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IC 6-2.5-5-1
Animals, feed, seed, and chemicals
Sec. 1. Transactions involving animals, feed, seed, plants,
fertilizer, insecticides, fungicides, and other tangible personal
property are exempt from the state gross retail tax if:
(1) the person acquiring the property acquires it for his direct
use in the direct production of food and food ingredients or
commodities for sale or for further use in the production of food
and food ingredients or commodities for sale; and
(2) the person acquiring the property is occupationally engaged
in the production of food and food ingredients or commodities
which he sells for human or animal consumption or uses for
further food and food ingredient or commodity production.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.257-2003,
SEC.21.
IC 6-2.5-5-2
Agricultural machinery, tools, and equipment
Sec. 2. (a) Transactions involving agricultural machinery, tools,
and equipment are exempt from the state gross retail tax if the person
acquiring that property acquires it for his direct use in the direct
production, extraction, harvesting, or processing of agricultural
commodities.
(b) Transactions involving agricultural machinery or equipment
are exempt from the state gross retail tax if:
(1) the person acquiring the property acquires it for use in
conjunction with the production of food and food ingredients or
commodities for sale;
(2) the person acquiring the property is occupationally engaged
in the production of food or commodities which he sells for
human or animal consumption or uses for further food and food
ingredients or commodity production; and
(3) the machinery or equipment is designed for use in gathering,
moving, or spreading animal waste.
As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1981,
P.L.80, SEC.1; P.L.257-2003, SEC.22.
IC 6-2.5-5-3
Exemption; acquisition for direct use in direct production
Sec. 3. (a) For purposes of this section:
(1) the retreading of tires shall be treated as the processing of
tangible personal property; and
(2) commercial printing shall be treated as the production and
manufacture of tangible personal property.
(b) Except as provided in subsection (c), transactions involving
manufacturing machinery, tools, and equipment are exempt from the
state gross retail tax if the person acquiring that property acquires it
for direct use in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or finishing of
other tangible personal property.
(c) The exemption provided in subsection (b) does not apply to
transactions involving distribution equipment or transmission
equipment acquired by a public utility engaged in generating
electricity.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.76-1985,
SEC.9; P.L.78-1989, SEC.4; P.L.192-2002(ss), SEC.50;
P.L.211-2007, SEC.12.
IC 6-2.5-5-4
Property for use in producing machinery, tools, or equipment
Sec. 4. Transactions involving tangible personal property are
exempt from the state gross retail tax if the person acquiring the
property acquires it for his direct use in the direct production of the
machinery, tools, or equipment described in section 2 or 3 of this
chapter.
As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-5-5
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-2.5-5-5.1
Exemption; acquisition for direct consumption in direct production
Sec. 5.1. (a) As used in this section, "tangible personal property"
includes electrical energy, natural or artificial gas, water, steam, and
steam heat.
(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, processing, refining, repairing, mining,
agriculture, horticulture, floriculture, or arboriculture. This
exemption includes transactions involving acquisitions of tangible
personal property used in commercial printing.
As added by Acts 1981, P.L.63, SEC.6. Amended by P.L.23-1986,
SEC.2; P.L.78-1989, SEC.5; P.L.192-2002(ss), SEC.51.
IC 6-2.5-5-6
Exemption; acquisition for incorporation into product for sale
Sec. 6. Transactions involving tangible personal property are
exempt from the state gross retail tax if the person acquiring the
property acquires it for incorporation as a material part of other
tangible personal property which the purchaser manufactures,
assembles, refines, or processes for sale in his business. This
exemption includes transactions involving acquisitions of tangible
personal property used in commercial printing.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.78-1989,
SEC.6; P.L.192-2002(ss), SEC.52.
IC 6-2.5-5-7
Materials used in construction business, public street, or utility
service
Sec. 7. Transactions involving tangible personal property are
exempt from the state gross retail tax if:
(1) the person acquiring the property is in the construction
business;
(2) the person acquiring the property acquires it for
incorporation as a material or integral part of a public street or
of a public water, sewage, or other utility service;
(3) the public street or public utility service into which the
property is to be incorporated is required under a subdivision
plat, approved and accepted by the appropriate Indiana political
subdivision; and
(4) the public street or public utility is to be publicly maintained
after its completion.
