reglab/statecodes huggingface dataset:
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-12 - Power subsidiary; installation or removal of equipment not subject to the gross retail tax

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 12.
(a) In
				general, the furnishing of electricity, gas, water, steam or steam heating
				services by public utilities to consumers is subject to the gross retail
				tax.
(b) The gross receipts of a
				power subsidiary or person engaged as a public utility in selling electrical
				energy, gas, water, or steam to consumers derived from the provision,
				installation, construction, servicing, or removal of tangible personal property
				used in connection with the furnishing of any such public utility service or
				commodity shall not constitute gross retail income of a retail merchant
				received from a retail transaction.
(c) The gross receipts of power subsidiaires
[sic.]
or public utilities engaged in furnishing electrical
				energy, gas, water, or steam to consumers from the provision, installation,
				construction, servicing, or removal of tangible personal property used to
				furnish such public utility services shall not constitute gross receipts of a
				retail merchant received from a retail transaction. The gross receipts from
				connect and disconnect charges, equipment charges, contributions in aid of
				construction charges, deferred payment charges, delinquency charges, and repair
				service charges are not subject to the state gross retail tax.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-13 - Power subsidiary; utilities furnished to industrial consumers not subject to the gross retail tax

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5-4-5; IC 6-2.5-5-5.1
Sec. 13.
(a) In
				general, the furnishing of electricity, gas, water, steam, or steam heating
				services by public utilities to consumers is subject to tax.
(b) The gross receipt of every person engaged
				as a power subsidiary or a public utility derived from selling electrical
				energy, gas, water, or steam to consumers for direct use in direct
				manufacturing, mining, production, refining, oil or mineral extraction,
				irrigation, agriculture, horticulture, or another public utility or power
				subsidiary described in IC 6-2.5-4-5 shall not constitute gross retail income
				of a retail merchant received from a retail transaction. Electrical energy,
				gas, water, or steam will only be considered directly used in direct
				production, manufacturing, mining, refining, oil or mineral extraction,
				irrigation, agriculture, or horticulture if the utilities would be exempt under
				IC 6-2.5-5-5.1.
(c) Sales of public
				utility services or commodities to consumers engaged in manufacturing, mining,
				production, refining, oil or mineral extraction, irrigation, agriculture,
				horticulture, or another public utility or power subsidiary described in IC
				6-2.5-4-5, based on a single meter charge, flat rate charge, or other charge,
				are excepted if such services are separately metered or billed and will be used
				predominantly for the excepted purposes.
(d) Sales of public utility services and
				commodities to consumers engaged in manufacturing, mining, production,
				refining, oil or mineral extraction, irrigation, agriculture, or horticulture,
				based on a single meter charge, flat rate charge, or other charge, which will
				be used for both excepted and nonexcepted purposes are taxable unless such
				services and commodities are used predominantly for excepted
				purposes.
(e) Where public utility
				services are sold from a single meter and the services or commodities are
				utilized for both exempt and nonexempt uses, the entire gross receipts will be
				subject to tax unless the services or commodities are used predominantly for
				excepted purposes. Predominant use shall mean that more than fifty percent
				(50%) of the utility services and commodities are consumed for excepted
				uses.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-14 - Local exchange telephone service or intrastate message toll telephone service

