Introduced Version
HOUSE BILL No. 1446
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-2.5; IC 6-8.1-7-1.
Synopsis: Sales tax exemption for utility service. Provides a sales tax
exemption for the sale or furnishing of the following services or
commodities by a power subsidiary or a person engaged as a public
utility to a person for commercial or domestic consumption: (1)
Electrical energy. (2) Natural or artificial gas. (3) Water. (4) Steam. (5)
Steam heating service.
Effective: July 1, 2025.
Dvorak
January 21, 2025, read first time and referred to Committee on Ways and Means.
2025 IN 1446—LS 6826/DI 125 Introduced
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1446
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-2.5-1-1, AS AMENDED BY P.L.146-2020,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 1. (a) Except as provided in subsection (b), or (c),
4 "unitary transaction" includes all items of personal property and
5 services which are furnished under a single order or agreement and for
6 which a total combined charge or price is calculated.
7 (b) "Unitary transaction" does not include a transaction that meets
8 one (1) of the exceptions in section 11.5(d) of this chapter.
9 (c) "Unitary transaction" as it applies to the furnishing of public
10 utility commodities or services means the public utility commodities
11 and services which are invoiced in a single bill or statement for
12 payment by the consumer.
13 SECTION 2. IC 6-2.5-1-5, AS AMENDED BY P.L.199-2021,
14 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 5. (a) Except as provided in subsection (b), "gross
16 retail income" means the total amount of consideration, including cash,
17 credit, property, and services, for which tangible personal property is
2025 IN 1446—LS 6826/DI 125 2
1 sold, leased, or rented, valued in money, whether received in money or
2 otherwise, without any deduction for:
3 (1) the seller's cost of the property sold;
4 (2) the cost of materials used, labor or service cost, interest,
5 losses, all costs of transportation to the seller, all taxes imposed
6 on the seller, and any other expense of the seller;
7 (3) charges by the seller for any services necessary to complete
8 the sale, other than delivery and installation charges;
9 (4) delivery charges; or
10 (5) consideration received by the seller from a third party if:
11 (A) the seller actually receives consideration from a party
12 other than the purchaser and the consideration is directly
13 related to a price reduction or discount on the sale;
14 (B) the seller has an obligation to pass the price reduction or
15 discount through to the purchaser;
16 (C) the amount of the consideration attributable to the sale is
17 fixed and determinable by the seller at the time of the sale of
18 the item to the purchaser; and
19 (D) the price reduction or discount is identified as a third party
20 price reduction or discount on the invoice received by the
21 purchaser or on a coupon, certificate, or other documentation
22 presented by the purchaser.
23 For purposes of subdivision (4), delivery charges are charges by the
24 seller for preparation and delivery of the property to a location
25 designated by the purchaser of property, including but not limited to
26 transportation, shipping, postage charges that are not separately stated
27 on the invoice, bill of sale, or similar document, handling, crating, and
28 packing. Delivery charges do not include postage charges that are
29 separately stated on the invoice, bill of sale, or similar document.
30 (b) "Gross retail income" does not include that part of the gross
31 receipts attributable to:
32 (1) the value of any tangible personal property received in a like
33 kind exchange in the retail transaction, if the value of the property
34 given in exchange is separately stated on the invoice, bill of sale,
35 or similar document given to the purchaser;
36 (2) the receipts received in a retail transaction which constitute
37 interest, finance charges, or insurance premiums on either a
38 promissory note or an installment sales contract;
39 (3) discounts, including cash, terms, or coupons that are not
40 reimbursed by a third party that are allowed by a seller and taken
41 by a purchaser on a sale;
42 (4) interest, financing, and carrying charges from credit extended
2025 IN 1446—LS 6826/DI 125 3
1 on the sale of personal property if the amount is separately stated
2 on the invoice, bill of sale, or similar document given to the
3 purchaser;
4 (5) any taxes legally imposed directly on the consumer that are
5 separately stated on the invoice, bill of sale, or similar document
6 given to the purchaser, including an excise tax imposed under
7 IC 6-6-15;
8 (6) installation charges that are separately stated on the invoice,
9 bill of sale, or similar document given to the purchaser;
10 (7) telecommunications nonrecurring charges;
11 (8) postage charges that are separately stated on the invoice, bill
12 of sale, or similar document; or
13 (9) charges for serving or delivering food and food ingredients
14 furnished, prepared, or served for consumption at a location, or on
15 equipment, provided by the retail merchant, to the extent that the
16 charges for the serving or delivery are stated separately from the
17 price of the food and food ingredients when the purchaser pays
18 the charges.
19 (c) Notwithstanding subsection (b)(5):
20 (1) in the case of retail sales of special fuel (as defined in
21 IC 6-6-2.5-22), the gross retail income is the total sales price of
22 the special fuel minus the part of that price attributable to tax
23 imposed under IC 6-6-2.5 or Section 4041 or Section 4081 of the
24 Internal Revenue Code;
25 (2) in the case of retail sales of cigarettes (as defined in
26 IC 6-7-1-2), the gross retail income is the total sales price of the
27 cigarettes including the tax imposed under IC 6-7-1; and
28 (3) in the case of retail sales of consumable material (as defined
29 in IC 6-7-4-2), vapor products (as defined in IC 6-7-4-8), and
30 closed system cartridges (as defined in IC 6-7-2-0.5) under the
31 closed system cartridge tax, the gross retail income received from
32 selling at retail is the total sales price of the consumable material
33 (as defined in IC 6-7-4-2), vapor products (as defined in
34 IC 6-7-4-8), and closed system cartridges (as defined in
35 IC 6-7-2-0.5) including the tax imposed under IC 6-7-4 and
36 IC 6-7-2-7.5.
37 (d) Gross retail income is only taxable under this article to the
38 extent that the income represents:
39 (1) the price of the property transferred, without the rendition of
40 any services; and
41 (2) except as provided in subsection (b), any bona fide charges
42 which are made for preparation, fabrication, alteration,
2025 IN 1446—LS 6826/DI 125 4
1 modification, finishing, completion, delivery, or other service
2 performed in respect to the property transferred before its transfer
3 and which are separately stated on the transferor's records. For
4 purposes of this subdivision, a transfer is considered to have
5 occurred after the delivery of the property to the purchaser.