As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-5-8
"New motor vehicle"; property acquired for resale, rental, or
leasing in course of business
Sec. 8. (a) As used in this section, "new motor vehicle" has the
meaning set forth in IC 9-13-2-111.
(b) Transactions involving tangible personal property other than
a new motor vehicle are exempt from the state gross retail tax if the
person acquiring the property acquires it for resale, rental, or leasing
in the ordinary course of the person's business without changing the
form of the property.
(c) The following transactions involving a new motor vehicle are
exempt from the state gross retail tax:
(1) A transaction in which a person that has a franchise in effect
at the time of the transaction for the vehicle trade name, trade
or service mark, or related characteristics acquires a new motor
vehicle for resale, rental, or leasing in the ordinary course of the
person's business.
(2) A transaction in which a person that is a franchisee
appointed by a manufacturer or converter manufacturer licensed
under IC 9-23 acquires a new motor vehicle that has at least one
(1) trade name, service mark, or related characteristic as a result
of modification or further manufacture by the manufacturer or
converter manufacturer for resale, rental, or leasing in the
ordinary course of the person's business.
(3) A transaction in which a person acquires a new motor
vehicle for rental or leasing in the ordinary course of the
person's business.
(d) The rental or leasing of accommodations to a promoter by a
political subdivision (including a capital improvement board) or the
state fair commission is not exempt from the state gross retail tax, if
the rental or leasing of the property by the promoter is exempt under
IC 6-2.5-4-4.
(e) This subsection applies only after June 30, 2008. A transaction
in which a person acquires an aircraft for rental or leasing in the
ordinary course of the person's business is not exempt from the state
gross retail tax unless the person establishes, under guidelines
adopted by the department in the manner provided in IC 4-22-2-37.1
for the adoption of emergency rules, that the annual amount of the
lease revenue derived from leasing the aircraft is equal to or greater
than:
(1) ten percent (10%) of the greater of the original cost or the
book value of the aircraft, if the original cost of the aircraft was
less than one million dollars ($1,000,000); or
(2) seven and five-tenths percent (7.5%) of the greater of the
original cost or the book value of the aircraft, if the original cost
of the aircraft was at least one million dollars ($1,000,000).
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.93-1987,
SEC.3; P.L.20-1990, SEC.8; P.L.27-2003, SEC.1; P.L.211-2007,
SEC.13; P.L.224-2007, SEC.53.
IC 6-2.5-5-9
Returnable containers; nonreturnable packaging
Sec. 9. (a) As used in this section, "returnable containers" means
containers customarily returned by the buyer of the contents for reuse
as containers.
(b) Sales of returnable containers are exempt from the state gross
retail tax if the transaction constitutes selling at retail as defined in
IC 6-2.5-4-1 and if the returnable containers contain contents.
(c) Sales of returnable containers are exempt from the state gross
retail tax if the containers are transferred empty for the purpose of
refilling.
(d) Sales of wrapping material and empty containers are exempt
from the state gross retail tax if the person acquiring the material or
containers acquires them for use as nonreturnable packages for
selling the contents that he adds.
As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-5-10
Electric or steam utilities; production plant or power production
expenses
Sec. 10. Transactions involving tangible personal property are
exempt from the state gross retail tax, if:
(1) the property is classified as production plant or power
production expenses, according to the uniform system of
accounts which was adopted and prescribed for the utility by
the Indiana utility regulatory commission; and
(2) the person acquiring the property is:
(A) a public utility that furnishes or sells electrical energy,
steam, or steam heat in a retail transaction described in
IC 6-2.5-4-5; or
IC 6-2.5-5-11
Gas utilities; production or storage plants and expenses
Sec. 11. Transactions involving tangible personal property are
exempt from the state gross retail tax, if:
(1) the property is classified as production plant, storage plant,
production expenses, or underground storage expenses
according to the uniform system of accounts, which was
adopted and prescribed for the utility by the Indiana utility
regulatory commission; and
(2) the person acquiring the property is a public utility that
furnishes or sells natural or artificial gas in a retail transaction
described in IC 6-2.5-4-5.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.23-1988,
SEC.9; P.L.71-1993, SEC.7.
