Indiana Senate Bill SB0228 Latest Draft

                            Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in  this  style  type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 228
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 4-33-19-6, AS AMENDED BY P.L.94-2008,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 6. The division shall, on behalf of the
department of state revenue or the alcohol and tobacco commission,
conduct a license revocation action against a licensed entity for any
revocation action authorized by any of the following statutes:
(1) IC 6-2.5-8-7(g). IC 6-2.5-8-7(a)(7).
(2) IC 7.1-3-18.5.
(3) IC 7.1-3-23-2(b).
(4) IC 7.1-3-23-5 with respect to a violation of IC 35-45-5-3,
IC 35-45-5-3.5, or IC 35-45-5-4.
SECTION 2. IC 5-2-6.7-2, AS ADDED BY P.L.130-2009,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. As used in this chapter, "domestic violence
prevention and treatment center" means an organized entity:
(1) established by:
(A) a city, town, county, or township; or
(B) an entity exempted from the gross retail tax under
IC 6-2.5-5-21(b)(1)(B); IC 6-2.5-5-25(a)(1)(B); and
(2) created to provide services to prevent and treat domestic or
family violence.
SECTION 3. IC 5-2-6.7-9, AS AMENDED BY P.L.219-2023,
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SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 9. A city, town, county, or township or an entity
that is exempted from the gross retail tax under IC 6-2.5-5-21(b)(1)(B)
IC 6-2.5-5-25(a)(1)(B) that desires to receive a grant under this chapter
must apply in the manner prescribed by the rules of the division.
SECTION 4. IC 6-2.5-2-1, AS AMENDED BY P.L.146-2020,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 1. (a) An excise tax,
known as the state gross retail tax, is imposed on retail transactions
made in Indiana.
(b) The person who acquires property in a retail transaction is liable
for the tax on the transaction and, except as otherwise provided in this
chapter, shall pay the tax to the retail merchant as a separate added
amount to the consideration in the transaction. A retail merchant that
has either physical presence in Indiana as described in subsection (c)
or that meets one (1) or both of the thresholds the threshold in
subsection (d) shall collect the tax as agent for the state.
(c) A retail merchant has physical presence in Indiana when the
retail merchant:
(1) maintains an office, place of distribution, sales location,
sample location, warehouse, storage place, or other place of
business which is located in Indiana and which the retail
merchant maintains, occupies, or uses, either permanently or
temporarily, either directly or indirectly, and either by the retail
merchant or through a representative, agent, or subsidiary;
(2) maintains a representative, agent, salesperson, canvasser, or
solicitor who, while operating in Indiana under the authority of
and on behalf of the retail merchant or a subsidiary of the retail
merchant, sells, delivers, installs, repairs, assembles, sets up,
accepts returns of, bills, invoices, or takes orders for sales of
tangible personal property or services to be used, stored, or
consumed in Indiana; or
(3) is otherwise required to register as a retail merchant under
IC 6-2.5-8-1.
(d) A retail merchant that does not have a physical presence in
Indiana shall, as an agent for the state, collect the gross retail tax on a
retail transaction made in Indiana, remit the gross retail tax as provided
in this article, and comply with all applicable procedures and
requirements of this article as if the retail merchant has a physical
presence in Indiana, if the retail merchant merchant's gross revenue
from any combination of: meets either of the following conditions for
the calendar year in which the retail transaction is made or for the
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calendar year preceding the calendar year in which the retail
transaction is made:
(1) The retail merchant's gross revenue from any combination of:
(A) (1) the sale of tangible personal property that is delivered into
Indiana;
(B) (2) a product transferred electronically into Indiana; or
(C) (3) a service delivered in Indiana;
exceeds one hundred thousand dollars ($100,000) for the calendar
year in which the retail transaction is made or for the calendar
year preceding the calendar year in which the retail transaction is
made.
(2) The retail merchant sells any combination of:
(A) tangible personal property that is delivered into Indiana;
(B) a product transferred electronically into Indiana; or
(C) a service delivered in Indiana;
in two hundred (200) or more separate transactions.
(e) A marketplace facilitator must include both transactions made
on its own behalf and transactions facilitated for sellers under
IC 6-2.5-4-18 for purposes of establishing the requirement to collect
gross retail tax without having a physical presence in Indiana for
purposes of subsection (d). In addition, except in instances where the
marketplace facilitator has not met the thresholds threshold in
subsection (d), the transactions of the seller made through the
marketplace are not counted toward the seller for purposes of
determining whether the seller has met the thresholds threshold in
subsection (d).
SECTION 5. IC 6-2.5-5-5.1, AS AMENDED BY P.L.137-2022,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 5.1. (a) As used in this section, "tangible
personal property" includes electricity, gas, water, and steam.
(b) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring the property
acquires it for direct consumption as a material to be consumed in the
direct production of other tangible personal property in the person's
business of manufacturing, mining, production, processing, repairing,
recycling (as defined in section 45.8 of this chapter), refining, oil
extraction, mineral extraction, irrigation, agriculture, floriculture,
arboriculture, or horticulture. This exemption includes transactions
involving acquisitions of tangible personal property used in
commercial printing.
(c) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring that property:
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(1) acquires it for the person's direct consumption as a material to
be consumed in an industrial processing service; and
(2) is an industrial processor.
(d) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring the property:
(1) acquires it for the person's direct consumption as a material to
be consumed in:
(A) the direct application of fertilizers, pesticides, fungicides,
seeds, and other tangible personal property; or
(B) the direct extraction, harvesting, or processing of
agricultural commodities;
for consideration; and
(2) is occupationally engaged in providing the services described
in subdivision (1) on property that is:
(A) owned or rented by another person occupationally engaged
in agricultural production; and
(B) used for agricultural production.
(e) Transactions involving electricity, gas, water, and steam
delivered through a single meter provided by a public utility are exempt
if the electrical energy, natural or artificial gas, water, steam, or steam
heat is consumed for a purpose exempted pursuant to this section and
the electricity, gas, water, or steam is predominately used by the
purchaser for one (1) or more of the purposes exempted by this section.
(f) A retail merchant that receives seventy-five percent (75%)
or more of its receipts from the sale of prepared food as defined in
section 20(c)(4), 20(c)(5), and 20(c)(6) of this chapter, including
bakery items, may elect to claim an exemption equal to fifty
percent (50%) of the gross retail tax imposed on transactions
involving electricity purchased by the retail merchant that is
derived through a single meter. The election must be submitted on
forms provided by the department. Upon acceptance of the
election, the department shall issue a partial exemption certificate
to the utility and any third party suppliers, if applicable. The
election may also be submitted with a claim for refund. The
election is irrevocable for any period for which the partial
exemption has already been claimed. The election can be
withdrawn on a prospective basis.
SECTION 6. IC 6-2.5-5-21, AS AMENDED BY P.L.137-2022,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 21. (a) For purposes of this section, "private
benefit or gain" does not include reasonable compensation paid to an
employee for work or services actually performed.
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(b) (a) Sales of food and food ingredients are exempt from the state
gross retail tax if:
(1) the seller meets the filing requirements under subsection (d)
(c) and is an organization described in section 25(a)(1) of this
chapter;
(2) the purchaser is a person confined to the purchaser's home
because of age, sickness, or infirmity;
(3) the seller delivers the food and food ingredients to the
purchaser; and
(4) the delivery is prescribed as medically necessary by a
physician licensed to practice medicine in Indiana.
(c) (b) Sales of food and food ingredients are exempt from the state
gross retail tax if the seller is an organization described in section
25(a)(1) of this chapter, and the purchaser is a patient in a hospital
operated by the seller.
(d) (c) To obtain the exemption provided by this section, a taxpayer
must follow the procedures set forth in section 25(c) of this chapter.
SECTION 7. IC 6-2.5-5-25, AS AMENDED BY P.L.56-2023,
SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 25. (a) Transactions involving tangible personal
property, accommodations, or service are exempt from the state gross
retail tax, if the person acquiring the property, accommodations, or
service:
(1) is any of the following types of organizations:
(A) A fraternity, a sorority, or a student cooperative housing
organization that is connected with and under the supervision
of a postsecondary educational institution if no part of its
income is used for the private benefit or gain of any member,
trustee, shareholder, employee, or associate.
(B) Any:
(i) institution;
(ii) trust;
(iii) group;
(iv) united fund;
(v) affiliated agency of a united fund;
(vi) nonprofit corporation;
(vii) cemetery association; or
(viii) organization;
that is organized and operated exclusively for religious,
charitable, scientific, literary, educational, or civic purposes if
no part of its income is used for the private benefit or gain of
any member, trustee, shareholder, employee, or associate.
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(C) A group, an organization, or a nonprofit corporation that
is organized and operated for fraternal or social purposes, or
as a business league or association, and not for the private
benefit or gain of any member, trustee, shareholder, employee,
or associate.
(D) A:
(i) hospital licensed by the Indiana department of health;
(ii) shared hospital services organization exempt from
federal income taxation by Section 501(c)(3) or 501(e) of
the Internal Revenue Code;
(iii) labor union;
(iv) church;
(v) monastery;
(vi) convent;
(vii) school that is a part of the Indiana public school
system;
(viii) parochial school regularly maintained by a recognized
religious denomination; or
(ix) trust created for the purpose of paying pensions to
members of a particular profession or business who created
the trust for the purpose of paying pensions to each other;
if the taxpayer is not organized or operated for private profit or
gain;
(2) uses the property, accommodations, or service to carry on or
to raise money to carry on its not-for-profit purpose; and
(3) is not an organization operated predominantly for social
purposes.
(b) Transactions involving tangible personal property or service are
exempt from the state gross retail tax, if the person acquiring the
property or service:
(1) is a fraternity, sorority, or student cooperative housing
organization described in subsection (a)(1)(A); and
(2) uses the property or service to carry on its ordinary and usual
activities and operations as a fraternity, sorority, or student
cooperative housing organization.
(c) To obtain the exemption provided by this section, a taxpayer
must file an application for exemption with the department not later
than one hundred twenty (120) days after the taxpayer's formation. In
addition, the taxpayer must file a report with the department on or
before the fifteenth day of the fifth month every five (5) years following
the date of its formation. The report must be filed electronically with
the department in the manner determined by the department. If a
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taxpayer fails to file the report, the department shall notify the taxpayer
of the failure. If within sixty (60) days after receiving such notice the
taxpayer does not provide the report, the taxpayer's exemption shall be
canceled. However, the department may reinstate the taxpayer's
exemption if the taxpayer shows by petition that the failure was due to
reasonable cause.
(d) Notwithstanding subsection (c), a taxpayer filing a report under
this subsection or section 21(d) of this chapter (prior to recodification)
after December 31, 2021, and before January 1, 2023, will be required
to file the next required report on or before the following dates:
(1) May 15, 2024, if the taxpayer does not have a federal
employer identification number or has a federal employer
identification number ending in 00 through 24, inclusive.
(2) May 15, 2025, if the taxpayer has a federal employer
identification number ending in 25 through 49, inclusive.
(3) May 15, 2026, if the taxpayer has a federal employer
identification number ending in 50 through 74, inclusive.
(4) May 15, 2027, if the taxpayer has a federal employer
identification number ending in 75 through 99, inclusive.
(e) For purposes of this section, "private benefit or gain" does
not include reasonable compensation paid to an employee for work
or services actually performed.
SECTION 8. IC 6-2.5-5-38.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 38.1. (a) As used in this
section, "service center" has the meaning set forth in IC 6-3.1-15-3.
means an educational service center established under IC 20-20-1.
(b) As used in this section, "school" means a public or private
elementary or secondary school containing students in any grade from
grade 1 through grade 12.
(c) As used in this chapter, "qualified computer equipment" has the
meaning set forth in IC 6-3.1-15-2. means computer equipment,
including hardware and software, specified by the state board of
education under IC 6-3.1-15-10 (as in effect on January 1, 2012).
(d) Sales of qualified computer equipment are exempt from the state
gross retail tax, if:
(1) the seller is a service center or school;
(2) the purchaser is a parent or guardian of a student who is
enrolled in a school; and
(3) the qualified computer equipment is sold to the parent or
guardian under IC 6-3.1-15-12 (as in effect on January 1, 2012).
SECTION 9. IC 6-2.5-8-1, AS AMENDED BY P.L.165-2021,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
SEA 228 8
JANUARY 1, 2025]: Sec. 1. (a) A retail merchant may not make a
retail transaction in Indiana, unless the retail merchant has applied for
a registered retail merchant's certificate.
(b) A retail merchant may obtain a registered retail merchant's
certificate by filing an application with the department and paying a
registration fee of twenty-five dollars ($25) for each place of business
listed on the application. The retail merchant shall also provide such
security for payment of the tax as the department may require under
IC 6-2.5-6-12.
(c) The retail merchant shall list on the application the location
(including the township) of each place of business where the retail
merchant makes retail transactions. However, if the retail merchant
does not have a fixed place of business, the retail merchant shall list the
retail merchant's residence as the retail merchant's place of business. In
addition, a public utility may list only its principal Indiana office as its
place of business for sales of public utility commodities or service, but
the utility must also list on the application the places of business where
it makes retail transactions other than sales of public utility
commodities or service.
