7.
4671		-	SEA 382 — CC 1 111
4672		-	SECTION 62. IC 6-7-2-0.3 IS ADDED TO THE INDIANA CODE
4673		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4674		-	1, 2023]: Sec. 0.3. As used in this chapter, "cigar" means a tobacco
4675		-	product that is a roll of tobacco wrapped in leaf tobacco or in any
4676		-	substance containing tobacco (other than any roll of tobacco that
4677		-	is a cigarette within the meaning of IC 6-7-1-2). The term includes
4678		-	tobacco products commonly known as "little cigars", which are
4679		-	cigars with an integrated cellulose acetate filter and that are
4680		-	wrapped in a substance containing tobacco.
4681		-	SECTION 63. IC 6-7-2-3.1 IS ADDED TO THE INDIANA CODE
4682		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4683		-	1, 2023]: Sec. 3.1. As used in this chapter, "pipe tobacco" means a
4684		-	tobacco product that, because of its appearance, type, packaging,
4685		-	or labeling, is suitable and likely to be smoked in a pipe.
4686		-	SECTION 64. IC 6-7-2-3.3 IS ADDED TO THE INDIANA CODE
4687		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4688		-	1, 2023]: Sec. 3.3. As used in this chapter, "remote seller" means a
4689		-	retail dealer that meets one (1) or both of the economic thresholds
4690		-	under IC 6-2.5-2-1(d) and sells taxable products to an ultimate
4691		-	consumer under either of the following circumstances:
4692		-	(1) By means of a telephone or other method of voice
4693		-	transmission, the mail, or the Internet or other electronic
4694		-	service.
4695		-	(2) When the taxable products are delivered to the consumer
4696		-	by common carrier, private delivery service, or other method
4697		-	of delivery.
4698		-	SECTION 65. IC 6-7-2-3.5, AS ADDED BY P.L.165-2021,
4699		-	SECTION 104, IS AMENDED TO READ AS FOLLOWS
4700		-	[EFFECTIVE JULY 1, 2022]: Sec. 3.5. As used in this chapter,
4701		-	"taxable product" means tobacco products, alternative nicotine
4702		-	products, or closed system cartridges, or both. any combination
4703		-	thereof.
4704		-	SECTION 66. IC 6-7-2-4, AS AMENDED BY P.L.165-2021,
4705		-	SECTION 105, IS AMENDED TO READ AS FOLLOWS
4706		-	[EFFECTIVE JULY 1, 2023]: Sec. 4. As used in this chapter, "retail
4707		-	dealer" means a person engaged in the business of selling taxable
4708		-	products to ultimate consumers, including a retail merchant that
4709		-	meets one (1) or both of the economic thresholds under
4710		-	IC 6-2.5-2-1(d).
4711		-	SECTION 67. IC 6-7-2-5, AS AMENDED BY P.L.172-2011,
4712		-	SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4713		-	JULY 1, 2023]: Sec. 5. (a) As used in this chapter, "tobacco product"
4714		-	SEA 382 — CC 1 112
4715		-	means
4716		-	(1) any product made from tobacco, other than a cigarette (as
4717		-	defined in IC 6-7-1-2), that is made for smoking, chewing, or
4718		-	both; or
4719		-	(2) snuff, including moist snuff.
4720		-	any product containing, made, or derived from tobacco that is
4721		-	intended for human consumption, or is likely to be consumed,
4722		-	whether chewed, smoked, heated, absorbed, dissolved, inhaled,
4723		-	snorted, sniffed, or ingested by any other means, or any
4724		-	component, part, or accessory of a tobacco product.
4725		-	(b) The term includes, but is not limited to:
	3874	+	to 360fff-7.".
	3875	+	Page 177, between lines 21 and 22, begin a new paragraph and
	3876	+	insert:
	3877	+	"SECTION 95. IC 6-7-2-2, AS AMENDED BY P.L.165-2021,
	3878	+	SECTION 103, IS AMENDED TO READ AS FOLLOWS
	3879	+	[EFFECTIVE JULY 1, 2023]: Sec. 2. used in this chapter, "distributor"
	3880	+	means a person who:
	3881	+	(1) manufactures, sells, barters, exchanges, or distributes taxable
	3882	+	products or alternative nicotine products in Indiana to retail
	3883	+	dealers for the purpose of resale;
	3884	+	(2) purchases taxable products or alternative nicotine products
	3885	+	directly from a manufacturer of taxable products; or
	3886	+	(3) purchases for resale taxable products or alternative nicotine
	3887	+	products from a wholesaler, jobber, or distributor outside of
	3888	+	Indiana who is not a distributor holding a license issued under this
	3889	+	chapter.".
	3890	+	Page 178, line 12, after "tobacco" insert ", or that contains nicotine
	3891	+	whether natural or synthetic,".
	3892	+	Page 178, line 13, after "consumption," insert "or is likely to be
	3893	+	consumed,".
	3894	+	Page 178, line 13, after "smoked," insert "heated,".
	3895	+	Page 178, delete lines 17 through 31, begin a new paragraph and
	3896	+	insert:
	3897	+	"(b) The term includes, but is not limited to:
4726	3898		(1) cigars;
4727	3899		(2) pipe tobacco;
4728	3900		(3) chewing tobacco;
4729	3901		(4) moist snuff;
4730	3902		(5) snus; and
4731		-	(6) other similar kinds and forms of tobacco.
4732		-	(c) The term does not include:
4733		-	(1) cigarettes (as defined in IC 6-7-1-2);
4734		-	(2) closed system cartridges;
4735		-	(3) consumable material;
4736		-	(4) open system containers (as defined in IC 6-7-4-5);
4737		-	(5) vapor products (as defined in IC 6-7-4-8);
4738		-	(6) alternative nicotine products; or
4739		-	(7) any drugs, devices, or combination products authorized
	3903	+	(6) other similar kinds and forms of tobacco.".
	3904	+	Page 178, delete lines 38 through 42, begin a new line block
	3905	+	indented and insert:
	3906	+	"(6) any drugs, devices, or combination products authorized
4740	3907		for sale by the United States Food and Drug Administration
4741		-	and defined in the Federal Food, Drug, and Cosmetic Act.
4742		-	SECTION 68. IC 6-7-2-7, AS AMENDED BY P.L.165-2021,
	3908	+	SB 382—LS 7170/DI 120 92
	3909	+	and defined in the Federal Food, Drug, and Cosmetic Act.".
	3910	+	Page 179, delete lines 1 through 32, begin a new paragraph and
	3911	+	insert:
	3912	+	"SECTION 99. IC 6-7-2-7, AS AMENDED BY P.L.165-2021,
4743	3913		SECTION 107, IS AMENDED TO READ AS FOLLOWS
4744	3914		[EFFECTIVE JULY 1, 2022]: Sec. 7. (a) A tax is imposed on the
4745		-	distribution of tobacco products in Indiana at the rate of:
	3915	+	distribution of tobacco products in Indiana at the rate of: following
	3916	+	rates:
4746	3917		(1) Twenty-four percent (24%) of the wholesale price of tobacco
4747		-	products other than moist snuff; or
	3918	+	products other than:
	3919	+	(A) moist snuff; and
	3920	+	(B) beginning after December 31, 2022, cigars. or
4748	3921		(2) For moist snuff, forty cents ($0.40) per ounce, and a
4749	3922		proportionate tax at the same rate on all fractional parts of an
4750	3923		ounce. If the tax calculated for a fractional part of an ounce
4751	3924		carried to the third decimal place results in the numeral in the
4752	3925		third decimal place being greater than four (4), the amount of the
4753	3926		tax shall be rounded to the next additional cent.
	3927	+	(3) Beginning after December 31, 2022, for cigars:
	3928	+	(A) twenty-four percent (24%) of the wholesale price of a
	3929	+	cigar for cigars having a wholesale price not exceeding
	3930	+	three dollars ($3) per cigar; or
	3931	+	(B) seventy-two cents ($0.72) per cigar for cigars having a
	3932	+	wholesale price exceeding three dollars ($3) per cigar.
4754	3933		(b) A tax is imposed on the distribution of alternative nicotine
4755		-	products in Indiana at a rate of forty cents ($0.40) per ounce, and
4756		-	SEA 382 — CC 1 113
4757		-	a proportionate tax at the same rate on all fractional parts of an
4758		-	ounce, calculated based upon the product weight as listed by the
4759		-	manufacturer. If the tax calculated for a fractional part of an
4760		-	ounce carried to the third decimal place being greater than four
4761		-	(4), the amount of the tax shall be rounded to the next additional
4762		-	cent.
	3934	+	products in Indiana at a rate of forty cents ($0.40) per ounce,
	3935	+	calculated based upon the product weight as listed by the
	3936	+	manufacturer.
4763	3937		(b) (c) The distributor of the tobacco products or alternative
4764		-	nicotine products including a person that sells tobacco products
4765		-	through an Internet web site, is liable ~~for the tax imposed under~~
4766		-	subsection subsections (a) or (b). The tax ~~is imposed at the time the~~
4767		-	distributor:
	3938	+	nicotine products, including a person that sells tobacco products or
	3939	+	alternative nicotine products through an Internet web site, is liable
	3940	+	for the tax imposed under subsection subsections (a) and (b). The tax
	3941	+	is imposed at the time the distributor:
4768	3942		(1) brings or causes tobacco products or alternative nicotine
4769	3943		products to be brought into Indiana for distribution;
4770	3944		(2) manufactures tobacco products or alternative nicotine
4771	3945		products in Indiana for distribution; or
4772	3946		(3) transports tobacco products or alternative nicotine products
4773	3947		to retail dealers in Indiana for resale by those retail dealers; or
4774	3948		(4) first receives the tobacco products or alternative nicotine
4775	3949		products in Indiana in the case of a distributor or distributor
	3950	+	SB 382—LS 7170/DI 120 93
4776	3951		transactions.