IC 6-2.5-5-12
Water utilities; plants and expenses
Sec. 12. Transactions involving tangible personal property are
exempt from the state gross retail tax if:
(1) the property is classified as source of supply plant and
expenses, the pumping plant and expenses, or water treatment
plant and expenses according to the uniform system of accounts
which was adopted and prescribed for the utility by the Indiana
utility regulatory commission; and
(2) the person acquiring the property is a public utility that
furnishes or sells water in a retail transaction described in
IC 6-2.5-4-5.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.23-1988,
SEC.10; P.L.71-1993, SEC.8; P.L.91-1995, SEC.1; P.L.88-2007,
SEC.1.
IC 6-2.5-5-12.5
Wastewater utilities; plants and expenses
Sec. 12.5. (a) As used in this section, "collection plant and
expenses" includes the following:
(1) Expenditures for collection plant, which include the
following:
(A) Land and land rights.
(B) Structures and improvements.
(C) Power generation equipment.
(D) Collection sewers and special collecting structures.
(E) Receiving wells.
(F) Pumping equipment.
(G) Transportation equipment.
IC 6-2.5-5-13
Intrastate telecommunication services; equipment
Sec. 13. Transactions involving tangible personal property are
exempt from the state gross retail tax, if:
(1) the property is:
(A) classified as central office equipment, station equipment
or apparatus, station connection, wiring, or large private
branch exchanges according to the uniform system of
accounts which was adopted and prescribed for the utility by
the Indiana utility regulatory commission; or
(B) mobile telecommunications switching office equipment,
radio or microwave transmitting or receiving equipment,
including, without limitation, towers, antennae, and property
that perform a function similar to the function performed by
any of the property described in clause (A); and
(2) the person acquiring the property furnishes or sells intrastate
telecommunication service in a retail transaction described in
IC 6-2.5-4-6.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.23-1988,
SEC.11; P.L.71-1993, SEC.9.
IC 6-2.5-5-15
Repealed
(Repealed by P.L.81-2004, SEC.60.)
IC 6-2.5-5-15.5
Motor vehicles; intrafamilial title transfers
Sec. 15.5. A transaction involving a motor vehicle is exempt from
the state gross retail tax, if:
(1) the transaction consists of changing the motor vehicle title
to add or delete an individual; and
(2) the individual being added or deleted is the spouse, child,
grandparent, parent, or sibling of an owner.
As added by P.L.73-1993, SEC.1.
IC 6-2.5-5-16
State or local government acquisitions
Sec. 16. Transactions involving tangible personal property, public
utility commodities, and public utility service are exempt from the
state gross retail tax, if the person acquiring the property,
commodities, or service:
(1) is the state of Indiana, an agency or instrumentality of the
state, a political subdivision of the state, or an agency or
instrumentality of a political subdivision of the state, including
a county solid waste management district or a joint solid waste
management district established under IC 13-21 or IC 13-9.5-2
(before its repeal); and
(2) predominantly uses the property, commodities, or service to
perform its governmental functions.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.25-1991,
SEC.3; P.L.1-1996, SEC.45.
IC 6-2.5-5-16.5
Home energy assistance
Sec. 16.5. (a) The following definitions apply throughout this
section:
(1) "Home energy" means electricity, oil, gas, coal, propane, or
any other fuel for use as the principal source of heating or
cooling in residential dwellings.
(2) "Home energy assistance" means programs administered by
the state to supply home energy through the Low Income Home
Energy Assistance Block Grant under 42 U.S.C. 8261 et seq.
(b) Transactions involving home energy are exempt from the state
gross retail tax if the person acquiring the home energy acquires it
after June 30, 2006, and before July 1, 2009, through home energy
assistance.
As added by P.L.162-2006, SEC.22. Amended by P.L.32-2007,
SEC.2.
IC 6-2.5-5-17
Newspapers
Sec. 17. Sales of newspapers are exempt from the state gross retail
tax.
As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-5-18
Medical equipment, supplies, and devices
Sec. 18. (a) Sales of durable medical equipment, prosthetic
devices, artificial limbs, orthopedic devices, dental prosthetic
devices, eyeglasses, contact lenses, and other medical supplies and
devices are exempt from the state gross retail tax, if the sales are
prescribed by a person licensed to issue the prescription.
(b) Rentals of durable medical equipment and other medical
supplies and devices are exempt from the state gross retail tax, if the
rentals are prescribed by a person licensed to issue the prescription.