(d) Upon receiving a proper application, the correct fee, and the
security for payment, if required, the department shall issue to the retail
merchant a separate registered retail merchant's certificate for each
place of business listed on the application. Each certificate shall bear
a serial number and the location of the place of business for which it is
issued.
(e) The department may deny an application for a registered retail
merchant's certificate if the applicant's business is owned, operated,
managed, or otherwise controlled by or affiliated with a person
including a relative, family member, responsible officer, or owner, who
the department has determined:
(1) failed to:
(A) file all tax returns or information reports with the
department for listed taxes; or
(B) pay all taxes, penalties, and interest to the department for
listed taxes; and
(2) the business of the person who has failed to file all tax returns
or information reports under subdivision (1)(A) or who has failed
to pay all taxes, penalties, and interest under subdivision (1)(B)
is substantially similar to the business of the applicant.
(f) If a retail merchant intends to make retail transactions during a
calendar year at a new Indiana place of business, the retail merchant
must file a supplemental application and pay the fee for that place of
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business.
(g) Except as provided in subsection (i), a registered retail
merchant's certificate is valid for two (2) years after the date the
registered retail merchant's certificate is originally issued or renewed.
If the retail merchant has filed all returns and remitted all listed taxes
that the retail merchant is currently obligated to file or remit, the
department shall renew the registered retail merchant's certificate
within thirty (30) days after the expiration date, at no cost to the retail
merchant. Before issuing or renewing the registered retail merchant
certification, the department may require the following to be provided:
(1) The names and addresses of the retail merchant's principal
employees, agents, or representatives. who engage in Indiana in
the solicitation or negotiation of the retail transaction.
(2) The location of all of the retail merchant's places of business
in Indiana, including offices and distribution houses.
(3) Any other information that the department requests.
(h) The department may not renew a registered retail merchant
certificate of a retail merchant who is delinquent in remitting
withholding taxes required to be remitted under IC 6-3-4, the electronic
cigarette tax under IC 6-7-4, or sales or use tax. has not filed all
returns and remitted all listed taxes that the retail merchant is
currently obligated to file or remit. The department, at least sixty
(60) days before the date on which a retail merchant's registered retail
merchant's certificate expires, shall notify a retail merchant who is
delinquent in remitting withholding taxes required to be remitted under
IC 6-3-4, the electronic cigarette tax under IC 6-7-4, or sales or use tax
has not filed all returns and remitted all listed taxes that the retail
merchant is currently obligated to file or remit that the department
will not renew the retail merchant's registered retail merchant's
certificate.
(i) If:
(1) a retail merchant has been notified by the department that the
retail merchant is delinquent in remitting withholding taxes or
sales or use tax has not filed all returns and remitted all listed
taxes that the retail merchant is currently obligated to file or
remit in accordance with subsection (h); and
(2) the retail merchant files all returns and pays the outstanding
liability before the expiration of the retail merchant's registered
retail merchant's certificate;
the department shall renew the retail merchant's registered retail
merchant's certificate for one (1) year.
(j) The department may permit an out-of-state retail merchant to
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collect the gross retail tax in instances where the retail merchant has
not met the thresholds threshold in IC 6-2.5-2-1(d). However, before
the out-of-state retail merchant may collect the tax, the out-of-state
retail merchant must obtain a registered retail merchant's certificate in
the manner provided by this section. Upon receiving the certificate, the
out-of-state retail merchant becomes subject to the same conditions and
duties as an Indiana retail merchant and must then collect the gross
retail tax due on all retail transactions that the out-of-state retail
merchant knows are sourced to Indiana pursuant to IC 6-2.5-13-1.
(k) Except as provided in subsection (l), the department shall submit
to the township assessor, or the county assessor if there is no township
assessor for the township, before January 15 of each year:
(1) the name of each retail merchant that has newly obtained a
registered retail merchant's certificate during the preceding year
for a place of business located in the township or county;
(2) the address of each place of business of the taxpayer in the
township or county described in subdivision (1);
(3) the name of each retail merchant that:
(A) held a registered retail merchant's certificate at any time
during the preceding year for a place of business located in the
township or county; and
(B) had ceased to hold the registered retail merchant's
certificate at the end of the preceding year for the place of
business; and
(4) the address of each place of business described in subdivision
(3).
(l) If the duties of the township assessor have been transferred to the
county assessor as described in IC 6-1.1-1-24, the department shall
submit the information listed in subsection (k) to the county assessor.
SECTION 10. IC 6-2.5-8-7, AS AMENDED BY P.L.194-2023,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 7. (a) The department may, for good cause,
revoke a certificate issued under section 1 or 4 of this chapter.
However, the department must give the certificate holder at least five
(5) days notice before it revokes the certificate under this subsection.
Good cause for revocation may include the following:
(1) Failure to:
(A) file a return required under this chapter or for any tax
collected for the state in trust; or
(B) remit any tax collected for the state in trust.
(2) Being charged with a violation of any provision under IC 35.
(3) Being subject to a court order under IC 7.1-2-6-7,
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IC 32-30-6-8, IC 32-30-7, or IC 32-30-8.
(4) Being charged with a violation of IC 23-15-12.
(5) Operating as a retail merchant where the certificate issued
under section 1 of this chapter could have been denied under
section 1(e) of this chapter prior to its issuance.
(5) The certificate holder or an officer, a director, a manager,
or a partner of the certificate holder has been convicted for an
offense under IC 35-48-4 and the conviction involved the sale
of or the offer to sell, in the normal course of business, a
synthetic drug (as defined in IC 35-31.5-2-321), a synthetic
drug lookalike substance (as defined in IC 35-31.5-2-321.5
(before its repeal on July 1, 2019)), a controlled substance
analog (as defined in IC 35-48-1-9.3), or a substance
represented to be a controlled substance (as described in
IC 35-48-4-4.6) by a retail merchant in a place of business for
which the retail merchant has been issued a registered retail
merchant's certificate under this chapter.
(6) The certificate holder or an officer, a director, a manager,
or a partner of the certificate holder has a judgment for a
violation of IC 35-48-4-10.5 (before its repeal on July 1, 2019)
as an infraction and the violation involved the sale of or the
offer to sell, in the normal course of business, a synthetic drug
or a synthetic drug lookalike substance by a retail merchant
in a place of business for which the retail merchant has been
issued a registered retail merchant's certificate under this
chapter.
(7) The certificate holder or an officer, a director, a manager,
or a partner of the certificate holder has been convicted for an
offense under IC 35-45-5-3, IC 35-45-5-3.5, or IC 35-45-5-4.
(8) The retail merchant has defaulted on a payment plan for
a listed tax that was entered into prior to the date of the most
recent renewal of its retail merchant's certificate.
The department may revoke a certificate under subdivision (2) before
a criminal adjudication or without a criminal charge being filed. If the
department gives notice of an intent to revoke based on an alleged
violation of subdivision (2), the department shall hold a public hearing
to determine whether good cause exists. If the department finds in a
public hearing by a preponderance of the evidence that a person has
committed a violation described in subdivision (2), the department
shall proceed in accordance with subsection (i) (if the violation resulted
in a criminal conviction) or subsection (j) (if the violation resulted in
a judgment for an infraction). A person that has a certificate revoked
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pursuant to subdivision (2), (5), (6), or (7) must wait one (1) year
from the date of the revocation before reapplying for a certificate.
The department may issue the certificate upon reapplication or
hold a hearing to determine whether good cause exists for denying
the application for a certificate.
(b) The department shall may revoke a certificate issued under
section 1 or 4 of this chapter if, for a period of three (3) years, six (6)
months, the certificate holder fails to:
(1) file the returns required by IC 6-2.5-6-1; or
(2) report the collection of any state gross retail or use tax on the
returns filed under IC 6-2.5-6-1.
However, the department must give the certificate holder at least five
(5) days notice before it revokes the certificate.
(c) The department may, for good cause, revoke a certificate issued
under section 1 of this chapter after at least five (5) days notice to the
certificate holder if:
(1) the certificate holder is subject to an innkeeper's tax under
IC 6-9; and
(2) a board, bureau, or commission established under IC 6-9 files
a written statement with the department.
(d) The statement filed under subsection (c) must state that:
(1) information obtained by the board, bureau, or commission
under IC 6-8.1-7-1 indicates that the certificate holder has not
complied with IC 6-9; and
(2) the board, bureau, or commission has determined that
significant harm will result to the county from the certificate
holder's failure to comply with IC 6-9.
(e) The department shall may revoke or suspend a certificate issued
under section 1 of this chapter after at least five (5) days notice to the
certificate holder if:
(1) the certificate holder owes taxes, penalties, fines, interest, or
costs due under IC 6-1.1 that remain unpaid at least sixty (60)
days after the due date under IC 6-1.1; and
(2) the treasurer of the county to which the taxes are due requests
the department to revoke or suspend the certificate.
(f) The department shall reinstate a certificate suspended under
subsection (e) if the taxes and any penalties due under IC 6-1.1 are paid
or the county treasurer requests the department to reinstate the
certificate because an agreement for the payment of taxes and any
penalties due under IC 6-1.1 has been reached to the satisfaction of the
county treasurer.
(g) The department shall revoke a certificate issued under section
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1 of this chapter after at least five (5) days notice to the certificate
holder if the department finds in a public hearing by a preponderance
of the evidence that the certificate holder has violated IC 35-45-5-3,
IC 35-45-5-3.5, or IC 35-45-5-4.
(h) (g) If a person makes a payment for the certificate under section
1 of this chapter with a check, credit card, debit card, or electronic
funds transfer, and the department is unable to obtain payment of the
check, credit card, debit card, or electronic funds transfer for its full
face amount when the check, credit card, debit card, or electronic funds
transfer is presented for payment through normal banking channels, the
department shall notify the person by mail that the check, credit card,
debit card, or electronic funds transfer was not honored and that the
person has five (5) days after the notice is mailed to pay the fee in cash,
by certified check, or other guaranteed payment. If the person fails to
make the payment within the five (5) day period, the department shall
revoke the certificate.
(i) If the department finds in a public hearing by a preponderance of
the evidence that a person has a conviction for an offense under
IC 35-48-4 and the conviction involved the sale of or the offer to sell,
in the normal course of business, a synthetic drug (as defined in
IC 35-31.5-2-321), a synthetic drug lookalike substance (as defined in
IC 35-31.5-2-321.5 (before its repeal on July 1, 2019)), a controlled
substance analog (as defined in IC 35-48-1-9.3), or a substance
represented to be a controlled substance (as described in
IC 35-48-4-4.6) by a retail merchant in a place of business for which
the retail merchant has been issued a registered retail merchant
certificate under section 1 of this chapter, the department:
(1) shall suspend the registered retail merchant certificate for the
place of business for one (1) year; and
(2) may not issue another retail merchant certificate under section
1 of this chapter for one (1) year to any person:
(A) that:
(i) applied for; or
(ii) made a retail transaction under;
the retail merchant certificate suspended under subdivision
(1); or
(B) that:
(i) owned or co-owned, directly or indirectly; or
(ii) was an officer, a director, a manager, or a partner of;
the retail merchant that was issued the retail merchant
certificate suspended under subdivision (1).
(j) If the department finds in a public hearing by a preponderance of
SEA 228 14
the evidence that a person has a judgment for a violation of
IC 35-48-4-10.5 (before its repeal on July 1, 2019) as an infraction and
the violation involved the sale of or the offer to sell, in the normal
course of business, a synthetic drug or a synthetic drug lookalike
substance by a retail merchant in a place of business for which the
retail merchant has been issued a registered retail merchant certificate
under section 1 of this chapter, the department:
(1) may suspend the registered retail merchant certificate for the
place of business for six (6) months; and
(2) may withhold issuance of another retail merchant certificate
under section 1 of this chapter for six (6) months to any person:
(A) that:
(i) applied for; or
(ii) made a retail transaction under;
the retail merchant certificate suspended under subdivision
(1); or
(B) that:
(i) owned or co-owned, directly or indirectly; or
(ii) was an officer, a director, a manager, or a partner of;
the retail merchant that was issued the retail merchant
certificate suspended under subdivision (1).
(k) If the department finds in a public hearing by a preponderance
of the evidence that a person has a conviction for a violation of
IC 35-48-4-10(d)(3) and the conviction involved an offense committed
by a retail merchant in a place of business for which the retail merchant
has been issued a registered retail merchant certificate under section 1
of this chapter, the department:
(1) shall suspend the registered retail merchant certificate for the
place of business for one (1) year; and
(2) may not issue another retail merchant certificate under section
1 of this chapter for one (1) year to any person:
(A) that:
(i) applied for; or
(ii) made a retail transaction under;
the retail merchant certificate suspended under subdivision
(1); or
(B) that:
(i) owned or co-owned, directly or indirectly; or
(ii) was an officer, a director, a manager, or a partner of;
the retail merchant that was issued the retail merchant
certificate suspended under subdivision (1).