4777	3952		(c) (d) The Indiana general assembly finds that the tax rate on
4778	3953		smokeless tobacco should reflect the relative risk between such
4779	3954		products and cigarettes.
4780	3955		(d) (e) A consumer who purchases untaxed tobacco products or
4781		-	alternative nicotine products from a distributor or retailer including
	3956	+	alternative nicotine products from a distributor or retailer, including
4782	3957		through an Internet web site, a catalog, or other similar means, is liable
4783		-	for the tax imposed under subsection subsections (a) or (b).
4784		-	SECTION 69. IC 6-7-2-7.5, AS ADDED BY P.L.165-2021,
4785		-	SECTION 108, IS AMENDED TO READ AS FOLLOWS
4786		-	[EFFECTIVE JULY 1, 2022]: Sec. 7.5. (a) A tax is imposed on the
4787		-	distribution of closed system cartridges in Indiana at the rate of
4788		-	twenty-five percent (25%) fifteen percent (15%) of the wholesale
4789		-	price of the closed system cartridge. If a closed system cartridge is
4790		-	sold in the same package as a vapor product device, the tax
4791		-	imposed under this subsection shall only apply to the wholesale
4792		-	price of the closed system cartridge if the wholesale cost of the
4793		-	closed system cartridge can be isolated from the vapor product
4794		-	device on the invoice.
4795		-	(b) The distributor of closed system cartridges, including a person
4796		-	that sells closed system cartridges through an Internet web site, is liable
4797		-	for the tax imposed under subsection (a). The tax is imposed at the time
4798		-	the distributor:
4799		-	SEA 382 — CC 1 114
4800		-	(1) brings or causes closed system cartridges to be brought into
4801		-	Indiana for distribution;
4802		-	(2) manufactures closed system cartridges in Indiana for
4803		-	distribution; or
4804		-	(3) transports closed system cartridges to retail dealers in Indiana
4805		-	for resale by those retail dealers.
4806		-	(c) A consumer who purchases untaxed closed system cartridges
4807		-	from a distributor or retailer including closed system cartridges
4808		-	purchased through an Internet web site, a catalog, or other similar
4809		-	means, is liable for the tax imposed under subsection (a).
4810		-	SECTION 70. IC 6-7-2-7.7 IS ADDED TO THE INDIANA CODE
4811		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4812		-	1, 2023]: Sec. 7.7. (a) The tax imposed under sections 7(a)(1), 7(b),
4813		-	and 7.5(a) of this chapter shall also be imposed on the sale of
4814		-	taxable products in Indiana by remote sellers, and shall be
4815		-	calculated based on one (1) of the following methods:
4816		-	(1) For remote sellers using an actual cost method, the tax
4817		-	shall be calculated by applying the rate to the actual cost of
4818		-	each individual product.
4819		-	(2) For remote sellers using an actual cost list method, the tax
4820		-	shall be calculated by applying the rate to the cost established
4821		-	for each individual product in the remote seller's actual cost
4822		-	list.
4823		-	(b) The remote seller of taxable products is liable for the tax
4824		-	imposed under section 7(a)(1), 7(b), or 7.5(a) of this chapter.
4825		-	(c) The tax under this section shall be imposed at the time of
4826		-	purchase by an ultimate consumer.
4827		-	SECTION 71. IC 6-7-2-8.5 IS ADDED TO THE INDIANA CODE
4828		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4829		-	1, 2023]: Sec. 8.5. (a) A remote seller, including a person that sells
4830		-	taxable products through an Internet web site, must obtain a
4831		-	license under this section before a remote seller can sell taxable
4832		-	products in Indiana. The department shall issue licenses to
4833		-	applicants that qualify under this section. A license issued under
4834		-	this section is valid for one (1) year unless revoked or suspended by
4835		-	the department and is not transferable.
4836		-	(b) An applicant for a license under this section must submit
4837		-	proof to the department of the appointment of an agent for service
4838		-	of process in Indiana if the applicant is:
	3958	+	for the tax imposed under subsection subsections (a) and (b).".
	3959	+	Page 179, line 37, delete "twenty percent (20%)" and insert "fifteen
	3960	+	percent (15%)".
	3961	+	Page 180, line 14, after "taxable" insert "tobacco".
	3962	+	Page 180, between lines 23 and 24, begin a new paragraph and
	3963	+	insert:
	3964	+	"(b) The tax imposed under section 7(b) of this chapter shall also
	3965	+	be imposed on the sale of taxable alternative nicotine products in
	3966	+	Indiana by remote sellers.".
	3967	+	Page 180, line 24, delete "(b)" and insert "(c)".
	3968	+	Page 180, line 27, delete "(c)" and insert "(d)".
	3969	+	Page 180, between lines 28 and 29, begin a new paragraph and
	3970	+	insert:
	3971	+	"SECTION 102. IC 6-7-2-8, AS AMENDED BY P.L.165-2021,
	3972	+	SECTION 109, IS AMENDED TO READ AS FOLLOWS
	3973	+	[EFFECTIVE JULY 1, 2023]: Sec. 8. (a) A distributor, including a
	3974	+	person that sells taxable products or alternative nicotine products
	3975	+	through an Internet web site, must obtain a license under this section
	3976	+	before it distributes taxable products or alternative nicotine products
	3977	+	in Indiana. The department shall issue licenses to applicants that
	3978	+	qualify under this section. A license issued under this section is valid
	3979	+	for one (1) year unless revoked or suspended by the department and is
	3980	+	not transferable.
	3981	+	(b) An applicant for a license under this section must submit proof
	3982	+	to the department of the appointment of an agent for service of process
	3983	+	in Indiana if the applicant is:
4839	3984		(1) an individual whose principal place of residence is outside
4840	3985		Indiana; or
4841		-	(2) a person, other than an individual, that has its principal
4842		-	SEA 382 — CC 1 115
4843		-	place of business outside Indiana.
4844		-	(c) To obtain or renew a license under this section, a person
4845		-	must:
4846		-	(1) submit an application that includes all information
4847		-	required by the department;
4848		-	(2) meet one (1) or both of the economic thresholds under
4849		-	IC 6-2.5-2-1(d) and obtain a registered retail merchant
4850		-	certificate;
4851		-	(3) attest that the person uses third party age verification
4852		-	technology as described in subsection (d);
4853		-	(4) pay a fee of twenty-five dollars ($25) at the time of
	3986	+	(2) a person, other than an individual, that has its principal place
	3987	+	of business outside Indiana.
	3988	+	(c) To obtain or renew a license under this section, a person must:
	3989	+	(1) submit, for each location where it intends to distribute taxable
	3990	+	products or alternative nicotine products, an application that
	3991	+	includes all information required by the department;
	3992	+	SB 382—LS 7170/DI 120 94
	3993	+	(2) pay a fee of twenty-five dollars ($25) at the time of
4854	3994		application; and
4855		-	(5) at the time of application, post a bond, issued by a surety
4856		-	company approved by the department, in an amount not less
4857		-	than one thousand dollars ($1,000) and conditioned on the
4858		-	applicant's compliance with this chapter.
4859		-	(d) A remote seller must use age verification through an
4860		-	independent, third party age verification service that compares:
4861		-	(1) information available from a commercially available data
4862		-	base (or aggregate of data bases) that are regularly used by
4863		-	government agencies and businesses for the purpose of age
4864		-	and identity verification; and
4865		-	(2) personal information entered by the individual during the
4866		-	ordering process;
4867		-	that establishes that the individual is of the required minimum age.
4868		-	(e) A remote seller that collects the tax imposed under section
4869		-	7.7 of this chapter using the actual cost list method to calculate the
4870		-	tax must provide to the department a certified actual cost list for
4871		-	each individual product offered for sale in the subsequent calendar
4872		-	year. The actual cost list shall be updated annually as new products
4873		-	are added to a remote seller's inventory. New products must be
4874		-	added to the actual cost list using the actual cost first paid for each
4875		-	individual product.
4876		-	(f) If a business owns multiple entities that qualify as a remote
4877		-	seller, a separate license must be obtained for each remote seller.
4878		-	(g) Each license must be numbered, show the name and address
4879		-	of the remote seller, and be kept at the place of business for which
4880		-	it is issued.
4881		-	(h) If the department determines that a bond provided by a
4882		-	licensee is inadequate, the department may require a new bond in
4883		-	the amount necessary to fully protect the state.
4884		-	(i) A license issued under this section does not permit the remote
4885		-	SEA 382 — CC 1 116
4886		-	seller to sell cigarettes, vapor products, or other products subject
4887		-	to tax under IC 6-7-1 or IC 6-7-4.
4888		-	SECTION 72. IC 6-7-2-9 IS AMENDED TO READ AS FOLLOWS
4889		-	[EFFECTIVE JULY 1, 2023]: Sec. 9. A distributor or remote seller
4890		-	that changes its place of business shall return its license, and the
4891		-	department shall issue, free of charge, a new license for the new place
4892		-	of business.