6 (e) A public utility's or a power subsidiary's gross retail income
7 includes all gross retail income received by the public utility or power
8 subsidiary, including any minimum charge, flat charge, membership
9 fee, or any other form of charge or billing.
10 SECTION 3. IC 6-2.5-4-5 IS REPEALED [EFFECTIVE JULY 1,
11 2025]. Sec. 5. A power subsidiary or a person engaged as a public
12 utility is a retail merchant making a retail transaction when the
13 subsidiary or person furnishes or sells electrical energy, natural or
14 artificial gas, water, steam, or steam heating service to a person for
15 commercial or domestic consumption.
16 SECTION 4. IC 6-2.5-4-6, AS AMENDED BY P.L.84-2011,
17 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2025]: Sec. 6. (a) A person is a retail merchant making a retail
19 transaction when the person:
20 (1) furnishes or sells an intrastate telecommunication service; and
21 (2) receives gross retail income from billings or statements
22 rendered to customers.
23 (b) Notwithstanding subsection (a), a person is not a retail merchant
24 making a retail transaction when:
25 (1) the person furnishes or sells telecommunication services to
26 another person described in this section or in section 5 of this
27 chapter; a power subsidiary or a person engaged as a public
28 utility that furnishes or sells electrical energy, natural or
29 artificial gas, water, steam, or steam heating service to a
30 person for commercial or domestic consumption;
31 (2) the person furnishes telecommunications services to another
32 person who is providing prepaid calling services or prepaid
33 wireless calling services in a retail transaction to customers who
34 access the services described in section 13 of this chapter;
35 (3) the person furnishes intrastate mobile telecommunications
36 service (as defined in IC 6-8.1-15-7) to a customer with a place of
37 primary use that is not located in Indiana (as determined under
38 IC 6-8.1-15); or
39 (4) the person furnishes or sells value added nonvoice data
40 services in a retail transaction to a customer.
41 (c) Subject to IC 6-2.5-12 and IC 6-8.1-15, and notwithstanding
42 subsections (a) and (b), if charges for telecommunication services,
2025 IN 1446—LS 6826/DI 125 5
1 ancillary services, Internet access, audio services, or video services that
2 are not taxable under this article are aggregated with and not separately
3 stated from charges subject to taxation under this article, the charges
4 for nontaxable telecommunication services, ancillary services, Internet
5 access, audio services, or video services are subject to taxation unless
6 the service provider can reasonably identify the charges not subject to
7 the tax from the service provider's books and records kept in the regular
8 course of business.
9 SECTION 5. IC 6-2.5-5-5.1, AS AMENDED BY P.L.118-2024,
10 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2025]: Sec. 5.1. (a) As used in this section, "tangible personal
12 property" includes electricity, gas, water, and steam.
13 (b) Transactions involving tangible personal property are exempt
14 from the state gross retail tax if the person acquiring the property
15 acquires it for direct consumption as a material to be consumed in the
16 direct production of other tangible personal property in the person's
17 business of manufacturing, mining, production, processing, repairing,
18 recycling (as defined in section 45.8 of this chapter), refining, oil
19 extraction, mineral extraction, irrigation, agriculture, floriculture,
20 arboriculture, or horticulture. This exemption includes transactions
21 involving acquisitions of tangible personal property used in
22 commercial printing.
23 (c) Transactions involving tangible personal property are exempt
24 from the state gross retail tax if the person acquiring that property:
25 (1) acquires it for the person's direct consumption as a material to
26 be consumed in an industrial processing service; and
27 (2) is an industrial processor.
28 (d) Transactions involving tangible personal property are exempt
29 from the state gross retail tax if the person acquiring the property:
30 (1) acquires it for the person's direct consumption as a material to
31 be consumed in:
32 (A) the direct application of fertilizers, pesticides, fungicides,
33 seeds, and other tangible personal property; or
34 (B) the direct extraction, harvesting, or processing of
35 agricultural commodities;
36 for consideration; and
37 (2) is occupationally engaged in providing the services described
38 in subdivision (1) on property that is:
39 (A) owned or rented by another person occupationally engaged
40 in agricultural production; and
41 (B) used for agricultural production.
42 (e) Transactions involving electricity, gas, water, and steam
2025 IN 1446—LS 6826/DI 125 6
1 delivered through a single meter provided by a public utility are exempt
2 if the electrical energy, natural or artificial gas, water, steam, or steam
3 heat is consumed for a purpose exempted pursuant to this section and
4 the electricity, gas, water, or steam is predominately used by the
5 purchaser for one (1) or more of the purposes exempted by this section.
6 (f) (e) A retail merchant that receives seventy-five percent (75%) or
7 more of its receipts from the sale of prepared food as defined in section
8 20(c)(4), 20(c)(5), and 20(c)(6) of this chapter, including bakery items,
9 may elect to claim an exemption equal to fifty percent (50%) of the
10 gross retail tax imposed on transactions involving electricity purchased
11 by the retail merchant that is derived through a single meter. The
12 election must be submitted on forms provided by the department. Upon
13 acceptance of the election, the department shall issue a partial
14 exemption certificate to the utility and any third party suppliers, if
15 applicable. The election may also be submitted with a claim for refund.
16 The election is irrevocable for any period for which the partial
17 exemption has already been claimed. The election can be withdrawn on
18 a prospective basis.