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 14.
(a) In
				general, the furnishing of telephone services by public utilities to consumers
				is subject to the state gross retail tax. The gross receipts of public
				utilities from the furnishing of local exchange telephone service or intrastate
				message toll service is subject to the state gross retail tax. The tax applies
				to the total receipts of such public utilities for furnishing such services.
				The tax is borne by the consumer.
(b) Every person engaged as a public utility
				in the furnishing of communication service with respect to the furnishing of
				local exchange telephone service or intrastate message toll telephone shall be
				and constitute a retail merchant in respect thereto, and the gross income
				received therefore upon billings or statements rendered to consumers shall
				constitute gross retail income received from retail transactions.
(c) Local exchange intrastate telephone
				service. The tax is imposed on the gross receipts from charges periodically
				billed to consumers for the privilege of making local exchange calls to other
				telephones located within the local exchange telephone area. The tax applies
				irrespective of whether the actual net charge is based upon flat rate charge, a
				message charge, a minimum charge, service charge, or a membership
				fee.
(d) Intrastate message toll
				telephone service. The tax is imposed on the gross receipts from message
				charges periodically biled
[sic.]
to consumers for the
				privilege of transmitting messages, information, or intelligence between points
				located within Indiana where the amount of the charge is regulated by the
				Public Service Commission of Indiana. The tax applies to the total receipts of
				such service irrespective of whether the actual net charge is based upon a flat
				rate charge, a message charge, a minimum charge, service charge or a membership
				fee.
(e) The term "public
				utilities" as used in this regulation
[45 IAC 2.2]
means any
				organization which is engaged in the furnishing or selling of telephone
				services and having the right of eminent domain or subject to governmental
				regulations in connection with the furnishing of public utility services. The
				term includes governmental units and not-for-profit organizations which furnish
				public utility services.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-15 - Telephone utilities; installation or removal of equipment not subject to gross retail tax

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 15.
(a) In
				general, the furnishing of telephone services by public utilities is subject to
				gross retail tax.
(b) The gross
				receipts of public utilities engaged in furnishing telephone services to
				consumers derived from the provision, installation, construction, servicing, or
				removal of tangible personal property used in connection with the furnishing of
				such public utility service does not constitute gross retail income of a retail
				merchant received from a retail transaction. The gross receipts from
				installation charges, repair charges, deferred payment charges and delinquency
				charges are not subject to the state gross retail tax.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-16 - Telephone utilities; utilities furnished to other customers not subject to gross retail tax

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5-4-5
Sec. 16.
The gross receipts of every person engaged as a public
				  utility derived from furnishing local exchange telephone service or intrastate
				  message toll telephone service to other public utilities which furnish local
				  exchange telephone service, intrastate message toll telephone service or
				  intrastate telegraph service or another public utility or power subsidiary
				  described in IC 6-2.5-4-5 shall not constitute gross retail income received
				  from a retail transaction.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-21 - Tangible personal property sold for incorporation into real property

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 21.
(a) In
				general, all sales of tangible personal property are taxable, and all sales of
				real property are not taxable. The conversion of tangible personal property
				into realty does not relieve a liability for any owing and unpaid state gross
				retail tax or use tax with respect to such tangible personal
				property.
(b) All construction
				material purchased by a contractor is taxable either at the time of purchase,
				or if purchased exempt (or otherwise acquired exempt) upon disposition unless
				the ultimate recipient could have purchased it exempt (see 6-2.5-5
[ 45
				IAC 2.2-5 ]
).
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-22 - Procedure when a tax is not paid on construction material when purchased by contractor

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 22.
(a) A
				contractor may purchase construction material exempt from the state gross
				retail tax only if he issues either an exemption certificate or a direct pay
				certificate to the seller at the time of purchase.
(b) A contractor, who purchases construction
				material exempt from the state gross retail tax or otherwise acquires
				construction material "tax-free", is accountable to the Department of Revenue
				for the state gross retail tax when he disposes of such property unless the
				ultimate recipient could have purchased it exempt (see 6-2.5-5
[ 45 IAC
				2.2-5 ]
).
(c) A contractor
				has the burden of proof to establish exempt sale or use when construction
				material, which was acquired "tax-free", is not subject to either the state
				gross retail tax or use tax upon disposition.
(d) Disposition subject to the state gross
				retail tax. A contractor-retail merchant has the responsibility to collect the
				state gross retail tax and to remit such tax to the Department of Revenue
				whenever he disposes of any construction material in the following manner:
(1) Time and material contract. He converts
				the construction material into realty on land he does not own and states
				separately the cost for the construction materials and the cost for the labor
				and other charges (only the gross proceeds from the sale of the construction
				material are subject to tax); or
(2) Construction material sold
				over-the-counter. Over the counter sales of construction materials will be
				treated as exempt from the state gross retail tax only if the contractor
				receives a valid exemption certificate issued by the person for whom the
				construction is being performed or by the customer who purchases
				over-the-counter, or a direct pay permit issued by the customer who purchases
				over-the-counter.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-23 - Procedure when tax paid on construction material when purchased by contractor