SECTION 11. IC 6-3-2.1-4, AS AMENDED BY P.L.236-2023,
SEA 228 15
SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2022 (RETROACTIVE)]: Sec. 4. (a) A tax shall be
imposed on the adjusted gross income of an electing entity for the
taxable year of the election. The adjusted gross income of the electing
entity shall be the aggregate of the direct owners' share of the electing
entity's adjusted gross income. For purposes of this section:
(1) the electing entity shall determine each nonresident direct
owner's share after allocation and apportionment pursuant to
IC 6-3-2-2; and
(2) the electing entity shall determine the resident direct owner's
share either before allocation and apportionment pursuant to
IC 6-3-2-2 or after allocation and apportionment pursuant to
IC 6-3-2-2. The electing entity must use the same method for all
resident direct owners.
(b) The tax rate shall be the tax rate specified in IC 6-3-2-1(b) as of
the last day of the electing entity's taxable year, and the tax shall be due
on the same date as the entity return for the taxable year is due under
this article, without regard to extensions.
(c) On its return for the taxable year, the electing entity shall attach
a schedule showing the calculation of the tax and the credit for each
direct owner, and remit the tax with the return, taking into account
prior estimated tax payments and other tax payments by the electing
entity, along with other payments that are credited to the electing entity
as tax paid under this chapter or as tax withheld under IC 6-3-4 or
IC 6-5.5-2-8. The department may prescribe the form for providing the
information required by this section.
(d) If a pass through entity makes estimated tax payments, makes
other tax payments, or has other payments that are credited to the
electing entity as tax paid under this chapter or a tax withheld under
IC 6-3-4 or IC 6-5.5-2-8, and the pass through entity does not make the
election under section 3 of this chapter, the pass through entity:
(1) may treat pass through entity tax remitted on its behalf under
this chapter as pass through entity tax to its direct owners,
provided that:
(A) the tax is designated on a schedule similar to the schedule
required under subsection (c) and is reported to the direct
owners in the manner provided in section 5 of this chapter; and
(B) the pass through entity credits an amount to a direct owner
no greater than the tax that otherwise would be due under this
chapter on their share of the adjusted gross income from the
pass through entity or the direct owner's portion (as
determined under subsection (a)) of the pass through entity tax
SEA 228 16
passed through to the pass through entity, whichever is greater
(for purposes of this clause, a trust or estate shall compute the
tax in the same manner as an electing entity);
(2) shall treat any payment other than a payment designated under
subdivision (1) as a withholding tax payment under IC 6-3-4-12,
IC 6-3-4-13, IC 6-3-4-15, or IC 6-5.5-2-8 to the extent the pass
through entity otherwise has not remitted or been credited with
such withholding; and
(3) may request a refund of any payment in excess of the amounts
credited or designated under subdivision (1) or (2).
(e) If a pass through entity elects to be subject to tax under this
chapter and the pass through entity determines that its tax is less than
the pass through entity tax that is paid on its behalf, the pass through
entity may treat the tax paid on its behalf in a manner similar to
subsection (d)(1)(B). (d). However, the pass through entity may not
treat an amount less than its own liability under this chapter as
pass through entity tax under subsection (d)(1).
SECTION 12. IC 6-3.1-30-12, AS AMENDED BY P.L.288-2013,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 12. To receive the credit provided by this chapter,
a taxpayer must claim the credit on the taxpayer's state tax return or
returns in the manner prescribed by the department. The taxpayer shall
submit to the department the corporation's certification of the following
information:
(1) Proof of the taxpayer's relocation costs.
(2) Proof that the taxpayer is employing in Indiana the number of
employees required by section 8 of this chapter.
(3) (2) All other information that the department determines is
necessary for the calculation of the credit provided by this
chapter.
SECTION 13. IC 6-6-2.5-41, AS AMENDED BY P.L.227-2013,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 41. (a) Each supplier engaged in business in
Indiana as a supplier shall first obtain a supplier's license. The fee for
a supplier's license shall be five hundred dollars ($500).
(b) Any person who desires to collect the tax imposed by this
chapter as a supplier and who meets the definition of a permissive
supplier may obtain a permissive supplier's license. Application for or
possession of a permissive supplier's license shall not in itself subject
the applicant or licensee to the jurisdiction of Indiana for any other
purpose than administration and enforcement of this chapter. The fee
for a permissive supplier's license is fifty dollars ($50).
SEA 228 17
(c) Each terminal operator other than a supplier licensed under
subsection (a) engaged in business in Indiana as a terminal operator
shall first obtain a terminal operator's license for each terminal site.
The fee for a terminal operator's license is three hundred dollars
($300).
(d) Each exporter engaged in business in Indiana as an exporter
shall first obtain an exporter's license. However, in order to obtain a
license to export special fuel from Indiana to another specified state, a
person shall be licensed either to collect and remit special fuel taxes or
be licensed to deal in tax free special fuel in that other specified state
of destination. The fee for an exporter's license is two hundred dollars
($200).
(e) Each person who is not licensed as a supplier shall obtain a
transporter's license before transporting special fuel by whatever
manner from a point outside Indiana to a point inside Indiana, or from
a point inside Indiana to a point outside Indiana, regardless of whether
the person is engaged for hire in interstate commerce or for hire in
intrastate commerce. The registration fee for a transporter's license is
fifty dollars ($50).
(f) Each person who wishes to cause special fuel to be delivered into
Indiana on the person's own behalf, for the person's own account, or for
resale to an Indiana purchaser, from another state in a fuel transport
vehicle having a capacity of more than five thousand four hundred
(5,400) gallons, or in a pipeline or barge shipment into storage facilities
other than a qualified terminal, shall first make an application for and
obtain an importer's license. The fee for an importer's license is two
hundred dollars ($200). This subsection does not apply to a person who
imports special fuel that is exempt because the special fuel has been
dyed or marked, or both, in accordance with section 31 of this chapter.
This subsection does not apply to a person who imports nonexempt
special fuels meeting the following conditions:
(1) The special fuel is subject to one (1) or more tax precollection
agreements with suppliers as provided in section 35 of this
chapter.
(2) The special fuel tax precollection by the supplier is expressly
evidenced on the terminal-issued shipping paper as specifically
provided in section 62(e)(2) of this chapter.
(g) A person desiring to import special fuel to an Indiana destination
who does not enter into an agreement to prepay Indiana special fuel tax
to a supplier or permissive supplier under section 35 of this chapter on
the imports must do the following:
(1) Obtain a valid license under subsection (f).
SEA 228 18
(2) Obtain an import verification number from the department not
earlier than twenty-four (24) hours before entering the state with
each import, if importing in a vehicle with a capacity of more than
five thousand four hundred (5,400) gallons.
(3) Display a proper import verification number on the shipping
document, if importing in a vehicle with a capacity of more than
five thousand four hundred (5,400) gallons.
(h) The department may require a person that wants to blend special
fuel to first obtain a license from the department. The department may
establish reasonable requirements for the proper enforcement of this
subsection, including the following:
(1) Guidelines under which a person may be required to obtain a
license.
(2) A requirement that a licensee file reports in the form and
manner required by the department.
(3) A requirement that a licensee meet the bonding requirements
specified by the department.
(i) The department may require a person that:
(1) is subject to the special fuel tax under this chapter;
(2) qualifies for a federal diesel fuel tax exemption under Section
4082 of the Internal Revenue Code; and
(3) is purchasing red dyed low sulfur diesel fuel;
to register with the department as a dyed fuel user. The department may
establish reasonable requirements for the proper enforcement of this
subsection, including guidelines under which a person may be required
to register and the form and manner of reports a registrant is required
to file.
(j) A person who owns a truck stop in Indiana must obtain from the
department a truck stop owner's license in the manner prescribed by the
department. A truck stop owner's license must be renewed every two
(2) years.
SECTION 14. IC 6-7-2-3.3, AS ADDED BY P.L.137-2022,
SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.3. As used in this
chapter, "remote seller" means a retail dealer that meets one (1) or both
of the economic thresholds threshold under IC 6-2.5-2-1(d) and sells
taxable products to an ultimate consumer under either of the following
circumstances:
(1) By means of a telephone or other method of voice
transmission, the mail, or the Internet or other electronic service.
(2) When the taxable products are delivered to the consumer by
common carrier, private delivery service, or other method of
SEA 228 19
delivery.
SECTION 15. IC 6-7-2-4, AS AMENDED BY P.L.137-2022,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 4. As used in this
chapter, "retail dealer" means a person engaged in the business of
selling taxable products to ultimate consumers, including a retail
merchant that meets one (1) or both of the economic thresholds
threshold under IC 6-2.5-2-1(d).
SECTION 16. IC 6-7-2-8.5, AS ADDED BY P.L.137-2022,
SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 8.5. (a) A remote seller,
including a person that sells taxable products through an Internet web
site, a website, must obtain a license under this section before a remote
seller can sell taxable products in Indiana. The department shall issue
licenses to applicants that qualify under this section. A license issued
under this section is valid for one (1) year unless revoked or suspended
by the department and is not transferable.
(b) An applicant for a license under this section must submit proof
to the department of the appointment of an agent for service of process
in Indiana if the applicant is:
(1) an individual whose principal place of residence is outside
Indiana; or
(2) a person, other than an individual, that has its principal place
of business outside Indiana.
(c) To obtain or renew a license under this section, a person must:
(1) submit an application that includes all information required by
the department;
(2) meet one (1) or both of the economic thresholds threshold
under IC 6-2.5-2-1(d) and obtain a registered retail merchant
certificate;
(3) attest that the person uses third party age verification
technology as described in subsection (d);
(4) pay a fee of twenty-five dollars ($25) at the time of
application; and
(5) at the time of application, post a bond, issued by a surety
company approved by the department, in an amount not less than
one thousand dollars ($1,000) and conditioned on the applicant's
compliance with this chapter.
(d) A remote seller must use age verification through an
independent, third party age verification service that compares:
(1) information available from a commercially available data base
(or aggregate of data bases) that are regularly used by government
SEA 228 20
agencies and businesses for the purpose of age and identity
verification; and
(2) personal information entered by the individual during the
ordering process;
that establishes that the individual is of the required minimum age.
(e) A remote seller that collects the tax imposed under section 7.7
of this chapter using the actual cost list method to calculate the tax
must provide to the department a certified actual cost list for each
individual product offered for sale in the subsequent calendar year. The
actual cost list shall be updated annually as new products are added to
a remote seller's inventory. New products must be added to the actual
cost list using the actual cost first paid for each individual product.
(f) If a business owns multiple entities that qualify as a remote
seller, a separate license must be obtained for each remote seller.
(g) Each license must be numbered, show the name and address of
the remote seller, and be kept at the place of business for which it is
issued.
(h) If the department determines that a bond provided by a licensee
is inadequate, the department may require a new bond in the amount
necessary to fully protect the state.
(i) A license issued under this section does not permit the remote
seller to sell cigarettes, vapor products, or other products subject to tax
under IC 6-7-1 or IC 6-7-4.
SECTION 17. IC 6-7-4-9, AS ADDED BY P.L.165-2021,
SECTION 119, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2024 (RETROACTIVE)]: Sec. 9. (a) An
excise tax, known as the electronic cigarette tax, is imposed on the
retail sale of consumable material and vapor products in Indiana.
(b) The electronic cigarette tax equals fifteen percent (15%) of the
gross retail income received by the retail dealer for the sale.
(c) The person who acquires consumable material or vapor products
in a retail transaction is liable for the tax on the transaction, and, except
as otherwise incorporated in this chapter, shall pay the tax to the retail
dealer as a separate added amount to the consideration in the
transaction. A retail dealer that either:
(1) has a physical presence in Indiana, as described in
IC 6-2.5-2-1(c); or
(2) meets one (1) or both of the thresholds threshold in
IC 6-2.5-2-1(d);
shall collect and remit the tax as an agent for the state.
(d) If the tax is not collected by the retail dealer, the consumer is
responsible to remit the tax to the department. A retail dealer that is
SEA 228 21
required to collect and remit tax under this chapter is jointly and
severally liable for uncollected tax absent proof of exemption or
payment by the purchaser.
(e) Before the fifteenth day of each month, each retail dealer liable
for the collection and remittance of the tax imposed by this chapter
shall:
(1) file a return with the department that includes all information
required by the department including, but not limited to:
(A) the name of the retail dealer;
(B) the address of the retail dealer; and
(C) the certificate number of the retail dealer's electronic
cigarette retail dealer's certificate; and
(2) pay the tax for which it is liable under this chapter for the
preceding month.
All returns required to be filed and taxes required to be paid under this
chapter must be made in an electronic format prescribed by the
department.
(f) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration apply to the imposition and administration of the tax
imposed under this section, except to the extent such provisions are in
conflict or inconsistent with the specific provisions of this chapter.
(g) A marketplace facilitator (as defined in IC 6-2.5-1-21.9) who is
considered a retail merchant under IC 6-2.5-4-18 for a transaction to
which this chapter applies shall collect and remit electronic cigarette
taxes imposed on the retail transaction.