19 SECTION 6. IC 6-2.5-5-8.5, AS AMENDED BY P.L.194-2023,
20 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2025]: Sec. 8.5. Transactions are exempt from the state gross
22 retail tax when
23 (1) a power subsidiary or person provides, installs, constructs,
24 services, or removes tangible personal property which is used in
25 connection with the furnishing of the services or commodities
26 listed in IC 6-2.5-4-5; electrical energy, natural or artificial
27 gas, water, steam, or steam heating service.
28 (2) a power subsidiary or person sells the services or commodities
29 listed in IC 6-2.5-4-5 to another public utility or power subsidiary
30 or a person described in IC 6-2.5-4-6; or
31 (3) a power subsidiary or person sells the services or commodities
32 listed in IC 6-2.5-4-5 and all of the following conditions are
33 satisfied:
34 (A) The services or commodities are sold to a business that:
35 (i) relocates all or part of its operations to a facility; or
36 (ii) expands all or part of its operations in a facility;
37 located in a military base (as defined in IC 36-7-30-1(c)), a
38 military base reuse area established under IC 36-7-14.5-12.5
39 that is or formerly was a military base (as defined in
40 IC 36-7-30-1(c)), or a qualified military base enhancement
41 area established under IC 36-7-34.
42 (B) The business uses the services or commodities in the
2025 IN 1446—LS 6826/DI 125 7
1 facility described in clause (A) not later than five (5) years
2 after the operations that relocated to the facility, or expanded
3 in the facility, commence.
4 (C) The sales of the services or commodities are separately
5 metered for use by the relocated or expanded operations.
6 (D) In the case of a business that uses the services or
7 commodities in a qualified military base enhancement area
8 established under IC 36-7-34-4(1), the business must satisfy at
9 least one (1) of the following criteria:
10 (i) The business is a participant in the technology transfer
11 program conducted by the qualified military base (as defined
12 in IC 36-7-34-3).
13 (ii) The business is a United States Department of Defense
14 contractor.
15 (iii) The business and the qualified military base have a
16 mutually beneficial relationship evidenced by a
17 memorandum of understanding between the business and
18 the United States Department of Defense.
19 (E) In the case of a business that uses the services and
20 commodities in a qualified military base enhancement area
21 established under IC 36-7-34-4(2), the business must satisfy at
22 least one (1) of the following criteria:
23 (i) The business is a participant in the technology transfer
24 program conducted by the qualified military base (as defined
25 in IC 36-7-34-3).
26 (ii) The business and the qualified miliary base have a
27 mutually beneficial relationship evidenced by a
28 memorandum of understanding between the business and
29 the qualified military base (as defined in IC 36-7-34-3).
30 However, this subdivision does not apply to a business that
31 substantially reduces or ceases its operations at another location
32 in Indiana in order to relocate its operations in an area described
33 in this subdivision, unless the department determines that the
34 business had existing operations in the area described in this
35 subdivision and that the operations relocated to the area are an
36 expansion of the business's operations in the area.
37 SECTION 7. IC 6-2.5-5-10, AS AMENDED BY P.L.137-2022,
38 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 10. Transactions involving tangible personal
40 property are exempt from the state gross retail tax, if:
41 (1) the property is classified as production plant or power
42 production expenses, according to the uniform system of accounts
2025 IN 1446—LS 6826/DI 125 8
1 which was adopted and prescribed for the utility by the Indiana
2 utility regulatory commission; and
3 (2) the person acquiring the property is:
4 (A) a public utility that furnishes or sells electrical energy,
5 steam, or steam heat; in a retail transaction described in
6 IC 6-2.5-4-5; or
7 (B) a power subsidiary (as defined in IC 6-2.5-1-22.5) that
8 furnishes or sells electrical energy, steam, or steam heat to a
9 public utility described in clause (A).
10 SECTION 8. IC 6-2.5-5-11 IS AMENDED TO READ AS
11 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 11. Transactions
12 involving tangible personal property are exempt from the state gross
13 retail tax, if:
14 (1) the property is classified as production plant, storage plant,
15 production expenses, or underground storage expenses according
16 to the uniform system of accounts, which was adopted and
17 prescribed for the utility by the Indiana utility regulatory
18 commission; and
19 (2) the person acquiring the property is a public utility that
20 furnishes or sells natural or artificial gas. in a retail transaction
21 described in IC 6-2.5-4-5.
22 SECTION 9. IC 6-2.5-5-12, AS AMENDED BY P.L.88-2007,
23 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2025]: Sec. 12. Transactions involving tangible personal
25 property are exempt from the state gross retail tax if:
26 (1) the property is classified as source of supply plant and
27 expenses, the pumping plant and expenses, or water treatment
28 plant and expenses according to the uniform system of accounts
29 which was adopted and prescribed for the utility by the Indiana
30 utility regulatory commission; and
31 (2) the person acquiring the property is a public utility that
32 furnishes or sells water. in a retail transaction described in
33 IC 6-2.5-4-5.
34 SECTION 10. IC 6-2.5-5-16, AS AMENDED BY P.L.293-2013(ts),
35 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2025]: Sec. 16. Transactions involving tangible personal
37 property and accommodations public utility commodities, and public
38 utility service are exempt from the state gross retail tax, if the person
39 acquiring the property or accommodations: commodities, or service:
40 (1) is the state of Indiana, an agency or instrumentality of the
41 state, a political subdivision of the state, or an agency or
42 instrumentality of a political subdivision of the state, including a
2025 IN 1446—LS 6826/DI 125 9
1 county solid waste management district or a joint solid waste
2 management district established under IC 13-21 or IC 13-9.5-2
3 (before its repeal); and
4 (2) predominantly uses the property, accommodations,
5 commodities, or service to perform its governmental functions.