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 23.
A contractor has no further liability for either the state
				  gross retail tax or use tax with respect to construction material acquired by
				  the contractor in a taxable transaction, provided the contractor disposes of
				  such property in the following manner:
(1) He converts the construction materials
				into realty on land he owns and then sells the improved real estate;
(2) He utilizes the construction material for
				his own benefit and does not resell or transfer such property to others;
				or
(3) Lump sum contract. He
				converts the construction material into realty on land he does not own pursuant
				to a contract that includes all elements of cost in the total contract
				price.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-24 - Procedure when construction material not furnished by contractor

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 24.
(a) A
				contractor is not liable for either the state gross retail tax or use tax when
				he converts construction material into realty on land he does not own, provided
				such property is furnished by the customer of the contractor.
(b) When the customer furnishes the
				construction materials, the customer is deemed to be the user of such property
				and, as such, he is accountable to the Department of Revenue for any taxes
				owing and unpaid with respect to such construction material.
(c) A contractor may function as a retail
				merchant (having all duties and responsibilities as such) with respect to
				construction material, and then function as an installer or "converter" of such
				property which will be treated as having been furnished by the
				customer.
(d) If a contractor
				functions as both retail merchant and an installer with respect to construction
				materials and the over-the-counter sales price of such property is less than
				fair market value, any consideration received by the contractor for installing
				or "converting" such property will be treated as part of the over-the-counter
				sales price subject to the state gross retail tax.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-25 - Definitions

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 25.
(a)
				Contractor. For purposes of this regulation
[45 IAC 2.2]
,
				"contractor" means any person engaged in converting construction material into
				realty. The term "contractor" refers to general or prime contractors,
				subcontractors, and specialty contractors, including but not limited to persons
				engaged in building, cement work, carpentry, plumbing, heating, electrical
				work, roofing, wrecking, excavating, plastering, tile and road
				construction.
(b) Construction
				material. For purposes of this regulation
[45 IAC 2.2]
,
				"construction material" means any tangible personal property to be used for
				incorporation in or improvement of a facility or structure constituting or
				becoming part of the land on which such facility or structure is
				situated.
(c) Machinery, tools,
				equipment and supplies used by a contractor to perform a construction contract
				are not construction materials.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-26 - Contractors

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 26.
(a) A person
				making a contract for the improvement to real estate whereby the material
				becoming a part of the improvement and the labor are quoted as one price is
				liable for the payment of sales tax on the purchase price of all material so
				used.
(b) A person selling tangible
				personal property to be used as an improvement to real estate may enter into a
				conpletely
[sic.]
separate contract to furnish the labor to
				install or construct such improvement, in which case the sales tax shall be
				collected and remitted by such seller on the materials sold for this purpose.
				Such sales of materials must be identifiable as a separate transaction from the
				contract for labor. The fact that the seller subsequently furnished information
				regarding the charges for labor and material used under a flat bid quotation
				shall not be considered to constitute separate transactions for labor and
				material.
(c) Tangible personal
				property purchased to become a part of an improvement to real estate under a
				contract with an organization entitled to exemption is eligible for exemption
				when purchased by the contractor.
(d) In order to be exempt on such purchases
				the contractor must be registered as a retail merchant and must obtain an
				exemption certificate from the exempt organization, and must issue an exemption
				certificate to his supplier.
(e)
				Utilities, machinery, tools, forms, supplies, equipment or any other items used
				by or consumed by the contractor and which do not become a part of the
				improvement to real estate are not exempt regardless of the exempt status of
				the person for whom the contract is performed.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-30 - Cable TV service

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 30.
Every person engaged in the furnishing of local or intrastate
				  cable television service shall be a retail merchant making retail transactions
				  in respect to the furnishing of such service, and the gross income received
				  therefrom, upon billings or statement rendered to consumers, shall constitute
				  gross retail income from a retail transaction for the purposes of the gross
				  retail tax.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-31 - Cable TV service; exclusion