(c) Sales of hearing aids are exempt from the state gross retail tax
if the hearing aids are fitted or dispensed by a person licensed or
registered for that purpose. In addition, sales of hearing aid parts,
attachments, or accessories are exempt from the state gross retail tax.
For purposes of this subsection, a hearing aid is a device which is
worn on the body and which is designed to aid, improve, or correct
defective human hearing.
(d) Sales of colostomy bags, ileostomy bags, and the medical
equipment, supplies, and devices used in conjunction with those bags
are exempt from the state gross retail tax.
(e) Sales of equipment and devices used to administer insulin are
exempt from the state gross retail tax.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.257-2003,
SEC.23.
IC 6-2.5-5-19.5
Drug samples
Sec. 19.5. (a) For purposes of this section, "drug sample" means
a legend drug (as defined by IC 16-18-2-199) or a drug composed
wholly or partly of insulin or an insulin analog that is furnished
without charge.
(b) Transactions involving the following are exempt from the state
gross retail tax:
(1) A drug sample and the packaging and literature for a drug
sample.
(2) Tangible personal property that will be used as a drug
sample or will be processed, manufactured, or incorporated
into:
(A) a drug sample; or
(B) the packaging or literature for a drug sample.
As added by P.L.61-1997, SEC.1.
IC 6-2.5-5-21
Exemption; sales of food and food ingredients by nonprofit entities
to confined or hospitalized persons
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.
(b) 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)
and is any of the following:
(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.
(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 state 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) the purchaser is a person confined to his 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) Sales of food and food ingredients are exempt from the state
gross retail tax if the seller is an organization described in subsection
(b)(1), and the purchaser is a patient in a hospital operated by the
seller.
IC 6-2.5-5-21.5
Medically necessary food
Sec. 21.5. Sales of food and food ingredients prescribed as
medically necessary by a physician licensed to practice medicine in
Indiana are exempt from the state gross retail tax if:
(1) a registered pharmacist makes the sale upon the prescription
of a practitioner who is licensed to practice medicine in Indiana;
or
(2) the licensed practitioner makes the sale of the food and food
ingredients described in this section.
As added by P.L.19-1994, SEC.5. Amended by P.L.257-2003,
SEC.27.
IC 6-2.5-5-22
Exemption; sales of meals; schools; fraternities; sororities; student
cooperatives
Sec. 22. (a) Sales of school meals are exempt from the state gross
retail tax if:
(1) the seller is a school containing students in any grade, one
(1) through twelve (12);
(2) the purchaser is one (1) of those students or a school
employee; and
(3) the school furnishes the food and food ingredients on its
premises.
(b) Sales of food and food ingredients by not-for-profit colleges
or universities are exempt from the state gross retail tax, if the
purchaser is a student at the college or university.
(c) Sales of meals after December 31, 1976, by a fraternity,
sorority, or student cooperative housing organization described in
section 21(b)(1)(A) of this chapter are exempt from the state gross
retail tax, if the purchaser:
(1) is a member of the fraternity, sorority, or student
cooperative housing organization; and
(2) is enrolled in the college, university, or educational
institution with which the fraternity, sorority, or student
cooperative housing organization is connected and by which it
is supervised.
As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1980,
P.L.49, SEC.2; Acts 1981, P.L.77, SEC.3; P.L.192-2002(ss), SEC.54;
P.L.257-2003, SEC.28.
IC 6-2.5-5-23
School building materials
Sec. 23. Transactions involving tangible personal property are
exempt from the state gross retail tax, if the person acquiring the
property acquires it for incorporation into a school building which is
being constructed by a lessor corporation in accordance with a lease
executed under IC 20-47-2 or IC 20-47-3.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.2-2006,
SEC.67.
