Indiana 2024 Regular Session

Indiana Senate Bill SB0210 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 210
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1; IC 6-2.5; IC 6-3-2-6; IC 6-6; IC 36-7.
7	7	Synopsis: Property taxes and sales and use taxes. Eliminates property
8	8	taxes on primary residences for those who are at least 65 years of age
9	9	(qualified homesteads) and on business personal property. Decreases
10	10	the state sales and use tax rate from 7% to 6%, except for business to
11	11	business transactions, in which case the rate is decreased from 7% to
12	12	2.75%. Provides that the sales and use tax applies to transactions
13	13	involving services, except for legal services, health or mental health
14	14	services (including insurance premiums for policies covering these
15	15	services), and services provided for charitable tax exempt purposes.
16	16	Deposits the increased sales and use tax revenue in the state general
17	17	fund. Provides an annual state distribution to offset the property tax
18	18	elimination for qualified homesteads and business personal property
19	19	based on the amount of property taxes that otherwise would be due on
20	20	the qualified homesteads and business personal property. Prohibits
21	21	changes in qualified homestead and business personal property tax
22	22	deductions, credits, and abatements that were in effect on December
23	23	31, 2023. Increases the maximum renter's deduction for income tax
24	24	purposes from $3,000 to $8,000 per taxable year. Freezes the gasoline
25	25	excise tax and the special fuel tax rates beginning on July 1, 2024, at
26	26	the rates that were in effect on June 30, 2024. Makes conforming
27	27	changes and technical corrections. Makes an ongoing appropriation.
28	28	Effective: Upon passage; July 1, 2024; November 1, 2024; January 1,
29	29	2025.
30	30	Young M
31	31	January 9, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
32	32	2024 IN 210—LS 6955/DI 120 Introduced
33	33	Second Regular Session of the 123rd General Assembly (2024)
34	34	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
35	35	Constitution) is being amended, the text of the existing provision will appear in this style type,
36	36	additions will appear in this style type, and deletions will appear in this style type.
37	37	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
38	38	provision adopted), the text of the new provision will appear in this style type. Also, the
39	39	word NEW will appear in that style type in the introductory clause of each SECTION that adds
40	40	a new provision to the Indiana Code or the Indiana Constitution.
41	41	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
42	42	between statutes enacted by the 2023 Regular Session of the General Assembly.
43	43	SENATE BILL No. 210
44	44	A BILL FOR AN ACT to amend the Indiana Code concerning
45	45	taxation and to make an appropriation.
46	46	Be it enacted by the General Assembly of the State of Indiana:
47	47	1 SECTION 1. IC 6-1.1-10.2 IS ADDED TO THE INDIANA CODE
48	48	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
49	49	3 JANUARY 1, 2025]:
50	50	4 Chapter 10.2. Homestead Exemption
51	51	5 Sec. 1. "Qualified homestead" means real property, including
52	52	6 curtilage, a house, or garage, used as a principal place of residence
53	53	7 by an:
54	54	8 (1) owner of the property who is at least sixty-five (65) years
55	55	9 of age;
56	56	10 (2) individual who is at least sixty-five (65) years of age and is
57	57	11 buying the property under a contract; or
58	58	12 (3) individual who is at least sixty-five (65) years of age and
59	59	13 has a beneficial interest in the owner of the property.
60	60	14 Sec. 2. To make a homestead exempt from property taxation
61	61	15 under this article, the part of the property tax liability on a
62	62	16 qualified homestead that remains after taking into account all
63	63	17 deductions and credits provided under any other law is eliminated.
64	64	2024 IN 210—LS 6955/DI 120 2
65	65	1 Sec. 3. (a) A person who receives the deduction provided by
66	66	2 IC 6-1.1-12-37 on a homestead is entitled to the exemption
67	67	3 provided by this chapter and does not need to file a claim for the
68	68	4 exemption under this chapter. A deduction, credit, or allocation of
69	69	5 revenue that reduces the property tax liability on a qualified
70	70	6 homestead using a local revenue source may not be changed after
71	71	7 December 31, 2023.
72	72	8 (b) A qualified homestead owner must apply for the homestead
73	73	9 exemption under this chapter, similar to the application process for
74	74	10 a deduction under IC 6-1.1-12-37.
75	75	11 (c) The termination of the deduction provided by IC 6-1.1-12-37
76	76	12 on a homestead terminates the exemption under this chapter.
77	77	13 Sec. 4. IC 6-1.1-11 does not apply to claiming the exemption
78	78	14 provided by this chapter.
79	79	15 SECTION 2. IC 6-1.1-10.4 IS ADDED TO THE INDIANA CODE
80	80	16 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
81	81	17 JANUARY 1, 2025]:
82	82	18 Chapter 10.4. Business Personal Property Exemption
83	83	19 Sec. 1. As used in this chapter, "business personal property"
84	84	20 means personal property that:
85	85	21 (1) is otherwise subject to assessment and taxation under this
86	86	22 article; and
87	87	23 (2) is used in a trade or business or otherwise held, used, or
88	88	24 consumed in connection with the production of income.
89	89	25 The term does not include personal property held as an investment.
90	90	26 Sec. 2. To make business personal property exempt from
91	91	27 property taxation under this article, the part of the property tax
92	92	28 liability on business personal property, which remains after taking
93	93	29 into account all deductions, credits, and abatements provided
94	94	30 under any other law, is eliminated. A deduction, credit, abatement
95	95	31 or allocation of revenue that reduces the property tax liability on
96	96	32 business personal property may not be changed after December 31,
97	97	33 2023.
98	98	34 Sec. 3. The exemption shall be applied by the taxpayer on the
99	99	35 taxpayer's personal property tax return as prescribed by the
100	100	36 department of local government finance.
101	101	37 SECTION 3. IC 6-1.1-12-17.8, AS AMENDED BY P.L.182-2023,
102	102	38 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
103	103	39 JANUARY 1, 2025]: Sec. 17.8. (a) An individual who receives a
104	104	40 deduction provided under section 9, 11, 13, 14, 16, 17.4 (before its
105	105	41 expiration), or 37 of this chapter, or exemption under IC 6-1.1-10.2,
106	106	42 in a particular year and who remains eligible for the deduction in the
107	107	2024 IN 210—LS 6955/DI 120 3
108	108	1 following year is not required to file a statement to apply for the
109	109	2 deduction or exemption in the following year. However, for purposes
110	110	3 of a deduction under section 37 of this chapter, the county auditor may,
111	111	4 in the county auditor's discretion, terminate the deduction for
112	112	5 assessment dates after January 15, 2012, if the individual does not
113	113	6 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
114	114	7 1, 2015), as determined by the county auditor, before January 1, 2013.
115	115	8 Before the county auditor terminates the deduction because the
116	116	9 taxpayer claiming the deduction did not comply with the requirement
117	117	10 in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1,
118	118	11 2013, the county auditor shall mail notice of the proposed termination
119	119	12 of the deduction to:
120	120	13 (1) the last known address of each person liable for any property
121	121	14 taxes or special assessment, as shown on the tax duplicate or
122	122	15 special assessment records; or
123	123	16 (2) the last known address of the most recent owner shown in the
124	124	17 transfer book.
125	125	18 (b) An individual who receives a deduction provided under section
126	126	19 9, 11, 13, 14, 16, or 17.4 (before its expiration) of this chapter in a
127	127	20 particular year and who becomes ineligible for the deduction in the
128	128	21 following year shall notify the auditor of the county in which the real
129	129	22 property, mobile home, or manufactured home for which the individual
130	130	23 claims the deduction is located of the individual's ineligibility in the
131	131	24 year in which the individual becomes ineligible. An individual who
132	132	25 becomes ineligible for a deduction under section 37 of this chapter
133	133	26 shall notify the county auditor of the county in which the property is
134	134	27 located in conformity with section 37 of this chapter.
135	135	28 (c) The auditor of each county shall, in a particular year, apply a
136	136	29 deduction provided under section 9, 11, 13, 14, 16, 17.4 (before its
137	137	30 expiration), or 37 of this chapter, or exemption under IC 6-1.1-10.2,
138	138	31 to each individual who received the deduction or exemption in the
139	139	32 preceding year unless the auditor determines that the individual is no
140	140	33 longer eligible for the deduction.
141	141	34 (d) An individual who receives a deduction provided under section
142	142	35 9, 11, 13, 14, 16, 17.4 (before its expiration), or 37 of this chapter, or
143	143	36 exemption under IC 6-1.1-10.2, for property that is jointly held with
144	144	37 another owner in a particular year and remains eligible for the
145	145	38 deduction in the following year is not required to file a statement to
146	146	39 reapply for the deduction following the removal of the joint owner if:
147	147	40 (1) the individual is the sole owner of the property following the
148	148	41 death of the individual's spouse; or
149	149	42 (2) the individual is the sole owner of the property following the
150	150	2024 IN 210—LS 6955/DI 120 4
151	151	1 death of a joint owner who was not the individual's spouse.
152	152	2 If a county auditor terminates a deduction under section 9 of this
153	153	3 chapter, a deduction under section 37 of this chapter, or a credit under
154	154	4 IC 6-1.1-20.6-8.5 after June 30, 2017, and before May 1, 2019, because
155	155	5 the taxpayer claiming the deduction or credit did not comply with a
156	156	6 requirement added to this subsection by P.L.255-2017 to reapply for
157	157	7 the deduction or credit, the county auditor shall reinstate the deduction
158	158	8 or credit if the taxpayer provides proof that the taxpayer is eligible for
159	159	9 the deduction or credit and is not claiming the deduction or credit for
160	160	10 any other property.
161	161	11 (e) A trust entitled to a deduction under section 9, 11, 13, 14, 16,
162	162	12 17.4 (before its expiration), or 37 of this chapter for real property
163	163	13 owned by the trust and occupied by an individual in accordance with
164	164	14 section 17.9 of this chapter is not required to file a statement to apply
165	165	15 for the deduction, if:
166	166	16 (1) the individual who occupies the real property receives a
167	167	17 deduction provided under section 9, 11, 13, 14, 16, 17.4 (before
168	168	18 its expiration), or 37 of this chapter in a particular year; and
169	169	19 (2) the trust remains eligible for the deduction in the following
170	170	20 year.
171	171	21 However, for purposes of a deduction under section 37 of this chapter,
172	172	22 the individuals that qualify the trust for a deduction must comply with
173	173	23 the requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015)
174	174	24 before January 1, 2013.
175	175	25 (f) A cooperative housing corporation (as defined in 26 U.S.C. 216)
176	176	26 that is entitled to a deduction under section 37 of this chapter in the
177	177	27 immediately preceding calendar year for a homestead (as defined in
178	178	28 section 37 of this chapter) is not required to file a statement to apply for
179	179	29 the deduction for the current calendar year if the cooperative housing
180	180	30 corporation remains eligible for the deduction for the current calendar
181	181	31 year. However, the county auditor may, in the county auditor's
182	182	32 discretion, terminate the deduction for assessment dates after January
183	183	33 15, 2012, if the individual does not comply with the requirement in
184	184	34 IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015), as determined by the
185	185	35 county auditor, before January 1, 2013. Before the county auditor
186	186	36 terminates a deduction because the taxpayer claiming the deduction did
187	187	37 not comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired
188	188	38 January 1, 2015) before January 1, 2013, the county auditor shall mail
189	189	39 notice of the proposed termination of the deduction to:
190	190	40 (1) the last known address of each person liable for any property
191	191	41 taxes or special assessment, as shown on the tax duplicate or
192	192	42 special assessment records; or
193	193	2024 IN 210—LS 6955/DI 120 5
194	194	1 (2) the last known address of the most recent owner shown in the
195	195	2 transfer book.
196	196	3 (g) An individual who:
197	197	4 (1) was eligible for a homestead credit under IC 6-1.1-20.9
198	198	5 (repealed) for property taxes imposed for the March 1, 2007, or
199	199	6 January 15, 2008, assessment date; or
200	200	7 (2) would have been eligible for a homestead credit under
201	201	8 IC 6-1.1-20.9 (repealed) for property taxes imposed for the March
202	202	9 1, 2008, or January 15, 2009, assessment date if IC 6-1.1-20.9 had
203	203	10 not been repealed;
204	204	11 is not required to file a statement to apply for a deduction under section
205	205	12 37 of this chapter if the individual remains eligible for the deduction in
206	206	13 the current year. An individual who filed for a homestead credit under
207	207	14 IC 6-1.1-20.9 (repealed) for an assessment date after March 1, 2007 (if
208	208	15 the property is real property), or after January 1, 2008 (if the property
209	209	16 is personal property), shall be treated as an individual who has filed for
210	210	17 a deduction under section 37 of this chapter. However, the county
211	211	18 auditor may, in the county auditor's discretion, terminate the deduction
212	212	19 for assessment dates after January 15, 2012, if the individual does not
213	213	20 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
214	214	21 1, 2015), as determined by the county auditor, before January 1, 2013.
215	215	22 Before the county auditor terminates the deduction because the
216	216	23 taxpayer claiming the deduction did not comply with the requirement
217	217	24 in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1,
218	218	25 2013, the county auditor shall mail notice of the proposed termination
219	219	26 of the deduction to the last known address of each person liable for any
220	220	27 property taxes or special assessment, as shown on the tax duplicate or
221	221	28 special assessment records, or to the last known address of the most
222	222	29 recent owner shown in the transfer book.
223	223	30 (h) If a county auditor terminates a deduction because the taxpayer
224	224	31 claiming the deduction did not comply with the requirement in
225	225	32 IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, 2013,
226	226	33 the county auditor shall reinstate the deduction if the taxpayer provides
227	227	34 proof that the taxpayer is eligible for the deduction and is not claiming
228	228	35 the deduction for any other property.
229	229	36 SECTION 4. IC 6-1.1-22-8.1, AS AMENDED BY P.L.159-2020,
230	230	37 SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
231	231	38 JANUARY 1, 2025]: Sec. 8.1. (a) The county treasurer shall:
232	232	39 (1) except as provided in subsection (h), mail to the last known
233	233	40 address of each person liable for any property taxes or special
234	234	41 assessment, as shown on the tax duplicate or special assessment
235	235	42 records, or to the last known address of the most recent owner
236	236	2024 IN 210—LS 6955/DI 120 6
237	237	1 shown in the transfer book; and
238	238	2 (2) transmit by written, electronic, or other means to a mortgagee
239	239	3 maintaining an escrow account for a person who is liable for any
240	240	4 property taxes or special assessments, as shown on the tax
241	241	5 duplicate or special assessment records;
242	242	6 a statement in the form required under subsection (b).
243	243	7 (b) The department of local government finance shall prescribe a
244	244	8 form, subject to the approval of the state board of accounts, for the
245	245	9 statement under subsection (a) that includes at least the following:
246	246	10 (1) A statement of the taxpayer's current and delinquent taxes and
247	247	11 special assessments.
248	248	12 (2) A breakdown showing the total property tax and special
249	249	13 assessment liability and the amount of the taxpayer's liability that
250	250	14 will be distributed to each taxing unit in the county.
251	251	15 (3) An itemized listing for each property tax levy, including:
252	252	16 (A) the amount of the tax rate;
253	253	17 (B) the entity levying the tax owed; and
254	254	18 (C) the dollar amount of the tax owed.
255	255	19 (4) Information designed to show the manner in which the taxes
256	256	20 and special assessments billed in the tax statement are to be used.
257	257	21 (5) Information regarding how a taxpayer can obtain information
258	258	22 regarding the taxpayer's notice of assessment or reassessment
259	259	23 under IC 6-1.1-4-22.
260	260	24 (6) A comparison showing any change in the assessed valuation
261	261	25 for the property as compared to the previous year.
262	262	26 (7) A comparison showing any change in the property tax and
263	263	27 special assessment liability for the property as compared to the
264	264	28 previous year. The information required under this subdivision
265	265	29 must identify:
266	266	30 (A) the amount of the taxpayer's liability distributable to each
267	267	31 taxing unit in which the property is located in the current year
268	268	32 and in the previous year; and
269	269	33 (B) the percentage change, if any, in the amount of the
270	270	34 taxpayer's liability distributable to each taxing unit in which
271	271	35 the property is located from the previous year to the current
272	272	36 year.
273	273	37 (8) An explanation of the following:
274	274	38 (A) Homestead credits under IC 6-1.1-20.4, IC 6-3.6-5, or
275	275	39 another law that are available in the taxing district where the
276	276	40 property is located and the homestead exemption under
277	277	41 IC 6-1.1-10.2.
278	278	42 (B) All property tax deductions that are available in the taxing
279	279	2024 IN 210—LS 6955/DI 120 7
280	280	1 district where the property is located.
281	281	2 (C) The procedure and deadline for filing for any available
282	282	3 homestead credits under IC 6-1.1-20.4, IC 6-3.6-5, or another
283	283	4 law, the homestead exemption under IC 6-1.1-10.2, and
284	284	5 each deduction.
285	285	6 (D) The procedure that a taxpayer must follow to:
286	286	7 (i) appeal a current assessment; or
287	287	8 (ii) petition for the correction of an error related to the
288	288	9 taxpayer's property tax and special assessment liability.
289	289	10 (E) The forms that must be filed for an appeal or a petition
290	290	11 described in clause (D).
291	291	12 (F) The procedure and deadline that a taxpayer must follow
292	292	13 and the forms that must be used if a credit, homestead
293	293	14 exemption, or deduction has been granted for the property and
294	294	15 the taxpayer is no longer eligible for the credit, homestead
295	295	16 exemption, or deduction.
296	296	17 (G) Notice that an appeal described in clause (D) requires
297	297	18 evidence relevant to the true tax value of the taxpayer's
298	298	19 property as of the assessment date that is the basis for the taxes
299	299	20 payable on that property.
