DEPARTMENT OF STATE REVENUE
Information Bulletin #66
Sales Tax
July 2007
(Replaces Bulletin #66, Dated May 1994)
DISCLAIMER: Information Bulletins are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on the Department or the taxpayer. Therefore, information provided in this Bulletin should serve only as a foundation for further investigation and study of the current law and procedures related to its subject matter.
SUBJECT: Exemption from the Sales Tax for Purchases of Consumable Items by People Engaged in the Business of Renting or Furnishing Rooms, Lodgings or Accommodations
IC 6-2.5-5-35 provides an exemption from the sales tax if the person acquiring the property is engaged in the business of renting or furnishing rooms, lodgings, or accommodations in a commercial hotel, motel, inn, tourist camp, or tourist cabin, and the property acquired is used up, removed, or otherwise consumed during the occupation of the room by a guest, or the property is rendered not reusable after the property's first use by a guest during the occupation of the rooms, lodgings, or accommodations.
II. Items Considered Exempt:
Items that would be included are complimentary toiletry items such as soap, shampoo, tissue paper, plastic cups and any other items not reusable.
The purchase of beds, linens, television sets and other furniture would not be exempt when they are purchased by the person engaged in the business of renting or furnishing room, lodgings or accommodations. The exemption provided in
IC 6-2.5-5-35 does not apply to the purchase or use of electricity, water, gas or steam.
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Posted: 08/01/2007 by Legislative Services Agency
DIN: 20070801-IR-045070445NRA
Composed: Apr 29,2024 3:49:28PM EDT
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