IC 6-2.5-5-24
Exemption; sales to United States government; commercial
printing; receipt or collection of taxes; earnings on United States
bonds; transactions with another state or foreign country
Sec. 24. (a) Transactions are exempt from the state gross retail tax
to the extent that the gross retail income from those transactions is
derived from gross receipts that are:
(1) derived from sales to the United States government, to the
extent the state is prohibited by the Constitution of the United
States from taxing that gross income;
(2) derived from commercial printing that results in printed
materials, excluding the business of photocopying, that are
shipped, mailed, or delivered outside Indiana;
(3) United States or Indiana taxes received or collected as a
collecting agent explicitly designated as a collecting agent for
a tax by statute for the state or the United States;
(4) collections by a retail merchant of a retailer's excise tax
imposed by the United States if:
(A) the tax is imposed solely on the sale at retail of tangible
personal property;
(B) the tax is remitted to the appropriate taxing authority;
and
(C) the retail merchant collects the tax separately as an
addition to the price of the property sold;
(5) collections of a manufacturer's excise tax imposed by the
United States on motor vehicles, motor vehicle bodies and
chassis, parts and accessories for motor vehicles, tires, tubes for
tires, or tread rubber and laminated tires, if the excise tax is
separately stated by the collecting taxpayer as either an addition
to or an inclusion in the price of the property sold; or
(6) amounts represented by an encumbrance of any kind on
tangible personal property received by a retail merchant in
reciprocal exchange for tangible personal property of like kind.
(b) Transactions are exempt from the state gross retail tax to the
extent that the gross retail income from those transactions is derived
from gross receipts that are:
(1) interest or other earnings paid on bonds or other securities
issued by the United States, to the extent the Constitution of the
United States prohibits the taxation of that gross income; or
(2) derived from business conducted in commerce between the
state and either another state or a foreign country, to the extent
the state is prohibited from taxing that gross income by the
Constitution of the United States.
As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1981,
P.L.77, SEC.4; P.L.78-1989, SEC.7; P.L.192-2002(ss), SEC.55.
IC 6-2.5-5-25
Exemption; acquisition for fund raising by nonprofit entity
Sec. 25. (a) 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 an organization described in section 21(b)(1) of this
chapter;
(2) primarily uses the property 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 occurring after December 31, 1976, and
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 section 21(b)(1)(A) of this chapter;
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.
As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1980,
P.L.49, SEC.3; Acts 1981, P.L.77, SEC.5; P.L.192-2002(ss), SEC.56.
IC 6-2.5-5-26
Exemption; nonprofit entities; sales for less than 30 days each
year; sale for educational, cultural, or religious purpose; sale for
professional or workforce education improvement purposes
Sec. 26. (a) Sales of tangible personal property are exempt from
the state gross retail tax, if:
(1) the seller is an organization that is described in section
21(b)(1) of this chapter;
(2) the organization makes the sale to make money to carry on
a not-for-profit purpose; and
(3) the organization does not make those sales during more than
thirty (30) days in a calendar year.
IC 6-2.5-5-27
Public transportation; acquisitions
Sec. 27. Transactions involving tangible personal property and
services are exempt from the state gross retail tax, if the person
acquiring the property or service directly uses or consumes it in
providing public transportation for persons or property.
As added by Acts 1980, P.L.52, SEC.1.
IC 6-2.5-5-27.5
Rolling stock
Sec. 27.5. (a) For purposes of this section, "rolling stock" means
rail transportation equipment, including locomotives, box cars,
flatbed cars, hopper cars, tank cars, and freight cars of any type or
class.
(b) Transactions involving the following tangible personal
property are exempt from the gross retail tax:
(1) Rolling stock that is purchased or leased by a person.
(2) All spare, replacement, and rebuilding parts or accessories,
components, materials, or supplies, including lubricants and
fuels, for rolling stock described in subdivision (1).
As added by P.L.61-1997, SEC.2.
IC 6-2.5-5-28
Repealed
(Repealed by P.L.11-1984, SEC.4.)
IC 6-2.5-5-29
Manufactured homes; industrialized residential structures
Sec. 29. (a) As used in this section:
"Manufactured home" means a manufactured home as that term
is defined in 42 U.S.C. 5402(6) as that statute was adopted and in
effect on January 1, 1988.
"Industrialized residential structure" means a structure that is both
an industrialized building system (as defined in IC 22-12-1-14) and
a one (1) or two (2) family private residence.
(b) Sales of manufactured homes or industrialized residential
structures are exempt from the state gross retail tax to the extent that
the gross retail income from the sales is not attributable to the cost
of materials used in manufacturing the manufactured home or
industrialized residential structure.
(c) For purposes of this section, the part of the gross retail income
not attributable to the cost of materials used in manufacturing a
manufactured home or an industrialized residential structure is
thirty-five percent (35%) of the gross retail income derived from the
sale of the manufactured home or industrialized residential structure.