6 SECTION 11. IC 6-2.5-5-45.8, AS AMENDED BY P.L.242-2015,
7 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 45.8. (a) For purposes of this section IC 6-2.5-4-5,
9 and section 30 of this chapter, the following definitions apply:
10 (1) "Recycling" means the processing of recycling materials and
11 other tangible personal property into a product for sale if the
12 product is predominantly composed of recycling materials. The
13 term does not include the following:
14 (A) The demolition of improvements to real estate.
15 (B) The processing of tangible personal property primarily for
16 disposal in a licensed solid waste disposal facility rather than
17 for sale.
18 (C) The collection of recycling materials.
19 (2) "Recycling materials" means tangible personal property,
20 including metal, paper, glass, plastic, textile, or rubber, that:
21 (A) is considered "scrap" by industry standards or has no more
22 than scrap value;
23 (B) is a byproduct of another person's manufacturing or
24 production process;
25 (C) was previously manufactured or incorporated into a
26 product;
27 (D) would otherwise reasonably be expected to be destined for
28 disposal in a licensed solid waste disposal facility; or
29 (E) has been removed or diverted from the solid waste stream
30 for sale, use, or reuse as raw materials, regardless of whether
31 or not the materials require subsequent processing or
32 separation from each other.
33 (3) "Processing of recycling materials" means:
34 (A) receiving recycling materials and other tangible personal
35 property; and
36 (B) creating a product for sale by changing the original form,
37 use, or composition of the property (whether manually,
38 mechanically, chemically, or otherwise) through weighing,
39 sorting, grading, separating, shredding, crushing, compacting,
40 breaking, cutting, baling, shearing, torching, wire-stripping, or
41 other means.
42 (4) "Occupationally engaged in the business of recycling" means
2025 IN 1446—LS 6826/DI 125 10
1 to engage in recycling with the intention of doing so at a profit.
2 (5) "Recycling cart" means a manually propelled container with
3 a capacity of not more than one hundred (100) gallons of
4 recycling materials.
5 (b) Transactions involving recycling materials and other tangible
6 personal property are exempt from the state gross retail tax if:
7 (1) the person acquiring that property acquires it for the person's
8 direct use in the processing of recycling materials; and
9 (2) the person acquiring that property is occupationally engaged
10 in the business of recycling.
11 (c) Notwithstanding subsection (a)(1)(C), transactions involving a
12 recycling cart are exempt from the state gross retail tax if the person
13 acquiring the recycling cart is occupationally engaged in the business
14 of recycling.
15 SECTION 12. IC 6-2.5-5-58 IS ADDED TO THE INDIANA CODE
16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
17 1, 2025]: Sec. 58. The sale or furnishing of any of the following
18 services or commodities by a power subsidiary or a person engaged
19 as a public utility to a person for commercial or domestic
20 consumption is exempt from the state gross retail tax:
21 (1) Electrical energy.
22 (2) Natural or artificial gas.
23 (3) Water.
24 (4) Steam.
25 (5) Steam heating service.
26 SECTION 13. IC 6-2.5-6-10, AS AMENDED BY P.L.218-2017,
27 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2025]: Sec. 10. (a) In order to compensate retail merchants
29 and those required to remit gasoline use tax for collecting and timely
30 remitting the state gross retail tax, the state use tax, and the gasoline
31 use tax, every retail merchant or person required to remit the gasoline
32 use tax, except as provided in subsection (c), is entitled to deduct and
33 retain from the amount of those taxes otherwise required to be remitted
34 under IC 6-2.5-3.5 or under this chapter, if timely remitted, a retail
35 merchant's collection allowance.
36 (b) The allowance equals a percentage of the retail merchant's state
37 gross retail and use tax or the person's gasoline use tax liability accrued
38 during a calendar year, specified as follows:
39 (1) Seventy-three hundredths percent (0.73%), if the retail
40 merchant's state gross retail and use tax or gasoline use tax
41 liability accrued during the state fiscal year ending on June 30 of
42 the immediately preceding calendar year did not exceed sixty
2025 IN 1446—LS 6826/DI 125 11
1 thousand dollars ($60,000).
2 (2) Fifty-three hundredths percent (0.53%), if the retail merchant's
3 state gross retail and use tax or gasoline use tax liability accrued
4 during the state fiscal year ending on June 30 of the immediately
5 preceding calendar year:
6 (A) was greater than sixty thousand dollars ($60,000); and
7 (B) did not exceed six hundred thousand dollars ($600,000).
8 (3) Twenty-six hundredths percent (0.26%), if the retail
9 merchant's state gross retail and use tax liability or the person's
10 gasoline use tax accrued during the state fiscal year ending on
11 June 30 of the immediately preceding calendar year was greater
12 than six hundred thousand dollars ($600,000).
13 (c) A retail merchant described in IC 6-2.5-4-5 or IC 6-2.5-4-6 is not
14 entitled to the allowance provided by this section. A retail merchant is
15 not entitled to the allowance provided by this section with respect to
16 gasoline use taxes imposed by IC 6-2.5-3.5.
17 SECTION 14. IC 6-2.5-8-1, AS AMENDED BY P.L.118-2024,
18 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 1. (a) A retail merchant may not make a retail
20 transaction in Indiana, unless the retail merchant has applied for a
21 registered retail merchant's certificate.
22 (b) A retail merchant may obtain a registered retail merchant's
23 certificate by filing an application with the department and paying a
24 registration fee of twenty-five dollars ($25) for each place of business
25 listed on the application. The retail merchant shall also provide such
26 security for payment of the tax as the department may require under
27 IC 6-2.5-6-12.
28 (c) The retail merchant shall list on the application the location
29 (including the township) of each place of business where the retail
30 merchant makes retail transactions. However, if the retail merchant
31 does not have a fixed place of business, the retail merchant shall list the
32 retail merchant's residence as the retail merchant's place of business. In
33 addition, a public utility may list only its principal Indiana office as its
34 place of business for sales of public utility commodities or service, but
35 the utility must also list on the application the places of business where
36 it makes retail transactions other than sales of public utility
37 commodities or service.
