Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-53 - In-state sales of tangible personal property

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-2-2
Sec. 53.
When Sales of Tangible Personal Property Are in This State.
				  Gross receipts from the sales of tangible personal property (except sales to
				  the United States Government-See Regulation 6-3-2-2(e)(050)
[ 45 IAC
				  3.1-1-54 ]
are in this state:
(a) if the property is delivered or shipped
				to a purchaser within this state regardless of the F.O.B. point or other
				conditions of sales; or
(b) if the
				property is shipped from an office, store, factory, or other place of storage
				in this state, and the taxpayer is not taxable in the state of the purchaser.
				See Regulation 6-3-2-2(n)(010)
[ 45 IAC 3.1-1-64 ]
.
Examples:
(1)
				Property shall be deemed to be delivered or shipped to a purchaser within this
				state if the recipient is located in this state, even though the property is
				ordered from outside this state. Example: The taxpayer, with inventory in State
				A sold $100,000 of its products to a purchaser having branch stores in several
				states including this state. The order for the purchase was placed by the
				purchaser's central purchasing department located in State B. $25,000 of the
				purchase order was shipped directly to the purchaser's branch store in this
				state. The branch store in this state is the "purchaser within this state" with
				respect to $25,000 of the taxpayer's sales.
(2) Property is delivered or shipped to a
				purchaser within this state if the shipment terminates in this state, even
				though the property is subsequently transferred by the purchaser to another
				state. Example: The taxpayer makes a sale to a purchaser who maintains a
				central warehouse in this state at which all merchandise purchases are
				received. The purchaser reships the goods to its branch offices in other states
				for sale. All of taxpayer's products shipped to the purchaser's warehouse in
				this state is property "delivered or shipped to a purchaser within this
				state."
(3) The term "purchaser
				within this state" shall include the ultimate recipient of the property if the
				taxpayer in this state, at the designation of the purchaser, delivers to or has
				the property shipped to the ultimate recipient within this state. Example: A
				taxpayer in Indiana sold merchandise to a purchaser in State A. The taxpayer
				directed the manufacturer or supplier of the merchandise in State B to ship the
				merchandise to the purchaser's customer in Indiana pursuant to the purchaser's
				instructions. The sale by the taxpayer is "in this state."
(4) When the property being shipped by a
				seller from the state of origin to a consignee in another state is diverted
				while enroute to a purchaser in this state, the sales are in this state.
				Example: The taxpayer, a produce grower in State A, begins shipment of
				perishable produce to the purchaser's place of business in State B. While
				enroute the produce is diverted to the purchaser's place of business in Indiana
				in which state the taxpayer is subject to tax. The sale by the taxpayer is
				attributed to Indiana.
(5) If the
				taxpayer is not taxable in the state of the purchaser, the sale is attributed
				to this state if the property is shipped from an office, store, warehouse,
				factory, or other place of storage in this state. Such sale is termed a
				"Throwback" sale. Example: The taxpayer has its head office and factory in
				State A. It maintains a branch office and inventory in Indiana. Taxpayer's only
				activity in State B is the solicitation of orders by a resident salesman. All
				orders by the State B salesman are sent to the branch office in Indiana for
				approval and are filled by shipment from the inventory in Indiana. Since the
				taxpayer is immune under P.L. 86-272 from tax in State B, all sales of
				merchandise to purchasers in State B are attributed to Indiana, the state from
				which the merchandise was shipped.
(6) If a taxpayer whose salesman operated
				from an office located in Indiana makes a sale to a purchaser in another state
				in which the taxpayer is not taxable and the property is shipped directly by a
				third party to the purchaser, the sale will be attributed to the state from
				which the property is shipped if the taxpayer is taxable in that state. If the
				taxpayer is not taxable in the state from which the property is shipped, then
				the property will be deemed to have been shipped from Indiana and the sale is
				attributed to Indiana. Example: The taxpayer in Indiana sold merchandise to a
				purchaser in State A. Taxpayer is not taxable in State A. Upon direction of the
				taxpayer, the merchandise was shipped directly to the purchaser by the
				manufacturer in State B. If the taxpayer is taxable in State B, the merchandise
				is deemed to have been shipped from State B to the purchaser in State A. If the
				taxpayer is not taxable in State B, the merchandise is deemed to have been
				shipped from Indiana by the taxpayer to the purchaser in State A.
(7) Sales are not "in this state" if the
				purchaser picks up the goods at an out-of-state location and brings them back
				into Indiana in his own conveyance.