SECTION 18. IC 6-8.1-1-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 4.5. "Periodic tax" means a listed
tax for which a return or report is required to be filed and the tax
is required to be remitted four (4) times or more in a calendar
year. The term does not include:
(1) an estimated tax payment under IC 6-3-2.1-6, IC 6-3-4-4.1,
or IC 6-5.5-6-3; or
(2) a withholding payment required to be remitted quarterly
under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15.
For purposes of this section, if a provision of the law relating to a
listed tax permits a taxpayer to file returns or reports or remit the
tax less frequently than four (4) times per calendar year, the listed
tax is considered a periodic tax for a taxpayer who files or remits
less frequently.
SECTION 19. IC 6-8.1-3-20, AS ADDED BY P.L.227-2007,
SEA 228 22
SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 20. (a) The department shall enter a
memorandum of understanding with the Indiana gaming commission
authorizing the commission's unlawful gaming enforcement division to
conduct actions to revoke retail merchant certificates under
IC 6-2.5-8-7(g) IC 6-2.5-8-7(a)(7) in the manner specified in the
memorandum of understanding.
(b) A memorandum of understanding entered into under this section
must comply with the requirements of IC 4-33-19-8.
(c) The memorandum of understanding required by this section
must be entered into before January 1, 2008.
SECTION 20. IC 6-8.1-5-2, AS AMENDED BY P.L.1-2023,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. (a) Except as otherwise provided in this section
and section 2.5 of this chapter, the department may not issue a
proposed assessment under section 1 of this chapter more than three (3)
years after the latest of the date the return is filed, or the following:
(1) The due date of the return.
(2) In the case of a return filed for the state gross retail or use tax,
the gasoline use tax, the gasoline tax (including the inventory
tax), the special fuel tax (including the inventory tax), the motor
carrier fuel tax (including the inventory tax), the oil inspection
fee, the cigarette tax, the tobacco products tax, any county
innkeeper's taxes imposed under IC 6-9, any food and beverage
taxes imposed under IC 6-9, any county or local admissions taxes
imposed under IC 6-9, or the petroleum severance tax, a periodic
tax, thirty-one (31) days after the end of the calendar year which
contains the taxable period for which the return is filed.
(3) In the case of the use tax, three (3) years and thirty-one (31)
days from the end of the calendar year in which the first taxable
use, other than an incidental nonexempt use, of the property
occurred.
(b) If a person files a return for the utility receipts tax (IC 6-2.3)
(repealed), adjusted gross income tax (IC 6-3), pass through entity tax
(IC 6-3-2.1), supplemental net income tax (IC 6-3-8) (repealed), county
adjusted gross income tax (IC 6-3.5-1.1) (repealed), county option
income tax (IC 6-3.5-6) (repealed), local income tax (IC 6-3.6), or
financial institutions tax (IC 6-5.5) that understates the person's
income, as that term is defined in the particular income tax law, by at
least twenty-five percent (25%), the proposed assessment limitation is
six (6) years instead of the three (3) years provided in subsection (a).
(c) In the case of the vehicle excise tax (IC 6-6-5), the tax shall be
SEA 228 23
assessed as provided in IC 6-6-5 and shall include the penalties and
interest due on all listed taxes not paid by the due date. A person that
fails to properly register a vehicle as required by IC 9-18 (before its
expiration) or IC 9-18.1 and pay the tax due under IC 6-6-5 is
considered to have failed to file a return for purposes of this article.
(d) In the case of the commercial vehicle excise tax imposed under
IC 6-6-5.5, the tax shall be assessed as provided in IC 6-6-5.5 and shall
include the penalties and interest due on all listed taxes not paid by the
due date. A person that fails to properly register a commercial vehicle
as required by IC 9-18 (before its expiration) or IC 9-18.1 and pay the
tax due under IC 6-6-5.5 is considered to have failed to file a return for
purposes of this article.
(e) In the case of the excise tax imposed on recreational vehicles
and truck campers under IC 6-6-5.1, the tax shall be assessed as
provided in IC 6-6-5.1 and must include the penalties and interest due
on all listed taxes not paid by the due date. A person that fails to
properly register a recreational vehicle as required by IC 9-18 (before
its expiration) or IC 9-18.1 and pay the tax due under IC 6-6-5.1 is
considered to have failed to file a return for purposes of this article. A
person that fails to pay the tax due under IC 6-6-5.1 on a truck camper
is considered to have failed to file a return for purposes of this article.
(f) In the case of a credit against a listed tax based on payments of
taxes to a state or local jurisdiction outside Indiana or payments of
amounts that are subsequently refunded or returned, a proposed
assessment for the refunded or returned credit must be issued by the
later of:
(1) the date by which a proposed assessment must be issued under
this section; or
(2) one hundred eighty (180) days from the date the taxpayer
notifies the department of the refund or return of payment.
For purposes of this subsection, if a taxpayer receives a refund of an
amount paid by or on behalf of the taxpayer for a listed tax, that refund
shall not be considered the payment of an amount that is subsequently
refunded or returned.
(g) If a person files a fraudulent, unsigned, or substantially blank
return, or if a person does not file a return, there is no time limit within
which the department must issue its proposed assessment, except as
provided in subsection (l).
(h) If any part of a listed tax has been erroneously refunded by the
department, the erroneous refund may be recovered through the
assessment procedures established in this chapter. An assessment
issued for an erroneous refund must be issued within the later of:
SEA 228 24
(1) the period for which an assessment could otherwise be issued
under this section; or
(2) whichever is applicable:
(A) within two (2) years after making the refund; or
(B) within five (5) years after making the refund if the refund
was induced by fraud or misrepresentation.
(i) If, before the end of the time within which the department may
make an assessment, the department and the person agree to extend
that assessment period, the period may be extended according to the
terms of a written agreement signed by both the department and the
person. The agreement must contain:
(1) the date to which the extension is made; and
(2) a statement that the person agrees to preserve the person's
records until the extension terminates.
The department and a person may agree to more than one (1) extension
under this subsection.
(j) Except as otherwise provided in subsection (k), if a taxpayer's
federal taxable income, federal adjusted gross income, or federal
income tax liability for a taxable year is modified due to a modification
as provided under IC 6-3-4-6(c) and IC 6-3-4-6(d) (for the adjusted
gross income tax), or a modification or alteration as provided under
IC 6-5.5-6-6(c) and IC 6-5.5-6-6(e) (for the financial institutions tax),
then the date by which the department must issue a proposed
assessment under section 1 of this chapter for tax imposed under IC 6-3
is extended to six (6) months after the date on which the notice of
modification is filed with the department by the taxpayer.
(k) The following apply:
(1) This subsection applies to partnerships whose taxable year:
(A) begins after December 31, 2017;
(B) ends after August 12, 2018; or
(C) begins after November 2, 2015, and before January 1,
2018, and for which a valid election under United States
Treasury Regulation 301.9100-22 is in effect;
and to the partners of such partnerships, including any partners,
shareholders, or beneficiaries of a pass through entity that is a
partner in such partnership.
(2) Notwithstanding any other provision of this article, if a
partnership is subject to federal income tax liability or a federal
tax adjustment at the partnership level as the result of a
modification under Sections 6221 through 6241 of the Internal
Revenue Code, the date on which the department must issue a
proposed assessment to either the partners or the partnership shall
SEA 228 25
be the later of:
(A) the date on which a proposed assessment must otherwise
be issued to the partner or the partnership under this section or
IC 6-3-4.5 with regard to the taxable year of the partnership to
which the modification is taxed at the partnership level; or
(B) December 31, 2021.
(3) For purposes of this section and IC 6-8.1-9-1, a modification
under this subsection shall be considered a modification to the
federal taxable income, federal adjusted gross income, or federal
income tax liability of both the partners and the partnership within
the meaning of IC 6-3-4-6 and IC 6-5.5-6-6, and shall be
considered to be included in the federal taxable income or federal
adjusted gross income of both the partners and partnerships for
purposes of this article and IC 6-5.5.
(4) If a modification made to a partnership for federal income tax
purposes is reported to the partners to determine the partners'
respective federal taxable income, federal adjusted gross income,
or federal income tax liability, including reporting to partners as
the result of an election made under Section 6226 of the Internal
Revenue Code, subdivision (2) shall not apply, and those
modifications shall be treated as modifications to the partners'
federal taxable income, federal adjusted gross income, or federal
income tax liability for purposes of the following:
(A) This section.
(B) IC 6-3-4-6.
(C) IC 6-5.5-6-6.
(D) IC 6-8.1-9-1.
(l) Notwithstanding any other provision, a nonresident individual is
considered to have filed a return for purposes of this section for a
taxable year if the individual does not file a return otherwise required
under IC 6-3-4-1 for a taxable year and all of the following apply:
(1) the:
(A) individual did not have income from sources within
Indiana; or
(B) only income derived from sources within Indiana and
includible in the individual's adjusted gross income is
distributive share income from one (1) or more pass through
entities (as defined by IC 6-3-1-35);
(2) the individual is not a resident of Indiana for any portion of
the taxable year;
(3) the individual does not request a reduction in tax withholding
for a pass through entity under IC 6-3-4-12, IC 6-3-4-13, or
SEA 228 26
IC 6-3-4-15 for the taxable year; and
(4) all pass through entities from which the individual derives
income from Indiana sources:
(A) file a composite return required under IC 6-3-4-12,
IC 6-3-4-13, or IC 6-3-4-15; and
(B) include the individual on the composite return.
(m) The following provisions apply to subsection (l):
(1) If an individual is married and files a joint federal tax return
with the individual's spouse, the individual is considered to have
filed a return for purposes of this section only if both the
individual and the individual's spouse meet the conditions under
subsection (l)(1) through (l)(4).
(2) If an individual does not file a return, the last date for
assessment with regard to the individual's share of income from
a pass through entity shall be determined at the pass through
entity and shall be determined separately for each pass through
entity.
(3) In the event the individual files a return, the period for
assessment shall be determined based on the individual's filing
unless a different period for assessment is prescribed under this
title.
(4) The individual is required to file a return to request a refund
or carryforward of an overpayment for a taxable year.
(5) If the individual has a net operating loss deduction under
IC 6-3-2-2.5 or IC 6-3-2-2.6, or a credit carryforward allowable
under IC 6-3-3 or IC 6-3.1 for the taxable year, the amount of net
operating loss or credit carryforward shall be reduced to reflect
the amount of net operating loss or credit carryforward that
otherwise would have been allowable for the taxable year.
SECTION 21. IC 6-8.1-7-1, AS AMENDED BY P.L.194-2023,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 1. (a) This subsection does not apply to the
disclosure of information concerning a conviction on a tax evasion
charge. Unless in accordance with a judicial order or as otherwise
provided in this chapter, the department, its employees, former
employees, counsel, agents, or any other person may not divulge the
amount of tax paid by any taxpayer, terms of a settlement agreement
executed between a taxpayer and the department, investigation records,
investigation reports, or any other information disclosed by the reports
filed under the provisions of the law relating to any of the listed taxes,
including required information derived from a federal return, except to
any of the following when it is agreed that the information is to be
SEA 228 27
confidential and to be used solely for official purposes:
(1) Members and employees of the department.
(2) The governor.
(3) A member of the general assembly or an employee of the
house of representatives or the senate when acting on behalf of a
taxpayer located in the member's legislative district who has
provided sufficient information to the member or employee for
the department to determine that the member or employee is
acting on behalf of the taxpayer.
(4) An employee of the legislative services agency to carry out the
responsibilities of the legislative services agency under
IC 2-5-1.1-7 or another law.
(5) The attorney general or any other legal representative of the
state in any action in respect to the amount of tax due under the
provisions of the law relating to any of the listed taxes.
(6) Any authorized officers of the United States.
(b) The information described in subsection (a) may be revealed
upon the receipt of a certified request of any designated officer of the
state tax department of any other state, district, territory, or possession
of the United States when:
(1) the state, district, territory, or possession permits the exchange
of like information with the taxing officials of the state; and
(2) it is agreed that the information is to be confidential and to be
used solely for tax collection purposes.
(c) The information described in subsection (a) relating to a person
on public welfare or a person who has made application for public
welfare may be revealed to the director of the division of family
resources, and to any director of a county office of the division of
family resources located in Indiana, upon receipt of a written request
from either director for the information. The information shall be
treated as confidential by the directors. In addition, the information
described in subsection (a) relating to a person who has been
designated as an absent parent by the state Title IV-D agency shall be
made available to the state Title IV-D agency upon request. The
information shall be subject to the information safeguarding provisions
of the state and federal Title IV-D programs.
(d) The name, address, Social Security number, and place of
employment relating to any individual who is delinquent in paying
educational loans owed to a postsecondary educational institution may
be revealed to that institution if it provides proof to the department that
the individual is delinquent in paying for educational loans. This
information shall be provided free of charge to approved postsecondary
SEA 228 28
educational institutions (as defined by IC 21-7-13-6(a)). The
department shall establish fees that all other institutions must pay to the
department to obtain information under this subsection. However, these
fees may not exceed the department's administrative costs in providing
the information to the institution.
(e) The information described in subsection (a) relating to reports
submitted under IC 6-6-1.1-502 concerning the number of gallons of
gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
gallons of special fuel sold by a supplier and the number of gallons of
special fuel exported by a licensed exporter or imported by a licensed
transporter may be released by the commissioner upon receipt of a
written request for the information.