38 (d) Upon receiving a proper application, the correct fee, and the
39 security for payment, if required, the department shall issue to the retail
40 merchant a separate registered retail merchant's certificate for each
41 place of business listed on the application. Each certificate shall bear
42 a serial number and the location of the place of business for which it is
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1 issued.
2 (e) The department may deny an application for a registered retail
3 merchant's certificate if the applicant's business is owned, operated,
4 managed, or otherwise controlled by a person who the department has
5 determined:
6 (1) failed to:
7 (A) file all tax returns or information reports with the
8 department for listed taxes; or
9 (B) pay all taxes, penalties, and interest to the department for
10 listed taxes; and
11 (2) the business of the person who has failed to file all tax returns
12 or information reports under subdivision (1)(A) or who has failed
13 to pay all taxes, penalties, and interest under subdivision (1)(B)
14 is substantially similar to the business of the applicant.
15 (f) If a retail merchant intends to make retail transactions during a
16 calendar year at a new Indiana place of business, the retail merchant
17 must file a supplemental application and pay the fee for that place of
18 business.
19 (g) Except as provided in subsection (i), a registered retail
20 merchant's certificate is valid for two (2) years after the date the
21 registered retail merchant's certificate is originally issued or renewed.
22 If the retail merchant has filed all returns and remitted all listed taxes
23 that the retail merchant is currently obligated to file or remit, the
24 department shall renew the registered retail merchant's certificate
25 within thirty (30) days after the expiration date, at no cost to the retail
26 merchant. Before issuing or renewing the registered retail merchant
27 certification, the department may require the following to be provided:
28 (1) The names and addresses of the retail merchant's principal
29 employees, agents, or representatives.
30 (2) The location of all of the retail merchant's places of business
31 in Indiana, including offices and distribution houses.
32 (3) Any other information that the department requests.
33 (h) The department may not renew a registered retail merchant
34 certificate of a retail merchant who has not filed all returns and
35 remitted all listed taxes that the retail merchant is currently obligated
36 to file or remit. The department, at least sixty (60) days before the date
37 on which a retail merchant's registered retail merchant's certificate
38 expires, shall notify a retail merchant who has not filed all returns and
39 remitted all listed taxes that the retail merchant is currently obligated
40 to file or remit that the department will not renew the retail merchant's
41 registered retail merchant's certificate.
42 (i) If:
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1 (1) a retail merchant has been notified by the department that the
2 retail merchant has not filed all returns and remitted all listed
3 taxes that the retail merchant is currently obligated to file or remit
4 in accordance with subsection (h); and
5 (2) the retail merchant files all returns and pays the outstanding
6 liability before the expiration of the retail merchant's registered
7 retail merchant's certificate;
8 the department shall renew the retail merchant's registered retail
9 merchant's certificate for one (1) year.
10 (j) The department may permit an out-of-state retail merchant to
11 collect the gross retail tax in instances where the retail merchant has
12 not met the threshold in IC 6-2.5-2-1(d). However, before the
13 out-of-state retail merchant may collect the tax, the out-of-state retail
14 merchant must obtain a registered retail merchant's certificate in the
15 manner provided by this section. Upon receiving the certificate, the
16 out-of-state retail merchant becomes subject to the same conditions and
17 duties as an Indiana retail merchant and must then collect the gross
18 retail tax due on all retail transactions that the out-of-state retail
19 merchant knows are sourced to Indiana pursuant to IC 6-2.5-13-1.
20 (k) Except as provided in subsection (l), the department shall submit
21 to the township assessor, or the county assessor if there is no township
22 assessor for the township, before January 15 of each year:
23 (1) the name of each retail merchant that has newly obtained a
24 registered retail merchant's certificate during the preceding year
25 for a place of business located in the township or county;
26 (2) the address of each place of business of the taxpayer in the
27 township or county described in subdivision (1);
28 (3) the name of each retail merchant that:
29 (A) held a registered retail merchant's certificate at any time
30 during the preceding year for a place of business located in the
31 township or county; and
32 (B) had ceased to hold the registered retail merchant's
33 certificate at the end of the preceding year for the place of
34 business; and
35 (4) the address of each place of business described in subdivision
36 (3).
37 (l) If the duties of the township assessor have been transferred to the
38 county assessor as described in IC 6-1.1-1-24, the department shall
39 submit the information listed in subsection (k) to the county assessor.
40 SECTION 15. IC 6-2.5-8-8, AS AMENDED BY THE TECHNICAL
41 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
42 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
2025 IN 1446—LS 6826/DI 125 14
1 Sec. 8. (a) A person, authorized under subsection (b), who makes a
2 purchase in a transaction which is exempt from the state gross retail
3 and use taxes, may issue an exemption certificate to the seller instead
4 of paying the tax. Except as provided in subsection (c), the person shall
5 issue the certificate on forms and in the manner prescribed by the
6 department on the department's Internet web site. website. A seller
7 accepting a proper exemption certificate under this section has no duty
8 to collect or remit the state gross retail or use tax on that purchase.
9 (b) The following are the only persons authorized to issue
10 exemption certificates:
11 (1) Retail merchants, wholesalers, and manufacturers, who are
12 registered with the department under this chapter.
13 (2) Persons who are exempt from the state gross retail tax under
14 IC 6-2.5-4-5 and who receive an exemption certificate from the
15 department.
16 (3) (2) Other persons who are exempt from the state gross retail
17 tax with respect to any part of their purchases.