4893		-	SECTION 73. IC 6-7-2-10 IS AMENDED TO READ AS
4894		-	FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 10. A license issued
4895		-	under this chapter may be surrendered to the department at any time
4896		-	before its expiration, and the department shall refund an amount of
4897		-	money that bears the same proportion to the fee originally paid as the
4898		-	unexpired period of the permit bears to one (1) year. No refund may be
4899		-	allowed if a license is suspended or revoked. and no refund may be
4900		-	made that is:
4901		-	(1) greater than seventy-five dollars ($75); or
4902		-	(2) less than twenty-five dollars ($25).
4903		-	SECTION 74. IC 6-7-2-11 IS AMENDED TO READ AS
4904		-	FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 11. The department:
4905		-	(1) may revoke or suspend a license issued under this chapter for
4906		-	any violation of this chapter, or IC 6-7-1-18, or IC 24-3-5.4-17 by
4907		-	the licensee; and
4908		-	(2) may not issue a license under this chapter to an applicant
4909		-	within six (6) months after the revocation of that applicant's
4910		-	license.
4911		-	SECTION 75. IC 6-7-2-11.5 IS ADDED TO THE INDIANA CODE
4912		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4913		-	1, 2022]: Sec. 11.5. (a) The department may refuse to issue or
4914		-	renew a license issued under this chapter if:
4915		-	(1) the application is filed by a person whose license has
4916		-	previously been canceled for cause (including a similar license
4917		-	issued by another state);
4918		-	(2) the application is not filed in good faith, as determined by
4919		-	the department;
4920		-	(3) the application is filed by a person as a subterfuge for the
4921		-	real person in interest whose license has previously been
4922		-	canceled for cause;
4923		-	(4) the applicant has been convicted of fraud,
4924		-	misrepresentation, or any other offense that indicates the
4925		-	applicant may not comply with this chapter if issued a license;
4926		-	(5) the applicant has an outstanding listed tax liability; or
4927		-	SEA 382 — CC 1 117
4928		-	(6) the applicant has not complied with a filing requirement
4929		-	of the department.
4930		-	(b) Before being denied a license as a distributor, the applicant
4931		-	is entitled to a hearing with five (5) days written notice. At the
4932		-	hearing the applicant may appear in person or by counsel and
4933		-	present testimony.
4934		-	SECTION 76. IC 6-7-2-12, AS AMENDED BY P.L.165-2021,
	3995	+	(3) at the time of application, post a bond, issued by a surety
	3996	+	company approved by the department, in an amount not less than
	3997	+	one thousand dollars ($1,000) and conditioned on the applicant's
	3998	+	compliance with this chapter.
	3999	+	(d) If business is transacted at two (2) or more places by one (1)
	4000	+	distributor, a separate license must be obtained for each place of
	4001	+	business.
	4002	+	(e) Each license must be numbered, show the name and address of
	4003	+	the distributor, and be posted in a conspicuous place at the place of
	4004	+	business for which it is issued.
	4005	+	(f) If the department determines that a bond provided by a licensee
	4006	+	is inadequate, the department may require a new bond in the amount
	4007	+	necessary to fully protect the state.".
	4008	+	Page 183, delete lines 7 through 33, begin a new paragraph and
	4009	+	insert:
	4010	+	"SECTION 107. IC 6-7-2-12, AS AMENDED BY P.L.165-2021,
4935	4011		SECTION 110, IS AMENDED TO READ AS FOLLOWS
4936	4012		[EFFECTIVE JANUARY 1, 2023]: Sec. 12. Before the fifteenth day
4937	4013		of each month, each distributor (and remote seller beginning July 1,
4938	4014		2023) liable for a tax imposed by this chapter shall:
4939	4015		(1) file a return with the department that includes all information
4940	4016		required by the department including, but not limited to:
4941	4017		(A) name of distributor (or remote seller beginning July 1,
4942	4018		2023);
4943	4019		(B) address of distributor (or remote seller beginning July 1,
4944	4020		2023);
4945	4021		(C) license number of distributor (or remote seller beginning
4946	4022		July 1, 2023);
4947	4023		(D) invoice date;
4948	4024		(E) invoice number;
4949	4025		(F) name and address of person from whom taxable products
4950		-	were purchased or name and address of person to whom
4951		-	taxable products were sold (except in the case of sales to an
4952		-	end consumer beginning July 1, 2023);
	4026	+	or alternative nicotine products were purchased or name and
	4027	+	address of person to whom taxable products were sold (except
	4028	+	in the case of sales to an end consumer beginning July 1,
	4029	+	2023);
4953	4030		(G) the wholesale price for tobacco products other than moist
4954	4031		snuff and cigars (or the actual cost in the case of remote
4955	4032		sellers beginning July 1, 2023);
4956	4033		(H) for moist snuff, the weight of the moist snuff; and
	4034	+	SB 382—LS 7170/DI 120 95
4957	4035		(I) for cigars, the wholesale price of the cigars;
4958	4036		(J) for alternative nicotine products, the weight of the
4959	4037		alternative nicotine products; and
4960	4038		(I) (K) for closed system cartridges, the wholesale price of
4961	4039		closed system cartridges sold; and
4962	4040		(2) pay the taxes for which it is liable under this chapter for the
4963	4041		preceding month minus the amount specified in section 13 of this
4964	4042		chapter.
4965	4043		All returns required to be filed and taxes required to be paid under this
4966	4044		chapter must be made in an electronic format prescribed by the
4967		-	department.
4968		-	SECTION 77. IC 6-7-2-13, AS AMENDED BY P.L.165-2021,
4969		-	SEA 382 — CC 1 118
4970		-	SECTION 111, IS AMENDED TO READ AS FOLLOWS
4971		-	[EFFECTIVE JULY 1, 2023]: Sec. 13. A distributor or remote seller
4972		-	that files a complete return and pays the taxes due within the time
4973		-	specified in section 12 of this chapter is entitled to deduct and retain
4974		-	from the tax a collection allowance of seven-thousandths (0.007) of the
4975		-	amount due. If a distributor or remote seller files an incomplete report,
4976		-	the department may reduce the collection allowance by an amount that
4977		-	does not exceed the lesser of:
4978		-	(1) ten percent (10%) of the collection allowance; or
4979		-	(2) fifty dollars ($50).
4980		-	SECTION 78. IC 6-7-2-14, AS AMENDED BY P.L.165-2021,
4981		-	SECTION 112, IS AMENDED TO READ AS FOLLOWS
4982		-	[EFFECTIVE JULY 1, 2023]: Sec. 14. The department shall credit or
4983		-	refund to a distributor or remote seller the taxes paid under this
4984		-	chapter on taxable products that are:
4985		-	(1) shipped outside Indiana;
4986		-	(2) returned to the manufacturer; or
4987		-	(3) destroyed by the distributor in the presence of an employee or
4988		-	agent of the department.
4989		-	SECTION 79. IC 6-7-2-20 IS AMENDED TO READ AS
4990		-	FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 20. A distributor or
4991		-	remote seller who does not comply with the requirements of
4992		-	IC 6-8.1-5-4 commits a Class B misdemeanor.
4993		-	SECTION 80. IC 6-7-2-21, AS AMENDED BY P.L.165-2021,
4994		-	SECTION 118, IS AMENDED TO READ AS FOLLOWS
4995		-	[EFFECTIVE JULY 1, 2023]: Sec. 21. (a) A distributor or remote
4996		-	seller who knowingly:
4997		-	(1) acts as a distributor or remote seller without a license;
4998		-	(2) makes a false statement in a report under this chapter; or
4999		-	(3) does not pay a tax for which the distributor or remote seller
5000		-	is liable under this chapter;
5001		-	commits a Class B misdemeanor. However, the offense is a Level 6
5002		-	felony if it is committed with intent to evade the tax imposed by this
5003		-	chapter or to defraud the state.
5004		-	(b) Violations of this chapter described in subsection (a) may be
5005		-	reported to the department or the office of the attorney general.
5006		-	SECTION 81. IC 6-7-2-24 IS ADDED TO THE INDIANA CODE
5007		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
5008		-	1, 2022]: Sec. 24. A retailer (except a remote seller that is required
5009		-	to remit tax imposed by this chapter) who purchases a taxable
5010		-	product from a distributor who has not obtained a license required
5011		-	SEA 382 — CC 1 119
5012		-	under section 8 of this chapter or whose license has been suspended
5013		-	or revoked by the department is subject to a penalty not to exceed
5014		-	the greater of:
5015		-	(1) one hundred percent (100%) of the retail value of the
5016		-	taxable product; or
5017		-	(2) five thousand dollars ($5,000);
5018		-	on the purchase.
5019		-	SECTION 82. IC 6-8.1-1-9 IS ADDED TO THE INDIANA CODE
5020		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
5021		-	JANUARY 1, 2023]: Sec. 9. (a) If any due date or date required for
5022		-	a particular act by the taxpayer or the department falls on
5023		-	Saturday, Sunday, a national legal holiday recognized by the
5024		-	federal government, or a statewide holiday, the act by the taxpayer
5025		-	or the department that must be performed by that date is timely if
5026		-	performed by the next succeeding day that is not a Saturday, a
5027		-	Sunday, or one of those holidays.
5028		-	(b) If the due date of a particular act is later than the date
5029		-	otherwise provided for the act as a result to the due date falling on
5030		-	Saturday, Sunday, a national legal holiday recognized by the
5031		-	federal government, or a statewide holiday, the last date on which
5032		-	a proposed assessment or demand notice must be issued or the last
5033		-	day on which a refund claim may be filed shall be determined
5034		-	without regard to the original due date (including allowable
5035		-	extensions) falling on a Saturday, Sunday, or holiday.