300	300	21 The department of local government finance shall provide the
301	301	22 explanation required by this subdivision to each county treasurer.
302	302	23 (9) A checklist that shows:
303	303	24 (A) homestead credits under IC 6-1.1-20.4, IC 6-3.6-5, or
304	304	25 another law, the homestead exemption under IC 6-1.1-10.2,
305	305	26 and all property tax deductions; and
306	306	27 (B) whether each homestead credit, each homestead
307	307	28 exemption, and each property tax deduction applies in the
308	308	29 current statement for the property transmitted under subsection
309	309	30 (a).
310	310	31 (10) A remittance coupon indicating the payment amounts due at
311	311	32 each payment due date and other information determined by the
312	312	33 department of local government finance.
313	313	34 (c) The county treasurer shall mail or transmit the statement one (1)
314	314	35 time each year on or before April 15. Whenever a person's tax liability
315	315	36 for a year is due in one (1) installment under IC 6-1.1-7-7 or section 9
316	316	37 of this chapter, a statement that is mailed must include the date on
317	317	38 which the installment is due and denote the amount of money to be
318	318	39 paid for the installment. Whenever a person's tax liability is due in two
319	319	40 (2) installments, a statement that is mailed must contain the dates on
320	320	41 which the first and second installments are due and denote the amount
321	321	42 of money to be paid for each installment. If a statement is returned to
322	322	2024 IN 210—LS 6955/DI 120 8
323	323	1 the county treasurer as undeliverable and the forwarding order is
324	324	2 expired, the county treasurer shall notify the county auditor of this fact.
325	325	3 Upon receipt of the county treasurer's notice, the county auditor may,
326	326	4 at the county auditor's discretion, treat the property as not being eligible
327	327	5 for any deductions under IC 6-1.1-12, the homestead exemption
328	328	6 under IC 6-1.1-10.2, or any homestead credits under IC 6-1.1-20.4 and
329	329	7 IC 6-3.6-5.
330	330	8 (d) All payments of property taxes and special assessments shall be
331	331	9 made to the county treasurer. The county treasurer, when authorized by
332	332	10 the board of county commissioners, may open temporary offices for the
333	333	11 collection of taxes in cities and towns in the county other than the
334	334	12 county seat.
335	335	13 (e) The county treasurer, county auditor, and county assessor shall
336	336	14 cooperate to generate the information to be included in the statement
337	337	15 under subsection (b).
338	338	16 (f) The information to be included in the statement under subsection
339	339	17 (b) must be simply and clearly presented and understandable to the
340	340	18 average individual.
341	341	19 (g) After December 31, 2007, a reference in a law or rule to
342	342	20 IC 6-1.1-22-8 (expired January 1, 2008, and repealed) shall be treated
343	343	21 as a reference to this section.
344	344	22 (h) Transmission of statements and other information under this
345	345	23 subsection applies in a county only if the county legislative body adopts
346	346	24 an authorizing ordinance. Subject to subsection (i), in a county in
347	347	25 which an ordinance is adopted under this subsection for property taxes
348	348	26 and special assessments, a person may, in any manner permitted by
349	349	27 subsection (n), direct the county treasurer and county auditor to
350	350	28 transmit the following to the person by electronic mail:
351	351	29 (1) A statement that would otherwise be sent by the county
352	352	30 treasurer to the person by regular mail under subsection (a)(1),
353	353	31 including a statement that reflects installment payment due dates
354	354	32 under section 9.5 or 9.7 of this chapter.
355	355	33 (2) A provisional tax statement that would otherwise be sent by
356	356	34 the county treasurer to the person by regular mail under
357	357	35 IC 6-1.1-22.5-6.
358	358	36 (3) A reconciling tax statement that would otherwise be sent by
359	359	37 the county treasurer to the person by regular mail under any of the
360	360	38 following:
361	361	39 (A) Section 9 of this chapter.
362	362	40 (B) Section 9.7 of this chapter.
363	363	41 (C) IC 6-1.1-22.5-12, including a statement that reflects
364	364	42 installment payment due dates under IC 6-1.1-22.5-18.5.
365	365	2024 IN 210—LS 6955/DI 120 9
366	366	1 (4) Any other information that:
367	367	2 (A) concerns the property taxes or special assessments; and
368	368	3 (B) would otherwise be sent:
369	369	4 (i) by the county treasurer or the county auditor to the person
370	370	5 by regular mail; and
371	371	6 (ii) before the last date the property taxes or special
372	372	7 assessments may be paid without becoming delinquent.
373	373	8 The information listed in this subsection may be transmitted to a person
374	374	9 by using electronic mail that provides a secure Internet link to the
375	375	10 information.
376	376	11 (i) For property with respect to which more than one (1) person is
377	377	12 liable for property taxes and special assessments, subsection (h) applies
378	378	13 only if all the persons liable for property taxes and special assessments
379	379	14 designate the electronic mail address for only one (1) individual
380	380	15 authorized to receive the statements and other information referred to
381	381	16 in subsection (h).
382	382	17 (j) The department of local government finance shall create a form
383	383	18 to be used to implement subsection (h). The county treasurer and
384	384	19 county auditor shall:
385	385	20 (1) make the form created under this subsection available to the
386	386	21 public;
387	387	22 (2) transmit a statement or other information by electronic mail
388	388	23 under subsection (h) to a person who files, on or before March 15,
389	389	24 the form created under this subsection:
390	390	25 (A) with the county treasurer; or
391	391	26 (B) with the county auditor; and
392	392	27 (3) publicize the availability of the electronic mail option under
393	393	28 this subsection through appropriate media in a manner reasonably
394	394	29 designed to reach members of the public.
395	395	30 (k) The form referred to in subsection (j) must:
396	396	31 (1) explain that a form filed as described in subsection (j)(2)
397	397	32 remains in effect until the person files a replacement form to:
398	398	33 (A) change the person's electronic mail address; or
399	399	34 (B) terminate the electronic mail option under subsection (h);
400	400	35 and
401	401	36 (2) allow a person to do at least the following with respect to the
402	402	37 electronic mail option under subsection (h):
403	403	38 (A) Exercise the option.
404	404	39 (B) Change the person's electronic mail address.
405	405	40 (C) Terminate the option.
406	406	41 (D) For a person other than an individual, designate the
407	407	42 electronic mail address for only one (1) individual authorized
408	408	2024 IN 210—LS 6955/DI 120 10
409	409	1 to receive the statements and other information referred to in
410	410	2 subsection (h).
411	411	3 (E) For property with respect to which more than one (1)
412	412	4 person is liable for property taxes and special assessments,
413	413	5 designate the electronic mail address for only one (1)
414	414	6 individual authorized to receive the statements and other
415	415	7 information referred to in subsection (h).
416	416	8 (l) The form created under subsection (j) is considered filed with the
417	417	9 county treasurer or the county auditor on the postmark date or on the
418	418	10 date it is electronically submitted. If the postmark is missing or
419	419	11 illegible, the postmark is considered to be one (1) day before the date
420	420	12 of receipt of the form by the county treasurer or the county auditor.
421	421	13 (m) The county treasurer shall maintain a record that shows at least
422	422	14 the following:
423	423	15 (1) Each person to whom a statement or other information is
424	424	16 transmitted by electronic mail under this section.
425	425	17 (2) The information included in the statement.
426	426	18 (3) Whether the county treasurer received a notice that the
427	427	19 person's electronic mail was undeliverable.
428	428	20 (n) A person may direct the county treasurer and county auditor to
429	429	21 transmit information by electronic mail under subsection (h) on a form
430	430	22 prescribed by the department submitted:
431	431	23 (1) in person;
432	432	24 (2) by mail; or
433	433	25 (3) in an online format developed by the county and approved by
434	434	26 the department.
435	435	27 SECTION 5. IC 6-1.1-22-8.5, AS AMENDED BY P.L.3-2008,
436	436	28 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
437	437	29 JANUARY 1, 2025]: Sec. 8.5. The county treasurer shall include on
438	438	30 every statement mailed under section 8.1 of this chapter the following
439	439	31 language: "If any circumstances have changed that would make you
440	440	32 ineligible for a deduction or exemption that you have been allowed in
441	441	33 the exemption block on this tax bill, you must notify the county auditor.
442	442	34 If such a change in circumstances has occurred and you have not
443	443	35 notified the county auditor, the deduction or exemption will be
444	444	36 disallowed and you will be liable for taxes, interest, and penalties on
445	445	37 the amount deducted or exempted.".
446	446	38 SECTION 6. IC 6-1.1-22-9, AS AMENDED BY P.L.218-2013,
447	447	39 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
448	448	40 JANUARY 1, 2025]: Sec. 9. (a) Except as provided in subsection (b),
449	449	41 the property taxes assessed for a year under this article are due in two
450	450	42 (2) equal installments on May 10 and November 10 of the following
451	451	2024 IN 210—LS 6955/DI 120 11
452	452	1 year.
453	453	2 (b) Subsection (a) does not apply if any of the following apply to the
454	454	3 property taxes assessed for the year under this article:
455	455	4 (1) Subsection (c).
456	456	5 (2) Subsection (d).
457	457	6 (3) IC 6-1.1-7-7.
458	458	7 (4) Section 9.5 of this chapter.
459	459	8 (5) (4) Section 9.7 of this chapter.
460	460	9 (6) (5) Section 9.9 of this chapter.
461	461	10 (c) A county council may adopt an ordinance to require a person to
462	462	11 pay the person's property tax liability in one (1) installment, if the tax
463	463	12 liability for a particular year is less than twenty-five dollars ($25). If the
464	464	13 county council has adopted such an ordinance, then whenever a tax
465	465	14 statement mailed under section 8.1 of this chapter shows that the
466	466	15 person's property tax liability for a year is less than twenty-five dollars
467	467	16 ($25) for the property covered by that statement, the tax liability for
468	468	17 that year is due in one (1) installment on May 10 of that year.
469	469	18 (d) If the county treasurer receives a copy of an appeal petition
470	470	19 under IC 6-1.1-18.5-12(d) before the county treasurer mails or
471	471	20 transmits statements under section 8.1 of this chapter, the county
472	472	21 treasurer may:
473	473	22 (1) mail or transmit the statements without regard to the pendency
474	474	23 of the appeal and, if the resolution of the appeal by the department
475	475	24 of local government finance results in changes in levies, mail or
476	476	25 transmit reconciling statements under subsection (e); or
477	477	26 (2) delay the mailing or transmission of statements under section
478	478	27 8.1 of this chapter so that:
479	479	28 (A) the due date of the first installment that would otherwise
480	480	29 be due under subsection (a) is delayed by not more than sixty
481	481	30 (60) days; and
482	482	31 (B) all statements reflect any changes in levies that result from
483	483	32 the resolution of the appeal by the department of local
484	484	33 government finance.
485	485	34 (e) A reconciling statement under subsection (d)(1) must indicate:
486	486	35 (1) the total amount due for the year;
487	487	36 (2) the total amount of the installments paid that did not reflect
488	488	37 the resolution of the appeal under IC 6-1.1-18.5-12(d) by the
489	489	38 department of local government finance;
490	490	39 (3) if the amount under subdivision (1) exceeds the amount under
491	491	40 subdivision (2), the adjusted amount that is payable by the
492	492	41 taxpayer:
493	493	42 (A) as a final reconciliation of all amounts due for the year;
494	494	2024 IN 210—LS 6955/DI 120 12
495	495	1 and
496	496	2 (B) not later than
497	497	3 (i) November 10; or
498	498	4 (ii) the date or dates established under section 9.5 of this
499	499	5 chapter; and
500	500	6 (4) if the amount under subdivision (2) exceeds the amount under
501	501	7 subdivision (1), that the taxpayer may claim a refund of the excess
502	502	8 under IC 6-1.1-26.
503	503	9 (f) If property taxes are not paid on or before the due date, the
504	504	10 penalties prescribed in IC 6-1.1-37-10 shall be added to the delinquent
505	505	11 taxes.
506	506	12 (g) Notwithstanding any other law, a property tax liability of less
507	507	13 than five dollars ($5) is increased to five dollars ($5). The difference
508	508	14 between the actual liability and the five dollar ($5) amount that appears
509	509	15 on the statement is a statement processing charge. The statement
510	510	16 processing charge is considered a part of the tax liability.
511	511	17 (h) This subsection applies only if a statement for payment of
512	512	18 property taxes and special assessments by electronic mail is transmitted
513	513	19 to a person under section 8.1(h) of this chapter. If a response to the
514	514	20 transmission of electronic mail to a person indicates that the electronic
515	515	21 mail was not received, the county treasurer shall mail to the person a
516	516	22 hard copy of the statement in the manner required by section 8.1(a) of
517	517	23 this chapter for persons who do not opt to receive statements by
518	518	24 electronic mail. The due date for the property taxes and special
519	519	25 assessments under a statement mailed to a person under this subsection
520	520	26 is the due date indicated in the statement transmitted to the person by
521	521	27 electronic mail.
522	522	28 (i) In a county in which an authorizing ordinance is adopted under
523	523	29 section 8.1(h) of this chapter, a person may direct the county treasurer
524	524	30 to transmit a reconciling statement under subsection (d)(1) by
525	525	31 electronic mail under section 8.1(h) of this chapter.
526	526	32 SECTION 7. IC 6-1.1-22.5-8, AS AMENDED BY P.L.197-2016,
527	527	33 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
528	528	34 JANUARY 1, 2025]: Sec. 8. (a) Subject to subsection (c), a provisional
529	529	35 statement must:
530	530	36 (1) be on a form prescribed by the department of local
531	531	37 government finance;
532	532	38 (2) except as provided in emergency rules adopted under section
533	533	39 20 of this chapter and subsection (b):
534	534	40 (A) for property taxes first due and payable after 2010 and
535	535	41 billed using a provisional statement under section 6 of this
536	536	42 chapter, indicate:
537	537	2024 IN 210—LS 6955/DI 120 13
538	538	1 (i) that the first installment of the taxpayer's tax liability is
539	539	2 an amount equal to fifty percent (50%) of the tax liability
540	540	3 that was payable in the same year as the assessment date for
541	541	4 the property for which the provisional statement is issued,
542	542	5 subject to any adjustments to the tax liability authorized by
543	543	6 the department of local government finance under
544	544	7 subsection (e) and approved by the county treasurer; and
545	545	8 (ii) that the second installment is either the amount specified
546	546	9 in a reconciling statement or, if a reconciling statement is
547	547	10 not sent until after the second installment is due, an amount
548	548	11 equal to fifty percent (50%) of the tax liability that was
549	549	12 payable in the same year as the assessment date for the
550	550	13 property for which the provisional statement is issued,
551	551	14 subject to any adjustments to the tax liability authorized by
552	552	15 the department of local government finance under
553	553	16 subsection (e) and approved by the county treasurer; and
554	554	17 (B) for property taxes billed using a provisional statement
555	555	18 under section 6.5 of this chapter, except as provided in
556	556	19 subsection (d), indicate tax liability in an amount determined
557	557	20 by the department of local government finance based on:
558	558	21 (i) subject to subsection (c), for the cross-county entity, the
559	559	22 property tax rate of the cross-county entity for taxes first due
560	560	23 and payable in the immediately preceding calendar year; and
561	561	24 (ii) for all other taxing units that make up the taxing district
562	562	25 or taxing districts that comprise the cross-county area, the
563	563	26 property tax rates of the taxing units for taxes first due and
564	564	27 payable in the current calendar year;
565	565	28 (3) indicate:
566	566	29 (A) that the tax liability under the provisional statement is
567	567	30 determined as described in subdivision (2); and
568	568	31 (B) that property taxes billed on the provisional statement:
569	569	32 (i) are due and payable in the same manner as property taxes
570	570	33 billed on a tax statement under IC 6-1.1-22-8.1; and
571	571	34 (ii) will be credited against a reconciling statement;
572	572	35 (4) for property taxes billed using a provisional statement under
573	573	36 section 6 of this chapter, include a statement in the following or
574	574	37 a substantially similar form, as determined by the department of
575	575	38 local government finance:
576	576	39 "Under Indiana law, ________ County (insert county) has sent
577	577	40 provisional statements. The statement is due to be paid in
578	578	41 installments on __________ (insert date) and ________ (insert
579	579	42 date). The first installment is equal to fifty percent (50%) of your
580	580	2024 IN 210—LS 6955/DI 120 14
581	581	1 tax liability for taxes payable in ______ (insert year), subject to
582	582	2 adjustment to the tax liability authorized by the department of
583	583	3 local government finance and approved by the county treasurer.