18 (c) Organizations that are exempt from the state gross retail tax
19 under IC 6-2.5-5-21, IC 6-2.5-5-25, or IC 6-2.5-5-26 and that are
20 registered with the department pursuant to IC 6-2.5-5-25(c) shall be
21 electronically issued an exemption certificate by the department.
22 (d) The department may also allow a person to issue a blanket
23 exemption certificate to cover exempt purchases over a stated period
24 of time. The department may impose conditions on the use of the
25 blanket exemption certificate and restrictions on the kind or category
26 of purchases that are exempt.
27 (e) A seller that accepts an incomplete exemption certificate under
28 subsection (a) is not relieved of the duty to collect gross retail or use
29 tax on the sale unless the seller obtains:
30 (1) a fully completed exemption certificate; or
31 (2) the relevant data to complete the exemption certificate;
32 within ninety (90) days after the sale.
33 (f) If a seller has accepted an incomplete exemption certificate
34 under subsection (a) and the department requests that the seller
35 substantiate the exemption, within one hundred twenty (120) days after
36 the department makes the request the seller shall:
37 (1) obtain a fully completed exemption certificate; or
38 (2) prove by other means that the transaction was not subject to
39 state gross retail or use tax.
40 (g) A power subsidiary (as defined in IC 6-2.5-1-22.5) or a person
41 selling the services or commodities listed in IC 6-2.5-4-5 who accepts
42 an exemption certificate issued by the department to a person who is
2025 IN 1446—LS 6826/DI 125 15
1 exempt from the state gross retail tax under IC 6-2.5-4-5 is relieved
2 from the duty to collect state gross retail or use tax on the sale of the
3 services or commodities listed in IC 6-2.5-4-5 until notified by the
4 department that the exemption certificate has expired or has been
5 revoked. If the department notifies a power subsidiary or a person
6 selling the services or commodities listed in IC 6-2.5-4-5 that a person's
7 exemption certificate has expired or has been revoked, the power
8 subsidiary or person selling the services or commodities listed in
9 IC 6-2.5-4-5 shall begin collecting state gross retail tax on the sale of
10 the services or commodities listed in IC 6-2.5-4-5 to the person whose
11 exemption certificate has expired or been revoked not later than thirty
12 (30) days after the date of the department's notice. An exemption
13 certificate issued by the department to a person who is exempt from the
14 state gross retail tax under IC 6-2.5-4-5 remains valid for that person
15 regardless of any subsequent one (1) for one (1) meter number changes
16 with respect to that person that are required, made, or initiated by a
17 power subsidiary or a person selling the services or commodities listed
18 in IC 6-2.5-4-5, unless the department revokes the exemption
19 certificate. Within thirty (30) days after the final day of each calendar
20 year quarter, a power subsidiary or a person selling the services or
21 commodities listed in IC 6-2.5-4-5 shall report to the department any
22 meter number changes made during the immediately preceding
23 calendar year quarter and distinguish between the one (1) for one (1)
24 meter changes and the one (1) for multiple meter changes made during
25 the calendar year quarter. A power subsidiary or a person selling the
26 services or commodities listed in IC 6-2.5-4-5 shall maintain records
27 sufficient to document each one (1) to one (1) meter change. A person
28 may request the department to reissue an exemption certificate with a
29 new meter number in the event of a one (1) to one (1) meter change.
30 Except for a person to whom a blanket utility exemption applies, any
31 meter number changes not involving a one (1) to one (1) relationship
32 will no longer be exempt and will require the person to submit a new
33 utility exemption application for the new meters. Until an application
34 for a new meter is approved, the new meter is subject to the state gross
35 retail tax and the power subsidiary or the person selling the services or
36 commodities listed in IC 6-2.5-4-5 is required to collect the state gross
37 retail tax from the date of the meter change.
38 SECTION 16. IC 6-2.5-15-14, AS ADDED BY P.L.256-2019,
39 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2025]: Sec. 14. (a) A qualified data center user that holds an
41 interest in a qualified data center may apply to the corporation for a
42 specific transaction award certificate to make purchases other than the
2025 IN 1446—LS 6826/DI 125 16
1 purchase of utilities described in IC 6-2.5-4-5, that are exempt under
2 this chapter. The request must be on a form prescribed by the
3 corporation.
4 (b) The corporation has exclusive authority over issues related to
5 issuing a specific transaction award certificate.
6 (c) If the corporation issues a specific transaction award certificate
7 under this chapter, the certificate must state that the facility is a
8 qualified data center.
9 (d) A specific transaction award certificate issued by the corporation
10 shall expire not later than:
11 (A) twenty-five (25) years after the date of issuance; or
12 (B) fifty (50) years after the date of issuance if the qualified
13 investment is seven hundred fifty million dollars ($750,000,000)
14 or greater.
15 SECTION 17. IC 6-2.5-15-17, AS ADDED BY P.L.256-2019,
16 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2025]: Sec. 17. A qualified data center user is not entitled to
18 the exemption provided by section 16 of this chapter unless the
19 qualified data center user provides the seller with an exemption
20 certificate on a form prescribed by the department and a copy of the
21 specific transaction award certificate issued by the corporation. In the
22 case of utilities described in IC 6-2.5-4-5, the qualified data center user
23 may issue an exemption certificate on a form prescribed by the
24 department and a copy of the specific transaction award certificate
25 issued by the corporation to cover all utility purchases from that seller.
26 However, for the corporation to issue a specific transaction award
27 certificate for utilities described in IC 6-2.5-4-5, the qualified data
28 center user must agree to report and remit use tax under this article to
29 the department on the part of the utility purchases used for
30 administration of the facility.