5036		-	SECTION 83. IC 6-8.1-1-10 IS ADDED TO THE INDIANA CODE
5037		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
5038		-	JANUARY 1, 2020 (RETROACTIVE)]: Sec. 10. (a) This section
5039		-	applies for purposes of determining:
5040		-	(1) the last date on which a proposed assessment can be issued
5041		-	under IC 6-8.1-5;
5042		-	(2) the date by which withholding payments were required to
5043		-	be made to meet the safe harbor requirements under
5044		-	IC 6-3-4-12 or IC 6-3-4-13;
5045		-	(3) the date by which ninety percent (90%) of tax reasonably
5046		-	expected to be due under IC 6-8.1-6-1 is required to be paid;
5047		-	(4) the last date on which a demand notice or tax warrant can
5048		-	be issued under IC 6-8.1-8;
5049		-	(5) the last date on which a refund claim can be filed under
5050		-	IC 6-8.1-9-1;
5051		-	(6) the first date on which interest can accrue on refunds
5052		-	under IC 6-8.1-9-2;
5053		-	(7) the first date on which interest can be assessed under
5054		-	SEA 382 — CC 1 120
5055		-	IC 6-8.1-10-1; and
5056		-	(8) the due date for a return or payment under IC 6-2.3-6-1,
5057		-	IC 6-3-4-4.1, IC 6-5.5-6-3, or IC 6-8.1-10-2.1.
5058		-	(b) For an estimated tax payment under IC 6-2.3-6-1,
5059		-	IC 6-3-4-4.1, or IC 6-5.5-6-3 that otherwise was due after March
5060		-	23, 2020, and before July 15, 2020, the due date of the payment
5061		-	shall be treated as July 15, 2020.
5062		-	(c) For a return or other tax payment under IC 6-2.3, IC 6-3, or
5063		-	IC 6-5.5, that otherwise was due after March 23, 2020, and before
5064		-	May 1, 2020, the due date of the return or tax payment shall be
5065		-	treated as July 15, 2020.
5066		-	(d) For a return or other tax payment under IC 6-3 or IC 6-5.5
5067		-	that otherwise was due after April 30, 2020, and before July 16,
5068		-	2020, the due date of the return or tax payment shall be treated as:
5069		-	(1) August 15, 2020, to the extent an action is determined
5070		-	without regard to a Saturday; or
5071		-	(2) August 17, 2020, to the extent an action is permitted to be
5072		-	delayed due to a Saturday.
5073		-	(e) A due date for payment determined under subsection (c) or
5074		-	(d) shall be treated as the due date by which a tax payment is
5075		-	required by meet minimum payment requirements for penalty
5076		-	deferment under:
5077		-	(1) IC 6-3-4-12(k);
5078		-	(2) IC 6-3-4-13(l); and
5079		-	(3) IC 6-8.1-6-1(d).
5080		-	(f) For a return or payment with regard to individual adjusted
5081		-	gross income tax under IC 6-3 for taxable years ending December
5082		-	31, 2020, the due date shall be treated as:
5083		-	(1) May 15, 2021, to the extent an action is determined
5084		-	without regard to a Saturday; or
5085		-	(2) May 17, 2021, to the extent an action is permitted to be
5086		-	delayed due to a Saturday.
5087		-	(g) This section expires December 31, 2024.
5088		-	SECTION 84. IC 6-8.1-3-28 IS ADDED TO THE INDIANA CODE
5089		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
5090		-	1, 2022]: Sec. 28. (a) If the department determines that an amount
5091		-	of a listed tax has been distributed to a county, taxing district, or
5092		-	taxing unit in error or determines that all or part of the
5093		-	distribution was refunded subsequent to the distribution, the
5094		-	department shall notify the county treasurer and the county
5095		-	auditor of the excess distribution and request that the excess
5096		-	distribution be repaid to the department or that the department be
5097		-	SEA 382 — CC 1 121
5098		-	permitted to offset the excess distribution against listed taxes. The
5099		-	notification under this section shall consist of:
5100		-	(1) the listed tax for which the excess distribution occurred;
5101		-	(2) the period to which the excess distribution relates; and
5102		-	(3) the county, taxing district, or taxing unit that received the
5103		-	excess distribution.
5104		-	(b) If the department is unable to obtain repayment from the
5105		-	county or obtain an agreement to offset against other listed taxes
5106		-	after a request by the department is made under subsection (a), the
5107		-	department may offset distributions of that listed tax or other
5108		-	listed taxes distributable to that county upon notification of:
5109		-	(1) the listed tax from which the offset will be applied;
5110		-	(2) in the case of an offset applied against local income tax, the
5111		-	particular share from which the offset will be obtained; and
5112		-	(3) the amount of the repayment to be obtained.
5113		-	The department may recover any excess distribution over a period
5114		-	of multiple distributions.
5115		-	(c) The department shall attempt to apply any offset against the
5116		-	same listed tax as the over distribution or other listed taxes
5117		-	otherwise distributable to the county, taxing district, or taxing unit
5118		-	as closely as possible. If the department determines that such an
5119		-	offset is not practicable, the department shall offset the distribution
5120		-	against the local income tax distributions otherwise required under
5121		-	IC 6-3.6 and the state budget agency shall adjust the distributions
5122		-	of local income tax for the calendar year in which the offset occurs
5123		-	or will occur to reflect such distribution.
5124		-	SECTION 85. IC 6-8.1-6-1, AS AMENDED BY P.L.190-2014,
5125		-	SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5126		-	JANUARY 1, 2023]: Sec. 1. (a) This subsection does not apply to a
5127		-	person's Indiana adjusted gross income tax return or a person's financial
5128		-	institutions tax return. If a person responsible for filing a tax return is
5129		-	unable to file the return by the appropriate due date, the person may
5130		-	petition the department, before that due date, for a filing extension.
5131		-	When the department receives the petition, the department shall grant
5132		-	the person a sixty (60) day extension.
5133		-	(b) If a person responsible for filing a tax return has received an
5134		-	extension of the due date and is still unable to file the return by the
5135		-	extended due date, the person may petition the department for another
5136		-	extension. The person must include in the petition a statement of the
5137		-	reasons for the person's inability to file the return by the due date. If the
5138		-	department finds that the person's petition is proper and that the person
5139		-	has good cause for requesting the extension, the department may
5140		-	SEA 382 — CC 1 122
5141		-	extend the person's due date for any period that the department deems
5142		-	reasonable under the circumstances. The department may allow
5143		-	additional, successive extensions if the person properly petitions for the
5144		-	extension before the end of the person's current extension period.
5145		-	(c) The following apply only to a person's Indiana adjusted gross
5146		-	income tax return or a person's financial institutions tax return:
5147		-	(1) If the Internal Revenue Service allows a person an extension
5148		-	on the person's federal income tax return, the corresponding due
5149		-	dates for the person's Indiana income tax returns are automatically
5150		-	extended for the same period to the last day as the federal
5151		-	extension, plus thirty (30) days. one (1) month. For purposes of
5152		-	this subdivision, if the last day of the federal extension is a
5153		-	Saturday, Sunday, a national legal holiday recognized by the
5154		-	federal government, or a statewide holiday, the last day of the
5155		-	federal extension shall be determined without regard to
5156		-	Saturdays, Sundays, or holidays.
5157		-	(2) If a person petitions the department for a filing extension for
5158		-	the person's Indiana adjusted gross income tax return or financial
5159		-	institutions tax return without obtaining an extension for filing the
5160		-	person's federal income tax return, the department shall extend
5161		-	the person's due date for the person's Indiana adjusted gross
5162		-	income tax return or financial institutions tax return for the same
5163		-	period that the person would have been allowed under subdivision
5164		-	(1) if the person had been granted an extension by the Internal
5165		-	Revenue Service. For purposes of this subdivision, if a person
5166		-	files an extension request for the person's federal income tax
5167		-	return for a taxable year but the extension is denied by the
5168		-	Internal Revenue Service, the department shall consider the
5169		-	person to have filed an extension under this subsection for
5170		-	that taxable year, provided that the person did not have a
5171		-	previous extension request denied by the Internal Revenue
5172		-	Service for that taxable year.
5173		-	(d) A person submitting a petition for an extension under this
5174		-	section is not required to include any payment of tax with the petition.
5175		-	However, a person obtaining an extension under this section must pay
5176		-	at least ninety percent (90%) of the tax that is reasonably expected to
5177		-	be due on the original due date by that due date, or the person may be
5178		-	subject to the penalties imposed for failure to pay the tax. This
5179		-	subsection does not apply to payments required under
5180		-	IC 6-3-4-12(k) and IC 6-3-4-13(l).
5181		-	(e) Any tax that remains unpaid during an extension period accrues
5182		-	interest at a rate established under IC 6-8.1-10-1 from the original due
5183		-	SEA 382 — CC 1 123
5184		-	date, but that tax will not accrue any late payment penalties until the
5185		-	extension period has ended. Any penalties must be determined based
5186		-	on the amount of tax not paid on or before the end of the extension
5187		-	period after application of payments provided under IC 6-8.1-8-1.5 and
5188		-	determined as of the deadline of the extension period.