584	584	4 The second installment is either the amount specified in a
585	585	5 reconciling statement that will be sent to you, or (if a reconciling
586	586	6 statement is not sent until after the second installment is due) an
587	587	7 amount equal to fifty percent (50%) of your tax liability for taxes
588	588	8 payable in ______ (insert year), subject to adjustment to the tax
589	589	9 liability authorized by the department of local government finance
590	590	10 and approved by the county treasurer. After the abstract of
591	591	11 property is complete, you will receive a reconciling statement in
592	592	12 the amount of your actual tax liability for taxes payable in ______
593	593	13 (insert year) minus the amount you pay under this provisional
594	594	14 statement.";
595	595	15 (5) for property taxes billed using a provisional statement under
596	596	16 section 6.5 of this chapter, include a statement in the following or
597	597	17 a substantially similar form, as determined by the department of
598	598	18 local government finance:
599	599	19 "Under Indiana law, ________ County (insert county) has elected
600	600	20 to send provisional statements for the territory of
601	601	21 __________________ (insert cross-county entity) located in
602	602	22 ________ County (insert county) because the property tax rate for
603	603	23 ________________ (insert cross-county entity) was not available
604	604	24 in time to prepare final tax statements. The statement is due to be
605	605	25 paid in installments on __________ (insert date) and _________
606	606	26 (insert date). The statement is based on the property tax rate of
607	607	27 _________________ (insert cross-county entity) for taxes first
608	608	28 due and payable in _____ (insert immediately preceding calendar
609	609	29 year). After the property tax rate of ________________ (insert
610	610	30 cross-county entity) is determined, you will receive a reconciling
611	611	31 statement in the amount of your actual tax liability for taxes
612	612	32 payable in _____ (insert year) minus the amount you pay under
613	613	33 this provisional statement.";
614	614	34 (6) indicate any adjustment to tax liability under subdivision (2)
615	615	35 authorized by the department of local government finance under
616	616	36 subsection (e) and approved by the county treasurer for:
617	617	37 (A) delinquent:
618	618	38 (i) taxes; and
619	619	39 (ii) special assessments;
620	620	40 (B) penalties; and
621	621	41 (C) interest;
622	622	42 (7) in the case of a reconciling statement only, include:
623	623	2024 IN 210—LS 6955/DI 120 15
624	624	1 (A) a checklist that shows:
625	625	2 (i) homestead credits under IC 6-1.1-20.4, IC 6-3.6-5, or
626	626	3 another law, the homestead exemption under
627	627	4 IC 6-1.1-10.2, and all property tax deductions; and
628	628	5 (ii) whether each homestead credit, homestead exemption,
629	629	6 and each property tax deduction were applied in the current
630	630	7 provisional statement;
631	631	8 (B) an explanation of the procedure and deadline that a
632	632	9 taxpayer must follow and the forms that must be used if a
633	633	10 credit or deduction has been granted for the property and the
634	634	11 taxpayer is no longer eligible for the credit or deduction; and
635	635	12 (C) an explanation of the tax consequences and applicable
636	636	13 penalties if a taxpayer unlawfully claims a standard deduction
637	637	14 under IC 6-1.1-12-37 or homestead exemption under
638	638	15 IC 6-1.1-10.2 on:
639	639	16 (i) more than one (1) parcel of property; or
640	640	17 (ii) property that is not the taxpayer's principal place of
641	641	18 residence or is otherwise not eligible for a standard
642	642	19 deduction; and
643	643	20 (8) include any other information the county treasurer requires.
644	644	21 (b) The county may apply a standard deduction, supplemental
645	645	22 standard deduction, or homestead credit, or homestead exemption
646	646	23 under IC 6-1.1-10.2 calculated by the county's property system on a
647	647	24 provisional bill for a qualified property. If a provisional bill has been
648	648	25 used for property tax billings for two (2) consecutive years and a
649	649	26 property qualifies for a standard deduction, supplemental standard
650	650	27 deduction, or homestead credit, or homestead exemption under
651	651	28 IC 6-1.1-10.2 for the second year a provisional bill is used, the county
652	652	29 shall apply the standard deduction, supplemental standard deduction,
653	653	30 or homestead credit, or homestead exemption under IC 6-1.1-10.2
654	654	31 calculated by the county's property system on the provisional bill.
655	655	32 (c) For purposes of this section, property taxes that are:
656	656	33 (1) first due and payable in the current calendar year on a
657	657	34 provisional statement under section 6 or 6.5 of this chapter; and
658	658	35 (2) based on property taxes first due and payable in the
659	659	36 immediately preceding calendar year or on a percentage of those
660	660	37 property taxes;
661	661	38 are determined after excluding from the property taxes first due and
662	662	39 payable in the immediately preceding calendar year property taxes
663	663	40 imposed by one (1) or more taxing units in which the tangible property
664	664	41 is located that are attributable to a levy that no longer applies for
665	665	42 property taxes first due and payable in the current calendar year.
666	666	2024 IN 210—LS 6955/DI 120 16
667	667	1 (d) If there was no property tax rate of the cross-county entity for
668	668	2 taxes first due and payable in the immediately preceding calendar year
669	669	3 for use under subsection (a)(2)(B), the department of local government
670	670	4 finance shall provide an estimated tax rate calculated to approximate
671	671	5 the actual tax rate that will apply when the tax rate is finally
672	672	6 determined.
673	673	7 (e) The department of local government finance shall:
674	674	8 (1) authorize the types of adjustments to tax liability that a county
675	675	9 treasurer may approve under subsection (a)(2)(A) including:
676	676	10 (A) adjustments for any new construction on the property or
677	677	11 any damage to the property;
678	678	12 (B) any necessary adjustments for credits, deductions, or the
679	679	13 local income tax;
680	680	14 (C) adjustments to include current year special assessments or
681	681	15 exclude special assessments payable in the year of the
682	682	16 assessment date but not payable in the current year;
683	683	17 (D) adjustments to include delinquent:
684	684	18 (i) taxes; and
685	685	19 (ii) special assessments;
686	686	20 (E) adjustments to include penalties that are due and owing;
687	687	21 and
688	688	22 (F) adjustments to include interest that is due and owing; and
689	689	23 (2) notify county treasurers in writing of the types of adjustments
690	690	24 authorized under subdivision (1).
691	691	25 SECTION 8. IC 6-1.1-51 IS ADDED TO THE INDIANA CODE
692	692	26 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
693	693	27 UPON PASSAGE]:
694	694	28 Chapter 51. Homestead and Business Personal Property Tax
695	695	29 Replacement Distributions
696	696	30 Sec. 1. (a) Before July 1, 2024, and before July 1 each year
697	697	31 thereafter, the department of local government finance shall
698	698	32 determine for each county a homestead and business personal
699	699	33 property tax replacement amount for the following year.
700	700	34 (b) A county's property tax replacement amount is the amount
701	701	35 of net property taxes that would be first due and payable in the
702	702	36 determination year in the county on all qualified homesteads (as
703	703	37 defined in IC 6-1.1-10.2-1) and business personal property. This
704	704	38 determination shall be made by using the net property tax liability
705	705	39 on the property before applying the exemption provided by
706	706	40 IC 6-1.1-10.2 or the exemption provided by IC 6-1.1-10.4 and after
707	707	41 applying all assessed value deductions, credits, or abatements
708	708	42 provided under any other law.
709	709	2024 IN 210—LS 6955/DI 120 17
710	710	1 (c) Before August 2 each year, the department of local
711	711	2 government finance shall certify in writing to each county auditor
712	712	3 the amount of the county's certified property tax replacement
713	713	4 amount for the following year. Each taxing unit in a county is
714	714	5 entitled to receive its allocation of the certified property tax
715	715	6 replacement amount based on the amount that each taxing unit
716	716	7 would have received in property taxes if the exemption under
717	717	8 IC 6-1.1-10.2 and the exemption under IC 6-1.1-10.4 were not
718	718	9 applied.
719	719	10 Sec. 2. A taxing unit shall treat the amount certified for a year
720	720	11 as property tax revenue for the purpose of fixing the taxing unit's
721	721	12 budget for that budget year.
722	722	13 Sec. 3. Each distribution under this chapter shall be made by the
723	723	14 state comptroller to the appropriate county treasurer. The
724	724	15 distribution for a year shall be made to the county treasurer in two
725	725	16 (2) equal installments. The first installment shall be made on the
726	726	17 first business day in May each year. The second installment shall
727	727	18 be made on the first business day in November each year. The
728	728	19 county auditor shall credit each installment to each taxing unit in
729	729	20 the county at the same time and in the same manner as property
730	730	21 taxes are credited.
731	731	22 Sec. 4. A taxing unit shall treat revenue received under this
732	732	23 chapter as property tax revenue.
733	733	24 Sec. 5. In addition to the distributions to counties under this
734	734	25 chapter, the state comptroller shall distribute from the state
735	735	26 general fund to the commuter rail service fund established by
736	736	27 IC 8-3-1.5-20.5 and the electric rail service fund established by
737	737	28 IC 8-3-1.5-20.6 a business property tax replacement amount equal
738	738	29 to the prior year's net property tax liability on the property before
739	739	30 applying the exemption provided by IC 6-1.1-10.4 for taxes payable
740	740	31 under IC 6-1.1-8-35 to be distributed at the same time and in the
741	741	32 similar manner as the distributions to counties.
742	742	33 Sec. 6. There is appropriated from the state general fund the
743	743	34 amount necessary to provide distributions under this chapter each
744	744	35 year.
745	745	36 SECTION 9. IC 6-2.5-1-5, AS AMENDED BY P.L.199-2021,
746	746	37 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
747	747	38 NOVEMBER 1, 2024]: Sec. 5. (a) Except as provided in subsection
748	748	39 (b), "gross retail income" means the total amount of consideration,
749	749	40 including cash, credit, property, and services, for which tangible
750	750	41 personal property is sold, leased, or rented, valued in money, whether
751	751	42 received in money or otherwise, without any deduction for:
752	752	2024 IN 210—LS 6955/DI 120 18
753	753	1 (1) the seller's cost of the property sold;
754	754	2 (2) the cost of materials used, labor or service cost, interest,
755	755	3 losses, all costs of transportation to the seller, all taxes imposed
756	756	4 on the seller, and any other expense of the seller;
757	757	5 (3) charges by the seller for any services necessary to complete
758	758	6 the sale; other than delivery and installation charges;
759	759	7 (4) delivery charges; or
760	760	8 (5) consideration received by the seller from a third party if:
761	761	9 (A) the seller actually receives consideration from a party
762	762	10 other than the purchaser and the consideration is directly
763	763	11 related to a price reduction or discount on the sale;
764	764	12 (B) the seller has an obligation to pass the price reduction or
765	765	13 discount through to the purchaser;
766	766	14 (C) the amount of the consideration attributable to the sale is
767	767	15 fixed and determinable by the seller at the time of the sale of
768	768	16 the item to the purchaser; and
769	769	17 (D) the price reduction or discount is identified as a third party
770	770	18 price reduction or discount on the invoice received by the
771	771	19 purchaser or on a coupon, certificate, or other documentation
772	772	20 presented by the purchaser.
773	773	21 For purposes of subdivision (4), delivery charges are charges by the
774	774	22 seller for preparation and delivery of the property to a location
775	775	23 designated by the purchaser of property, including but not limited to
776	776	24 transportation, shipping, postage charges that are not separately stated
777	777	25 on the invoice, bill of sale, or similar document, handling, crating, and
778	778	26 packing. Delivery charges do not include postage charges that are
779	779	27 separately stated on the invoice, bill of sale, or similar document.
780	780	28 (b) "Gross retail income" does not include that part of the gross
781	781	29 receipts attributable to:
782	782	30 (1) the value of any tangible personal property received in a like
783	783	31 kind exchange in the retail transaction, if the value of the property
784	784	32 given in exchange is separately stated on the invoice, bill of sale,
785	785	33 or similar document given to the purchaser;
786	786	34 (2) the receipts received in a retail transaction which constitute
787	787	35 interest or finance charges or insurance premiums on either a
788	788	36 promissory note or an installment sales contract;
789	789	37 (3) discounts, including cash, terms, or coupons that are not
790	790	38 reimbursed by a third party that are allowed by a seller and taken
791	791	39 by a purchaser on a sale;
792	792	40 (4) interest, financing, and carrying charges from credit extended
793	793	41 on the sale of personal property or services if the amount is
794	794	42 separately stated on the invoice, bill of sale, or similar document
795	795	2024 IN 210—LS 6955/DI 120 19
796	796	1 given to the purchaser;
797	797	2 (5) any taxes legally imposed directly on the consumer that are
798	798	3 separately stated on the invoice, bill of sale, or similar document
799	799	4 given to the purchaser, including an excise tax imposed under
800	800	5 IC 6-6-15;
801	801	6 (6) installation charges that are separately stated on the invoice,
802	802	7 bill of sale, or similar document given to the purchaser;
803	803	8 (7) (6) telecommunications nonrecurring charges;
804	804	9 (8) (7) postage charges that are separately stated on the invoice,
805	805	10 bill of sale, or similar document; or
806	806	11 (9) (8) charges for serving or delivering food and food ingredients
807	807	12 furnished, prepared, or served for consumption at a location, or on
808	808	13 equipment, provided by the retail merchant, to the extent that the
809	809	14 charges for the serving or delivery are stated separately from the
810	810	15 price of the food and food ingredients when the purchaser pays
811	811	16 the charges.
812	812	17 (c) Notwithstanding subsection (b)(5):
813	813	18 (1) in the case of retail sales of special fuel (as defined in
814	814	19 IC 6-6-2.5-22), the gross retail income is the total sales price of
815	815	20 the special fuel minus the part of that price attributable to tax
816	816	21 imposed under IC 6-6-2.5 or Section 4041 or Section 4081 of the
817	817	22 Internal Revenue Code;
818	818	23 (2) in the case of retail sales of cigarettes (as defined in
819	819	24 IC 6-7-1-2), the gross retail income is the total sales price of the
820	820	25 cigarettes including the tax imposed under IC 6-7-1; and
821	821	26 (3) in the case of retail sales of consumable material (as defined
822	822	27 in IC 6-7-4-2), vapor products (as defined in IC 6-7-4-8), and
823	823	28 closed system cartridges (as defined in IC 6-7-2-0.5) under the
824	824	29 closed system cartridge tax, the gross retail income received from
825	825	30 selling at retail is the total sales price of the consumable material
826	826	31 (as defined in IC 6-7-4-2), vapor products (as defined in
827	827	32 IC 6-7-4-8), and closed system cartridges (as defined in
828	828	33 IC 6-7-2-0.5) including the tax imposed under IC 6-7-4 and
829	829	34 IC 6-7-2-7.5.
830	830	35 (d) Gross retail income is only taxable under this article to the
831	831	36 extent that the income represents:
832	832	37 (1) the price of the property transferred, without the rendition of
833	833	38 any services; and
834	834	39 (2) except as provided in subsection (b), any bona fide charges
835	835	40 which are made for preparation, fabrication, alteration,
836	836	41 modification, finishing, completion, delivery, or other service
837	837	42 performed in respect to the property transferred before its transfer
838	838	2024 IN 210—LS 6955/DI 120 20
839	839	1 and which are separately stated on the transferor's records. For
840	840	2 purposes of this subdivision, a transfer is considered to have
841	841	3 occurred after the delivery of the property to the purchaser.
842	842	4 (e) A public utility's or a power subsidiary's gross retail income
843	843	5 includes all gross retail income received by the public utility or power
844	844	6 subsidiary, including any minimum charge, flat charge, membership
845	845	7 fee, or any other form of charge or billing.
846	846	8 SECTION 10. IC 6-2.5-1-11.7 IS ADDED TO THE INDIANA
847	847	9 CODE AS A NEW SECTION TO READ AS FOLLOWS
848	848	10 [EFFECTIVE NOVEMBER 1, 2024]: Sec. 11.7. "Business to business
849	849	11 transactions" means transactions involving the wholesale sale of
850	850	12 services by a business that has a valid registered retail merchant
851	851	13 certificate to another business that has a valid retail merchant
852	852	14 certificate for its use or consumption in the production of tangible
853	853	15 personal property or the delivery of other services that are for sale.
854	854	16 SECTION 11. IC 6-2.5-1-25.7 IS ADDED TO THE INDIANA
855	855	17 CODE AS A NEW SECTION TO READ AS FOLLOWS
856	856	18 [EFFECTIVE NOVEMBER 1, 2024]: Sec. 25.7. "Service" includes
857	857	19 any activity engaged in for another person for consideration.
858	858	20 SECTION 12. IC 6-2.5-2-1, AS AMENDED BY P.L.146-2020,
859	859	21 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
860	860	22 NOVEMBER 1, 2024]: Sec. 1. (a) An excise tax, known as the state
861	861	23 gross retail tax, is imposed on retail transactions made in Indiana.
862	862	24 (b) The person who acquires property or receives a service in a
863	863	25 retail transaction is liable for the tax on the transaction and, except as
864	864	26 otherwise provided in this chapter, shall pay the tax to the retail
865	865	27 merchant as a separate added amount to the consideration in the
866	866	28 transaction. A retail merchant that has either physical presence in
867	867	29 Indiana as described in subsection (c) or that meets one (1) or both of
868	868	30 the thresholds in subsection (d) shall collect the tax as agent for the
869	869	31 state.
870	870	32 (c) A retail merchant has physical presence in Indiana when the
871	871	33 retail merchant:
872	872	34 (1) maintains an office, place of distribution, sales location,
873	873	35 sample location, warehouse, storage place, or other place of
874	874	36 business which is located in Indiana and which the retail
875	875	37 merchant maintains, occupies, or uses, either permanently or
876	876	38 temporarily, either directly or indirectly, and either by the retail
877	877	39 merchant or through a representative, agent, or subsidiary;
878	878	40 (2) maintains a representative, agent, salesperson, canvasser, or
879	879	41 solicitor who, while operating in Indiana under the authority of
880	880	42 and on behalf of the retail merchant or a subsidiary of the retail
881	881	2024 IN 210—LS 6955/DI 120 21
882	882	1 merchant, sells, delivers, installs, repairs, assembles, sets up,
883	883	2 accepts returns of, bills, invoices, or takes orders for sales of
884	884	3 tangible personal property or services to be used, stored, or
885	885	4 consumed in Indiana; or
886	886	5 (3) is otherwise required to register as a retail merchant under
887	887	6 IC 6-2.5-8-1.