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 31.
In general, all charges billed to the user of cable
				  television service are subject to sales tax. This regulation
[this
				  section]
excludes only charges billed to the consumer for the
				  provision, installation, construction, servicing or removal of tangible
				  personal property used in connection with the furnishing of such
				  service.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-32 - Cable TV companies; purchases

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 32.
This regulation
[45 IAC 2.2]
does not exempt
				  cable television companies from sales tax on their purchases of tangible
				  personal property; therefore, they will be required to pay sales tax on their
				  purchases.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-33 - Auction sales; sales tax

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 33.
Every person engaged in the business of making sales at
				  auction of tangible personal property owned by such person or others, shall be
				  and constitute a retail merchant making retail transactions in respect thereto
				  and the gross income received therefrom shall constitute gross retail income of
				  a retail merchant received from retail transactions.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-34 - Auction sales; exclusion

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 34.
In general, all sales of tangible personal property by any
				  person engaged in the business of making sales at auction are taxable. This
				  regulation
[this section]
excludes only occasional or isolated
				  sales of tangible personal property on the premises of the owner in those
				  instances where such tangible personal property was not acquired for
				  resale.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 4 - Retail Transactions of Retail Merchant › Section 4-35 - Auction sales; application of exemption

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 35.
(a) An
				auction that meets all of the following conditions is casual sale and is
				therefore not subject to sales tax:
(1) The
				sale must be on premises owned or provided by the owner of the tangible
				personal property being sold and not the auctioneer.
(2) The tangible personal property must not
				have been purchased for resale nor consigned by a third party for
				sales.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-2 - Sales to farmers; feed

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 2.
(a) The state
				gross retail tax shall not apply to any of the following transactions:
(1) Sales to farmers of feed for animals and
				poultry used by the purchaser in the direct production of food and agricultural
				commodities.
(2) Sales of feed for
				animals and poultry to a farmer to be directly used by the farmer in the direct
				production of food or agricultural commodities for human, animal, or poultry
				consumption are exempt from tax.
(3) Sales to farmers of feed for animals and
				poultry are exempt from tax, provided such feed is to be used for animals and
				poultry which were purchased exempt from tax. This exemption applies also to
				feed purchased for animals and poultry which are raised by a farmer entitled to
				this exemption and which animals or poultry would have qualified for exemption
				if they had been purchased by the farmer.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-5 - Raising horses, donkeys and ponies; application for sales tax

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 5.
(a) The
				raising of saddle horses, harness horses, ponies, donkeys, or any other similar
				animals not used directly in direct agricultural production does not qualify as
				agricultural production for "human consumption" under the gross retail sales
				and use tax act. Consequently, the purchase of supplies, food, materials, and
				equipment used in raising or maintaining such animals are subject to the sales
				tax unless the items are directly used or consumed in the production of such
				animals for resale in the regular course of the purchaser's business.
(b) The purchase of any of the above animals
				is subject to the sales tax unless the purchaser is a registered retail
				merchant and is buying such animal for resale in the regular course of his
				business.
(c) A valid exemption
				certificate must be furnished by the purchaser setting out the reasons for any
				exemption.
(d) An agricultural
				exemption certificate may be used only for the purchase of draft animals which
				are to be directly used in direct production of agricultural
				products.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-7 - Direct production of grain; sales of agricultural machinery