5189		-	SECTION 86. IC 6-8.1-6-2 IS REPEALED [EFFECTIVE
5190		-	JANUARY 1, 2023]. Sec. 2. If any due date falls on a Saturday, a
5191		-	Sunday, a national legal holiday recognized by the federal government,
5192		-	or a statewide holiday, the act that must be performed by that date is
5193		-	timely if performed by the next succeeding day that is not a Saturday,
5194		-	a Sunday, or one of those holidays.
5195		-	SECTION 87. IC 6-8.1-7-1, AS AMENDED BY P.L.159-2021,
5196		-	SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5197		-	JULY 1, 2022]: Sec. 1. (a) This subsection does not apply to the
5198		-	disclosure of information concerning a conviction on a tax evasion
5199		-	charge. Unless in accordance with a judicial order or as otherwise
5200		-	provided in this chapter, the department, its employees, former
5201		-	employees, counsel, agents, or any other person may not divulge the
5202		-	amount of tax paid by any taxpayer, terms of a settlement agreement
5203		-	executed between a taxpayer and the department, investigation records,
5204		-	investigation reports, or any other information disclosed by the reports
5205		-	filed under the provisions of the law relating to any of the listed taxes,
5206		-	including required information derived from a federal return, except to
5207		-	any of the following when it is agreed that the information is to be
5208		-	confidential and to be used solely for official purposes:
5209		-	(1) Members and employees of the department.
5210		-	(2) The governor.
5211		-	(3) A member of the general assembly or an employee of the
5212		-	house of representatives or the senate when acting on behalf of a
5213		-	taxpayer located in the member's legislative district who has
5214		-	provided sufficient information to the member or employee for
5215		-	the department to determine that the member or employee is
5216		-	acting on behalf of the taxpayer.
5217		-	(4) An employee of the legislative services agency to carry out the
5218		-	responsibilities of the legislative services agency under
5219		-	IC 2-5-1.1-7 or another law.
5220		-	(5) The attorney general or any other legal representative of the
5221		-	state in any action in respect to the amount of tax due under the
5222		-	provisions of the law relating to any of the listed taxes.
5223		-	(6) Any authorized officers of the United States.
5224		-	(b) The information described in subsection (a) may be revealed
5225		-	upon the receipt of a certified request of any designated officer of the
5226		-	SEA 382 — CC 1 124
5227		-	state tax department of any other state, district, territory, or possession
5228		-	of the United States when:
5229		-	(1) the state, district, territory, or possession permits the exchange
5230		-	of like information with the taxing officials of the state; and
5231		-	(2) it is agreed that the information is to be confidential and to be
5232		-	used solely for tax collection purposes.
5233		-	(c) The information described in subsection (a) relating to a person
5234		-	on public welfare or a person who has made application for public
5235		-	welfare may be revealed to the director of the division of family
5236		-	resources, and to any director of a county office of the division of
5237		-	family resources located in Indiana, upon receipt of a written request
5238		-	from either director for the information. The information shall be
5239		-	treated as confidential by the directors. In addition, the information
5240		-	described in subsection (a) relating to a person who has been
5241		-	designated as an absent parent by the state Title IV-D agency shall be
5242		-	made available to the state Title IV-D agency upon request. The
5243		-	information shall be subject to the information safeguarding provisions
5244		-	of the state and federal Title IV-D programs.
5245		-	(d) The name, address, Social Security number, and place of
5246		-	employment relating to any individual who is delinquent in paying
5247		-	educational loans owed to a postsecondary educational institution may
5248		-	be revealed to that institution if it provides proof to the department that
5249		-	the individual is delinquent in paying for educational loans. This
5250		-	information shall be provided free of charge to approved postsecondary
5251		-	educational institutions (as defined by IC 21-7-13-6(a)). The
5252		-	department shall establish fees that all other institutions must pay to the
5253		-	department to obtain information under this subsection. However, these
5254		-	fees may not exceed the department's administrative costs in providing
5255		-	the information to the institution.
5256		-	(e) The information described in subsection (a) relating to reports
5257		-	submitted under IC 6-6-1.1-502 concerning the number of gallons of
5258		-	gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
5259		-	gallons of special fuel sold by a supplier and the number of gallons of
5260		-	special fuel exported by a licensed exporter or imported by a licensed
5261		-	transporter may be released by the commissioner upon receipt of a
5262		-	written request for the information.
5263		-	(f) The information described in subsection (a) may be revealed
5264		-	upon the receipt of a written request from the administrative head of a
5265		-	state agency of Indiana when:
5266		-	(1) the state agency shows an official need for the information;
5267		-	and
5268		-	(2) the administrative head of the state agency agrees that any
5269		-	SEA 382 — CC 1 125
5270		-	information released will be kept confidential and will be used
5271		-	solely for official purposes.
5272		-	(g) The information described in subsection (a) may be revealed
5273		-	upon the receipt of a written request from the chief law enforcement
5274		-	officer of a state or local law enforcement agency in Indiana when it is
5275		-	agreed that the information is to be confidential and to be used solely
5276		-	for official purposes.
5277		-	(h) The name and address of retail merchants, including township,
5278		-	as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
5279		-	purposes to township assessors and county assessors.
5280		-	(i) The department shall notify the appropriate innkeeper's tax
5281		-	board, bureau, or commission that a taxpayer is delinquent in remitting
5282		-	innkeepers' taxes under IC 6-9.
5283		-	(j) All information relating to the delinquency or evasion of the
5284		-	vehicle excise tax may be disclosed to the bureau of motor vehicles in
5285		-	Indiana and may be disclosed to another state, if the information is
5286		-	disclosed for the purpose of the enforcement and collection of the taxes
5287		-	imposed by IC 6-6-5.
5288		-	(k) All information relating to the delinquency or evasion of
5289		-	commercial vehicle excise taxes payable to the bureau of motor
5290		-	vehicles in Indiana may be disclosed to the bureau and may be
5291		-	disclosed to another state, if the information is disclosed for the
5292		-	purpose of the enforcement and collection of the taxes imposed by
5293		-	IC 6-6-5.5.
5294		-	(l) All information relating to the delinquency or evasion of
5295		-	commercial vehicle excise taxes payable under the International
5296		-	Registration Plan may be disclosed to another state, if the information
5297		-	is disclosed for the purpose of the enforcement and collection of the
5298		-	taxes imposed by IC 6-6-5.5.
5299		-	(m) All information relating to the delinquency or evasion of the
5300		-	excise taxes imposed on recreational vehicles and truck campers that
5301		-	are payable to the bureau of motor vehicles in Indiana may be disclosed
5302		-	to the bureau and may be disclosed to another state if the information
5303		-	is disclosed for the purpose of the enforcement and collection of the
5304		-	taxes imposed by IC 6-6-5.1.
5305		-	(n) This section does not apply to:
5306		-	(1) the beer excise tax, including brand and packaged type
5307		-	(IC 7.1-4-2);
5308		-	(2) the liquor excise tax (IC 7.1-4-3);
5309		-	(3) the wine excise tax (IC 7.1-4-4);
5310		-	(4) the hard cider excise tax (IC 7.1-4-4.5);
5311		-	SEA 382 — CC 1 126
5312		-	(5) the vehicle excise tax (IC 6-6-5);
5313		-	(6) the commercial vehicle excise tax (IC 6-6-5.5); and
5314		-	(7) the fees under IC 13-23.
5315		-	(o) The name and business address of retail merchants within each
5316		-	county that sell tobacco products may be released to the division of
5317		-	mental health and addiction and the alcohol and tobacco commission
5318		-	solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
5319		-	(p) The name and business address of a person licensed by the
5320		-	department under IC 6-6 or IC 6-7, or issued a registered retail
5321		-	merchant's certificate under IC 6-2.5, may be released for the purpose
5322		-	of reporting the status of the person's license or certificate.
5323		-	(q) The department may release information concerning total
5324		-	incremental tax amounts under:
5325		-	(1) IC 5-28-26;
5326		-	(2) IC 36-7-13;
5327		-	(3) IC 36-7-26;
5328		-	(4) IC 36-7-27;
5329		-	(5) IC 36-7-31;
5330		-	(6) IC 36-7-31.3; or
5331		-	(7) any other statute providing for the calculation of incremental
5332		-	state taxes that will be distributed to or retained by a political
5333		-	subdivision or other entity;
5334		-	to the fiscal officer of the political subdivision or other entity that
5335		-	established the district or area from which the incremental taxes were
5336		-	received if that fiscal officer enters into an agreement with the
5337		-	department specifying that the political subdivision or other entity will
5338		-	use the information solely for official purposes.
5339		-	(r) The department may release the information as required in
5340		-	IC 6-8.1-3-7.1 concerning:
5341		-	(1) an innkeeper's tax, a food and beverage tax, or an admissions
5342		-	tax under IC 6-9;
5343		-	(2) the supplemental auto rental excise tax under IC 6-6-9.7; and
5344		-	(3) the covered taxes allocated to a professional sports
5345		-	development area fund, sports and convention facilities operating
5346		-	fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
5347		-	(s) Information concerning state gross retail tax exemption
5348		-	certificates that relate to a person who is exempt from the state gross
5349		-	retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
5350		-	defined in IC 6-2.5-4-5) IC 6-2.5-1-22.5) or a person selling the
5351		-	services or commodities listed in IC 6-2.5-4-5(b) IC 6-2.5-4-5 for the
5352		-	purpose of enforcing and collecting the state gross retail and use taxes
5353		-	SEA 382 — CC 1 127
5354		-	under IC 6-2.5.