888	888	7 (d) A retail merchant that does not have a physical presence in
889	889	8 Indiana shall, as an agent for the state, collect the gross retail tax on a
890	890	9 retail transaction made in Indiana, remit the gross retail tax as provided
891	891	10 in this article, and comply with all applicable procedures and
892	892	11 requirements of this article as if the retail merchant has a physical
893	893	12 presence in Indiana, if the retail merchant meets either of the following
894	894	13 conditions for the calendar year in which the retail transaction is made
895	895	14 or for the calendar year preceding the calendar year in which the retail
896	896	15 transaction is made:
897	897	16 (1) The retail merchant's gross revenue from any combination of:
898	898	17 (A) the sale of tangible personal property that is delivered into
899	899	18 Indiana;
900	900	19 (B) a product transferred electronically into Indiana; or
901	901	20 (C) a service delivered in Indiana;
902	902	21 exceeds one hundred thousand dollars ($100,000).
903	903	22 (2) The retail merchant sells any combination of:
904	904	23 (A) tangible personal property that is delivered into Indiana;
905	905	24 (B) a product transferred electronically into Indiana; or
906	906	25 (C) a service delivered in Indiana;
907	907	26 in two hundred (200) or more separate transactions.
908	908	27 (e) A marketplace facilitator must include both transactions made
909	909	28 on its own behalf and transactions facilitated for sellers under
910	910	29 IC 6-2.5-4-18 for purposes of establishing the requirement to collect
911	911	30 gross retail tax without having a physical presence in Indiana for
912	912	31 purposes of subsection (d). In addition, except in instances where the
913	913	32 marketplace facilitator has not met the thresholds in subsection (d), the
914	914	33 transactions of the seller made through the marketplace are not counted
915	915	34 toward the seller for purposes of determining whether the seller has
916	916	35 met the thresholds in subsection (d).
917	917	36 SECTION 13. IC 6-2.5-2-2, AS AMENDED BY P.L.146-2020,
918	918	37 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
919	919	38 NOVEMBER 1, 2024]: Sec. 2. (a) The state gross retail tax is
920	920	39 measured by the gross retail income received by a retail merchant in a
921	921	40 retail unitary or bundled transaction and is imposed at:
922	922	41 (1) except as provided in subdivision (2), seven six percent (7%)
923	923	42 (6%) of that gross retail income; and
924	924	2024 IN 210—LS 6955/DI 120 22
925	925	1 (2) in the case of business to business transactions, two and
926	926	2 seventy-five hundredths percent (2.75%) of that gross retail
927	927	3 income.
928	928	4 (b) If the tax computed under subsection (a) carried to the third
929	929	5 decimal place results in the numeral in the third decimal place being
930	930	6 greater than four (4), the amount of the tax shall be rounded to the next
931	931	7 additional cent.
932	932	8 (c) A seller may elect to round the tax under subsection (b) on a
933	933	9 transaction on an item basis or an invoice basis. However, a seller may
934	934	10 not round the tax under subsection (b) to circumvent the tax that would
935	935	11 otherwise be imposed on a transaction using an invoice basis.
936	936	12 SECTION 14. IC 6-2.5-3-1, AS AMENDED BY P.L.146-2020,
937	937	13 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
938	938	14 NOVEMBER 1, 2024]: Sec. 1. For purposes of this chapter:
939	939	15 (a) "Use" means either of the following:
940	940	16 (1) The exercise of any right or power of ownership over tangible
941	941	17 personal property.
942	942	18 (2) The employment of a service for its intended purpose.
943	943	19 (b) "Storage" means the keeping or retention of tangible personal
944	944	20 property in Indiana for any purpose except temporary storage.
945	945	21 (c) "Temporary storage" means the keeping or retention of tangible
946	946	22 personal property in Indiana for a period of not more than one hundred
947	947	23 eighty (180) days and only for the purpose of the subsequent use of that
948	948	24 property solely outside Indiana.
949	949	25 (d) Notwithstanding any other provision of this section, tangible or
950	950	26 intangible property that is:
951	951	27 (1) owned or leased by a person that has contracted with a
952	952	28 commercial printer for printing; and
953	953	29 (2) located at the premises of the commercial printer;
954	954	30 shall not be considered to be, or to create, an office, a place of
955	955	31 distribution, a sales location, a sample location, a warehouse, a storage
956	956	32 place, or other place of business maintained, occupied, or used in any
957	957	33 way by the person. A commercial printer with which a person has
958	958	34 contracted for printing shall not be considered to be in any way a
959	959	35 representative, an agent, a salesman, salesperson, a canvasser, or a
960	960	36 solicitor for the person.
961	961	37 SECTION 15. IC 6-2.5-3-2, AS AMENDED BY P.L.181-2016,
962	962	38 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
963	963	39 NOVEMBER 1, 2024]: Sec. 2. (a) An excise tax, known as the use tax,
964	964	40 is imposed on the storage, use, or consumption of tangible personal
965	965	41 property or the use of a service in Indiana if the property or service
966	966	42 was acquired in a retail transaction, regardless of the location of that
967	967	2024 IN 210—LS 6955/DI 120 23
968	968	1 transaction or of the retail merchant making that transaction.
969	969	2 (b) The use tax is also imposed on the storage, use, or consumption
970	970	3 of a vehicle, an aircraft, or a watercraft, if the vehicle, aircraft, or
971	971	4 watercraft:
972	972	5 (1) is acquired in a transaction that is an isolated or occasional
973	973	6 sale; and
974	974	7 (2) is required to be titled, licensed, or registered by this state for
975	975	8 use in Indiana.
976	976	9 (c) The use tax is imposed on a contractor's conversion of
977	977	10 construction material into real property if that construction material
978	978	11 was purchased by the contractor. However, the use tax does not apply
979	979	12 to conversions of construction material described in this subsection, if:
980	980	13 (1) the state gross retail or use tax has been previously imposed
981	981	14 on the contractor's acquisition or use of that construction material;
982	982	15 (2) the person for whom the construction material is being
983	983	16 converted could have purchased the material exempt from the
984	984	17 state gross retail and use taxes, as evidenced by a properly issued
985	985	18 exemption certificate, if that person had directly purchased the
986	986	19 construction material from a retail merchant in a retail
987	987	20 transaction; or
988	988	21 (3) the conversion of the construction material into real property
989	989	22 is governed by a time and material contract as described in
990	990	23 IC 6-2.5-4-9(b).
991	991	24 (d) The use tax is imposed on a person who:
992	992	25 (1) manufactures, fabricates, or assembles tangible personal
993	993	26 property from materials either within or outside Indiana; and
994	994	27 (2) uses, stores, distributes, or consumes tangible personal
995	995	28 property in Indiana.
996	996	29 (e) Notwithstanding any other provision of this section, the use tax
997	997	30 is not imposed on the keeping, retaining, or exercising of any right or
998	998	31 power over tangible personal property, if:
999	999	32 (1) the property is delivered into Indiana by or for the purchaser
1000	1000	33 of the property;
1001	1001	34 (2) the property is delivered in Indiana for the sole purpose of
1002	1002	35 being processed, printed, fabricated, or manufactured into,
1003	1003	36 attached to, or incorporated into other tangible personal property;
1004	1004	37 and
1005	1005	38 (3) the property is subsequently transported out of state for use
1006	1006	39 solely outside Indiana.
1007	1007	40 (f) As used in subsection (g) and IC 6-2.5-5-42:
1008	1008	41 (1) "completion work" means the addition of tangible personal
1009	1009	42 property to or reconfiguration of the interior of an aircraft, if the
1010	1010	2024 IN 210—LS 6955/DI 120 24
1011	1011	1 work requires the issuance of an airworthiness certificate from
1012	1012	2 the:
1013	1013	3 (A) Federal Aviation Administration; or
1014	1014	4 (B) equivalent foreign regulatory authority;
1015	1015	5 due to the change in the type certification basis of the aircraft
1016	1016	6 resulting from the addition to or reconfiguration of the interior of
1017	1017	7 the aircraft;
1018	1018	8 (2) "delivery" means the physical delivery of the aircraft
1019	1019	9 regardless of who holds title; and
1020	1020	10 (3) "prepurchase evaluation" means an examination of an aircraft
1021	1021	11 by a potential purchaser for the purpose of obtaining information
1022	1022	12 relevant to the potential purchase of the aircraft.
1023	1023	13 (g) Notwithstanding any other provision of this section, the use tax
1024	1024	14 is not imposed on the keeping, retaining, or exercising of any right or
1025	1025	15 power over an aircraft, if:
1026	1026	16 (1) the aircraft is or will be titled, registered, or based (as defined
1027	1027	17 in IC 6-6-6.5-1(m)) in another state or country;
1028	1028	18 (2) the aircraft is delivered to Indiana by or for a nonresident
1029	1029	19 owner or purchaser of the aircraft;
1030	1030	20 (3) the aircraft is delivered to Indiana for the sole purpose of
1031	1031	21 being repaired, refurbished, remanufactured, or subjected to
1032	1032	22 completion work or a prepurchase evaluation; and
1033	1033	23 (4) after completion of the repair, refurbishment, remanufacture,
1034	1034	24 completion work, or prepurchase evaluation, the aircraft is
1035	1035	25 transported to a destination outside Indiana.
1036	1036	26 (h) The amendments made to this section by P.L.153-2012 shall be
1037	1037	27 interpreted to specify and not to change the general assembly's intent
1038	1038	28 with respect to this section.
1039	1039	29 SECTION 16. IC 6-2.5-3-4, AS AMENDED BY P.L.137-2022,
1040	1040	30 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1041	1041	31 NOVEMBER 1, 2024]: Sec. 4. (a) The storage, use, and consumption
1042	1042	32 of tangible personal property or the use of a service in Indiana is
1043	1043	33 exempt from the use tax if:
1044	1044	34 (1) the property or service was acquired in a retail transaction and
1045	1045	35 the state gross retail tax has been paid on the acquisition of that
1046	1046	36 property or service; or
1047	1047	37 (2) the property or service was acquired in a transaction that is
1048	1048	38 wholly or partially exempt from the state gross retail tax under
1049	1049	39 any part of IC 6-2.5-5 and the property or service is being used,
1050	1050	40 stored, or consumed for the purpose for which it was exempted.
1051	1051	41 (b) If a person issues a state gross retail or use tax exemption
1052	1052	42 certificate for the acquisition of tangible personal property or a service
1053	1053	2024 IN 210—LS 6955/DI 120 25
1054	1054	1 and subsequently uses, stores, or consumes that property or service for
1055	1055	2 a nonexempt purpose, then the person shall pay the use tax.
1056	1056	3 SECTION 17. IC 6-2.5-3-5 IS AMENDED TO READ AS
1057	1057	4 FOLLOWS [EFFECTIVE NOVEMBER 1, 2024]: Sec. 5. A person is
1058	1058	5 entitled to a credit against the use tax imposed on the use, storage, or
1059	1059	6 consumption of a particular item of tangible personal property or the
1060	1060	7 use of a service equal to the amount, if any, of sales tax, purchase tax,
1061	1061	8 or use tax paid to another state, territory, or possession of the United
1062	1062	9 States for the acquisition of that property or service.
1063	1063	10 SECTION 18. IC 6-2.5-3-6, AS AMENDED BY P.L.146-2020,
1064	1064	11 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1065	1065	12 NOVEMBER 1, 2024]: Sec. 6. (a) For purposes of this section,
1066	1066	13 "person" includes an individual who is personally liable for use tax
1067	1067	14 under IC 6-2.5-9-3.
1068	1068	15 (b) The person who uses, stores, or consumes the tangible personal
1069	1069	16 property or uses the service acquired in a retail transaction is
1070	1070	17 personally liable for the use tax.
1071	1071	18 (c) The person liable for the use tax shall pay the use tax to the
1072	1072	19 department.
1073	1073	20 (d) Notwithstanding subsection (c), a person liable for the use tax
1074	1074	21 imposed in respect to a vehicle, watercraft, or aircraft under section
1075	1075	22 2(b) of this chapter shall pay the tax:
1076	1076	23 (1) to the titling agency when the person applies for a title for the
1077	1077	24 vehicle or the watercraft;
1078	1078	25 (2) to the registering agency when the person registers the
1079	1079	26 aircraft; or
1080	1080	27 (3) to the registering agency when the person registers the
1081	1081	28 watercraft because it is a United States Coast Guard documented
1082	1082	29 vessel;
1083	1083	30 unless the person presents proof to the agency that the use tax or state
1084	1084	31 gross retail tax has already been paid with respect to the purchase of
1085	1085	32 the vehicle, watercraft, or aircraft or proof that the taxes are
1086	1086	33 inapplicable because of an exemption under this article.
1087	1087	34 (e) At the time a person pays the use tax for the purchase of a
1088	1088	35 vehicle to a titling agency pursuant to subsection (d), the titling agency
1089	1089	36 shall compute the tax due based on the presumption that the sale price
1090	1090	37 was the average selling price for that vehicle, as determined under a
1091	1091	38 used vehicle buying guide to be chosen by the titling agency. However,
1092	1092	39 the titling agency shall compute the tax due based on the actual sale
1093	1093	40 price of the vehicle if the buyer, at the time the buyer pays the tax to the
1094	1094	41 titling agency, presents documentation to the titling agency sufficient
1095	1095	42 to rebut the presumption set forth in this subsection and to establish the
1096	1096	2024 IN 210—LS 6955/DI 120 26
1097	1097	1 actual selling price of the vehicle.
1098	1098	2 SECTION 19. IC 6-2.5-3-7, AS AMENDED BY P.L.211-2007,
1099	1099	3 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1100	1100	4 NOVEMBER 1, 2024]: Sec. 7. (a) A person who acquires tangible
1101	1101	5 personal property or a service, or both, from a retail merchant for
1102	1102	6 delivery in Indiana is presumed to have:
1103	1103	7 (1) acquired the property for storage, use, or consumption in
1104	1104	8 Indiana; and
1105	1105	9 (2) received the service in Indiana.
1106	1106	10 However, the person or the retail merchant can produce evidence to
1107	1107	11 rebut that presumption.
1108	1108	12 (b) A retail merchant is not required to produce evidence of
1109	1109	13 nontaxability under subsection (a) if the retail merchant receives from
1110	1110	14 the person who acquired the property or service an exemption
1111	1111	15 certificate which certifies, in the form prescribed by the department,
1112	1112	16 that the acquisition is exempt from the use tax.
1113	1113	17 (c) A retail merchant that sells tangible personal property or a
1114	1114	18 service to a person that purchases the tangible personal property or
1115	1115	19 service for use or consumption in providing public transportation under
1116	1116	20 IC 6-2.5-5-27 may verify the exemption by obtaining the person's:
1117	1117	21 (1) name;
1118	1118	22 (2) address; and
1119	1119	23 (3) motor carrier number, United States Department of
1120	1120	24 Transportation number, or any other identifying number
1121	1121	25 authorized by the department.
1122	1122	26 The person engaged in public transportation shall provide a signature
1123	1123	27 to affirm under penalties of perjury that the information provided to the
1124	1124	28 retail merchant is correct and that the tangible personal property or
1125	1125	29 service is being purchased for an exempt purpose.
1126	1126	30 SECTION 20. IC 6-2.5-3-8 IS AMENDED TO READ AS
1127	1127	31 FOLLOWS [EFFECTIVE NOVEMBER 1, 2024]: Sec. 8. (a) When a
1128	1128	32 retail merchant collects the use tax from a person, he the retail
1129	1129	33 merchant shall, upon request, issue a receipt to that person for the use
1130	1130	34 tax collected.
1131	1131	35 (b) If the department assesses the use tax against a person for the
1132	1132	36 person's storage, use, or consumption of tangible personal property or
1133	1133	37 use of a service in Indiana, and if the person has already paid the use
1134	1134	38 tax in relation to that property or service to a retail merchant who is
1135	1135	39 registered under IC 6-2.5-6, to the department, or, in the case of a
1136	1136	40 vehicle or aircraft, to the proper state agency, then the person may
1137	1137	41 avoid paying the use tax to the department if he the person can
1138	1138	42 produce a receipt or other written evidence showing that he the person
1139	1139	2024 IN 210—LS 6955/DI 120 27
1140	1140	1 has so made the use tax payment.
1141	1141	2 SECTION 21. IC 6-2.5-4-1, AS AMENDED BY P.L.137-2022,
1142	1142	3 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1143	1143	4 NOVEMBER 1, 2024]: Sec. 1. (a) A person is a retail merchant
1144	1144	5 making a retail transaction when the person engages in selling at retail.
1145	1145	6 (b) A person is engaged in selling at retail when, in the ordinary
1146	1146	7 course of the person's regularly conducted trade or business, the person
1147	1147	8 does either of the following:
1148	1148	9 (1) The person:
1149	1149	10 (A) acquires tangible personal property for the purpose of
1150	1150	11 resale; and
1151	1151	12 (2) (B) transfers that property to another person for
1152	1152	13 consideration.
1153	1153	14 (2) The person performs a service for consideration.
1154	1154	15 (c) For purposes of determining what constitutes selling at retail, it
1155	1155	16 does not matter whether:
1156	1156	17 (1) the property is transferred or the service is performed in the
1157	1157	18 same form as when it was acquired;
1158	1158	19 (2) the property is transferred or the service is performed alone
1159	1159	20 or in conjunction with other property or services; or
1160	1160	21 (3) the property is transferred or the service is performed
1161	1161	22 conditionally or otherwise.
1162	1162	23 (d) Notwithstanding any provision of this article, a person is not
1163	1163	24 making a retail transaction when the person:
1164	1164	25 (1) acquires tangible personal property owned by another person;
1165	1165	26 (2) provides industrial processing or servicing, including
1166	1166	27 enameling or plating, on the property; and
1167	1167	28 (3) (2) transfers the property back to the owner to be sold by that
1168	1168	29 owner either in the same form or as a part of other tangible
1169	1169	30 personal property produced by that owner in the owner's business
1170	1170	31 of manufacturing, assembling, constructing, refining, or
1171	1171	32 processing.