(d) The gross retail income derived from the sale of a preowned
manufactured home is exempt from the state gross retail tax.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.245-1987,
SEC.7; P.L.86-1989, SEC.2.
IC 6-2.5-5-30
Environmental quality compliance; manufacturing, mining, or
agriculture
Sec. 30. Sales of tangible personal property are exempt from the
state gross retail tax if:
(1) the property constitutes, is incorporated into, or is consumed
in the operation of, a device, facility, or structure predominantly
used and acquired for the purpose of complying with any state,
local, or federal environmental quality statutes, regulations, or
standards; and
(2) the person acquiring the property is engaged in the business
of manufacturing, processing, refining, mining, or agriculture.
The portion of the sales price of tangible personal property which is
exempt from state gross retail and use taxes under this section equals
the product of: (A) the total sales price; multiplied by (B) one
hundred percent (100%).
As added by Acts 1980, P.L.53, SEC.2. Amended by P.L.28-1997,
SEC.9.
IC 6-2.5-5-31
Free distribution newspaper; related transactions
Sec. 31. (a) As used in this section, "free distribution newspaper"
means any community newspaper, shopping paper, shoppers'
consumer paper, pennysaver, shopping guide, town crier, dollar
stretcher, or other similar publication which:
(1) is distributed to the public on a community-wide basis, free
of charge;
(2) is published at stated intervals of at least once a month;
(3) has continuity as to title and general nature of content from
issue to issue;
(4) does not constitute a book, either singly or when successive
issues are put together;
(5) contains advertisements from numerous unrelated
advertisers in each issue;
(6) contains news of general or community interest, community
notices, or editorial commentary by different authors, in each
issue; and
(7) is not owned by, or under the control of, the owners or
lessees of a shopping center, a merchant's association, or a
business that sells property or services (other than advertising)
whose advertisements for their sales of property or services
constitute the predominant advertising in the publication.
(b) The term "free distribution newspaper" does not include mail
order catalogs or other catalogs, advertising fliers, travel brochures,
house organs, theater programs, telephone directories, restaurant
guides, shopping center advertising sheets, and similar publications.
(c) Transactions involving manufacturing machinery, tools and
equipment, and other tangible personal property are exempt from the
state gross retail tax if the person acquiring that property acquires it
for his direct use, or for his direct consumption as a material to be
consumed, in the direct production or publication of a free
distribution newspaper, or for incorporation as a material part of a
free distribution newspaper published by that person.
(d) Transactions involving a sale of a free distribution newspaper,
or of printing services performed in publishing a free distribution
newspaper, are exempt from the state gross retail tax if the purchaser
is the publisher of the free distribution newspaper.
As added by Acts 1981, P.L.80, SEC.2.
IC 6-2.5-5-32
Reserved
IC 6-2.5-5-33
IC 6-2.5-5-34
IC 6-2.5-5-35
this chapter; and
IC 6-2.5-5-36
IC 6-2.5-5-37
IC 6-2.5-5-38
IC 6-2.5-5-38.2
IC 6-2.5-5-39
registered for use in Indiana; and
IC 6-2.5-5-40
IC 6-2.5-5-41
IC 6-2.5-5-42
Indiana within thirty (30) days after:
IC 6-2.5-5-43
Tangible personal property purchased with food stamps
Sec. 33. Sales of tangible personal property purchased with food
stamps are exempt from the state gross retail tax.
As added by P.L.69-1986, SEC.1.
Sale of lottery tickets; gross retail tax
Sec. 34. Sales of lottery tickets authorized by IC 4-30 are exempt
from the state gross retail tax.
As added by P.L.341-1989(ss), SEC.8.
Tangible personal property transactions
Sec. 35. (a) Except as provided in subsection (b), transactions
involving tangible personal property are exempt from the state gross
retail tax if:
(1) the:
(A) person acquires the property to facilitate the service or
consumption of food and food ingredients that is not
exempted from the state gross retail tax under section 20 of
(B) property is:
(i) used, consumed, or removed in the service or
consumption of the food and food ingredients; and
(ii) made unusable for further service or consumption of
food and food ingredients after the property's first use for
service or consumption of food and food ingredients; or
(2) the:
(A) 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
(B) property acquired is:
(i) used up, removed, or otherwise consumed during the
occupation of the rooms, lodgings, or accommodations by
a guest; or
(ii) rendered nonreusable by the property's first use by a
guest during the occupation of the rooms, lodgings, or
accommodations.