5355		-	(t) The department may release a statement of tax withholding or
5356		-	other tax information statement provided on behalf of a taxpayer to the
5357		-	department to:
5358		-	(1) the taxpayer on whose behalf the tax withholding or other tax
5359		-	information statement was provided to the department;
5360		-	(2) the taxpayer's spouse, if:
5361		-	(A) the taxpayer is deceased or incapacitated; and
5362		-	(B) the taxpayer's spouse is filing a joint income tax return
5363		-	with the taxpayer; or
5364		-	(3) an administrator, executor, trustee, or other fiduciary acting on
5365		-	behalf of the taxpayer if the taxpayer is deceased.
5366		-	(u) Information related to a listed tax regarding a taxpayer may be
5367		-	disclosed to an individual without a power of attorney under
5368		-	IC 6-8.1-3-8(a)(2) if:
5369		-	(1) the individual is authorized to file returns and remit payments
5370		-	for one (1) or more listed taxes on behalf of the taxpayer through
5371		-	the department's online tax system before September 8, 2020;
5372		-	(2) the information relates to a listed tax described in subdivision
5373		-	(1) for which the individual is authorized to file returns and remit
5374		-	payments;
5375		-	(3) the taxpayer has been notified by the department of the
5376		-	individual's ability to access the taxpayer's information for the
5377		-	listed taxes described in subdivision (1) and the taxpayer has not
5378		-	objected to the individual's access;
5379		-	(4) the individual's authorization or right to access the taxpayer's
5380		-	information for a listed tax described in subdivision (1) has not
5381		-	been withdrawn by the taxpayer; and
5382		-	(5) disclosure of the information to the individual is not
5383		-	prohibited by federal law.
5384		-	Except as otherwise provided by this article, this subsection does not
5385		-	authorize the disclosure of any correspondence from the department
5386		-	that is mailed or otherwise delivered to the taxpayer relating to the
5387		-	specified listed taxes for which the individual was given authorization
5388		-	by the taxpayer. The department shall establish a date, which may be
5389		-	earlier but not later than September 1, 2023, after which a taxpayer's
5390		-	information concerning returns and remittances for a listed tax may not
5391		-	be disclosed to an individual without a power of attorney under
5392		-	IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
5393		-	previously authorized individuals, including notification published on
5394		-	the department's Internet web site. After the earlier of the date
5395		-	SEA 382 — CC 1 128
5396		-	established by the department or September 1, 2023, the department
5397		-	may not disclose a taxpayer's information concerning returns and
5398		-	remittances for a listed tax to an individual unless the individual has a
5399		-	power of attorney under IC 6-8.1-3-8(a)(2) or the disclosure is
5400		-	otherwise allowed under this article.
5401		-	SECTION 88. IC 6-8.1-10-2.1, AS AMENDED BY P.L.159-2021,
5402		-	SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5403		-	JANUARY 1, 2023]: Sec. 2.1. (a) Except as provided in IC 6-3-4-12(k)
5404		-	and IC 6-3-4-13(l), a person that:
5405		-	(1) fails to file a return for any of the listed taxes;
5406		-	(2) fails to pay the full amount of tax shown on the person's return
5407		-	on or before the due date for the return or payment;
5408		-	(3) incurs, upon examination by the department, a deficiency that
5409		-	is due to negligence;
5410		-	(4) fails to timely remit any tax held in trust for the state;
5411		-	(5) fails to file a return in the electronic manner required by the
5412		-	department if such return is required to be filed electronically; or
5413		-	(6) is required to make a payment by electronic funds transfer (as
5414		-	defined in IC 4-8.1-2-7), overnight courier, personal delivery, or
5415		-	any other electronic means and the payment is not received by the
5416		-	department by the due date in such manner and in funds
5417		-	acceptable to the department;
5418		-	is subject to a penalty.
5419		-	(b) Except as provided in subsection (g), the penalty described in
5420		-	subsection (a) is ten percent (10%) of:
5421		-	(1) the full amount of the tax due if the person failed to file the
5422		-	return or, in the case of a return required to be filed electronically,
5423		-	the return is not filed in the electronic manner required by the
5424		-	department;
5425		-	(2) the amount of the tax not paid, if the person filed the return
5426		-	but failed to pay the full amount of the tax shown on the return;
5427		-	(3) the amount of the tax held in trust that is not timely remitted;
5428		-	(4) the amount of deficiency as finally determined by the
5429		-	department; or
5430		-	(5) the amount of tax due if a person failed to make payment
5431		-	required to be made by electronic funds transfer, overnight
5432		-	courier, personal delivery, or any other electronic means by the
5433		-	due date in such manner.
5434		-	(c) For purposes of this section, the filing of a substantially blank or
5435		-	unsigned return does not constitute a return.
5436		-	(d) If a person subject to the penalty imposed under this section can
5437		-	SEA 382 — CC 1 129
5438		-	show that the failure to file a return, pay the full amount of tax shown
5439		-	on the person's return, timely remit tax held in trust, or pay the
5440		-	deficiency determined by the department was due to reasonable cause
5441		-	and not due to willful neglect, the department shall waive the penalty.
5442		-	(e) A person who wishes to avoid the penalty imposed under this
5443		-	section must make an affirmative showing of all facts alleged as a
5444		-	reasonable cause for the person's failure to file the return, pay the
5445		-	amount of tax shown on the person's return, pay the deficiency, or
5446		-	timely remit tax held in trust, in a written statement containing a
5447		-	declaration that the statement is made under penalty of perjury. The
5448		-	statement must be filed with the return or payment within the time
5449		-	prescribed for protesting departmental assessments. A taxpayer may
5450		-	also avoid the penalty imposed under this section by obtaining a ruling
5451		-	from the department before the end of a particular tax period on the
5452		-	amount of tax due for that tax period.
5453		-	(f) The department shall adopt rules under IC 4-22-2 to prescribe the
5454		-	circumstances that constitute reasonable cause and negligence for
5455		-	purposes of this section.
5456		-	(g) A person who fails to file a return for a listed tax that shows no
5457		-	tax liability for a taxable year, other than an information return (as
5458		-	defined in section 6 of this chapter), on or before the due date of the
5459		-	return shall pay a penalty of ten dollars ($10) for each day that the
5460		-	return is past due, up to a maximum of two hundred fifty dollars
5461		-	($250).
5462		-	(h) A:
5463		-	(1) corporation which otherwise qualifies under IC 6-3-2-2.8(2);
5464		-	(2) partnership; or
5465		-	(3) trust;
5466		-	that fails to withhold and pay any amount of tax required to be withheld
5467		-	under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15 shall pay a penalty
5468		-	equal to twenty percent (20%) of the amount of tax required to be
5469		-	withheld under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15. This penalty
5470		-	shall be in addition to any penalty imposed by section 6 of this chapter.
5471		-	(i) Subsections (a) through (c) do not apply to a motor carrier fuel
5472		-	tax return.
5473		-	(j) If a partnership or an S corporation pass through entity (as
5474		-	defined in IC 6-3-1-35) fails to include all nonresidential individual
5475		-	nonresident partners, or nonresidential individual nonresident
5476		-	shareholders, or nonresident beneficiaries in a composite return as
5477		-	required by IC 6-3-4-12(i), or IC 6-3-4-13(j), or IC 6-3-4-15(h), a
5478		-	penalty of five hundred dollars ($500) per partnership or S corporation
5479		-	SEA 382 — CC 1 130
5480		-	pass through entity is imposed on the partnership or S corporation.
5481		-	pass through entity.
5482		-	(k) If a person subject to the penalty imposed under this section
5483		-	provides the department with documentation showing that the person
5484		-	is or has been subject to incarceration for a period of a least one
5485		-	hundred eighty (180) days, the department shall waive any penalty
5486		-	under this section and interest that accrues during the time the person
5487		-	was incarcerated, but not to an extent greater than the penalty or
5488		-	interest relief to which a person would otherwise have been entitled
5489		-	under the federal Servicemembers Civil Relief Act (50 U.S.C.
5490		-	3901-4043), if the person was in military service. Nothing in this
5491		-	subsection shall preclude the department from issuing a proposed
5492		-	assessment, demand notice, jeopardy proposed assessment, jeopardy
5493		-	demand notice, or warrant otherwise permitted by law.
5494		-	SECTION 89. IC 6-9-24-8, AS AMENDED BY P.L.65-2013,
5495		-	SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5496		-	JULY 1, 2022]: Sec. 8. (a) If a tax is imposed under section 3 of this
5497		-	chapter, the fiscal body of the municipality shall establish a food and
5498		-	beverage tax receipts fund.
5499		-	(b) The fiscal officer of the municipality shall deposit in this fund
5500		-	all amounts received under this chapter.
5501		-	(c) Any money earned from the investment of money in the fund
5502		-	becomes a part of the fund.
5503		-	(d) Money in this fund shall be used by the municipality to:
5504		-	(1) finance, construct, improve, equip, operate, and maintain
5505		-	public parking and public restroom facilities;
5506		-	(2) renovate, equip, operate, and maintain any structure that may
5507		-	be used as a public parking or public restroom facility; or
5508		-	(3) finance, construct, improve, equip, operate, and maintain
5509		-	sidewalks and other streetscape improvements; or
5510		-	(4) provide grants to businesses located within the
5511		-	municipality that meet the criteria developed under
5512		-	subsection (e) to be used for:
5513		-	(A) exterior improvements to the building in which the
5514		-	business is located, including signage, lighting, and decor
5515		-	improvements; and
5516		-	(B) architectural or engineering services or consultation.