1172	1172	33 SECTION 22. IC 6-2.5-4-3 IS REPEALED [EFFECTIVE
1173	1173	34 NOVEMBER 1, 2024]. Sec. 3. (a) A person is a retail merchant making
1174	1174	35 a retail transaction when he regularly and occupationally engages in the
1175	1175	36 business of softening and conditioning water.
1176	1176	37 (b) For purposes of this section, the business of softening and
1177	1177	38 conditioning water includes the exchange of water softening and
1178	1178	39 conditioning tanks in the ordinary course of the business, but does not
1179	1179	40 include the preparatory plumbing and work necessary for the first
1180	1180	41 installation of tanks.
1181	1181	42 SECTION 23. IC 6-2.5-4-6, AS AMENDED BY P.L.84-2011,
1182	1182	2024 IN 210—LS 6955/DI 120 28
1183	1183	1 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1184	1184	2 NOVEMBER 1, 2024]: Sec. 6. (a) A person is a retail merchant
1185	1185	3 making a retail transaction when the person:
1186	1186	4 (1) furnishes or sells an intrastate telecommunication service; and
1187	1187	5 (2) receives gross retail income from billings or statements
1188	1188	6 rendered to customers.
1189	1189	7 (b) Notwithstanding subsection (a), a person is not a retail merchant
1190	1190	8 making a retail transaction when:
1191	1191	9 (1) the person furnishes or sells telecommunication services to
1192	1192	10 another person described in this section or in section 5 of this
1193	1193	11 chapter; or
1194	1194	12 (2) the person furnishes telecommunications services to another
1195	1195	13 person who is providing prepaid calling services or prepaid
1196	1196	14 wireless calling services in a retail transaction to customers who
1197	1197	15 access the services described in section 13 of this chapter;
1198	1198	16 (3) (2) the person furnishes intrastate mobile telecommunications
1199	1199	17 service (as defined in IC 6-8.1-15-7) to a customer with a place of
1200	1200	18 primary use that is not located in Indiana (as determined under
1201	1201	19 IC 6-8.1-15). or
1202	1202	20 (4) the person furnishes or sells value added nonvoice data
1203	1203	21 services in a retail transaction to a customer.
1204	1204	22 (c) Subject to IC 6-2.5-12 and IC 6-8.1-15, and notwithstanding
1205	1205	23 subsections (a) and (b), if charges for telecommunication services,
1206	1206	24 ancillary services, Internet access, audio services, or video services that
1207	1207	25 are not taxable under this article are aggregated with and not separately
1208	1208	26 stated from charges subject to taxation under this article, the charges
1209	1209	27 for nontaxable telecommunication services, ancillary services, Internet
1210	1210	28 access, audio services, or video services are subject to taxation unless
1211	1211	29 the service provider can reasonably identify the charges not subject to
1212	1212	30 the tax from the service provider's books and records kept in the regular
1213	1213	31 course of business.
1214	1214	32 SECTION 24. IC 6-2.5-4-9, AS AMENDED BY P.L.181-2016,
1215	1215	33 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1216	1216	34 NOVEMBER 1, 2024]: Sec. 9. (a) A person is a retail merchant
1217	1217	35 making a retail transaction:
1218	1218	36 (1) when the person sells tangible personal property which: or
1219	1219	37 services;
1220	1220	38 (1) (2) when the tangible personal property is to be added to a
1221	1221	39 structure or facility or the service is used to add tangible
1222	1222	40 personal property to a structure or facility by the purchaser;
1223	1223	41 and
1224	1224	42 (2) (3) after its the addition to the structure or facility, the
1225	1225	2024 IN 210—LS 6955/DI 120 29
1226	1226	1 tangible personal property would become a part of the real
1227	1227	2 estate on which the structure or facility is located.
1228	1228	3 (b) A contractor is a retail merchant making a retail transaction
1229	1229	4 when the contractor:
1230	1230	5 (1) disposes of tangible personal property; or
1231	1231	6 (2) converts tangible personal property into real property;
1232	1232	7 under a time and material contract. As such a retail merchant, a
1233	1233	8 contractor described in this subsection shall collect, as an agent of the
1234	1234	9 state, the state gross retail tax on the resale of the construction material
1235	1235	10 and remit the state gross retail tax as provided in this article.
1236	1236	11 (c) Notwithstanding subsections (a) and (b), a transaction described
1237	1237	12 in subsection (a) or (b) is not a retail transaction, if the ultimate
1238	1238	13 purchaser or recipient of the property to be added to a structure or
1239	1239	14 facility would be exempt from the state gross retail and use taxes if that
1240	1240	15 purchaser or recipient had directly purchased the property from the
1241	1241	16 supplier for addition to the structure or facility.
1242	1242	17 SECTION 25. IC 6-2.5-4-10, AS AMENDED BY P.L.108-2019,
1243	1243	18 SECTION 111, IS AMENDED TO READ AS FOLLOWS
1244	1244	19 [EFFECTIVE NOVEMBER 1, 2024]: Sec. 10. (a) A person, other than
1245	1245	20 a public utility, is a retail merchant making a retail transaction when
1246	1246	21 the person rents or leases tangible personal property to another person.
1247	1247	22 other than for subrent or sublease.
1248	1248	23 (b) A person is a retail merchant making a retail transaction when
1249	1249	24 the person sells any tangible personal property which has been rented
1250	1250	25 or leased in the regular course of the person's rental or leasing business.
1251	1251	26 (c) Notwithstanding subsection (a), a person is not a retail merchant
1252	1252	27 making a retail transaction when the person rents or leases motion
1253	1253	28 picture film, audio tape, or video tape to another person. However, this
1254	1254	29 exclusion only applies if:
1255	1255	30 (1) the person who pays to rent or lease the film charges
1256	1256	31 admission to those who view the film; or
1257	1257	32 (2) the person who pays to rent or lease the film or tape
1258	1258	33 broadcasts the film or tape for home viewing or listening.
1259	1259	34 (d) (c) The sharing of passenger motor vehicles and trucks through
1260	1260	35 a peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) is
1261	1261	36 a retail transaction.
1262	1262	37 SECTION 26. IC 6-2.5-4-11, AS AMENDED BY P.L.2-2005,
1263	1263	38 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1264	1264	39 NOVEMBER 1, 2024]: Sec. 11. (a) A person is a retail merchant
1265	1265	40 making a retail transaction when the person furnishes cable television
1266	1266	41 or radio service or satellite television or radio service that terminates
1267	1267	42 in Indiana.
1268	1268	2024 IN 210—LS 6955/DI 120 30
1269	1269	1 (b) Notwithstanding subsection (a), A person is not a retail merchant
1270	1270	2 making a retail transaction when the person provides, installs,
1271	1271	3 constructs, services, or removes tangible personal property which is
1272	1272	4 used in connection with the furnishing of cable television or radio
1273	1273	5 service or satellite television or radio service.
1274	1274	6 SECTION 27. IC 6-2.5-4-13 IS REPEALED [EFFECTIVE
1275	1275	7 NOVEMBER 1, 2024]. Sec. 13. A person is a retail merchant making
1276	1276	8 a retail transaction when a person sells:
1277	1277	9 (1) a prepaid calling service or prepaid wireless calling service at
1278	1278	10 retail;
1279	1279	11 (2) a prepaid calling service authorization number or prepaid
1280	1280	12 wireless calling service authorization number at retail;
1281	1281	13 (3) the reauthorization of a prepaid calling service or prepaid
1282	1282	14 wireless calling service; or
1283	1283	15 (4) the reauthorization of a prepaid calling service authorization
1284	1284	16 number or prepaid wireless calling service authorization number.
1285	1285	17 SECTION 28. IC 6-2.5-5-21, AS AMENDED BY P.L.137-2022,
1286	1286	18 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1287	1287	19 NOVEMBER 1, 2024]: Sec. 21. (a) For purposes of this section,
1288	1288	20 "private benefit or gain" does not include reasonable compensation
1289	1289	21 paid to an employee for work or services actually performed.
1290	1290	22 (b) Sales of food, and food ingredients, and delivery of food or
1291	1291	23 food ingredients are exempt from the state gross retail tax if:
1292	1292	24 (1) the seller meets the filing requirements under subsection (d)
1293	1293	25 and is an organization described in section 25(a)(1) of this
1294	1294	26 chapter;
1295	1295	27 (2) the purchaser is a person confined to the purchaser's home
1296	1296	28 because of age, sickness, or infirmity;
1297	1297	29 (3) the seller delivers the food and food ingredients to the
1298	1298	30 purchaser; and
1299	1299	31 (4) the delivery is prescribed as medically necessary by a
1300	1300	32 physician licensed to practice medicine in Indiana.
1301	1301	33 (c) Sales of food, and food ingredients, and delivery of food or
1302	1302	34 food ingredients are exempt from the state gross retail tax if the seller
1303	1303	35 is an organization described in section 25(a)(1) of this chapter, and the
1304	1304	36 purchaser is a patient in a hospital operated by the seller.
1305	1305	37 (d) To obtain the exemption provided by this section, a taxpayer
1306	1306	38 must follow the procedures set forth in section 25(c) of this chapter.
1307	1307	39 SECTION 29. IC 6-2.5-5-26, AS AMENDED BY P.L.193-2023,
1308	1308	40 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1309	1309	41 NOVEMBER 1, 2024]: Sec. 26. (a) Sales of tangible personal property
1310	1310	42 or the rendering of services by an organization are exempt from the
1311	1311	2024 IN 210—LS 6955/DI 120 31
1312	1312	1 state gross retail tax if either of the following apply:
1313	1313	2 (1) The organization:
1314	1314	3 (A) is described in section 25(a)(1)(A) through 25(a)(1)(C) of
1315	1315	4 this chapter, section 25(a)(1)(D)(i) through 25(a)(1)(D)(iii) of
1316	1316	5 this chapter, or section 25(a)(1)(D)(ix) of this chapter;
1317	1317	6 (B) makes the sale to make money to carry on a not-for-profit
1318	1318	7 purpose; and
1319	1319	8 (C) did not make more than one hundred thousand dollars
1320	1320	9 ($100,000) in sales in the current calendar year or the previous
1321	1321	10 calendar year.
1322	1322	11 (2) The organization:
1323	1323	12 (A) is described in section 25(a)(1)(D)(iv) through
1324	1324	13 25(a)(1)(D)(viii) of this chapter; or
1325	1325	14 (B) is a youth organization focused on agriculture.
1326	1326	15 Once sales of an organization that meets the qualifications under
1327	1327	16 subdivision (1), but does not meet the qualifications under subdivision
1328	1328	17 (2), exceed the amount described in subdivision (1), the organization
1329	1329	18 is required to collect state gross retail tax on sales on an ongoing basis
1330	1330	19 for the remainder of the calendar year and each calendar year thereafter
1331	1331	20 until the organization makes less than one hundred thousand dollars
1332	1332	21 ($100,000) in sales for two (2) consecutive years.
1333	1333	22 (b) For purposes of subsection (a), the sales of an organization
1334	1334	23 include sales made by all units operating under the organization's
1335	1335	24 registration pursuant to section 25(c) of this chapter.
1336	1336	25 (c) If the qualifications of subsection (a) are not met, sales of
1337	1337	26 tangible personal property or services by an organization described in
1338	1338	27 section 25(a)(1) of this chapter are exempt from the state gross retail
1339	1339	28 tax, if:
1340	1340	29 (1) the organization is not operated predominantly for social
1341	1341	30 purposes;
1342	1342	31 (2) the property or service sold is designed and intended
1343	1343	32 primarily either for the organization's educational, cultural, or
1344	1344	33 religious purposes, or for improvement of the work skills or
1345	1345	34 professional qualifications of the organization's members; and
1346	1346	35 (3) the property or service sold is not designed or intended
1347	1347	36 primarily for use in carrying on a private or proprietary business.
1348	1348	37 (d) Sales of tangible personal property by a public library, or a
1349	1349	38 charitable organization described in section 25(a)(1) of this chapter
1350	1350	39 formed to support a public library, are exempt from the state gross
1351	1351	40 retail tax if the property sold consists of:
1352	1352	41 (1) items in the library's circulated and publicly available
1353	1353	42 collections, including items from the library's holdings; or
1354	1354	2024 IN 210—LS 6955/DI 120 32
1355	1355	1 (2) items that would typically be included in the library's
1356	1356	2 circulated and publicly available collections and that are donated
1357	1357	3 by individuals or organizations to a public library or to a
1358	1358	4 charitable organization described in section 25(a)(1) of this
1359	1359	5 chapter formed to support a public library.
1360	1360	6 The exemption provided by this subsection does not apply to any other
1361	1361	7 sales of tangible personal property by a public library.
1362	1362	8 (e) The exemption provided by this section does not apply to an
1363	1363	9 accredited college or university's sales of books, stationery,
1364	1364	10 haberdashery, supplies, or other property or noneducational services.
1365	1365	11 (f) To obtain the exemption provided by this section, a taxpayer
1366	1366	12 must follow the procedures set forth in section 25(c) of this chapter.
1367	1367	13 SECTION 30. IC 6-2.5-5-33 IS AMENDED TO READ AS
1368	1368	14 FOLLOWS [EFFECTIVE NOVEMBER 1, 2024]: Sec. 33. Sales of
1369	1369	15 tangible personal property or services purchased with food stamps are
1370	1370	16 exempt from the state gross retail tax.
1371	1371	17 SECTION 31. IC 6-2.5-5-57.5 IS ADDED TO THE INDIANA
1372	1372	18 CODE AS A NEW SECTION TO READ AS FOLLOWS
1373	1373	19 [EFFECTIVE NOVEMBER 1, 2024]: Sec. 57.5. (a) Sales of any of
1374	1374	20 the following health services are exempt from the state gross retail
1375	1375	21 and use tax:
1376	1376	22 (1) Preventive care.
1377	1377	23 (2) Inpatient and outpatient hospital and physician care.
1378	1378	24 (3) Diagnostic laboratory care.
1379	1379	25 (4) Diagnostic and therapeutic radiological services.
1380	1380	26 (5) Emergency care.
1381	1381	27 (6) Mental health services.
1382	1382	28 (7) Services for alcohol and drug abuse.
1383	1383	29 (8) Dental services.
1384	1384	30 (9) Vision services.
1385	1385	31 (10) Long term rehabilitation treatment.
1386	1386	32 (11) Home health services.
1387	1387	33 (b) Sales of insurance coverage that will pay for services listed
1388	1388	34 in subsection (a) are exempt from the state gross retail and use tax.
1389	1389	35 SECTION 32. IC 6-2.5-5-58 IS ADDED TO THE INDIANA CODE
1390	1390	36 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
1391	1391	37 NOVEMBER 1, 2024]: Sec. 58. Transactions involving professional
1392	1392	38 legal advice are exempt from the state gross retail tax.
1393	1393	39 SECTION 33. IC 6-2.5-5-59 IS ADDED TO THE INDIANA CODE
1394	1394	40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
1395	1395	41 NOVEMBER 1, 2024]: Sec. 59. Transactions involving the leasing
1396	1396	42 or rental of real property for at least thirty (30) consecutive days
1397	1397	2024 IN 210—LS 6955/DI 120 33
1398	1398	1 are exempt from the state gross retail tax.
1399	1399	2 SECTION 34. IC 6-2.5-5-60 IS ADDED TO THE INDIANA CODE
1400	1400	3 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
1401	1401	4 NOVEMBER 1, 2024]: Sec. 60. Transactions involving labor
1402	1402	5 furnished to a person by the person's employee are exempt from
1403	1403	6 the state gross retail tax.
1404	1404	7 SECTION 35. IC 6-2.5-6-7, AS AMENDED BY P.L.146-2008,
1405	1405	8 SECTION 311, IS AMENDED TO READ AS FOLLOWS
1406	1406	9 [EFFECTIVE NOVEMBER 1, 2024]: Sec. 7. Except as otherwise
1407	1407	10 provided in IC 6-2.5-7 or in this chapter, a retail merchant shall pay to
1408	1408	11 the department, for a particular reporting period, an amount equal to
1409	1409	12 the product of:
1410	1410	13 (1) except as provided in subdivision (2):
1411	1411	14 (A) seven six percent (7%); (6%); multiplied by
1412	1412	15 (2) (B) the retail merchant's total gross retail income from
1413	1413	16 taxable transactions made during the reporting period; and
1414	1414	17 (2) in the case of business to business transactions:
1415	1415	18 (A) two and seventy-five hundredths percent (2.75%);
1416	1416	19 multiplied by
1417	1417	20 (B) the retail merchant's total gross retail income from
1418	1418	21 taxable business to business transactions made during the
1419	1419	22 reporting period.
1420	1420	23 The amount determined under this section is the retail merchant's state
1421	1421	24 gross retail and use tax liability regardless of the amount of tax the
1422	1422	25 retail merchant actually collects.
1423	1423	26 SECTION 36. IC 6-2.5-6-8, AS AMENDED BY P.L.146-2008,
1424	1424	27 SECTION 312, IS AMENDED TO READ AS FOLLOWS
1425	1425	28 [EFFECTIVE NOVEMBER 1, 2024]: Sec. 8. (a) For purposes of
1426	1426	29 determining the amount of state gross retail and use taxes which a retail
1427	1427	30 merchant must remit under section 7 of this chapter, the retail merchant
1428	1428	31 may exclude from the retail merchant's gross retail income from retail
1429	1429	32 transactions made during a particular reporting period, an amount equal
1430	1430	33 to the product of:
1431	1431	34 (1) the amount of that gross retail income; multiplied by
1432	1432	35 (2) the retail merchant's "income exclusion ratio" for the tax year
1433	1433	36 which contains the reporting period.