31 SECTION 18. IC 6-8.1-7-1, AS AMENDED BY P.L.118-2024,
32 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2025]: Sec. 1. (a) This subsection does not apply to the
34 disclosure of information concerning a conviction on a tax evasion
35 charge. Unless in accordance with a judicial order or as otherwise
36 provided in this chapter, the department, its employees, former
37 employees, counsel, agents, or any other person may not divulge the
38 amount of tax paid by any taxpayer, terms of a settlement agreement
39 executed between a taxpayer and the department, investigation records,
40 investigation reports, or any other information disclosed by the reports
41 filed under the provisions of the law relating to any of the listed taxes,
42 including required information derived from a federal return, except to
2025 IN 1446—LS 6826/DI 125 17
1 any of the following when it is agreed that the information is to be
2 confidential and to be used solely for official purposes:
3 (1) Members and employees of the department.
4 (2) The governor.
5 (3) A member of the general assembly or an employee of the
6 house of representatives or the senate when acting on behalf of a
7 taxpayer located in the member's legislative district who has
8 provided sufficient information to the member or employee for
9 the department to determine that the member or employee is
10 acting on behalf of the taxpayer.
11 (4) An employee of the legislative services agency to carry out the
12 responsibilities of the legislative services agency under
13 IC 2-5-1.1-7 or another law.
14 (5) The attorney general or any other legal representative of the
15 state in any action in respect to the amount of tax due under the
16 provisions of the law relating to any of the listed taxes.
17 (6) Any authorized officers of the United States.
18 (b) The information described in subsection (a) may be revealed
19 upon the receipt of a certified request of any designated officer of the
20 state tax department of any other state, district, territory, or possession
21 of the United States when:
22 (1) the state, district, territory, or possession permits the exchange
23 of like information with the taxing officials of the state; and
24 (2) it is agreed that the information is to be confidential and to be
25 used solely for tax collection purposes.
26 (c) The information described in subsection (a) relating to a person
27 on public welfare or a person who has made application for public
28 welfare may be revealed to the director of the division of family
29 resources, and to any director of a county office of the division of
30 family resources located in Indiana, upon receipt of a written request
31 from either director for the information. The information shall be
32 treated as confidential by the directors. In addition, the information
33 described in subsection (a) relating to a person who has been
34 designated as an absent parent by the state Title IV-D agency shall be
35 made available to the state Title IV-D agency upon request. The
36 information shall be subject to the information safeguarding provisions
37 of the state and federal Title IV-D programs.
38 (d) The name, address, Social Security number, and place of
39 employment relating to any individual who is delinquent in paying
40 educational loans owed to a postsecondary educational institution may
41 be revealed to that institution if it provides proof to the department that
42 the individual is delinquent in paying for educational loans. This
2025 IN 1446—LS 6826/DI 125 18
1 information shall be provided free of charge to approved postsecondary
2 educational institutions (as defined by IC 21-7-13-6(a)). The
3 department shall establish fees that all other institutions must pay to the
4 department to obtain information under this subsection. However, these
5 fees may not exceed the department's administrative costs in providing
6 the information to the institution.
7 (e) The information described in subsection (a) relating to reports
8 submitted under IC 6-6-1.1-502 concerning the number of gallons of
9 gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
10 gallons of special fuel sold by a supplier and the number of gallons of
11 special fuel exported by a licensed exporter or imported by a licensed
12 transporter may be released by the commissioner upon receipt of a
13 written request for the information.
14 (f) The information described in subsection (a) may be revealed
15 upon the receipt of a written request from the administrative head of a
16 state agency of Indiana when:
17 (1) the state agency shows an official need for the information;
18 and
19 (2) the administrative head of the state agency agrees that any
20 information released will be kept confidential and will be used
21 solely for official purposes.
22 (g) The information described in subsection (a) may be revealed
23 upon the receipt of a written request from the chief law enforcement
24 officer of a state or local law enforcement agency in Indiana when it is
25 agreed that the information is to be confidential and to be used solely
26 for official purposes.
27 (h) The name and address of retail merchants, including township,
28 as specified in IC 6-2.5-8-1(k) may be released solely for tax collection
29 purposes to township assessors and county assessors.
30 (i) The department shall notify the appropriate innkeeper's tax
31 board, bureau, or commission that a taxpayer is delinquent in remitting
32 innkeepers' taxes under IC 6-9.
33 (j) All information relating to the delinquency or evasion of the
34 vehicle excise tax may be disclosed to the bureau of motor vehicles in
35 Indiana and may be disclosed to another state, if the information is
36 disclosed for the purpose of the enforcement and collection of the taxes
37 imposed by IC 6-6-5.
38 (k) All information relating to the delinquency or evasion of
39 commercial vehicle excise taxes payable to the bureau of motor
40 vehicles in Indiana may be disclosed to the bureau and may be
41 disclosed to another state, if the information is disclosed for the
42 purpose of the enforcement and collection of the taxes imposed by
2025 IN 1446—LS 6826/DI 125 19
1 IC 6-6-5.5.
2 (l) All information relating to the delinquency or evasion of
3 commercial vehicle excise taxes payable under the International
4 Registration Plan may be disclosed to another state, if the information
5 is disclosed for the purpose of the enforcement and collection of the
6 taxes imposed by IC 6-6-5.5.
7 (m) All information relating to the delinquency or evasion of the
8 excise taxes imposed on recreational vehicles and truck campers that
9 are payable to the bureau of motor vehicles in Indiana may be disclosed
10 to the bureau and may be disclosed to another state if the information
11 is disclosed for the purpose of the enforcement and collection of the
12 taxes imposed by IC 6-6-5.1.
13 (n) This section does not apply to:
14 (1) the beer excise tax, including brand and packaged type (IC
15 7.1-4-2);
16 (2) the liquor excise tax (IC 7.1-4-3);
17 (3) the wine excise tax (IC 7.1-4-4);
18 (4) the hard cider excise tax (IC 7.1-4-4.5);
19 (5) the vehicle excise tax (IC 6-6-5);
20 (6) the commercial vehicle excise tax (IC 6-6-5.5); and
21 (7) the fees under IC 13-23.