(f) The information described in subsection (a) may be revealed
upon the receipt of a written request from the administrative head of a
state agency of Indiana when:
(1) the state agency shows an official need for the information;
and
(2) the administrative head of the state agency agrees that any
information released will be kept confidential and will be used
solely for official purposes.
(g) The information described in subsection (a) may be revealed
upon the receipt of a written request from the chief law enforcement
officer of a state or local law enforcement agency in Indiana when it is
agreed that the information is to be confidential and to be used solely
for official purposes.
(h) The name and address of retail merchants, including township,
as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
purposes to township assessors and county assessors.
(i) The department shall notify the appropriate innkeeper's tax
board, bureau, or commission that a taxpayer is delinquent in remitting
innkeepers' taxes under IC 6-9.
(j) All information relating to the delinquency or evasion of the
vehicle excise tax may be disclosed to the bureau of motor vehicles in
Indiana and may be disclosed to another state, if the information is
disclosed for the purpose of the enforcement and collection of the taxes
imposed by IC 6-6-5.
(k) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable to the bureau of motor
vehicles in Indiana may be disclosed to the bureau and may be
disclosed to another state, if the information is disclosed for the
purpose of the enforcement and collection of the taxes imposed by
IC 6-6-5.5.
SEA 228 29
(l) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable under the International
Registration Plan may be disclosed to another state, if the information
is disclosed for the purpose of the enforcement and collection of the
taxes imposed by IC 6-6-5.5.
(m) All information relating to the delinquency or evasion of the
excise taxes imposed on recreational vehicles and truck campers that
are payable to the bureau of motor vehicles in Indiana may be disclosed
to the bureau and may be disclosed to another state if the information
is disclosed for the purpose of the enforcement and collection of the
taxes imposed by IC 6-6-5.1.
(n) This section does not apply to:
(1) the beer excise tax, including brand and packaged type (IC
7.1-4-2);
(2) the liquor excise tax (IC 7.1-4-3);
(3) the wine excise tax (IC 7.1-4-4);
(4) the hard cider excise tax (IC 7.1-4-4.5);
(5) the vehicle excise tax (IC 6-6-5);
(6) the commercial vehicle excise tax (IC 6-6-5.5); and
(7) the fees under IC 13-23.
(o) The name and business address of retail merchants within each
county that sell tobacco products may be released to the division of
mental health and addiction and the alcohol and tobacco commission
solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
(p) The name and business address of a person licensed by the
department under IC 6-6 or IC 6-7, or issued a registered retail
merchant's certificate under IC 6-2.5, may be released for the purpose
of reporting the status of the person's license or certificate.
(q) The department may release information concerning total
incremental tax amounts under:
(1) IC 5-28-26;
(2) IC 36-7-13;
(3) IC 36-7-26;
(4) IC 36-7-27;
(5) IC 36-7-31;
(6) IC 36-7-31.3; or
(7) any other statute providing for the calculation of incremental
state taxes that will be distributed to or retained by a political
subdivision or other entity;
to the fiscal officer of the political subdivision or other entity that
established the district or area from which the incremental taxes were
received if that fiscal officer enters into an agreement with the
SEA 228 30
department specifying that the political subdivision or other entity will
use the information solely for official purposes.
(r) The department may release the information as required in
IC 6-8.1-3-7.1 concerning:
(1) an innkeeper's tax, a food and beverage tax, or an admissions
tax under IC 6-9;
(2) the supplemental auto rental excise tax under IC 6-6-9.7; and
(3) the covered taxes allocated to a professional sports
development area fund, sports and convention facilities operating
fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
(s) Information concerning state gross retail tax exemption
certificates that relate to a person who is exempt from the state gross
retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
defined in IC 6-2.5-1-22.5) or a person selling the services or
commodities listed in IC 6-2.5-4-5 for the purpose of enforcing and
collecting the state gross retail and use taxes under IC 6-2.5.
(t) The department may release a statement of tax withholding or
other tax information statement provided on behalf of a taxpayer to the
department to:
(1) the taxpayer on whose behalf the tax withholding or other tax
information statement was provided to the department;
(2) the taxpayer's spouse, if:
(A) the taxpayer is deceased or incapacitated; and
(B) the taxpayer's spouse is filing a joint income tax return
with the taxpayer; or
(3) an administrator, executor, trustee, or other fiduciary acting on
behalf of the taxpayer if the taxpayer is deceased.
(u) Information related to a listed tax regarding a taxpayer may be
disclosed to an individual without a power of attorney under
IC 6-8.1-3-8(a)(2) if:
(1) the individual is authorized to file returns and remit payments
for one (1) or more listed taxes on behalf of the taxpayer through
the department's online tax system before September 8, 2020;
(2) the information relates to a listed tax described in subdivision
(1) for which the individual is authorized to file returns and remit
payments;
(3) the taxpayer has been notified by the department of the
individual's ability to access the taxpayer's information for the
listed taxes described in subdivision (1) and the taxpayer has not
objected to the individual's access;
(4) the individual's authorization or right to access the taxpayer's
information for a listed tax described in subdivision (1) has not
SEA 228 31
been withdrawn by the taxpayer; and
(5) disclosure of the information to the individual is not
prohibited by federal law.
Except as otherwise provided by this article, this subsection does not
authorize the disclosure of any correspondence from the department
that is mailed or otherwise delivered to the taxpayer relating to the
specified listed taxes for which the individual was given authorization
by the taxpayer. The department shall establish a date, which may be
earlier but not later than September 1, 2023, after which a taxpayer's
information concerning returns and remittances for a listed tax may not
be disclosed to an individual without a power of attorney under
IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
previously authorized individuals, including notification published on
the department's website. After the earlier of the date established by the
department or September 1, 2023, the department may not disclose a
taxpayer's information concerning returns and remittances for a listed
tax to an individual unless the individual has a power of attorney under
IC 6-8.1-3-8(a)(2) or the disclosure is otherwise allowed under this
article.
(v) The department may publish a list of persons, corporations, or
other entities that qualify or have qualified for an exemption for sales
tax under IC 6-2.5-5-16, IC 6-2.5-5-25, or IC 6-2.5-5-26, or otherwise
provide information regarding a person's, corporation's, or entity's
exemption status under IC 6-2.5-5-16, IC 6-2.5-5-25, or IC 6-2.5-5-26.
For purposes of this subsection, information that may be disclosed
includes:
(1) any federal identification number or other identification
number for the entity assigned by the department;
(2) any expiration date of an exemption under IC 6-2.5-5-25;
(3) whether any sales tax exemption has expired or has been
revoked by the department; and
(4) any other information reasonably necessary for a recipient of
an exemption certificate to determine if an exemption certificate
is valid.
(w) The department may share a taxpayer's name and other
personal identification information with a tax preparer or tax
preparation software provider in cases where the department
suspects that a fraudulent return has been filed on behalf of a
taxpayer and the department suspects that the system of a
taxpayer's previous year tax preparer or tax preparation software
provider has been breached.
SECTION 22. IC 6-8.1-8-3, AS AMENDED BY P.L.234-2019,
SEA 228 32
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 3. (a) The county sheriff of a county shall
attempt to levy on and collect a judgment arising from a tax warrant in
that county for a period of one hundred twenty (120) days from the date
the judgment lien is entered, unless the sheriff is relieved of that duty
at an earlier time by the department. The sheriff shall also have
authority to attempt to levy on and collect the outstanding tax liability
if the taxpayer does not pay the amount demanded under section 2(b)
of this chapter and the taxpayer has taken an action under section 2(n)
of this chapter to foreclose the lien. The sheriff's authority to collect the
warrant exists only while the sheriff holds the tax warrant, and if the
sheriff surrenders the warrant to the department for any reason the
sheriff's authority to collect that tax warrant ceases. During the period
that the sheriff has the duty to collect a tax warrant, the sheriff shall
collect from the person owing the tax, an amount equal to the amount
of the judgment lien plus the accrued interest to the date of the
payment. Subject to subsection (b), the sheriff shall make the collection
by garnisheeing the person's wages and by levying on and selling any
interest in property or rights in any chose in action that the person has
in the county. The Indiana laws which provide relief for debtors by
exempting certain property from levy by creditors do not apply to levy
and sale proceedings for judgments arising from tax warrants.
(b) A sheriff shall sell property to satisfy a tax warrant in a manner
that is reasonably likely to bring the highest net proceeds from the sale
after deducting the expenses of the offer to sell and sale. A sheriff may
engage an auctioneer to advertise a sale and to conduct a public
auction, unless the person being levied files an objection with the clerk
of the circuit or superior court having the tax warrant within five (5)
days of the day that the sheriff informs the person of the person's right
to object. The advertising conducted by the auctioneer is in addition to
any other notice required by law, and shall include a detailed
description of the property to be sold. When an auctioneer is engaged
under this subsection and the auctioneer files a verified claim with the
clerk of the circuit or superior court with whom the tax warrant is filed,
the sheriff may pay the reasonable fee and reasonable expenses of the
auctioneer from the gross proceeds of the sale before other expenses
and the judgment arising from the tax warrant are paid. As used in this
section, "auctioneer" means an auctioneer licensed under IC 25-6.1.
(c) The sheriff shall deposit all amounts that the sheriff collects
under this section, including partial payments, into a special trust
account for judgments collected that arose from tax warrants. The
sheriff shall notify the department, in a manner specified by the
SEA 228 33
department, of the name of the taxpayer and the amount of the payment
within seven (7) days of receipt. In the event of an emergency, a
taxpayer may direct the sheriff to make a remit received payment
payments on the taxpayer's behalf through the department's direct
electronic interface or by using the department's electronic payment
sheriff portal. when certified funds have been received by the sheriff.
On or before the fifth and the twentieth day of each month, the sheriff
shall disburse the money in the tax warrant judgment lien trust account
in the following order:
(1) The sheriff shall pay the department the part of the collections
that represents taxes, interest, and penalties.
(2) The sheriff shall pay the county treasurer and the clerk of the
circuit or superior court the part of the collections that represents
their assessed costs.
(3) Except as provided in subdivisions (4) and (5), the sheriff
shall keep the part of the collections that represents the ten
percent (10%) collection fee added under section 2(b) of this
chapter.
(4) If the sheriff has entered a salary contract under
IC 36-2-13-2.5, the sheriff shall deposit in the county general fund
the part of the collections that represents the ten percent (10%)
collection fee added under section 2(b) of this chapter.
(5) If the sheriff has not entered into a salary contract under
IC 36-2-13-2.5, the sheriff shall deposit in the county general fund
the part of the collections that:
(A) represents the ten percent (10%) collection fee added
under section 2(b) of this chapter; and
(B) would, if kept by the sheriff, result in the total amount of
the sheriff's annual compensation exceeding the maximum
amount allowed under IC 36-2-13-17.
The department shall establish the procedure for the disbursement of
partial payments so that the intent of this section is carried out.
(d) After the period described in subsection (a) has passed, the
sheriff shall return the tax warrant to the department. However, if the
department determines that:
(1) at the end of this period the sheriff is in the process of
collecting the judgment arising from a tax warrant in periodic
payments of sufficient size that the judgment will be fully paid
within one (1) year after the date the judgment was filed; and
(2) the sheriff's electronic data base regarding tax warrants is
compatible with the department's data base;
the sheriff may keep the tax warrant and continue collections.
SEA 228 34
(e) Notwithstanding any other provision of this chapter, the
department may order a sheriff to return a tax warrant at any time, if the
department feels that action is necessary to protect the interests of the
state.
(f) This subsection applies only to the sheriff of a county having a
consolidated city or a second class city. In such a county, the ten
percent (10%) collection fee added under section 2(b) of this chapter
shall be divided as follows:
(1) Subject to subsection (g), the sheriff may retain forty thousand
dollars ($40,000), plus one-fifth (1/5) of any fees exceeding that
forty thousand dollar ($40,000) amount.
(2) Two-fifths (2/5) of any fees exceeding that forty thousand
dollar ($40,000) amount shall be deposited in the sheriff's
department's pension trust fund.
(3) Two-fifths (2/5) of any fees exceeding that forty thousand
dollar ($40,000) amount shall be deposited in the county general
fund.
(g) If an amount of the collection fee added under section 2(b) of
this chapter would, if retained by the sheriff under subsection (f)(1),
cause the total amount of the sheriff's annual compensation to exceed
the maximum amount allowed under IC 36-2-13-17, the sheriff shall
instead deposit the amount in the county general fund.
(h) Money deposited into a county general fund under subsections
(c)(5) and (g) must be used as follows:
(1) To reduce any unfunded liability of a sheriff's pension trust
plan established for the county's sheriff's department.
(2) Any amounts remaining after complying with subdivision (1)
must be applied to the costs incurred to operate the county's
sheriff's department.
SECTION 23. IC 6-8.1-9-1, AS AMENDED BY P.L.159-2021,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 1. (a) If a person has paid more tax than the
person determines is legally due for a particular taxable period, the
person may file a claim for a refund with the department. Except as
provided in subsections (j), (k), (l), (m), and (n), in order to obtain the
refund, the person must file the claim with the department within three
(3) years after the later of the following:
(1) The due date of the return.