(b) The exemption provided by subsection (a) does not apply to
transactions involving electricity, water, gas, or steam.
As added by P.L.43-1992, SEC.8. Amended by P.L.257-2003,
SEC.29; P.L.211-2007, SEC.14.
Commercial printing contracts
Sec. 36. Transactions involving tangible personal property
acquired by a person that has contracted with a commercial printer
for printing are exempt from the state gross retail tax, if the property
is acquired for use at the commercial printer's premises and the
commercial printer could have acquired the property exempt from
the state gross retail tax and use tax.
As added by P.L.70-1993, SEC.3.
Professional motor racing vehicle parts; tires and accessories
excluded
Sec. 37. Transactions involving tangible personal property are
exempt from the state gross retail tax, if the tangible personal
property:
(1) is leased, owned, or operated by a professional racing team;
and
(2) comprises any part of a professional motor racing vehicle,
excluding tires and accessories.
As added by P.L.19-1994, SEC.6. Amended by P.L.193-2005, SEC.9.
Repealed
(Repealed by P.L.253-1997(ss), SEC.36.)
IC 6-2.5-5-38.1
Qualified computer equipment sales
Sec. 38.1. (a) As used in this section, "service center" has the
meaning set forth in IC 6-3.1-15-3.
(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.
(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 added by P.L.253-1997(ss), SEC.37.
Vehicle lease transactions
Sec. 38.2. The value of an owned vehicle is exempt from the
Indiana gross retail tax in a vehicle lease transaction if the owned
vehicle is exchanged for a like kind vehicle.
As added by P.L.253-1997(ss), SEC.38.
Cargo trailers and recreational vehicles registered for use outside
Indiana
Sec. 39. (a) As used in this section, "cargo trailer" means a
vehicle:
(1) without motive power;
(2) designed for carrying property;
(3) designed for being drawn by a motor vehicle; and
(4) having a gross vehicle weight rating of at least two thousand
two hundred (2,200) pounds.
(b) As used in this section, "recreational vehicle" means a vehicle
with or without motive power equipped exclusively for living
quarters for persons traveling upon the highways. The term includes
a travel trailer, a motor home, a truck camper with a floor and
facilities enabling it to be used as a dwelling, and a fifth wheel
trailer.
(c) A transaction involving a cargo trailer or a recreational vehicle
is exempt from the state gross retail tax if:
(1) the purchaser is a nonresident;
(2) upon receiving delivery of the cargo trailer or recreational
vehicle, the person transports it within thirty (30) days to a
destination outside Indiana;
(3) the cargo trailer or recreational vehicle will be titled or
registered for use in another state or country;
(4) the cargo trailer or recreational vehicle will not be titled or
(5) the cargo trailer or recreational vehicle will be titled or
registered in a state or country that provides an exemption from
sales, use, or similar taxes imposed on a cargo trailer or
recreational vehicle that is purchased in that state or country by
an Indiana resident and will be titled or registered in Indiana.
A transaction involving a cargo trailer or recreational vehicle that
does not meet the requirements of subdivision (5) is not exempt from
the state gross retail tax.
(d) A purchaser must claim an exemption under this section by
submitting to the retail merchant an affidavit stating the purchaser's
intent to:
(1) transport the cargo trailer or recreational vehicle to a
destination outside Indiana within thirty (30) days after
delivery; and
(2) title or register the cargo trailer or recreational vehicle for
use in another state or country.
The department shall prescribe the form of the affidavit, which must
include an affirmation by the purchaser under the penalties for
perjury that the information contained in the affidavit is true. The
affidavit must identify the state or country in which the cargo trailer
or recreational vehicle will be titled or registered.
(e) The department shall provide the information necessary to
determine a purchaser's eligibility for an exemption claimed under
this section to retail merchants in the business of selling cargo
trailers or recreational vehicles.
As added by P.L.195-2005, SEC.3. Amended by P.L.92-2006, SEC.1;
P.L.211-2007, SEC.15.