1434	1434	37 (b) A retail merchant's "income exclusion ratio" for a particular tax
1435	1435	38 year equals a fraction, the numerator of which is the retail merchant's
1436	1436	39 estimated total gross retail income for the tax year from unitary retail
1437	1437	40 transactions which produce gross retail income of less than eight nine
1438	1438	41 cents ($0.08) ($0.09) each, and the denominator of which is the retail
1439	1439	42 merchant's estimated total gross retail income for the tax year from all
1440	1440	2024 IN 210—LS 6955/DI 120 34
1441	1441	1 retail transactions.
1442	1442	2 (c) In order to minimize a retail merchant's recordkeeping
1443	1443	3 requirements, the department shall prescribe a procedure for
1444	1444	4 determining the retail merchant's income exclusion ratio for a tax year,
1445	1445	5 based on a period of time, not to exceed fifteen (15) consecutive days,
1446	1446	6 during the first quarter of the retail merchant's tax year. However, the
1447	1447	7 period of time may be changed if the change is requested by the retail
1448	1448	8 merchant because of the retail merchant's peculiar accounting
1449	1449	9 procedures or marketing factors. In addition, if a retail merchant has
1450	1450	10 multiple sales locations or diverse types of sales, the department shall
1451	1451	11 permit the retail merchant to determine the ratio on the basis of a
1452	1452	12 representative sampling of the locations and types of sales.
1453	1453	13 SECTION 37. IC 6-2.5-6-9, AS AMENDED BY P.L.109-2015,
1454	1454	14 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1455	1455	15 NOVEMBER 1, 2024]: Sec. 9. (a) In determining the amount of state
1456	1456	16 gross retail and use taxes which a retail merchant must remit under
1457	1457	17 section 7 of this chapter, the retail merchant shall, subject to
1458	1458	18 subsections (c) and (d), deduct from the retail merchant's gross retail
1459	1459	19 income from retail transactions made during a particular reporting
1460	1460	20 period, an amount equal to the retail merchant's receivables which:
1461	1461	21 (1) resulted from retail transactions in which the retail merchant
1462	1462	22 did not collect the state gross retail or use tax from the purchaser;
1463	1463	23 (2) resulted from retail transactions on which the retail merchant
1464	1464	24 has previously paid the state gross retail or use tax liability to the
1465	1465	25 department; and
1466	1466	26 (3) were written off as an uncollectible debt for federal tax
1467	1467	27 purposes under Section 166 of the Internal Revenue Code during
1468	1468	28 the particular reporting period.
1469	1469	29 (b) If a retail merchant deducts a receivable under subsection (a)
1470	1470	30 and subsequently collects all or part of that receivable, then the retail
1471	1471	31 merchant shall, subject to subsection (d)(6), include the amount
1472	1472	32 collected as part of the retail merchant's gross retail income from retail
1473	1473	33 transactions for the particular reporting period in which the retail
1474	1474	34 merchant makes the collection.
1475	1475	35 (c) This subsection applies only to retail transactions occurring after
1476	1476	36 December 31, 2006. As used in this subsection, "affiliated group"
1477	1477	37 means any combination of the following:
1478	1478	38 (1) An affiliated group within the meaning provided in Section
1479	1479	39 1504 of the Internal Revenue Code (except that the ownership
1480	1480	40 percentage in Section 1504(a)(2) of the Internal Revenue Code
1481	1481	41 shall be determined using fifty percent (50%) instead of eighty
1482	1482	42 percent (80%)) or a relationship described in Section 267(b)(11)
1483	1483	2024 IN 210—LS 6955/DI 120 35
1484	1484	1 of the Internal Revenue Code.
1485	1485	2 (2) Two (2) or more partnerships (as defined in IC 6-3-1-19),
1486	1486	3 including limited liability companies and limited liability
1487	1487	4 partnerships, that have the same degree of mutual ownership as
1488	1488	5 an affiliated group described in subdivision (1), as determined
1489	1489	6 under the rules adopted by the department.
1490	1490	7 The right to a deduction under this section is not assignable to an
1491	1491	8 individual or entity that is not part of the same affiliated group as the
1492	1492	9 assignor.
1493	1493	10 (d) The following provisions apply to a deduction for a receivable
1494	1494	11 treated as uncollectible debt under subsection (a):
1495	1495	12 (1) The deduction does not include interest.
1496	1496	13 (2) The amount of the deduction shall be determined in the
1497	1497	14 manner provided by Section 166 of the Internal Revenue Code for
1498	1498	15 bad debts but shall be adjusted to exclude:
1499	1499	16 (A) financing charges or interest;
1500	1500	17 (B) sales or use taxes charged on the purchase price;
1501	1501	18 (C) uncollectible amounts on property that remain in the
1502	1502	19 possession of the seller or a service that is not delivered until
1503	1503	20 the full purchase price is paid;
1504	1504	21 (D) expenses incurred in attempting to collect any debt; and
1505	1505	22 (E) repossessed property.
1506	1506	23 (3) The deduction shall be claimed on the return for the period
1507	1507	24 during which the receivable is written off as uncollectible in the
1508	1508	25 claimant's books and records and is eligible to be deducted for
1509	1509	26 federal income tax purposes. For purposes of this subdivision, a
1510	1510	27 claimant who is not required to file federal income tax returns
1511	1511	28 may deduct an uncollectible receivable on a return filed for the
1512	1512	29 period in which the receivable is written off as uncollectible in the
1513	1513	30 claimant's books and records and would be eligible for a bad debt
1514	1514	31 deduction for federal income tax purposes if the claimant were
1515	1515	32 required to file a federal income tax return.
1516	1516	33 (4) If the amount of uncollectible receivables claimed as a
1517	1517	34 deduction by a retail merchant for a particular reporting period
1518	1518	35 exceeds the amount of the retail merchant's taxable sales for that
1519	1519	36 reporting period, the retail merchant may file a refund claim
1520	1520	37 under IC 6-8.1-9. However, the deadline for the refund claim shall
1521	1521	38 be measured from the due date of the return for the reporting
1522	1522	39 period on which the deduction for the uncollectible receivables
1523	1523	40 could first be claimed.
1524	1524	41 (5) If a retail merchant's filing responsibilities have been assumed
1525	1525	42 by a certified service provider (as defined in IC 6-2.5-11-2), the
1526	1526	2024 IN 210—LS 6955/DI 120 36
1527	1527	1 certified service provider may claim, on behalf of the retail
1528	1528	2 merchant, any deduction or refund for uncollectible receivables
1529	1529	3 provided by this section. The certified service provider must
1530	1530	4 credit or refund the full amount of any deduction or refund
1531	1531	5 received to the retail merchant.
1532	1532	6 (6) For purposes of reporting a payment received on a previously
1533	1533	7 claimed uncollectible receivable, any payments made on a debt or
1534	1534	8 account shall be applied first proportionally to the taxable price
1535	1535	9 of the property or service and the state gross retail tax or use tax
1536	1536	10 thereon, and secondly to interest, service charges, and any other
1537	1537	11 charges.
1538	1538	12 (7) A retail merchant claiming a deduction for an uncollectible
1539	1539	13 receivable may allocate that receivable among the states that are
1540	1540	14 members of the streamlined sales and use tax agreement if the
1541	1541	15 books and records of the retail merchant support that allocation.
1542	1542	16 SECTION 38. IC 6-2.5-6-10, AS AMENDED BY P.L.218-2017,
1543	1543	17 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1544	1544	18 NOVEMBER 1, 2024]: Sec. 10. (a) In order to compensate retail
1545	1545	19 merchants and those required to remit gasoline use tax for collecting
1546	1546	20 and timely remitting the state gross retail tax, the state use tax, and the
1547	1547	21 gasoline use tax, every retail merchant or person required to remit the
1548	1548	22 gasoline use tax, except as provided in subsection (c), is entitled to
1549	1549	23 deduct and retain from the amount of those taxes otherwise required to
1550	1550	24 be remitted under IC 6-2.5-3.5 or under this chapter, if timely remitted,
1551	1551	25 a retail merchant's collection allowance.
1552	1552	26 (b) The allowance equals a percentage of the retail merchant's state
1553	1553	27 gross retail and use tax or the person's gasoline use tax liability accrued
1554	1554	28 during a calendar year, specified as follows:
1555	1555	29 (1) Seventy-three Ninety-three hundredths percent (0.73%),
1556	1556	30 (0.93%), if the retail merchant's state gross retail and use tax or
1557	1557	31 gasoline use tax liability accrued during the state fiscal year
1558	1558	32 ending on June 30 of the immediately preceding calendar year did
1559	1559	33 not exceed sixty thousand dollars ($60,000).
1560	1560	34 (2) Fifty-three Sixty-seven hundredths percent (0.53%), (0.67%),
1561	1561	35 if the retail merchant's state gross retail and use tax or gasoline
1562	1562	36 use tax liability accrued during the state fiscal year ending on
1563	1563	37 June 30 of the immediately preceding calendar year:
1564	1564	38 (A) was greater than sixty thousand dollars ($60,000); and
1565	1565	39 (B) did not exceed six hundred thousand dollars ($600,000).
1566	1566	40 (3) Twenty-six Thirty-three hundredths percent (0.26%),
1567	1567	41 (0.33%), if the retail merchant's state gross retail and use tax
1568	1568	42 liability or the person's gasoline use tax accrued during the state
1569	1569	2024 IN 210—LS 6955/DI 120 37
1570	1570	1 fiscal year ending on June 30 of the immediately preceding
1571	1571	2 calendar year was greater than six hundred thousand dollars
1572	1572	3 ($600,000).
1573	1573	4 (c) A retail merchant described in IC 6-2.5-4-5 or IC 6-2.5-4-6 is not
1574	1574	5 entitled to the allowance provided by this section. A retail merchant is
1575	1575	6 not entitled to the allowance provided by this section with respect to
1576	1576	7 gasoline use taxes imposed by IC 6-2.5-3.5.
1577	1577	8 SECTION 39. IC 6-2.5-7-3, AS AMENDED BY P.L.218-2017,
1578	1578	9 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1579	1579	10 NOVEMBER 1, 2024]: Sec. 3. With respect to the sale of kerosene
1580	1580	11 which is dispensed from a metered pump, unless the purchaser
1581	1581	12 provides an exemption certificate in accordance with IC 6-2.5-8-8, a
1582	1582	13 retail merchant shall collect, for each unit of kerosene sold, state gross
1583	1583	14 retail tax in an amount equal to the product, rounded to the nearest
1584	1584	15 one-tenth of one cent ($0.001), of:
1585	1585	16 (1) the price per unit before the addition of state and federal taxes;
1586	1586	17 multiplied by
1587	1587	18 (2) the following:
1588	1588	19 (A) Except as provided in clause (B), seven six percent (7%).
1589	1589	20 (6%).
1590	1590	21 (B) In the case of business to business transactions, two
1591	1591	22 and seventy-five hundredths percent (2.75%).
1592	1592	23 Unless the exemption certificate is provided, the retail merchant shall
1593	1593	24 collect the state gross retail tax prescribed in this section even if the
1594	1594	25 transaction is exempt from taxation under IC 6-2.5-5.
1595	1595	26 SECTION 40. IC 6-2.5-8-4 IS AMENDED TO READ AS
1596	1596	27 FOLLOWS [EFFECTIVE NOVEMBER 1, 2024]: Sec. 4. (a) An
1597	1597	28 organization exempt from the state gross retail tax under IC 6-2.5-5-21,
1598	1598	29 IC 6-2.5-5-25, or IC 6-2.5-5-26 may register with the department as a
1599	1599	30 purchaser of property or services in exempt transactions. An exempt
1600	1600	31 organization wishing to register must file an application listing its
1601	1601	32 principal location, but the organization is not required to pay the fee.
1602	1602	33 (b) Upon receiving the application, the department may issue an
1603	1603	34 exempt organization certificate containing a serial number and the
1604	1604	35 principal location of the exempt organization.
1605	1605	36 SECTION 41. IC 6-2.5-10-1, AS AMENDED BY P.L.201-2023,
1606	1606	37 SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1607	1607	38 NOVEMBER 1, 2024]: Sec. 1. (a) The department shall account for all
1608	1608	39 state gross retail and use taxes that it collects.
1609	1609	40 (b) Of all the state gross retail and use taxes that the department
1610	1610	41 collects, the department shall determine separately the parts that:
1611	1611	42 (1) the department collects under IC 6-2.5-3.5 (gasoline use tax);
1612	1612	2024 IN 210—LS 6955/DI 120 38
1613	1613	1 and
1614	1614	2 (2) the department collects under this article, less the amount
1615	1615	3 described in subdivision (1).
1616	1616	4 (c) The department shall deposit the collections described in
1617	1617	5 subsection (b)(1) in the following manner:
1618	1618	6 (1) For state fiscal year 2017, the following:
1619	1619	7 (A) Fourteen and two hundred eighty-six thousandths percent
1620	1620	8 (14.286%) of the collections shall be deposited in the motor
1621	1621	9 vehicle highway account established under IC 8-14-1.
1622	1622	10 (B) Eighty-five and seven hundred fourteen thousandths
1623	1623	11 percent (85.714%) to the state general fund.
1624	1624	12 (2) For state fiscal year 2018, the following:
1625	1625	13 (A) Fourteen and two hundred eighty-six thousandths percent
1626	1626	14 (14.286%) of the collections shall be deposited in the motor
1627	1627	15 vehicle highway account established under IC 8-14-1.
1628	1628	16 (B) Fourteen and two hundred eighty-six thousandths percent
1629	1629	17 (14.286%) of the collections shall be deposited in the local
1630	1630	18 road and bridge matching grant fund established under
1631	1631	19 IC 8-23-30.
1632	1632	20 (C) Seventy-one and four hundred twenty-eight thousandths
1633	1633	21 percent (71.428%) to the state general fund.
1634	1634	22 (3) For state fiscal year 2019, the following:
1635	1635	23 (A) Fourteen and two hundred eighty-six thousandths percent
1636	1636	24 (14.286%) of the collections shall be deposited in the motor
1637	1637	25 vehicle highway account established under IC 8-14-1.
1638	1638	26 (B) Twenty-one and four hundred twenty-nine thousandths
1639	1639	27 percent (21.429%) of the collections shall be deposited in the
1640	1640	28 local road and bridge matching grant fund established under
1641	1641	29 IC 8-23-30.
1642	1642	30 (C) Sixty-four and two hundred eighty-five thousandths
1643	1643	31 percent (64.285%) shall be deposited in the state general fund.
1644	1644	32 (4) For state fiscal year 2020 and for each state fiscal year
1645	1645	33 thereafter, the following:
1646	1646	34 (A) Fourteen and two hundred eighty-six thousandths percent
1647	1647	35 (14.286%) of the collections shall be deposited in the motor
1648	1648	36 vehicle highway account established under IC 8-14-1.
1649	1649	37 (B) Twenty-one and four hundred twenty-nine thousandths
1650	1650	38 percent (21.429%) of the collections shall be deposited in the
1651	1651	39 local road and bridge matching grant fund established under
1652	1652	40 IC 8-23-30.
1653	1653	41 (C) The following shall be deposited in the state general fund:
1654	1654	42 (i) For state fiscal year 2020, fifty-three and five hundred
1655	1655	2024 IN 210—LS 6955/DI 120 39
1656	1656	1 seventy-five thousandths percent (53.575%) shall be
1657	1657	2 deposited in the state general fund.
1658	1658	3 (ii) For state fiscal year 2021, forty-two and eight hundred
1659	1659	4 sixty-five thousandths percent (42.865%) shall be deposited
1660	1660	5 in the state general fund.
1661	1661	6 (iii) For state fiscal year 2022, thirty-two and one hundred
1662	1662	7 fifty-five thousandths percent (32.155%) shall be deposited
1663	1663	8 in the state general fund.
1664	1664	9 (iv) For state fiscal year 2023, twenty-one and four hundred
1665	1665	10 forty-five thousandths percent (21.445%) shall be deposited
1666	1666	11 in the state general fund.
1667	1667	12 (D) The following shall be deposited in the special
1668	1668	13 transportation flexibility fund established by IC 4-12-16.5-2:
1669	1669	14 (i) For state fiscal year 2020, eight and five hundred
1670	1670	15 sixty-eight thousands percent (8.568%) of the collections
1671	1671	16 shall be deposited in the special transportation flexibility
1672	1672	17 fund established by IC 4-12-16.5-2.
1673	1673	18 (ii) For state fiscal year 2021, twelve and eight hundred
1674	1674	19 fifty-two thousandths percent (12.852%) of the collections
1675	1675	20 shall be deposited in the special transportation flexibility
1676	1676	21 fund established by IC 4-12-16.5-2.
1677	1677	22 (iii) For state fiscal year 2022, twelve and eight hundred
1678	1678	23 fifty-two thousandths percent (12.852%) of the collections
1679	1679	24 shall be deposited in the special transportation flexibility
1680	1680	25 fund established by IC 4-12-16.5-2.
1681	1681	26 (iv) For state fiscal year 2023, eight and five hundred
1682	1682	27 sixty-eight thousands percent (8.568%) of the collections
1683	1683	28 shall be deposited in the special transportation flexibility
1684	1684	29 fund established by IC 4-12-16.5-2.
1685	1685	30 (E) The following shall be deposited in the state highway fund:
1686	1686	31 (i) For state fiscal year 2020, two and one hundred forty-two
1687	1687	32 thousandths percent (2.142%) of the collections shall be
1688	1688	33 deposited in the state highway fund.
1689	1689	34 (ii) For state fiscal year 2021, eight and five hundred
1690	1690	35 sixty-eight thousandths percent (8.568%) of the collections
1691	1691	36 shall be deposited in the state highway fund.