(2) The date of payment.
For purposes of this section, the due date for a return filed for the state
gross retail or use tax, the gasoline use tax, the gasoline tax (including
the inventory tax), the special fuel tax (including the inventory tax), the
SEA 228 35
motor carrier fuel tax (including the inventory tax), the oil inspection
fee, the cigarette tax, the tobacco products tax, any county innkeeper's
taxes imposed under IC 6-9, any food and beverage taxes imposed
under IC 6-9, any county or local admissions taxes imposed under
IC 6-9, or the petroleum severance tax a periodic tax is thirty-one
(31) days after the end of the calendar year which contains the taxable
period for which the return is filed. The claim must set forth the
amount of the refund to which the person is entitled and the reasons
that the person is entitled to the refund.
(b) After considering the claim and all evidence relevant to the
claim, the department shall issue a decision on the claim, stating the
part, if any, of the refund allowed and containing a statement of the
reasons for any part of the refund that is denied. The department shall
mail a copy of the decision to the person that filed the claim. If the
person disagrees with a part of the decision on the claim, the person
may file a protest and request a hearing with the department. If the
department allows the full amount of the refund claim, a warrant for the
payment of the claim is sufficient notice of the decision.
(c) The tax court shall hear the appeal de novo and without a jury,
and after the hearing may order or deny any part of the appealed
refund. The court may assess the court costs in any manner that it feels
is equitable. The court may enjoin the collection of any of the listed
taxes under IC 33-26-6-2. The court may also allow a refund of taxes,
interest, and penalties that have been paid to and collected by the
department.
(d) The decision on the claim must state that the person has sixty
(60) days from the date the decision is mailed to file a written protest.
If the person files a protest and requests a hearing on the protest, the
department shall:
(1) set the hearing at the department's earliest convenient time;
and
(2) notify the person by United States mail of the time, date, and
location of the hearing.
(e) The department may hold the hearing at the location of its choice
within Indiana if that location complies with IC 6-8.1-3-8.5.
(f) After conducting a hearing on a protest, or after making a
decision on a protest when no hearing is requested, the department
shall issue a memorandum of decision or order denying a refund and
shall send a copy of the decision through the United States mail to the
person that filed the protest. If the department allows the full amount
of the refund claim, a warrant for the payment of the claim is sufficient
notice of the decision. The department may continue the hearing until
SEA 228 36
a later date if the taxpayer presents additional information at the
hearing or the taxpayer requests an opportunity to present additional
information after the hearing.
(g) A person that disagrees with any part of the department's
determination in a memorandum of decision or order denying a refund
may request a rehearing not more than thirty (30) days after the date on
which the memorandum of decision or order denying a refund is issued
by the department. The department shall consider the request and may
grant the rehearing if the department reasonably believes that a
rehearing would be in the best interests of the taxpayer and the state.
If the department grants the rehearing, the department shall issue a
supplemental order denying a refund or a supplemental memorandum
of decision based on the rehearing, whichever is applicable.
(h) If the person disagrees with any part of the department's
determination, the person may appeal the determination, regardless of
whether or not the person protested the tax payment or whether or not
the person has accepted a refund. The person must file the appeal with
the tax court. The tax court does not have jurisdiction to hear a refund
appeal if:
(1) the appeal is filed more than ninety (90) days after the latest
of the dates on which:
(A) the memorandum of decision or order denying a refund is
issued by the department, if the person does not make a timely
request for a rehearing under subsection (g) on the
memorandum of decision or order denying a refund;
(B) the department issues a denial of the person's timely
request for a rehearing under subsection (g) on the
memorandum of decision or order denying a refund; or
(C) the department issues a supplemental memorandum of
decision or supplemental order denying a refund following a
rehearing granted under subsection (g); or
(2) the appeal is filed both before the decision is issued and
before the one hundred eighty-first day after the date the person
files the claim for a refund with the department.
The ninety (90) day period may be extended according to the terms of
a written agreement signed by both the department and the person. The
agreement must specify a date upon which the extension will terminate
and include a statement that the person agrees to preserve the person's
records until that specified termination date. The specified termination
date agreed upon under this subsection may not be more than ninety
(90) days after the expiration of the period otherwise specified by this
subsection.
SEA 228 37
(i) With respect to the vehicle excise tax, this section applies only
to penalties and interest paid on assessments of the vehicle excise tax.
Any other overpayment of the vehicle excise tax is subject to IC 6-6-5.
(j) If a taxpayer's federal taxable income, federal adjusted gross
income, or federal income tax liability for a taxable year is modified by
the Internal Revenue Service, and the modification would result in a
reduction of the tax legally due, the due date by which the taxpayer
must file a claim for refund with the department is the latest of:
(1) the date determined under subsection (a);
(2) the date that is one hundred eighty (180) days after the date of
the modification by the Internal Revenue Service as provided
under:
(A) IC 6-3-4-6(c) and IC 6-3-4-6(d) (for the adjusted gross
income tax); or
(B) IC 6-5.5-6-6(c) and IC 6-5.5-6-6(d) (for the financial
institutions tax); or
(3) in the case of a modification described in IC 6-8.1-5-2(k)(1)
through IC 6-8.1-5-2(k)(3), the date provided in IC 6-3-4.5 for
such refunds or December 31, 2021, whichever is later.
(k) Notwithstanding any other provision of this section, if an
individual received a severance payment described in Section
3(a)(1)(A) of the Combat-Injured Veterans Tax Fairness Act of 2016
(P.L. 114-292) and upon which the United States Secretary of Defense
withheld tax under IC 6-3, IC 6-3.5-1.1 (before its repeal), IC 6-3.5-6
(before its repeal), IC 6-3.5-7 (before its repeal), or IC 6-3.6, the
individual must file a claim for refund for taxes that were overpaid and
attributable to the severance payment not later than December 31,
2020. Any refund under this subsection shall be computed without
regard to subsection (a)(2). The department may establish procedures
to provide standard refund amounts if a standard refund amount is
requested from the Internal Revenue Service.
(l) Notwithstanding any other provision of this section, a taxpayer
may file a claim for refund for any taxes under IC 6-3 or IC 6-5.5 that
the taxpayer expected to be due as a result of an Internal Revenue
Service audit not later than the date otherwise prescribed in this section
or one hundred eighty (180) days after the date the taxpayer is notified
that the audit resulted in no change or, if the audit resulted in a
modification, the date of the modification as provided under:
(1) IC 6-3-4-6(c) and IC 6-3-4-6(d) (for adjusted gross income
tax); or
(2) IC 6-5.5-6-6(c) and IC 6-5.5-6-6(d) (for the financial
institutions tax);
SEA 228 38
whichever is later.
(m) If a taxpayer has an overpayment for a listed tax as a result of
a credit of taxes paid to another state, country, or local jurisdiction in
another state or country, and those taxes were assessed by the state,
country, or local jurisdiction after the period for which a refund could
have been claimed for that listed tax under this section, the period for
requesting the refund under this section is extended to one hundred
eighty (180) days after payment of the tax to the state, country, or local
jurisdiction.
(n) If an agreement to extend the assessment time period is entered
into under IC 6-8.1-5-2(i), the period during which a person may file
a claim for a refund under subsection (a) is extended to the same date
to which the assessment time period is extended.
SECTION 24. IC 6-8.1-9-2, AS AMENDED BY P.L.159-2021,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. (a) If the department finds that a person has
paid more tax for a taxable year than is legally due, the department
shall apply the amount of the excess against any amount of that same
tax that is assessed and is currently due. The department may then
apply any remaining excess against any of the listed taxes that have
been assessed against the person and that are currently due. Subject to
subsection (c), if any excess remains after the department has applied
the overpayment against the person's tax liabilities, the department
shall either refund the amount to the person or, at the person's request,
credit the amount to the person's future tax liabilities.
(b) Subject to subsection (c), if a court determines that a person has
paid more tax for a taxable year than is legally due, the department
shall refund the excess amount to the person.
(c) As used in this subsection, "pass through entity" means a
corporation that is exempt from the adjusted gross income tax under
IC 6-3-2-2.8(2), a partnership, a limited liability company, or a limited
liability partnership and "pass through income" means a person's
distributive share of adjusted gross income for a taxable year
attributable to the person's interest in a pass through entity. This
subsection applies to a person's overpayment of adjusted gross income
tax for a taxable year if:
(1) the person has filed a timely claim for refund with respect to
the overpayment under IC 6-8.1-9-1; section 1 of this chapter;
(2) the overpayment:
(A) is with respect to a taxable year beginning before January
1, 2009; and
(B) is attributable to amounts paid to the department by:
SEA 228 39
(i) a nonresident shareholder, partner, or member of a pass
through entity;
(ii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of the pass through entity; or
(iii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of another pass through entity; and
(3) the overpayment arises from a determination by the
department or a court that the person's pass through income is not
includible in the person's adjusted gross income derived from
sources within Indiana as a result of the application of
IC 6-3-2-2(a)(5) and IC 6-3-2-2.2(g).
The department shall apply the overpayment to the person's liability for
taxes that have been assessed and are currently due as provided in
subsection (a) and apply any remaining overpayment as a credit or
credits in satisfaction of the person's liability for listed taxes in taxable
years beginning after December 31, 2008. If the person, including any
successor to the person's interest in the overpayment, does not have
sufficient liability for listed taxes against which to credit all the
remaining overpayment in a taxable year beginning after December 31,
2008, and ending before January 1, 2019, the taxpayer is not entitled
for any taxable year ending after December 31, 2018, to have any part
of the remaining overpayment applied, refunded, or credited to the
person's liability for listed taxes. If an overpayment or part of an
overpayment is required to be applied as a credit under this subsection
to the person's liability for listed taxes for a taxable year beginning after
December 31, 2008, and has not been determined by the department or
a court to meet the conditions of subdivision (3) by the due date of the
person's return for a listed tax for a taxable year beginning after
December 31, 2008, the department shall refund to the person that part
of the overpayment that should have been applied as a credit for such
taxable year within ninety (90) days of the date that the department or
a court makes the determination that the overpayment meets the
conditions of subdivision (3). However, the department may establish
a program to refund small overpayment amounts that do not exceed the
threshold dollar value established by the department rather than
crediting the amounts against tax liability accruing for a taxable year
after December 31, 2008. A person that receives a refund or credit
under this subsection shall file a report with the department in the form
and in the schedule specified by the department that identifies under
penalties of perjury the home state or other jurisdiction where the
SEA 228 40
income subject to the refund or credit was reported as income
attributable to that state or jurisdiction.
(d) An excess tax payment that is not refunded or credited against
a current or future tax liability within ninety (90) days after the date the
refund claim is filed, the date the tax payment was due, or the date the
tax was paid, whichever is latest, accrues interest from:
(1) the date the refund claim is filed, if the refund claim is filed
before July 1, 2015; or
(2) for a refund claim filed after June 30, 2015, the latest of:
(A) the date the tax payment was due;
(B) the date the tax was paid;
(C) the date the tax return was filed for the period and tax type
for which the refund is claimed;
(D) in the case of a refund based on payment of a tax by the
taxpayer to another state, country, or locality, the date of such
payment of tax to the other state, country, or locality; or
(E) July 1, 2015;
at the rate established under IC 6-8.1-10-1 until a date, determined by
the department, that does not precede by more than thirty (30) days, the
date on which the refund or credit is made. As used in this subsection,
"refund claim" includes a return and an amended return that indicates
an overpayment of tax. For purposes of this subsection only, the due
date for the payment of the state gross retail or use tax, the oil
inspection fee, and the petroleum severance a periodic tax is
December 31 January 31 of the calendar year following the calendar
year that contains the taxable period for which the payment is remitted.
(e) A person who is liable for the payment of excise taxes under
IC 7.1-4-3 or IC 7.1-4-4 is entitled to claim a credit against the person's
excise tax liability in the amount of the excise taxes paid in duplicate
by the person, or the person's assignors or predecessors, upon both:
(1) the receipt of the goods subject to the excise taxes, as reported
by the person, or the person's assignors or predecessors, on excise
tax returns filed with the department; and
(2) the withdrawal of the same goods from a storage facility
operated under 19 U.S.C. 1555(a).
(f) The amount of the credit under subsection (e) is equal to fifty
percent (50%) of the amount of excise taxes:
(1) that were paid by the person as described in subsection (e)(2);
(2) that are duplicative of excise taxes paid by the person as
described in subsection (e)(1); and
(3) for which the person has not previously claimed a credit.
The credit may be claimed by subtracting the amount of the credit from
SEA 228 41
the amount of the person's excise taxes reported on the person's
monthly excise tax returns filed under IC 7.1-4-6 with the department
for taxes imposed under IC 7.1-4-3 or IC 7.1-4-4. The amount of the
credit that may be taken monthly by the person on each monthly excise
tax return may not exceed ten percent (10%) of the excise tax liability
reported by the person on the monthly excise tax return. The credit may
be claimed on not more than thirty-six (36) consecutive monthly excise
tax returns beginning with the month in which credit is first claimed.