Research and development equipment
Sec. 40. (a) As used in this chapter, "research and development
activities" does not include any of the following:
(1) Efficiency surveys.
(2) Management studies.
(3) Consumer surveys.
(4) Economic surveys.
(5) Advertising or promotions.
(6) Research in connection with literary, historical, or similar
projects.
(7) Testing for purposes of quality control.
(b) As used in this section, "research and development equipment"
means tangible personal property that:
(1) consists of or is a combination of:
(A) laboratory equipment;
(B) computers;
(C) computer software;
(D) telecommunications equipment; or
(E) testing equipment;
(2) has not previously been used in Indiana for any purpose; and
(3) is acquired by the purchaser for the purpose of research and
development activities devoted directly to experimental or
laboratory research and development for:
(A) new products;
(B) new uses of existing products; or
(C) improving or testing existing products.
(c) A retail transaction:
(1) involving research and development equipment; and
(2) occurring after June 30, 2007;
is exempt from the state gross retail tax.
As added by P.L.193-2005, SEC.10.
Motion picture production equipment
Sec. 41. (a) As used in this section, "qualified media production"
has the meaning set forth in IC 6-3.1-32-5.
(b) Except as provided in subsection (d), a transaction involving
tangible personal property is exempt from the state gross retail tax if
the person acquiring the property acquires it for the person's direct
use in a qualified media production in Indiana after December 31,
2006.
(c) For purposes of this section, the following are not considered
to be directly used in the production of a qualified media production:
(1) Food and beverage services.
(2) A vehicle or other means of transportation used to transport
actors, performers, crew members, or any other individual
involved in a qualified media production.
(3) Fuel, parts, supplies, or other consumables used in a vehicle
or other means of transportation used to transport actors,
performers, crew members, or any other individual involved in
a qualified media production.
(4) Lodging.
(5) Packaging materials.
(d) A person is not entitled to an exemption under this section
with respect to a transaction involving tangible personal property that
is:
(1) a qualified production expenditure (as defined in
IC 6-3.1-32-6) for which a tax credit is claimed under
IC 6-3.1-32; or
(2) acquired for direct use in a qualified media production in
Indiana if the transaction occurs after December 31, 2011.
As added by P.L.137-2006, SEC.3. Amended by P.L.235-2007,
SEC.1; P.L.131-2008, SEC.9.
Aircraft titled, registered, or based outside Indiana
Sec. 42. (a) A transaction involving an aircraft is exempt from the
state gross retail tax if:
(1) the purchaser is a nonresident;
(2) the purchaser transports the aircraft to a destination outside
(A) accepting delivery of the aircraft; or
(B) a repair, refurbishment, or remanufacture of the aircraft
is completed, if the aircraft remains in Indiana after the
purchaser accepts delivery for the purpose of accomplishing
the repair, refurbishment, or remanufacture of the aircraft;
(3) the aircraft will be:
(A) titled or registered in another state or country; or
(B) based (as defined in IC 6-6-6.5-1(m)) in that state or
country, if a state or country does not require a title or
registration for aircraft; and
(4) the aircraft will not be titled or registered in Indiana.
(b) A purchaser must claim an exemption under subsection (a) by
submitting to the seller an affidavit affirming the elements required
by subsection (a). In addition, the affidavit must identify the state or
country in which the aircraft will be titled, registered, or based.
(c) Within sixty (60) days after:
(1) a purchaser who claims an exemption under this section
accepts delivery of the aircraft; or
(2) a repair, refurbishment, or remanufacture of the aircraft
subject to an exemption under this section is completed, if the
aircraft remains in Indiana after the purchaser accepts delivery
for the purpose of accomplishing the repair, refurbishment, or
remanufacture of the aircraft;
the purchaser shall provide the seller with a copy of the purchaser's
title or registration of the aircraft outside Indiana. If the state or
country in which the aircraft is based does not require the aircraft to
be titled or registered, the purchaser shall provide the seller with a
copy of the aircraft registration application for the aircraft as filed
with the Federal Aviation Administration.
(d) The department shall prescribe the form of the affidavit
required by subsection (b).
As added by P.L.211-2007, SEC.16.
Type II gambling games
Sec. 43. Sales of type II gambling games authorized by IC 4-36
are exempt from the state gross retail tax.
As added by P.L.95-2008, SEC.14.
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