5517		-	The municipality may enter into lease or contractual arrangements, or
5518		-	both, with governmental, not-for-profit, or other private entities to
5519		-	operate and maintain these facilities and improvements.
5520		-	(e) The fiscal body of the municipality shall develop criteria for
5521		-	SEA 382 — CC 1 131
5522		-	awarding a grant under subsection (d)(4), including eligibility
5523		-	requirements, grant guidelines, and an application process.
5524		-	SECTION 90. IC 6-9-24-9 IS REPEALED [EFFECTIVE JULY 1,
5525		-	2022]. Sec. 9. (a) If the tax is imposed by a municipality under this
5526		-	chapter, the tax terminates January 1, 2023.
5527		-	(b) This chapter expires July 1, 2023.
5528		-	SECTION 91. IC 6-9-29-1.5, AS AMENDED BY P.L.122-2021,
5529		-	SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5530		-	JULY 1, 2022]: Sec. 1.5. (a) Unless otherwise provided in this article,
5531		-	a county fiscal body that adopts an ordinance to impose, rescind, or
5532		-	increase or decrease the rate of a county innkeeper's tax, or to make a
5533		-	change between collection of the tax by the county treasurer or the
5534		-	department of state revenue, must specify the effective date of the
5535		-	ordinance to provide that the ordinance takes effect:
5536		-	(1) at least thirty (30) days after the adoption of the ordinance;
5537		-	and
5538		-	(2) on the first day of a month.
5539		-	(b) If a county fiscal body adopts an ordinance described in
5540		-	subsection (a), it must immediately send a certified copy of the
5541		-	ordinance to the commissioner of the department of state revenue.
5542		-	Notwithstanding subsection (a), if the department of state revenue
5543		-	collects the revenue from the county innkeeper's tax, the department of
5544		-	state revenue shall begin collecting the tax at the rate as provided in the
5545		-	ordinance for periods beginning on or after on the later of:
5546		-	(1) the first day of the month that is not less than thirty (30) days
5547		-	after the ordinance is sent to the commissioner of the department
5548		-	of state revenue; or
5549		-	(2) the effective date specified in the ordinance.
5550		-	The department shall collect the tax at the rate in the ordinance
5551		-	unless the rate is not authorized under this article.
5552		-	(c) If an ordinance does not specify an effective date, the ordinance
5553		-	shall be considered effective on the earliest date allowable under this
5554		-	section.
5555		-	SECTION 92. IC 6-9-29.5-4 IS ADDED TO THE INDIANA CODE
5556		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
5557		-	1, 2022]: Sec. 4. (a) If an ordinance is adopted under this article,
5558		-	the adopting body must immediately send a certified copy of the
5559		-	ordinance to the commissioner of the department of state revenue.
5560		-	Notwithstanding any other provision in this article, if the
5561		-	department of state revenue collects the revenue from the food and
5562		-	beverage tax, the department of state revenue shall begin collecting
5563		-	SEA 382 — CC 1 132
5564		-	the tax as provided in the ordinance for periods beginning on or
5565		-	after the later of:
5566		-	(1) the first day of the month that is not less than thirty (30)
5567		-	days after the ordinance is sent to the commissioner of the
5568		-	department of state revenue; or
5569		-	(2) the effective date specified in the ordinance.
5570		-	(b) If an ordinance does not specify an effective date, the
5571		-	ordinance shall be considered effective on the earliest date
5572		-	allowable under this section.
5573		-	SECTION 93. IC 6-9-44-1, AS ADDED BY P.L.157-2013,
5574		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5575		-	JULY 1, 2022]: Sec. 1. This chapter applies to the town city of Fishers.
5576		-	SECTION 94. IC 6-9-44-3, AS ADDED BY P.L.157-2013,
5577		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5578		-	JULY 1, 2022]: Sec. 3. (a) The fiscal body of the town city may adopt
5579		-	an ordinance on or before December 31, 2013, 2023, to impose an
5580		-	excise tax, known as the town city food and beverage tax, on
5581		-	transactions described in section 4 of this chapter. The fiscal body of
5582		-	the town city may adopt an ordinance under this subsection only after
5583		-	the fiscal body has previously held at least one (1) separate public
5584		-	hearing in which a discussion of the proposed ordinance to impose the
5585		-	town city food and beverage tax is the only substantive issue on the
5586		-	agenda for that public hearing.
5587		-	(b) If the town city fiscal body adopts an ordinance under
5588		-	subsection (a), the town city fiscal body shall immediately send a
5589		-	certified copy of the ordinance to the department of state revenue.
5590		-	(c) If the town city fiscal body adopts an ordinance under subsection
5591		-	(a), the town city food and beverage tax applies to transactions that
5592		-	occur after the last day of the month that succeeds the month in which
5593		-	the ordinance is adopted.
5594		-	SECTION 95. IC 6-9-44-4, AS ADDED BY P.L.157-2013,
5595		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5596		-	JULY 1, 2022]: Sec. 4. (a) Except as provided in subsection (c), a tax
5597		-	imposed under section 3 of this chapter applies to a transaction in
5598		-	which food or beverage is furnished, prepared, or served:
5599		-	(1) for consumption at a location or on equipment provided by a
5600		-	retail merchant;
5601		-	(2) in the town; city; and
5602		-	(3) by a retail merchant for consideration.
5603		-	(b) Transactions described in subsection (a)(1) include transactions
5604		-	in which food or beverage is:
5605		-	SEA 382 — CC 1 133
5606		-	(1) served by a retail merchant off the merchant's premises;
5607		-	(2) food sold in a heated state or heated by a retail merchant;
5608		-	(3) made of two (2) or more food ingredients, mixed or combined
5609		-	by a retail merchant for sale as a single item (other than food that
5610		-	is only cut, repackaged, or pasteurized by the seller, and eggs,
5611		-	fish, meat, poultry, and foods containing these raw animal foods
5612		-	requiring cooking by the consumer as recommended by the
5613		-	federal Food and Drug Administration in chapter 3, subpart
5614		-	3-401.11 of its Food Code so as to prevent food borne illnesses);
5615		-	or
5616		-	(4) food sold with eating utensils provided by a retail merchant,
5617		-	including plates, knives, forks, spoons, glasses, cups, napkins, or
5618		-	straws (for purposes of this subdivision, a plate does not include
5619		-	a container or package used to transport the food).
5620		-	(c) The town city food and beverage tax does not apply to the
5621		-	furnishing, preparing, or serving of a food or beverage in a transaction
5622		-	that is exempt, or to the extent the transaction is exempt, from the state
5623		-	gross retail tax imposed by IC 6-2.5.
5624		-	SECTION 96. IC 6-9-44-5, AS ADDED BY P.L.157-2013,
5625		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5626		-	JULY 1, 2022]: Sec. 5. The town city food and beverage tax rate may
5627		-	not exceed one percent (1%) of the gross retail income received by the
5628		-	merchant from the food or beverage transaction described in section 4
5629		-	of this chapter. For purposes of this chapter, the gross retail income
5630		-	received by the retail merchant from a transaction does not include the
5631		-	amount of tax imposed on the transaction under IC 6-2.5.
5632		-	SECTION 97. IC 6-9-44-7, AS ADDED BY P.L.157-2013,
5633		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5634		-	JULY 1, 2022]: Sec. 7. The amounts received from the tax imposed
5635		-	under this chapter shall be paid monthly by the treasurer of state to the
5636		-	town city fiscal officer upon warrants issued by the auditor of state.
5637		-	SECTION 98. IC 6-9-44-8, AS ADDED BY P.L.157-2013,
5638		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5639		-	JULY 1, 2022]: Sec. 8. (a) If a tax is imposed under section 3 of this
5640		-	chapter by a town, city, the town city fiscal officer shall establish a
5641		-	food and beverage tax receipts fund.
5642		-	(b) The town city fiscal officer shall deposit in this fund all amounts
5643		-	received under this chapter.
5644		-	(c) Money earned from the investment of money in the fund
5645		-	becomes a part of the fund.
5646		-	SECTION 99. IC 6-9-44-9, AS ADDED BY P.L.157-2013,
5647		-	SEA 382 — CC 1 134
5648		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5649		-	JULY 1, 2022]: Sec. 9. Money in the food and beverage tax receipts
5650		-	fund shall be used by the town: city:
5651		-	(1) to reduce the town's city's property tax levy for a particular
5652		-	year at the discretion of the town, city, but this use does not
5653		-	reduce the maximum permissible ad valorem property tax levy
5654		-	under IC 6-1.1-18.5 for the town; city; or
5655		-	(2) for economic development purposes, including the pledge of
5656		-	money under IC 5-1-14-4 for bonds, leases, or other obligations
5657		-	for economic development purposes.
5658		-	Revenue derived from the imposition of a tax under this chapter may
5659		-	be treated by the town city as additional revenue for the purpose of
5660		-	fixing its budget for the budget year during which the revenues are to
5661		-	be distributed to the town. city.
5662		-	SECTION 100. IC 7.1-4-6-3.5, AS AMENDED BY P.L.166-2014,
5663		-	SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5664		-	JULY 1, 2022]: Sec. 3.5. (a) A person who is liable for the payment of
5665		-	an excise tax levied by this title shall file a monthly return with the
5666		-	department on or before the twentieth day of the month following the
5667		-	month in which the liability for the tax accrues by reason of the
5668		-	manufacture, sale, gift, or the withdrawal for sale or gift, of alcoholic
5669		-	beverages within this state.