(g) The amount of the credit calculated under subsection (f) must be
used for capital expenditures to:
(1) expand employment; or
(2) assist in retaining employment within Indiana.
The department shall annually verify whether the capital expenditures
made by the person comply with this subsection.
(h) An excess tax payment under section 1(k) of this chapter that is
not refunded or credited against a current or future tax liability within
ninety (90) days after the date the refund claim is filed, the date the tax
payment was due, or the date the tax was paid, whichever is latest,
accrues interest from April 1, 2020. For purposes of this subsection, a
refund claim filed prior to April 1, 2020, shall be treated as filed on
April 1, 2020.
SECTION 25. IC 7.1-4-3-2, AS AMENDED BY P.L.109-2013,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 2. (a) Except as provided in subsections
(b) and (c), the liquor excise tax shall be levied against a permittee
who holds an artisan distiller's permit, a distiller's permit, a rectifier's
permit, a liquor wholesaler's permit, a dining car liquor permit, a
vintner's permit, a wine wholesaler's permit, a dining car wine permit,
or a boat wine permit, whether the sale or gift, or withdrawal for sale
or gift, is to a person authorized to purchase or receive it or not.
However, the same article shall be taxed only once for liquor excise tax
purposes.
(b) In the case of a permittee referenced in subsection (a)
receiving liquor from an unpermitted seller outside Indiana, the
permittee is liable for the liquor excise tax imposed upon the
transaction.
(c) In the case of a permittee referenced in subsection (a)
receiving, selling, or giving liquor within Indiana from or to
another permittee, the permittee who first receives the liquor in
Indiana is liable for the liquor excise tax imposed upon the
transaction.
SECTION 26. IC 7.1-4-4-3, AS AMENDED BY P.L.107-2015,
SEA 228 42
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 3. (a) Except as provided in subsections
(b) and (c), the wine excise tax shall be paid by the holder of a
vintner's permit, a farm winery permit, a wine wholesaler's permit, a
direct wine seller's permit, a dining car wine permit, or a boat wine
permit on the alcoholic beverage to which the tax is applicable and
which has been manufactured or imported by the permit holder into
this state. However, the same article shall be taxed only once for wine
excise tax purposes.
(b) In the case of a permittee referenced in subsection (a)
receiving wine from an unpermitted seller outside Indiana, the
permittee is liable for the wine excise tax imposed upon the
transaction.
(c) In the case of a permittee referenced in subsection (a)
receiving, selling, or giving wine within Indiana from or to another
permittee, the permittee who first receives the wine in Indiana is
liable for the wine excise tax imposed upon the transaction.
SECTION 27. IC 7.1-4-4.5-3, AS AMENDED BY P.L.107-2015,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 3. (a) Except as provided in subsections
(b) and (c), the hard cider excise tax shall be paid by the holder of a
vintner's permit, a farm winery permit, a wine wholesaler's permit, a
direct wine seller's permit, a beer wholesaler's permit, a dining car wine
permit, or a boat wine permit on the hard cider to which the tax is
applicable and that is manufactured or imported by the person into this
state. However, an item may only be taxed once for hard cider excise
tax purposes.
(b) In the case of a permittee referenced in subsection (a)
receiving hard cider from an unpermitted seller outside Indiana,
the permittee is liable for the hard cider excise tax imposed upon
the transaction.
(c) In the case of a permittee referenced in subsection (a)
receiving, selling, or giving hard cider within Indiana from or to
another permittee, the permittee who first receives the hard cider
in Indiana is liable for the hard cider excise tax imposed upon the
transaction.
SECTION 28. IC 8-1-2.8-24 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 24. If the InTRAC
meets the requirements of sections 18 and 21 of this chapter, the
InTRAC:
(1) for purposes of all taxes imposed by the state or any county or
municipality in Indiana is an organization that is organized and
SEA 228 43
operated exclusively for charitable purposes; and
(2) qualifies for all exemptions applicable to those organizations,
including but not limited to those exemptions set forth in
IC 6-2.5-5-21(b)(1)(B) IC 6-2.5-5-25(a)(1)(B) and
IC 6-1.1-10-16.
SECTION 29. IC 13-20-13-7, AS AMENDED BY P.L.159-2021,
SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 7. (a) A fee of
twenty-five cents ($0.25) is imposed on the sale of the following:
(1) Each new tire that is sold at retail.
(2) Each new tire mounted on a new vehicle sold at retail.
(b) The person that sells the new tire or vehicle at retail (including
a retail merchant that meets one (1) or both of the economic thresholds
threshold under IC 6-2.5-2-1(d)) to the ultimate consumer of the tire
or vehicle shall collect the fee imposed by this section.
(c) A person that collects a fee under subsection (b):
(1) shall pay the fees collected under subsection (b):
(A) to the department of state revenue; and
(B) at the same time and in the same manner that the person
pays the state gross retail tax collected by the person to the
department of state revenue;
(2) shall indicate on the return:
(A) prescribed by the department of state revenue; and
(B) used for the payment of state gross retail taxes;
that the person is also paying fees collected under subsection (b);
and
(3) is entitled to deduct and retain one percent (1%) of the fees
required to be paid to the department of state revenue under this
subsection.
(d) The department of state revenue shall deposit fees collected
under this section in the waste tire management fund established by
this chapter.
SECTION 30. IC 16-42-5.2-3.5, AS AMENDED BY P.L.45-2020,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 3.5. (a) An organization that is exempt from the
state gross retail tax under IC 6-2.5-5-21(b)(1)(B),
IC 6-2.5-5-21(b)(1)(C), or IC 6-2.5-5-21(b)(1)(D)
IC 6-2.5-5-25(a)(1)(B), IC 6-2.5-5-25(a)(1)(C), or
IC 6-2.5-5-25(a)(1)(D) is exempt from complying with the
requirements of this chapter.
(b) This section does not prohibit an exempted organization from
waiving the exemption and using a certified food protection manager.
SEA 228 44
SECTION 31. IC 22-11-14-1, AS AMENDED BY P.L.159-2021,
SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 1. As used in this chapter
and IC 22-11-14.5:
"Auto burglar alarm" means a tube that contains pyrotechnic
composition that produces a loud whistle or smoke when ignited. A
small quantity of explosive, not exceeding fifty (50) milligrams, may
also be used to produce a small report. A squib is used to ignite the
device.
"Booby trap" means a small tube with string protruding from both
ends, similar to a party popper in design. The ends of the string are
pulled to ignite the friction sensitive composition, producing a small
report.
"Chaser" means a device, containing fifty (50) milligrams or less of
explosive composition, that consists of a small paper or cardboard tube
that travels along the ground upon ignition. A whistling effect is often
produced, and a small noise may be produced.
"Cigarette load" means a small wooden peg that has been coated
with a small quantity of explosive composition. Upon ignition of a
cigarette containing one (1) of the pegs, a small report is produced.
"Consumer firework" means a small firework that is designed
primarily to produce visible effects by combustion, and that is required
to comply with the construction, chemical composition, and labeling
regulations promulgated by the United States Consumer Product Safety
Commission under 16 CFR 1507. The term also includes some small
devices designed to produce an audible effect, such as whistling
devices, ground devices containing fifty (50) milligrams or less of
explosive composition, and aerial devices containing one hundred
thirty (130) milligrams or less of explosive composition. Propelling or
expelling charges consisting of a mixture of charcoal, sulfur, and
potassium nitrate are not considered as designed to produce an audible
effect. Consumer fireworks:
(1) include:
(A) aerial devices, which include sky rockets, missile type
rockets, helicopter or aerial spinners, roman candles, mines,
and shells;
(B) ground audible devices, which include firecrackers,
salutes, and chasers; and
(C) firework devices containing combinations of the effects
described in clauses (A) and (B); and
(2) do not include the items referenced in section 8(a) of this
chapter.
SEA 228 45
"Cone fountain" means a cardboard or heavy paper cone which
contains up to fifty (50) grams of pyrotechnic composition, and which
produces the same effect as a cylindrical fountain.
"Cylindrical fountain" means a cylindrical tube not exceeding
three-quarters (3/4) inch in inside diameter and containing up to
seventy-five (75) grams of pyrotechnic composition. Fountains produce
a shower of color and sparks upon ignition, and sometimes a whistling
effect. Cylindrical fountains may contain a spike to be inserted in the
ground (spike fountain), a wooden or plastic base to be placed on the
ground (base fountain), or a wooden handle or cardboard handle for
items designed to be hand held (handle fountain).
"Dipped stick" or "wire sparkler" means a stick or wire coated with
pyrotechnic composition that produces a shower of sparks upon
ignition. Total pyrotechnic composition does not exceed one hundred
(100) grams per item. Those devices containing chlorate or perchlorate
salts do not exceed five (5) grams in total composition per item. Wire
sparklers that contain no magnesium and that contain less than one
hundred (100) grams of composition per item are not included in the
category of consumer fireworks.
"Distributor" means a person who sells fireworks to wholesalers and
retailers for resale.
"Explosive composition" means a chemical or mixture of chemicals
that produces an audible effect by deflagration or detonation when
ignited.
"Firecracker" or "salute" is a device that consists of a small paper
wrapped or cardboard tube containing not more than fifty (50)
milligrams of pyrotechnic composition and that produces, upon
ignition, noise, accompanied by a flash of light.
"Firework" means any composition or device designed for the
purpose of producing a visible or audible effect by combustion,
deflagration, or detonation. Fireworks consist of consumer fireworks,
items referenced in section 8(a) of this chapter, and special fireworks.
The following items are excluded from the definition of fireworks:
(1) Model rockets.
(2) Toy pistol caps.
(3) Emergency signal flares.
(4) Matches.
(5) Fixed ammunition for firearms.
(6) Ammunition components intended for use in firearms, muzzle
loading cannons, or small arms.
(7) Shells, cartridges, and primers for use in firearms, muzzle
loading cannons, or small arms.
SEA 228 46
(8) Indoor pyrotechnics special effects material.
(9) M-80s, cherry bombs, silver salutes, and any device banned by
the federal government.
"Flitter sparkler" means a narrow paper tube filled with pyrotechnic
composition that produces color and sparks upon ignition. These
devices do not use a fuse for ignition, but rather are ignited by igniting
the paper at one (1) end of the tube.
"Ground spinner" means a small spinning device that is similar to
wheels in design and effect when placed on the ground and ignited, and
that produces a shower of sparks and color when spinning.
"Helicopter" or "aerial spinner" is a spinning device:
(1) that consists of a tube up to one-half (1/2) inch in inside
diameter and that contains up to twenty (20) grams of pyrotechnic
composition;
(2) to which some type of propeller or blade device is attached;
and
(3) that lifts into the air upon ignition, producing a visible or
audible effect at the height of flight.
"Illuminating torch" means a cylindrical tube that:
(1) contains up to one hundred (100) grams of pyrotechnic
composition;
(2) produces, upon ignition, a colored fire; and
(3) is either a spike, base, or handle type device.
"Importer" means:
(1) a person who imports fireworks from a foreign country; or
(2) a person who brings or causes fireworks to be brought within
this state for subsequent sale.
"Indoor pyrotechnics special effects material" means a chemical
material that is clearly labeled by the manufacturer as suitable for
indoor use (as provided in National Fire Protection Association
Standard 1126 (2001 edition)).
"Interstate wholesaler" means a person who is engaged in interstate
commerce selling fireworks.
"Manufacturer" means a person engaged in the manufacture of
fireworks.
"Mine" or "shell" means a device that:
(1) consists of a heavy cardboard or paper tube up to two and
one-half (2 1/2) inches in inside diameter, to which a wooden or
plastic base is attached;
(2) contains up to forty (40) grams of pyrotechnic composition;
and
(3) propels, upon ignition, stars (pellets of pressed pyrotechnic
SEA 228 47
composition that burn with bright color), whistles, parachutes, or
combinations thereof, with the tube remaining on the ground.
"Missile-type rocket" means a device that is similar to a sky rocket
in size, composition, and effect, and that uses fins rather than a stick for
guidance and stability.
"Municipality" has the meaning set forth in IC 36-1-2-11.
"Party popper" means a small plastic or paper item containing not
more than sixteen (16) milligrams of explosive composition that is
friction sensitive. A string protruding from the device is pulled to ignite
it, expelling paper streamers and producing a small report.
"Person" means an individual, an association, an organization, a
limited liability company, or a corporation.
"Pyrotechnic composition" means a mixture of chemicals that
produces a visible or audible effect by combustion rather than
deflagration or detonation. Pyrotechnic compositions will not explode
upon ignition unless severely confined.
"Responding fire department" means the paid fire department or
volunteer fire department that renders fire protection services to a
political subdivision.
"Retail sales stand" means a temporary business site or location
where goods are to be sold.
"Retailer" means a person who purchases fireworks for resale to
consumers, including a retail merchant that meets one (1) or both of the
economic thresholds threshold under IC 6-2.5-2-1(d).
"Roman candle" means a device that consists of a heavy paper or
cardboard tube not exceeding three-eighths (3/8) inch in inside
diameter and that contains up to twenty (20) grams of pyrotechnic
composition. Upon ignition, up to ten (10) stars (pellets of pressed
pyrotechnic composition that burn with bright color) are individually
expelled at several second intervals.