1692	1692	37 (iii) For state fiscal year 2022, nineteen and two hundred
1693	1693	38 seventy-eight thousandths percent (19.278%) of the
1694	1694	39 collections shall be deposited in the state highway fund.
1695	1695	40 (iv) For state fiscal year 2023, thirty-four and two hundred
1696	1696	41 seventy-two thousandths percent (34.272%) of the
1697	1697	42 collections shall be deposited in the state highway fund.
1698	1698	2024 IN 210—LS 6955/DI 120 40
1699	1699	1 (v) For state fiscal year 2024 and for each state fiscal year
1700	1700	2 thereafter, sixty-four and two hundred eighty-five
1701	1701	3 thousandths percent (64.285%) of the collections shall be
1702	1702	4 deposited in the state highway fund.
1703	1703	5 (d) The department shall deposit those collections described in
1704	1704	6 subsection (b)(2) in the following manner:
1705	1705	7 (1) Beginning after October 31, 2024, and ending before July
1706	1706	8 1, 2025:
1707	1707	9 (1) (A) Ninety-nine and eight hundred thirty-eight sixty-six
1708	1708	10 thousandths percent (99.838%) (99.866%) of the collections
1709	1709	11 shall be paid into the state general fund.
1710	1710	12 (2) (B) Thirty-one One hundred eight thousandths of one
1711	1711	13 percent (0.031%) (0.108%) of the collections shall be
1712	1712	14 deposited into the industrial rail service fund established under
1713	1713	15 IC 8-3-1.7-2.
1714	1714	16 (3) (C) One hundred thirty-one Twenty-six thousandths of one
1715	1715	17 percent (0.131%) (0.026%) of the collections shall be
1716	1716	18 deposited into the commuter rail service fund established
1717	1717	19 under IC 8-3-1.5-20.5.
1718	1718	20 (2) For state fiscal years beginning after June 30, 2025:
1719	1719	21 (A) Ninety-nine and eight hundred seventy thousandths
1720	1720	22 percent (99.870%) of the collections shall be paid into the
1721	1721	23 state general fund.
1722	1722	24 (B) One hundred five thousandths of one percent (0.105%)
1723	1723	25 of the collections shall be deposited into the industrial rail
1724	1724	26 service fund established under IC 8-3-1.7-2.
1725	1725	27 (C) Twenty-five thousandths of one percent (0.025%) of
1726	1726	28 the collections shall be deposited into the commuter rail
1727	1727	29 service fund established under IC 8-3-1.5-20.5.
1728	1728	30 SECTION 42. IC 6-3-2-6, AS AMENDED BY P.L.146-2020,
1729	1729	31 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1730	1730	32 JANUARY 1, 2025]: Sec. 6. (a) Each taxable year, an individual who
1731	1731	33 rents a dwelling for use as the individual's principal place of residence
1732	1732	34 may deduct from the individual's adjusted gross income (as defined in
1733	1733	35 IC 6-3-1-3.5(a)), the lesser of:
1734	1734	36 (1) the amount of rent paid by the individual with respect to the
1735	1735	37 dwelling during the taxable year; or
1736	1736	38 (2) three eight thousand dollars ($3,000). ($8,000).
1737	1737	39 (b) Notwithstanding subsection (a):
1738	1738	40 (1) a married couple filing a joint return for a particular taxable
1739	1739	41 year may not claim a deduction under this section of more than
1740	1740	42 three eight thousand dollars ($3,000); ($8,000); and
1741	1741	2024 IN 210—LS 6955/DI 120 41
1742	1742	1 (2) a married individual filing a separate return for a particular
1743	1743	2 taxable year may not claim a deduction under this section of more
1744	1744	3 than one four thousand five hundred dollars ($1,500). ($4,000).
1745	1745	4 (c) The deduction provided by this section does not apply to an
1746	1746	5 individual who rents a dwelling that is exempt from Indiana property
1747	1747	6 tax.
1748	1748	7 (d) For purposes of this section, a "dwelling" includes a single
1749	1749	8 family dwelling and unit of a multi-family dwelling.
1750	1750	9 SECTION 43. IC 6-6-1.1-201, AS AMENDED BY P.L.201-2023,
1751	1751	10 SECTION 106, IS AMENDED TO READ AS FOLLOWS
1752	1752	11 [EFFECTIVE JULY 1, 2024]: Sec. 201. (a) A license tax is imposed on
1753	1753	12 the use of all gasoline used in Indiana at the applicable rate specified
1754	1754	13 in subsection (b), except as otherwise provided by this chapter. The
1755	1755	14 distributor shall initially pay the tax on the billed gallonage of all
1756	1756	15 gasoline the distributor receives in this state, less any deductions
1757	1757	16 authorized by this chapter. The distributor shall then add the per gallon
1758	1758	17 amount of tax to the selling price of each gallon of gasoline sold in this
1759	1759	18 state and collected from the purchaser so that the ultimate consumer
1760	1760	19 bears the burden of the tax.
1761	1761	20 (b) The license tax described in subsection (a) is imposed at the
1762	1762	21 following applicable rate per gallon:
1763	1763	22 (1) Before July 1, 2017, eighteen cents ($0.18).
1764	1764	23 (2) For July 1, 2017, through June 30, 2018, the lesser of:
1765	1765	24 (A) the rate resulting from using the factors determined under
1766	1766	25 IC 6-6-1.6-2; or
1767	1767	26 (B) twenty-eight cents ($0.28).
1768	1768	27 (3) Beginning July 1, 2018, and each July 1 through July 1, 2027,
1769	1769	28 June 30, 2024, the department shall determine an applicable rate
1770	1770	29 equal to the product of:
1771	1771	30 (A) the rate in effect on June 30; multiplied by
1772	1772	31 (B) the factor determined under IC 6-6-1.6-3.
1773	1773	32 (4) Beginning July 1, 2024, and notwithstanding any other
1774	1774	33 provision or previous department publication, the applicable
1775	1775	34 rate shall be equal to the rate that was in effect on June 30,
1776	1776	35 2024.
1777	1777	36 The rate shall be rounded to the nearest cent ($0.01). After June 30,
1778	1778	37 2018, and before July 1, 2024, the new applicable rate under
1779	1779	38 subdivision (3) may not exceed the rate in effect on June 30 plus one
1780	1780	39 cent ($0.01). However, the new rate may not be less than the rate in
1781	1781	40 effect on June 30. If the calculation of a new rate would produce a rate
1782	1782	41 that is less than the rate in effect on June 30, the new rate shall be the
1783	1783	42 rate in effect on June 30. The department shall publish the rate that will
1784	1784	2024 IN 210—LS 6955/DI 120 42
1785	1785	1 take effect on July 1 on the department's website not later than June 1.
1786	1786	2 SECTION 44. IC 6-6-1.6-3, AS AMENDED BY P.L.201-2023,
1787	1787	3 SECTION 107, IS AMENDED TO READ AS FOLLOWS
1788	1788	4 [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) The department shall
1789	1789	5 calculate an annual index factor to be used for the rate to take effect
1790	1790	6 each July 1 beginning in 2018 through July 1, 2027. 2024. The
1791	1791	7 department shall determine the index factor before June 1 of each year
1792	1792	8 using the method described in subsection (b).
1793	1793	9 (b) The annual gasoline tax index factor and special fuel index
1794	1794	10 factor equals the following:
1795	1795	11 STEP ONE: Divide the annual CPI-U for the year preceding the
1796	1796	12 determination year by the annual CPI-U for the year immediately
1797	1797	13 preceding that year.
1798	1798	14 STEP TWO: Divide the annual IPI for the year preceding the
1799	1799	15 determination year by the annual IPI for the year immediately
1800	1800	16 preceding that year.
1801	1801	17 STEP THREE: Add:
1802	1802	18 (A) the STEP ONE result; and
1803	1803	19 (B) the STEP TWO result.
1804	1804	20 STEP FOUR: Divide the STEP THREE result by two (2).
1805	1805	21 (c) If the CPI-U or IPI for a preceding year is revised, corrected, or
1806	1806	22 updated after May 31 of that year, the department shall use the CPI-U
1807	1807	23 or IPI as published for the preceding year prior to revision.
1808	1808	24 (d) Beginning after June 30, 2024, an annual gasoline tax index
1809	1809	25 factor and special fuel index factor described in this section shall
1810	1810	26 not be applied under IC 6-6-1.1-201 or IC 6-6-2.5-28.
1811	1811	27 SECTION 45. IC 6-6-2.5-28, AS AMENDED BY P.L.201-2023,
1812	1812	28 SECTION 108, IS AMENDED TO READ AS FOLLOWS
1813	1813	29 [EFFECTIVE JULY 1, 2024]: Sec. 28. (a) A license tax is imposed on
1814	1814	30 all special fuel sold or used in producing or generating power for
1815	1815	31 propelling motor vehicles, except fuel used under section 30(a)(8) or
1816	1816	32 30.5 of this chapter, at the applicable rate specified in subsection (b).
1817	1817	33 The tax shall be paid at those times, in the manner, and by those
1818	1818	34 persons specified in this section and section 35 of this chapter.
1819	1819	35 (b) The license tax described in subsection (a) is imposed at the
1820	1820	36 following applicable rate per special fuel gallon:
1821	1821	37 (1) Before July 1, 2017, sixteen cents ($0.16).
1822	1822	38 (2) For July 1, 2017, through June 30, 2018, the lesser of:
1823	1823	39 (A) the rate resulting from using the factors determined under
1824	1824	40 IC 6-6-1.6-2; or
1825	1825	41 (B) twenty-six cents ($0.26).
1826	1826	42 (3) For July 1, 2018, through June 30, 2019, the product of:
1827	1827	2024 IN 210—LS 6955/DI 120 43
1828	1828	1 (A) the sum of:
1829	1829	2 (i) the rate in effect on June 30; and
1830	1830	3 (ii) twenty-one cents ($0.21); multiplied by
1831	1831	4 (B) the factor determined under IC 6-6-1.6-3.
1832	1832	5 (4) Beginning July 1, 2019, and each July 1 through July 1, 2027,
1833	1833	6 June 30, 2024, the department shall determine an applicable rate
1834	1834	7 equal to the product of:
1835	1835	8 (A) the rate in effect on June 30; multiplied by
1836	1836	9 (B) the factor determined under IC 6-6-1.6-3.
1837	1837	10 (5) Beginning July 1, 2024, and notwithstanding any other
1838	1838	11 provision or previous department publication, the applicable
1839	1839	12 rate shall be equal to the rate that was in effect on June 30,
1840	1840	13 2024.
1841	1841	14 The rate calculated under subdivisions (1) through (4) shall be
1842	1842	15 rounded to the nearest cent ($0.01). However, after June 30, 2018, and
1843	1843	16 before July 1, 2019, the new applicable rate under subdivision (3) may
1844	1844	17 not exceed the rate in effect on June 30 plus twenty-three cents ($0.23).
1845	1845	18 After June 30, 2019, and before July 1, 2024, the new applicable rate
1846	1846	19 under subdivision (4) may not exceed the rate in effect on June 30
1847	1847	20 plus two cents ($0.02). However, the new rate may not be less than the
1848	1848	21 rate in effect on June 30. If the calculation of a new rate would produce
1849	1849	22 a rate that is less than the rate in effect on June 30, the new rate shall
1850	1850	23 be the rate in effect on June 30. The department shall publish the rate
1851	1851	24 that will take effect on July 1 on the department's website not later than
1852	1852	25 June 1.
1853	1853	26 (c) The department shall consider it a rebuttable presumption that
1854	1854	27 all undyed or unmarked special fuel, or both, received in Indiana is to
1855	1855	28 be sold for use in propelling motor vehicles.
1856	1856	29 (d) Except as provided in subsection (e), the tax imposed on special
1857	1857	30 fuel by subsection (a) shall be measured by invoiced gallons (or diesel
1858	1858	31 or gasoline gallon equivalents in the case of a special fuel described in
1859	1859	32 section 22.5(2) or 22.5(3) of this chapter) of nonexempt special fuel
1860	1860	33 received by a licensed supplier in Indiana for sale or resale in Indiana
1861	1861	34 or with respect to special fuel subject to a tax precollection agreement
1862	1862	35 under section 35(j) of this chapter, such special fuel removed by a
1863	1863	36 licensed supplier from a terminal outside of Indiana for sale for export
1864	1864	37 or for export to Indiana and in any case shall generally be determined
1865	1865	38 in the same manner as the tax imposed by Section 4081 of the Internal
1866	1866	39 Revenue Code and Code of Federal Regulations.
1867	1867	40 (e) The tax imposed by subsection (a) on special fuel imported into
1868	1868	41 Indiana, other than into a terminal, is imposed at the time the product
1869	1869	42 is entered into Indiana and shall be measured by invoiced gallons
1870	1870	2024 IN 210—LS 6955/DI 120 44
1871	1871	1 received at a terminal or at a bulk plant.
1872	1872	2 (f) In computing the tax, all special fuel in process of transfer from
1873	1873	3 tank steamers at boat terminal transfers and held in storage pending
1874	1874	4 wholesale bulk distribution by land transportation, or in tanks and
1875	1875	5 equipment used in receiving and storing special fuel from interstate
1876	1876	6 pipelines pending wholesale bulk reshipment, shall not be subject to
1877	1877	7 tax.
1878	1878	8 (g) The department shall consider it a rebuttable presumption that
1879	1879	9 special fuel consumed in a motor vehicle plated for general highway
1880	1880	10 use is subject to the tax imposed under this chapter. A person claiming
1881	1881	11 exempt use of special fuel in such a vehicle must maintain adequate
1882	1882	12 records as required by the department to document the vehicle's taxable
1883	1883	13 and exempt use.
1884	1884	14 (h) A person that engages in blending fuel for taxable sale or use in
1885	1885	15 Indiana is primarily liable for the collection and remittance of the tax
1886	1886	16 imposed under subsection (a). The person shall remit the tax due in
1887	1887	17 conjunction with the filing of a monthly report in the form prescribed
1888	1888	18 by the department.
1889	1889	19 (i) A person that receives special fuel that has been blended for
1890	1890	20 taxable sale or use in Indiana is secondarily liable to the state for the
1891	1891	21 tax imposed under subsection (a).
1892	1892	22 (j) A person may not use special fuel on an Indiana public highway
1893	1893	23 if the special fuel contains a sulfur content that exceeds five
1894	1894	24 one-hundredths of one percent (0.05%). A person who knowingly:
1895	1895	25 (1) violates; or
1896	1896	26 (2) aids or abets another person to violate;
1897	1897	27 this subsection commits a Class A infraction. However, the violation
1898	1898	28 is a Class A misdemeanor if the person has committed one (1) prior
1899	1899	29 unrelated violation of this subsection, and a Level 6 felony if the person
1900	1900	30 has committed more than one (1) unrelated violation of this subsection.
1901	1901	31 SECTION 46. IC 36-7-14-48, AS AMENDED BY P.L.236-2023,
1902	1902	32 SECTION 180, IS AMENDED TO READ AS FOLLOWS
1903	1903	33 [EFFECTIVE JANUARY 1, 2025]: Sec. 48. (a) Notwithstanding
1904	1904	34 section 39(a) of this chapter, with respect to the allocation and
1905	1905	35 distribution of property taxes for the accomplishment of a program
1906	1906	36 adopted under section 45 of this chapter, "base assessed value" means,
1907	1907	37 subject to section 39(j) of this chapter, the net assessed value of all of
1908	1908	38 the property, other than personal property, as finally determined for the
1909	1909	39 assessment date immediately preceding the effective date of the
1910	1910	40 allocation provision, as adjusted under section 39(h) of this chapter.
1911	1911	41 (b) The allocation fund established under section 39(b) of this
1912	1912	42 chapter for the allocation area for a program adopted under section 45
1913	1913	2024 IN 210—LS 6955/DI 120 45
1914	1914	1 of this chapter may be used only for purposes related to the
1915	1915	2 accomplishment of the program, including the following:
1916	1916	3 (1) The construction, rehabilitation, or repair of residential units
1917	1917	4 within the allocation area.
1918	1918	5 (2) The construction, reconstruction, or repair of any
1919	1919	6 infrastructure (including streets, sidewalks, and sewers) within or
1920	1920	7 serving the allocation area.
1921	1921	8 (3) The acquisition of real property and interests in real property
1922	1922	9 within the allocation area.
1923	1923	10 (4) The demolition of real property within the allocation area.
1924	1924	11 (5) The provision of financial assistance to enable individuals and
1925	1925	12 families to purchase or lease residential units within the allocation
1926	1926	13 area. However, financial assistance may be provided only to those
1927	1927	14 individuals and families whose income is at or below the county's
1928	1928	15 median income for individuals and families, respectively.
1929	1929	16 (6) The provision of financial assistance to neighborhood
1930	1930	17 development corporations to permit them to provide financial
1931	1931	18 assistance for the purposes described in subdivision (5).
1932	1932	19 (7) For property taxes first due and payable before January 1,
1933	1933	20 2009, providing each taxpayer in the allocation area a credit for
1934	1934	21 property tax replacement as determined under subsections (c) and
1935	1935	22 (d). However, the commission may provide this credit only if the
1936	1936	23 municipal legislative body (in the case of a redevelopment
1937	1937	24 commission established by a municipality) or the county
1938	1938	25 executive (in the case of a redevelopment commission established
1939	1939	26 by a county) establishes the credit by ordinance adopted in the
1940	1940	27 year before the year in which the credit is provided.
1941	1941	28 (c) The maximum credit that may be provided under subsection
1942	1942	29 (b)(7) to a taxpayer in a taxing district that contains all or part of an
1943	1943	30 allocation area established for a program adopted under section 45 of
1944	1944	31 this chapter shall be determined as follows:
1945	1945	32 STEP ONE: Determine that part of the sum of the amounts
1946	1946	33 described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
1947	1947	34 through IC 6-1.1-21-2(g)(5) (before their repeal) that is
1948	1948	35 attributable to the taxing district.