5670		-	(b) The department may require the reporting of any
5671		-	information reasonably necessary to determine the amount of
5672		-	excise tax due.
5673		-	(c) The return required by this section must be filed in an
5674		-	electronic format as prescribed by the department. Payment of the
5675		-	excise tax due shall accompany the return, and shall be remitted
5676		-	electronically. Any other returns or forms required to be filed under
5677		-	this title must also be filed in an electronic format and on a date
5678		-	prescribed by the department.
5679		-	SECTION 101. IC 7.1-4-7-9, AS AMENDED BY P.L.86-2018,
5680		-	SECTION 135, IS AMENDED TO READ AS FOLLOWS
5681		-	[EFFECTIVE UPON PASSAGE]: Sec. 9. The auditor of state shall, on
5682		-	or before the first tenth day of April of each year and quarterly on or
5683		-	before the tenth day of the month thereafter, distribute the funds set
5684		-	aside in accordance with the provisions of section 7 of this chapter or
5685		-	the portion of them as reported to the auditor of state, to the general
5686		-	fund of the treasury of the city or town on the basis provided for in this
5687		-	chapter.
5688		-	SECTION 102. IC 10-13-3-38.5, AS AMENDED BY
5689		-	P.L.212-2018(ss), SECTION 31, IS AMENDED TO READ AS
5690		-	SEA 382 — CC 1 135
5691		-	FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 38.5. (a) Under federal
5692		-	P.L.92-544 (86 Stat. 1115), the department may use an individual's
5693		-	fingerprints submitted by the individual for the following purposes:
5694		-	(1) Determining the individual's suitability for employment with
5695		-	the state, or as an employee of a contractor of the state, in a
5696		-	position:
5697		-	(A) that has a job description that includes contact with, care
5698		-	of, or supervision over a person less than eighteen (18) years
5699		-	of age;
5700		-	(B) that has a job description that includes contact with, care
5701		-	of, or supervision over an endangered adult (as defined in
5702		-	IC 12-10-3-2), except the individual is not required to meet the
5703		-	standard for harmed or threatened with harm set forth in
5704		-	IC 12-10-3-2(a)(3);
5705		-	(C) at a state institution managed by the office of the secretary
5706		-	of family and social services or state department of health;
5707		-	(D) at the Indiana School for the Deaf established by
5708		-	IC 20-22-2-1;
5709		-	(E) at the Indiana School for the Blind and Visually Impaired
5710		-	established by IC 20-21-2-1;
5711		-	(F) at a juvenile detention facility;
5712		-	(G) with the Indiana gaming commission under IC 4-33-3-16;
5713		-	(H) with the department of financial institutions under
5714		-	IC 28-11-2-3; or
5715		-	(I) that has a job description that includes access to or
5716		-	supervision over state financial or personnel data, including
5717		-	state warrants, banking codes, or payroll information
5718		-	pertaining to state employees.
5719		-	(2) Determining the individual's suitability for employment with
5720		-	state or local government, or as an employee of a contractor of
5721		-	state or local government, in a position in which the individual's
5722		-	duties include access to confidential tax information obtained
5723		-	from the United States Internal Revenue Service under Section
5724		-	6103(d) of the Internal Revenue Code or from an authorized
5725		-	secondary source.
5726		-	(3) Identification in a request related to an application for a
5727		-	teacher's license submitted to the department of education
5728		-	established by IC 20-19-3-1.
5729		-	(4) Use by the gaming commission established under IC 4-33-3-1
5730		-	for licensure of a promoter (as defined in IC 4-33-22-6) under
5731		-	IC 4-33-22.
5732		-	SEA 382 — CC 1 136
5733		-	(5) Use by the Indiana board of pharmacy in determining the
5734		-	individual's suitability for a position or employment with a
5735		-	wholesale drug distributor, as specified in IC 25-26-14-16(b),
5736		-	IC 25-26-14-16.5(b), IC 25-26-14-17.8(c), and IC 25-26-14-20.
5737		-	(6) Identification in a request related to an individual applying for
5738		-	or renewing a license or certificate described in IC 25-1-1.1-4 and
5739		-	a conviction described in IC 25-1-1.1-2 or IC 25-1-1.1-3.
5740		-	An applicant shall submit the fingerprints in an appropriate format or
5741		-	on forms provided for the employment, license, or certificate
5742		-	application. The department shall charge each applicant the fee
5743		-	established under section 28 of this chapter and by federal authorities
5744		-	to defray the costs associated with a search for and classification of the
5745		-	applicant's fingerprints. The department may forward fingerprints
5746		-	submitted by an applicant to the Federal Bureau of Investigation or any
5747		-	other agency for processing. The state personnel department, the
5748		-	Indiana professional licensing agency, or the agency to which the
5749		-	applicant is applying for employment or a license may receive the
5750		-	results of all fingerprint investigations.
5751		-	(b) An applicant who is an employee of the state may not be charged
5752		-	under subsection (a).
5753		-	(c) Subsection (a)(1) does not apply to an employee of a contractor
5754		-	of the state if the contract involves the construction or repair of a
5755		-	capital project or other public works project of the state.
5756		-	(d) Each current or new state or local government employee whose
5757		-	duties include access to confidential tax information described in
5758		-	subsection (a)(2) must submit to a fingerprint based criminal history
5759		-	background check of both national and state records data bases before
5760		-	being granted access to the confidential tax information. In addition to
5761		-	the initial criminal history background checks, each state or local
5762		-	government employee whose duties include access to confidential tax
5763		-	information described in subsection (a)(2) must submit to such
5764		-	criminal history background checks at least once every ten (10) five (5)
5765		-	years thereafter. The appointing authority of such a state or local
5766		-	government employee may pay any fee charged for the cost of
5767		-	fingerprinting or conducting the criminal history background checks
5768		-	for the state or local government employee. Only the state or local
5769		-	government agency in its capacity as the individual's employer or to
5770		-	which the applicant is applying for employment is entitled to receive
5771		-	the results of all fingerprint investigations.
5772		-	(e) Each current or new contractor or subcontractor whose contract
5773		-	or subcontract grants access to confidential tax information described
5774		-	in subsection (a)(2) must submit to a fingerprint based criminal history
5775		-	SEA 382 — CC 1 137
5776		-	background check of both national and state records data bases at least
5777		-	once every ten (10) five (5) years before being granted access to the
5778		-	confidential tax information. Only the state or local government agency
5779		-	is entitled to receive the results of all fingerprint investigations
5780		-	conducted under this subsection.
5781		-	(f) Each contract entered into by the state in which access to
5782		-	confidential tax information described in subsection (a)(2) is granted
5783		-	to a contractor or a subcontractor shall include:
5784		-	(1) terms regarding which party is responsible for payment of any
5785		-	fee charged for the cost of the fingerprinting or the criminal
5786		-	history background checks; and
5787		-	(2) terms regarding the consequences if one (1) or more
5788		-	disqualifying records are discovered through the criminal history
5789		-	background checks.
5790		-	(g) The department:
5791		-	(1) may permanently retain an applicant's fingerprints submitted
5792		-	under this section; and
5793		-	(2) shall retain the applicant's fingerprints separately from
5794		-	fingerprints collected under section 24 of this chapter.
5795		-	SECTION 103. [EFFECTIVE UPON PASSAGE] (a) The
5796		-	administrative rule concerning a property tax exemption for public
5797		-	airports that is set forth in 50 IAC 1-3-2 is void. The publisher of
5798		-	the Indiana Administrative Code shall remove 50 IAC 1-3-2 from
5799		-	the Indiana Administrative Code.
5800		-	(b) This SECTION expires July 1, 2023.
5801		-	SECTION 104. [EFFECTIVE JULY 1, 2022] (a) IC 6-3-2-1.7, as
5802		-	added by this act, is effective for taxable years beginning after June
5803		-	30, 2022.
5804		-	(b) This SECTION expires July 1, 2025.
5805		-	SECTION 105. An emergency is declared for this act.
5806		-	SEA 382 — CC 1 President of the Senate
5807		-	President Pro Tempore
5808		-	Speaker of the House of Representatives
5809		-	Governor of the State of Indiana
5810		-	Date: Time:
5811		-	SEA 382 — CC 1
	4045	+	department.".
	4046	+	Page 184, line 7, after "products" insert "or alternative nicotine
	4047	+	products".
	4048	+	Page 184, line 33, after "product" insert "or alternative nicotine
	4049	+	product".
	4050	+	Page 184, line 38, delete ";" and insert "or alternative nicotine
	4051	+	product;".
	4052	+	Page 186, delete lines 25 through 42.
	4053	+	Delete page 187.
	4054	+	Page 188, delete lines 1 through 29.
	4055	+	Page 195, delete lines 41 through 42.
	4056	+	Delete pages 196 through 198.
	4057	+	Page 199, delete lines 1 through 6.
	4058	+	Page 202, delete line 42.
	4059	+	Page 203, delete lines 1 through 22.
	4060	+	Renumber all SECTIONS consecutively.
	4061	+	and when so amended that said bill do pass.
	4062	+	(Reference is to SB 382 as introduced.)
	4063	+	HOLDMAN, Chairperson
	4064	+	Committee Vote: Yeas 8, Nays 2.
	4065	+	SB 382—LS 7170/DI 120