"Sky rocket" means a device that:
(1) consists of a tube that contains pyrotechnic composition;
(2) contains a stick for guidance and stability; and
(3) rises into the air upon ignition, producing a burst of color or
noise at the height of flight.
"Smoke device" means a tube or sphere containing pyrotechnic
composition that produces white or colored smoke upon ignition as the
primary effect.
"Snake" or "glow worm" means a pressed pellet of pyrotechnic
composition that produces a large, snake-like ash upon burning. The
ash expands in length as the pellet burns. These devices do not contain
mercuric thiocyanate.
SEA 228 48
"Snapper" means a small, paper wrapped item containing a minute
quantity of explosive composition coated on small bits of sand. When
dropped, the device explodes, producing a small report.
"Special discharge location" means a location designated for the
discharge of consumer fireworks by individuals in accordance with
rules adopted under section 3.5 of this chapter.
"Special fireworks" means fireworks designed primarily to produce
visible or audible effects by combustion, deflagration, or detonation,
including firecrackers containing more than one hundred thirty (130)
milligrams of explosive composition, aerial shells containing more than
forty (40) grams of pyrotechnic composition, and other exhibition
display items that exceed the limits for classification as consumer
fireworks.
"Trick match" means a kitchen or book match that has been coated
with a small quantity of explosive or pyrotechnic composition. Upon
ignition of the match, a small report or a shower of sparks is produced.
"Trick noisemaker" means an item that produces a small report
intended to surprise the user.
"Wheel" means a pyrotechnic device that:
(1) is attached to a post or tree by means of a nail or string;
(2) contains up to six (6) driver units (tubes not exceeding
one-half (1/2) inch in inside diameter) containing up to sixty (60)
grams of composition per driver unit; and
(3) revolves, upon ignition, producing a shower of color and
sparks and sometimes a whistling effect.
"Wholesaler" means a person who purchases fireworks for resale to
retailers.
SECTION 32. IC 24-5-0.5-4, AS AMENDED BY P.L.11-2023,
SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 4. (a) A person relying upon an uncured or
incurable deceptive act may bring an action for the damages actually
suffered as a consumer as a result of the deceptive act or five hundred
dollars ($500), whichever is greater. The court may increase damages
for a willful deceptive act in an amount that does not exceed the greater
of:
(1) three (3) times the actual damages of the consumer suffering
the loss; or
(2) one thousand dollars ($1,000).
Except as provided in subsection (k), the court may award reasonable
attorney's fees to the party that prevails in an action under this
subsection. This subsection does not apply to a consumer transaction
in real property, including a claim or action involving a construction
SEA 228 49
defect (as defined in IC 32-27-3-1(5)) brought against a construction
professional (as defined in IC 32-27-3-1(4)), except for purchases of
time shares and camping club memberships. This subsection does not
apply with respect to a deceptive act described in section 3(b)(20) of
this chapter. This subsection also does not apply to a violation of
IC 24-4.7, IC 24-5-12, IC 24-5-14, or IC 24-5-14.5. Actual damages
awarded to a person under this section have priority over any civil
penalty imposed under this chapter.
(b) Any person who is entitled to bring an action under subsection
(a) on the person's own behalf against a supplier for damages for a
deceptive act may bring a class action against such supplier on behalf
of any class of persons of which that person is a member and which has
been damaged by such deceptive act, subject to and under the Indiana
Rules of Trial Procedure governing class actions, except as herein
expressly provided. Except as provided in subsection (k), the court may
award reasonable attorney's fees to the party that prevails in a class
action under this subsection, provided that such fee shall be determined
by the amount of time reasonably expended by the attorney and not by
the amount of the judgment, although the contingency of the fee may
be considered. Except in the case of an extension of time granted by the
attorney general under IC 24-10-2-2(b) in an action subject to IC 24-10,
any money or other property recovered in a class action under this
subsection which cannot, with due diligence, be restored to consumers
within one (1) year after the judgment becomes final shall be returned
to the party depositing the same. This subsection does not apply to a
consumer transaction in real property, except for purchases of time
shares and camping club memberships. This subsection does not apply
with respect to a deceptive act described in section 3(b)(20) of this
chapter. Actual damages awarded to a class have priority over any civil
penalty imposed under this chapter.
(c) The attorney general may bring an action to enjoin a deceptive
act, including a deceptive act described in section 3(b)(20) of this
chapter, notwithstanding subsections (a) and (b). However, the attorney
general may seek to enjoin patterns of incurable deceptive acts with
respect to consumer transactions in real property. In addition, the court
may:
(1) issue an injunction;
(2) order the supplier to make payment of the money unlawfully
received from the aggrieved consumers to be held in escrow for
distribution to aggrieved consumers;
(3) for a knowing violation against a senior consumer, increase
the amount of restitution ordered under subdivision (2) in any
SEA 228 50
amount up to three (3) times the amount of damages incurred or
value of property or assets lost;
(4) order the supplier to pay to the state the reasonable costs of
the attorney general's investigation and prosecution related to the
action;
(5) provide for the appointment of a receiver; and
(6) order the department of state revenue to suspend the supplier's
registered retail merchant certificate, subject to the requirements
and prohibitions contained in IC 6-2.5-8-7(i), IC 6-2.5-8-7(a)(5),
if the court finds that a violation of this chapter involved the sale
or solicited sale of a synthetic drug (as defined in
IC 35-31.5-2-321), a synthetic drug lookalike substance (as
defined in IC 35-31.5-2-321.5 (repealed)) (before July 1, 2019),
a controlled substance analog (as defined in IC 35-48-1-9.3), or
a substance represented to be a controlled substance (as described
in IC 35-48-4-4.6).
(d) In an action under subsection (a), (b), or (c), the court may void
or limit the application of contracts or clauses resulting from deceptive
acts and order restitution to be paid to aggrieved consumers.
(e) In any action under subsection (a) or (b), upon the filing of the
complaint or on the appearance of any defendant, claimant, or any
other party, or at any later time, the trial court, the supreme court, or the
court of appeals may require the plaintiff, defendant, claimant, or any
other party or parties to give security, or additional security, in such
sum as the court shall direct to pay all costs, expenses, and
disbursements that shall be awarded against that party or which that
party may be directed to pay by any interlocutory order by the final
judgment or on appeal.
(f) Any person who violates the terms of an injunction issued under
subsection (c) shall forfeit and pay to the state a civil penalty of not
more than fifteen thousand dollars ($15,000) per violation. For the
purposes of this section, the court issuing an injunction shall retain
jurisdiction, the cause shall be continued, and the attorney general
acting in the name of the state may petition for recovery of civil
penalties. Whenever the court determines that an injunction issued
under subsection (c) has been violated, the court shall award
reasonable costs to the state.
(g) If a court finds any person has knowingly violated section 3 or
10 of this chapter, other than section 3(b)(19), 3(b)(20), or 3(b)(40) of
this chapter, the attorney general, in an action pursuant to subsection
(c), may recover from the person on behalf of the state a civil penalty
of a fine not exceeding five thousand dollars ($5,000) per violation.
SEA 228 51
(h) If a court finds that a person has violated section 3(b)(19) of this
chapter, the attorney general, in an action under subsection (c), may
recover from the person on behalf of the state a civil penalty as follows:
(1) For a knowing or intentional violation, one thousand five
hundred dollars ($1,500).
(2) For a violation other than a knowing or intentional violation,
five hundred dollars ($500).
A civil penalty recovered under this subsection shall be deposited in
the consumer protection division telephone solicitation fund
established by IC 24-4.7-3-6 to be used for the administration and
enforcement of section 3(b)(19) of this chapter.
(i) A senior consumer relying upon an uncured or incurable
deceptive act, including an act related to hypnotism, may bring an
action to recover treble damages, if appropriate.
(j) An offer to cure is:
(1) not admissible as evidence in a proceeding initiated under this
section unless the offer to cure is delivered by a supplier to the
consumer or a representative of the consumer before the supplier
files the supplier's initial response to a complaint; and
(2) only admissible as evidence in a proceeding initiated under
this section to prove that a supplier is not liable for attorney's fees
under subsection (k).
If the offer to cure is timely delivered by the supplier, the supplier may
submit the offer to cure as evidence to prove in the proceeding in
accordance with the Indiana Rules of Trial Procedure that the supplier
made an offer to cure.
(k) A supplier may not be held liable for the attorney's fees and
court costs of the consumer that are incurred following the timely
delivery of an offer to cure as described in subsection (j) unless the
actual damages awarded, not including attorney's fees and costs, exceed
the value of the offer to cure.
(l) If a court finds that a person has knowingly violated section
3(b)(20) of this chapter, the attorney general, in an action under
subsection (c), may recover from the person on behalf of the state a
civil penalty not exceeding one thousand dollars ($1,000) per
consumer. In determining the amount of the civil penalty in any action
by the attorney general under this subsection, the court shall consider,
among other relevant factors, the frequency and persistence of
noncompliance by the debt collector, the nature of the noncompliance,
and the extent to which the noncompliance was intentional. A person
may not be held liable in any action by the attorney general for a
violation of section 3(b)(20) of this chapter if the person shows by a
SEA 228 52
preponderance of evidence that the violation was not intentional and
resulted from a bona fide error, notwithstanding the maintenance of
procedures reasonably adapted to avoid the error. A person may not be
held liable in any action for a violation of this chapter for contacting a
person other than the debtor, if the contact is made in compliance with
the Fair Debt Collection Practices Act.
(m) If a court finds that a person has knowingly or intentionally
violated section 3(b)(40) of this chapter, the attorney general, in an
action under subsection (c), may recover from the person on behalf of
the state a civil penalty in accordance with IC 24-5-14.5-12(b). As
specified in IC 24-5-14.5-12(b), a civil penalty recovered under
IC 24-5-14.5-12(b) shall be deposited in the consumer protection
division telephone solicitation fund established by IC 24-4.7-3-6 to be
used for the administration and enforcement of IC 24-5-14.5. In
addition to the recovery of a civil penalty in accordance with
IC 24-5-14.5-12(b), the attorney general may also recover reasonable
attorney fees and court costs from the person on behalf of the state.
Those funds shall also be deposited in the consumer protection division
telephone solicitation fund established by IC 24-4.7-3-6.
SECTION 33. IC 33-37-5-15, AS AMENDED BY P.L.106-2022,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 15. (a) This section also applies to a clerk of
a township small claims court described in IC 33-34 for service of
process fees collected under IC 33-34-8-1.
(b) The clerk of the county that maintains jurisdiction over the case
shall collect a service of process fee of twenty-eight dollars ($28) from
a party requesting service of a writ, an order, a process, a notice, a tax
warrant, or any other paper completed by the sheriff. A service of
process fee collected under this subsection may be collected only one
(1) time per case for the duration of the case. However, a clerk of the
county that maintains jurisdiction over the case shall collect an
additional service of process fee of twenty-eight dollars ($28) only one
(1) time per case for the entire duration of any postjudgment service.
services provided.
(c) The clerk shall collect from the person who filed the civil action
a service of process fee of sixty dollars ($60), in addition to any other
fee for service of process, if:
(1) a person files a civil action outside Indiana; and
(2) a sheriff in Indiana is requested to perform a service of
process associated with the civil action in Indiana.
(d) A clerk shall transfer fees collected under this section to the
county auditor.
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(e) The county auditor shall deposit fees collected under this section
as follows:
(1) One dollar ($1) from each service of process fee described in
subsection (b) into the clerk's record perpetuation fund
established by the clerk under section 2 of this chapter.
(2) Twenty-seven dollars ($27) from each service of process fee
described in subsection (b) into either:
(A) the pension trust established by the county under
IC 36-8-10-12; or
(B) if the county has not established a pension trust under
IC 36-8-10-12, the county general fund.
SECTION 34. IC 34-6-2-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 20. "Charitable entity",
for purposes of IC 34-30-5, means any entity exempted from state gross
retail tax under IC 6-2.5-5-21(b)(1)(B). IC 6-2.5-5-25(a)(1)(B).
SECTION 35. IC 36-8-16.6-10, AS AMENDED BY P.L.159-2021,
SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 10. As used in this
chapter, "seller" means a person that sells prepaid wireless
telecommunications service to another person, including a retail
merchant that meets one (1) or both of the economic thresholds
threshold under IC 6-2.5-2-1(d).
SECTION 36. [EFFECTIVE JULY 1, 2024] (a) IC 6-8.1-1-4.5, as
added by this act, and IC 6-8.1-5-2 and IC 6-8.1-9-1, both as
amended by this act, apply only in determining statute of
limitations dates that expire after June 30, 2024.
(b) This SECTION expires July 1, 2027.
SECTION 37. [EFFECTIVE JULY 1, 2024] (a) IC 6-8.1-9-2, as
amended by this act, applies only to refund claims filed after June
30, 2024.
(b) This SECTION expires July 1, 2027.
SECTION 38. An emergency is declared for this act.
SEA 228 President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: 	Time: 
SEA 228