1949	1949	36 STEP TWO: Divide:
1950	1950	37 (A) that part of each county's eligible property tax replacement
1951	1951	38 amount (as defined in IC 6-1.1-21-2) (before its repeal) for
1952	1952	39 that year as determined under IC 6-1.1-21-4(a)(1) (before its
1953	1953	40 repeal) that is attributable to the taxing district; by
1954	1954	41 (B) the amount determined under STEP ONE.
1955	1955	42 STEP THREE: Multiply:
1956	1956	2024 IN 210—LS 6955/DI 120 46
1957	1957	1 (A) the STEP TWO quotient; by
1958	1958	2 (B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) (before
1959	1959	3 its repeal) levied in the taxing district allocated to the
1960	1960	4 allocation fund, including the amount that would have been
1961	1961	5 allocated but for the credit.
1962	1962	6 (d) The commission may determine to grant to taxpayers in an
1963	1963	7 allocation area from its allocation fund a credit under this section, as
1964	1964	8 calculated under subsection (c). Except as provided in subsection (g),
1965	1965	9 One-half (1/2) of the credit shall be applied to each installment of taxes
1966	1966	10 (as defined in IC 6-1.1-21-2) (before its repeal) that under
1967	1967	11 IC 6-1.1-22-9 are due and payable in a year. The commission must
1968	1968	12 provide for the credit annually by a resolution and must find in the
1969	1969	13 resolution the following:
1970	1970	14 (1) That the money to be collected and deposited in the allocation
1971	1971	15 fund, based upon historical collection rates, after granting the
1972	1972	16 credit will equal the amounts payable for contractual obligations
1973	1973	17 from the fund, plus ten percent (10%) of those amounts.
1974	1974	18 (2) If bonds payable from the fund are outstanding, that there is
1975	1975	19 a debt service reserve for the bonds that at least equals the amount
1976	1976	20 of the credit to be granted.
1977	1977	21 (3) If bonds of a lessor under section 25.2 of this chapter or under
1978	1978	22 IC 36-1-10 are outstanding and if lease rentals are payable from
1979	1979	23 the fund, that there is a debt service reserve for those bonds that
1980	1980	24 at least equals the amount of the credit to be granted.
1981	1981	25 If the tax increment is insufficient to grant the credit in full, the
1982	1982	26 commission may grant the credit in part, prorated among all taxpayers.
1983	1983	27 (e) Notwithstanding section 39(b) of this chapter, the allocation
1984	1984	28 fund established under section 39(b) of this chapter for the allocation
1985	1985	29 area for a program adopted under section 45 of this chapter may only
1986	1986	30 be used to do one (1) or more of the following:
1987	1987	31 (1) Accomplish one (1) or more of the actions set forth in section
1988	1988	32 39(b)(4)(A) through 39(b)(4)(H) and 39(b)(4)(J) of this chapter
1989	1989	33 for property that is residential in nature.
1990	1990	34 (2) Reimburse the county or municipality for expenditures made
1991	1991	35 by the county or municipality in order to accomplish the housing
1992	1992	36 program in that allocation area.
1993	1993	37 The allocation fund may not be used for operating expenses of the
1994	1994	38 commission.
1995	1995	39 (f) Notwithstanding section 39(b) of this chapter, the commission
1996	1996	40 shall, relative to the allocation fund established under section 39(b) of
1997	1997	41 this chapter for an allocation area for a program adopted under section
1998	1998	42 45 of this chapter, do the following before June 15 of each year:
1999	1999	2024 IN 210—LS 6955/DI 120 47
2000	2000	1 (1) Determine the amount, if any, by which the assessed value of
2001	2001	2 the taxable property in the allocation area for the most recent
2002	2002	3 assessment date minus the base assessed value, when multiplied
2003	2003	4 by the estimated tax rate of the allocation area, will exceed the
2004	2004	5 amount of assessed value needed to produce the property taxes
2005	2005	6 necessary to:
2006	2006	7 (A) make the distribution required under section 39(b)(2) and
2007	2007	8 39(b)(3) of this chapter;
2008	2008	9 (B) make, when due, principal and interest payments on bonds
2009	2009	10 described in section 39(b)(4) of this chapter;
2010	2010	11 (C) pay the amount necessary for other purposes described in
2011	2011	12 section 39(b)(4) of this chapter; and
2012	2012	13 (D) reimburse the county or municipality for anticipated
2013	2013	14 expenditures described in subsection (e)(2).
2014	2014	15 (2) Provide a written notice to the county auditor, the fiscal body
2015	2015	16 of the county or municipality that established the department of
2016	2016	17 redevelopment, and the officers who are authorized to fix budgets,
2017	2017	18 tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
2018	2018	19 taxing units that is wholly or partly located within the allocation
2019	2019	20 area. The county auditor, upon receiving the notice, shall forward
2020	2020	21 this notice (in an electronic format) to the department of local
2021	2021	22 government finance not later than June 15 of each year. The
2022	2022	23 notice must:
2023	2023	24 (A) state the amount, if any, of excess property taxes that the
2024	2024	25 commission has determined may be paid to the respective
2025	2025	26 taxing units in the manner prescribed in section 39(b)(1) of
2026	2026	27 this chapter; or
2027	2027	28 (B) state that the commission has determined that there is no
2028	2028	29 excess assessed value that may be allocated to the respective
2029	2029	30 taxing units in the manner prescribed in subdivision (1).
2030	2030	31 The county auditor shall allocate to the respective taxing units the
2031	2031	32 amount, if any, of excess assessed value determined by the
2032	2032	33 commission.
2033	2033	34 (3) If:
2034	2034	35 (A) the amount of excess assessed value determined by the
2035	2035	36 commission is expected to generate more than two hundred
2036	2036	37 percent (200%) of the amount of allocated tax proceeds
2037	2037	38 necessary to make, when due, principal and interest payments
2038	2038	39 on bonds described in subdivision (1); plus
2039	2039	40 (B) the amount necessary for other purposes described in
2040	2040	41 subdivision (1);
2041	2041	42 the commission shall submit to the legislative body of the unit its
2042	2042	2024 IN 210—LS 6955/DI 120 48
2043	2043	1 determination of the excess assessed value that the commission
2044	2044	2 proposes to allocate to the respective taxing units in the manner
2045	2045	3 prescribed in subdivision (2). The legislative body of the unit may
2046	2046	4 approve the commission's determination or modify the amount of
2047	2047	5 the excess assessed value that will be allocated to the respective
2048	2048	6 taxing units in the manner prescribed in subdivision (2).
2049	2049	7 (g) This subsection applies to an allocation area only to the extent
2050	2050	8 that the net assessed value of property that is assessed as residential
2051	2051	9 property under the rules of the department of local government finance
2052	2052	10 is not included in the base assessed value. If property tax installments
2053	2053	11 with respect to a homestead (as defined in IC 6-1.1-12-37) are due in
2054	2054	12 installments established by the department of local government finance
2055	2055	13 under IC 6-1.1-22-9.5, each taxpayer subject to those installments in an
2056	2056	14 allocation area is entitled to an additional credit under subsection (d)
2057	2057	15 for the taxes (as defined in IC 6-1.1-21-2) (before its repeal) due in
2058	2058	16 installments. The credit shall be applied in the same proportion to each
2059	2059	17 installment of taxes (as defined in IC 6-1.1-21-2) (before its repeal).
2060	2060	18 SECTION 47. IC 36-7-15.1-35, AS AMENDED BY P.L.257-2019,
2061	2061	19 SECTION 128, IS AMENDED TO READ AS FOLLOWS
2062	2062	20 [EFFECTIVE JANUARY 1, 2025]: Sec. 35. (a) Notwithstanding
2063	2063	21 section 26(a) of this chapter, with respect to the allocation and
2064	2064	22 distribution of property taxes for the accomplishment of a program
2065	2065	23 adopted under section 32 of this chapter, "base assessed value" means,
2066	2066	24 subject to section 26(j) of this chapter, the net assessed value of all of
2067	2067	25 the land as finally determined for the assessment date immediately
2068	2068	26 preceding the effective date of the allocation provision, as adjusted
2069	2069	27 under section 26(h) of this chapter. However, "base assessed value"
2070	2070	28 does not include the value of real property improvements to the land.
2071	2071	29 (b) The special fund established under section 26(b) of this chapter
2072	2072	30 for the allocation area for a program adopted under section 32 of this
2073	2073	31 chapter may be used only for purposes related to the accomplishment
2074	2074	32 of the program, including the following:
2075	2075	33 (1) The construction, rehabilitation, or repair of residential units
2076	2076	34 within the allocation area.
2077	2077	35 (2) The construction, reconstruction, or repair of infrastructure
2078	2078	36 (such as streets, sidewalks, and sewers) within or serving the
2079	2079	37 allocation area.
2080	2080	38 (3) The acquisition of real property and interests in real property
2081	2081	39 within the allocation area.
2082	2082	40 (4) The demolition of real property within the allocation area.
2083	2083	41 (5) To provide financial assistance to enable individuals and
2084	2084	42 families to purchase or lease residential units within the allocation
2085	2085	2024 IN 210—LS 6955/DI 120 49
2086	2086	1 area. However, financial assistance may be provided only to those
2087	2087	2 individuals and families whose income is at or below the county's
2088	2088	3 median income for individuals and families, respectively.
2089	2089	4 (6) To provide financial assistance to neighborhood development
2090	2090	5 corporations to permit them to provide financial assistance for the
2091	2091	6 purposes described in subdivision (5).
2092	2092	7 (7) For property taxes first due and payable before 2009, to
2093	2093	8 provide each taxpayer in the allocation area a credit for property
2094	2094	9 tax replacement as determined under subsections (c) and (d).
2095	2095	10 However, this credit may be provided by the commission only if
2096	2096	11 the city-county legislative body establishes the credit by
2097	2097	12 ordinance adopted in the year before the year in which the credit
2098	2098	13 is provided.
2099	2099	14 (c) The maximum credit that may be provided under subsection
2100	2100	15 (b)(7) to a taxpayer in a taxing district that contains all or part of an
2101	2101	16 allocation area established for a program adopted under section 32 of
2102	2102	17 this chapter shall be determined as follows:
2103	2103	18 STEP ONE: Determine that part of the sum of the amounts
2104	2104	19 described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
2105	2105	20 through IC 6-1.1-21-2(g)(5) (before their repeal) that is
2106	2106	21 attributable to the taxing district.
2107	2107	22 STEP TWO: Divide:
2108	2108	23 (A) that part of each county's eligible property tax replacement
2109	2109	24 amount (as defined in IC 6-1.1-21-2 (before its repeal)) for
2110	2110	25 that year as determined under IC 6-1.1-21-4(a)(1) (before its
2111	2111	26 repeal) that is attributable to the taxing district; by
2112	2112	27 (B) the amount determined under STEP ONE.
2113	2113	28 STEP THREE: Multiply:
2114	2114	29 (A) the STEP TWO quotient; by
2115	2115	30 (B) the taxpayer's taxes (as defined in IC 6-1.1-21-2 (before its
2116	2116	31 repeal)) levied in the taxing district allocated to the allocation
2117	2117	32 fund, including the amount that would have been allocated but
2118	2118	33 for the credit.
2119	2119	34 (d) Except as provided in subsection (g), The commission may
2120	2120	35 determine to grant to taxpayers in an allocation area from its allocation
2121	2121	36 fund a credit under this section, as calculated under subsection (c), by
2122	2122	37 applying one-half (1/2) of the credit to each installment of taxes (as
2123	2123	38 defined in IC 6-1.1-21-2 (before its repeal)) that under IC 6-1.1-22-9
2124	2124	39 are due and payable in a year. Except as provided in subsection (g),
2125	2125	40 One-half (1/2) of the credit shall be applied to each installment of taxes
2126	2126	41 (as defined in IC 6-1.1-21-2 (before its repeal)). The commission must
2127	2127	42 provide for the credit annually by a resolution and must find in the
2128	2128	2024 IN 210—LS 6955/DI 120 50
2129	2129	1 resolution the following:
2130	2130	2 (1) That the money to be collected and deposited in the allocation
2131	2131	3 fund, based upon historical collection rates, after granting the
2132	2132	4 credit will equal the amounts payable for contractual obligations
2133	2133	5 from the fund, plus ten percent (10%) of those amounts.
2134	2134	6 (2) If bonds payable from the fund are outstanding, that there is
2135	2135	7 a debt service reserve for the bonds that at least equals the amount
2136	2136	8 of the credit to be granted.
2137	2137	9 (3) If bonds of a lessor under section 17.1 of this chapter or under
2138	2138	10 IC 36-1-10 are outstanding and if lease rentals are payable from
2139	2139	11 the fund, that there is a debt service reserve for those bonds that
2140	2140	12 at least equals the amount of the credit to be granted.
2141	2141	13 If the tax increment is insufficient to grant the credit in full, the
2142	2142	14 commission may grant the credit in part, prorated among all taxpayers.
2143	2143	15 (e) Notwithstanding section 26(b) of this chapter, the special fund
2144	2144	16 established under section 26(b) of this chapter for the allocation area
2145	2145	17 for a program adopted under section 32 of this chapter may only be
2146	2146	18 used to do one (1) or more of the following:
2147	2147	19 (1) Accomplish one (1) or more of the actions set forth in section
2148	2148	20 26(b)(3)(A) through 26(b)(3)(H) of this chapter.
2149	2149	21 (2) Reimburse the consolidated city for expenditures made by the
2150	2150	22 city in order to accomplish the housing program in that allocation
2151	2151	23 area.
2152	2152	24 The special fund may not be used for operating expenses of the
2153	2153	25 commission.
2154	2154	26 (f) Notwithstanding section 26(b) of this chapter, the commission
2155	2155	27 shall, relative to the special fund established under section 26(b) of this
2156	2156	28 chapter for an allocation area for a program adopted under section 32
2157	2157	29 of this chapter, do the following before June 15 of each year:
2158	2158	30 (1) Determine the amount, if any, by which the assessed value of
2159	2159	31 the taxable property in the allocation area, when multiplied by the
2160	2160	32 estimated tax rate of the allocation area, will exceed the amount
2161	2161	33 of assessed value needed to produce the property taxes necessary
2162	2162	34 to:
2163	2163	35 (A) make the distribution required under section 26(b)(2) of
2164	2164	36 this chapter;
2165	2165	37 (B) make, when due, principal and interest payments on bonds
2166	2166	38 described in section 26(b)(3) of this chapter;
2167	2167	39 (C) pay the amount necessary for other purposes described in
2168	2168	40 section 26(b)(3) of this chapter; and
2169	2169	41 (D) reimburse the consolidated city for anticipated
2170	2170	42 expenditures described in subsection (e)(2).
2171	2171	2024 IN 210—LS 6955/DI 120 51
2172	2172	1 (2) Provide a written notice to the county auditor, the legislative
2173	2173	2 body of the consolidated city, the officers who are authorized to
2174	2174	3 fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for each
2175	2175	4 of the other taxing units that is wholly or partly located within the
2176	2176	5 allocation area, and (in an electronic format) the department of
2177	2177	6 local government finance. The notice must:
2178	2178	7 (A) state the amount, if any, of excess assessed value that the
2179	2179	8 commission has determined may be allocated to the respective
2180	2180	9 taxing units in the manner prescribed in section 26(b)(1) of
2181	2181	10 this chapter; or
2182	2182	11 (B) state that the commission has determined that there is no
2183	2183	12 excess assessed value that may be allocated to the respective
2184	2184	13 taxing units in the manner prescribed in section 26(b)(1) of
2185	2185	14 this chapter.
2186	2186	15 The county auditor shall allocate to the respective taxing units the
2187	2187	16 amount, if any, of excess assessed value determined by the
2188	2188	17 commission.
2189	2189	18 (g) This subsection applies to an allocation area only to the extent
2190	2190	19 that the net assessed value of property that is assessed as residential
2191	2191	20 property under the rules of the department of local government finance
2192	2192	21 is not included in the base assessed value. If property tax installments
2193	2193	22 with respect to a homestead (as defined in IC 6-1.1-20.9-1 (before its
2194	2194	23 repeal)) are due in installments established by the department of local
2195	2195	24 government finance under IC 6-1.1-22-9.5, each taxpayer subject to
2196	2196	25 those installments in an allocation area is entitled to an additional
2197	2197	26 credit under subsection (d) for the taxes (as defined in IC 6-1.1-21-2
2198	2198	27 (before its repeal)) due in installments. The credit shall be applied in
2199	2199	28 the same proportion to each installment of taxes (as defined in
2200	2200	29 IC 6-1.1-21-2 (before its repeal)).
2201	2201	30 SECTION 48. [EFFECTIVE JULY 1, 2024] (a) For purposes of
2202	2202	31 IC 6-2.5, as amended by this act, with respect to a transaction:
2203	2203	32 (1) constituting the furnishing of public utility, telephone, or
2204	2204	33 cable television services and commodities by retail merchants
2205	2205	34 described in IC 6-2.5-4-6 and IC 6-2.5-4-11, both as amended
2206	2206	35 by this act; or
2207	2207	36 (2) in which services are delivered before November 1, 2024,
2208	2208	37 and after October 31, 2024, by a retail merchant;
2209	2209	38 only transactions for which the charges are collected on original
2210	2210	39 statements and billings dated after October 31, 2024, shall be
2211	2211	40 considered as having occurred after October 31, 2024.
2212	2212	41 (b) This SECTION expires July 1, 2025.
2213	2213	42 SECTION 49. An emergency is declared for this act.
2214	2214	2024 IN 210—LS 6955/DI 120