22 (o) The name and business address of retail merchants within each
23 county that sell tobacco products may be released to the division of
24 mental health and addiction and the alcohol and tobacco commission
25 solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
26 (p) The name and business address of a person licensed by the
27 department under IC 6-6 or IC 6-7, or issued a registered retail
28 merchant's certificate under IC 6-2.5, may be released for the purpose
29 of reporting the status of the person's license or certificate.
30 (q) The department may release information concerning total
31 incremental tax amounts under:
32 (1) IC 5-28-26;
33 (2) IC 36-7-13;
34 (3) IC 36-7-26;
35 (4) IC 36-7-27;
36 (5) IC 36-7-31;
37 (6) IC 36-7-31.3; or
38 (7) any other statute providing for the calculation of incremental
39 state taxes that will be distributed to or retained by a political
40 subdivision or other entity;
41 to the fiscal officer of the political subdivision or other entity that
42 established the district or area from which the incremental taxes were
2025 IN 1446—LS 6826/DI 125 20
1 received if that fiscal officer enters into an agreement with the
2 department specifying that the political subdivision or other entity will
3 use the information solely for official purposes.
4 (r) The department may release the information as required in
5 IC 6-8.1-3-7.1 concerning:
6 (1) an innkeeper's tax, a food and beverage tax, or an admissions
7 tax under IC 6-9;
8 (2) the supplemental auto rental excise tax under IC 6-6-9.7; and
9 (3) the covered taxes allocated to a professional sports
10 development area fund, sports and convention facilities operating
11 fund, or other fund under IC 36-7-31 and IC 36-7-31.3.
12 (s) Information concerning state gross retail tax exemption
13 certificates that relate to a person who is exempt from the state gross
14 retail tax under IC 6-2.5-4-5 may be disclosed to a power subsidiary (as
15 defined in IC 6-2.5-1-22.5) or a person selling the services or
16 commodities listed in IC 6-2.5-4-5 for the purpose of enforcing and
17 collecting the state gross retail and use taxes under IC 6-2.5.
18 (t) (s) The department may release a statement of tax withholding
19 or other tax information statement provided on behalf of a taxpayer to
20 the department to:
21 (1) the taxpayer on whose behalf the tax withholding or other tax
22 information statement was provided to the department;
23 (2) the taxpayer's spouse, if:
24 (A) the taxpayer is deceased or incapacitated; and
25 (B) the taxpayer's spouse is filing a joint income tax return
26 with the taxpayer; or
27 (3) an administrator, executor, trustee, or other fiduciary acting on
28 behalf of the taxpayer if the taxpayer is deceased.
29 (u) (t) Information related to a listed tax regarding a taxpayer may
30 be disclosed to an individual without a power of attorney under
31 IC 6-8.1-3-8(a)(2) if:
32 (1) the individual is authorized to file returns and remit payments
33 for one (1) or more listed taxes on behalf of the taxpayer through
34 the department's online tax system before September 8, 2020;
35 (2) the information relates to a listed tax described in subdivision
36 (1) for which the individual is authorized to file returns and remit
37 payments;
38 (3) the taxpayer has been notified by the department of the
39 individual's ability to access the taxpayer's information for the
40 listed taxes described in subdivision (1) and the taxpayer has not
41 objected to the individual's access;
42 (4) the individual's authorization or right to access the taxpayer's
2025 IN 1446—LS 6826/DI 125 21
1 information for a listed tax described in subdivision (1) has not
2 been withdrawn by the taxpayer; and
3 (5) disclosure of the information to the individual is not
4 prohibited by federal law.
5 Except as otherwise provided by this article, this subsection does not
6 authorize the disclosure of any correspondence from the department
7 that is mailed or otherwise delivered to the taxpayer relating to the
8 specified listed taxes for which the individual was given authorization
9 by the taxpayer. The department shall establish a date, which may be
10 earlier but not later than September 1, 2023, after which a taxpayer's
11 information concerning returns and remittances for a listed tax may not
12 be disclosed to an individual without a power of attorney under
13 IC 6-8.1-3-8(a)(2) by providing notice to the affected taxpayers and
14 previously authorized individuals, including notification published on
15 the department's website. After the earlier of the date established by the
16 department or September 1, 2023, the department may not disclose a
17 taxpayer's information concerning returns and remittances for a listed
18 tax to an individual unless the individual has a power of attorney under
19 IC 6-8.1-3-8(a)(2) or the disclosure is otherwise allowed under this
20 article.
21 (v) (u) The department may publish a list of persons, corporations,
22 or other entities that qualify or have qualified for an exemption for
23 sales tax under IC 6-2.5-5-16, IC 6-2.5-5-25, or IC 6-2.5-5-26, or
24 otherwise provide information regarding a person's, corporation's, or
25 entity's exemption status under IC 6-2.5-5-16, IC 6-2.5-5-25, or
26 IC 6-2.5-5-26. For purposes of this subsection, information that may be
27 disclosed includes:
28 (1) any federal identification number or other identification
29 number for the entity assigned by the department;
30 (2) any expiration date of an exemption under IC 6-2.5-5-25;
31 (3) whether any sales tax exemption has expired or has been
32 revoked by the department; and
33 (4) any other information reasonably necessary for a recipient of
34 an exemption certificate to determine if an exemption certificate
35 is valid.
36 (w) (v) The department may share a taxpayer's name and other
37 personal identification information with a tax preparer or tax
38 preparation software provider in cases where the department suspects
39 that a fraudulent return has been filed on behalf of a taxpayer and the
40 department suspects that the system of a taxpayer's previous year tax
41 preparer or tax preparation software provider has been breached.
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