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 7.
(a)
				Agricultural machinery, tools, and equipment directly used in the direct
				production, extraction, harvesting, or processing of grain, from the time the
				grain is harvested until the time the grain is dried, are exempt so long as the
				agricultural machinery, tools, and equipment have an immediate effect upon the
				grain. Property has an immediate effect on the grain being produced if it is an
				essential and integral part of an integrated process which produces grain.
-EXAMPLE-
Machinery, tools, and equipment directly used in the
				  processing, drying, or cleaning of grain.
(b) Transportation equipment directly used in
				the direct production of grain is exempt so long as such equipment has an
				immediate effect upon the grain. Property has an immediate effect on the grain
				being produced if it is an essential and integral part of an integrated process
				which produces grain.
(1) Grain augers which
				contain perforated cleaning screens are exempt, since this equipment separates
				foreign matter from grain and, therefore, is an essential and integral part of
				an integrated process in direct production, which produces grain.
(2) Grain augers without perforated cleaning
				screens used exclusively to transport wet grain are exempt, since such
				transportation aerates wet grain and, therefore, has a direct and immediate
				effect upon the grain and is an essential and integral part of an integrated
				process which produces grain.
(3)
				Machinery, tools, and equipment directly used to transport grain from the field
				where it is harvested to the production processes of drying, cleaning, and
				holding for the feeding of livestock, or to be further used in the production
				of food and commodities are exempt.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-10 - Sales of manufacturing machinery, tools and equipment to be directly used in processing or refining tangible personal property

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5-4-2
Sec. 10.
(a) In
				general, all purchases of tangible personal property by persons engaged in the
				processing or refining of tangible personal property are taxable. The exemption
				provided in this regulation
[45 IAC 2.2]
extends only to
				manufacturing machinery, tools, and equipment used in direct production. It
				does not apply to materials consumed in production or to materials incorporated
				into the tangible personal property produced. Additionally, the exemption
				provided in this regulation
[45 IAC 2.2]
extends to industrial
				processors. An industrial processor, as defined in IC 6-2.5-4-2, is one who:
(1) acquires tangible personal property owned
				by another person;
(2) provides
				industrial processing or servicing, including enameling or plating, on the
				property; and
(3) transfers the
				property back to the owner to be sold by that owner either in the same form or
				as a part of other tangible personal property produced by that owner in his
				business of manufacturing, assembling, constructing, refining, or
				processing.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-11 - Sales of tangible personal property used in the direct production of manufacturing or agricultural machinery, tools and equipment

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5-5-2; IC 6-2.5-5-3
Sec. 11.
(a) The
				state gross retail tax shall not apply to sales of tangible personal property
				to be directly used by the purchaser in the direct production or manufacture of
				any manufacturing or agricultural machinery, tools, and equipment described in
				IC 6-2.5-5-2 or 6-2.5-5-3
[IC 6-2.5-5-3 ]
.
(b) The exemption provided in this regulation
[45 IAC 2.2]
extends only to tangible personal property
				directly used in the direct production of manufacturing or agricultural
				machinery, tools, and equipment to be used by such manufacturer or
				producer.
(c) The state gross
				retail tax shall not apply to purchases of tangible personal property to be
				directly used by the purchaser in the production or manufacturing process of
				any manufacturing or agricultural machinery, tools, or equipment, provided that
				the machinery, tools, and equipment are directly used in the production
				process; i.e., they have an immediate effect upon the article being produced or
				manufactured. The property has an immediate effect on the article being
				produced if it is an essential and integral part of an integrated process which
				produces tangible personal property.
(d) For the application of the rules
[subsections]
above, refer to Regs. 6-2.5-5-3
[ 45 IAC
				2.2-5-8 through 45 IAC 2.2-5-10 ]
with respect to tangible personal
				property used directly in the following activities: pre-production and
				post-production activities; storage; transportation; tangible personal property
				which has an immediate effect upon the article produced; maintenance and
				replacement; testing and inspection; and managerial, sales, and other
				nonoperational activities.
(e)
				Energy equipment.
(1) Equipment used to
				modify energy purchased from public utilities for the production process is
				exempt if the equipment is used to modify the utilities for use by exempt
				equipment.
(2) Equipment used to
				create energy that could otherwise be purchased exempt from a public utility
				for use by exempt equipment is exempt.
(3) When any equipment qualifies as essential
				and integral to the production process and also is used in an alternative
				nonessential and/or non-integrated manner, the exemption shall only apply to
				the percentage (%) of use of the equipment used in the exempt manner.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-12 - Sales of tangible personal property directly consumed in manufacturing, processing, refining or mining

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 12.
(a) The
				state gross retail tax shall not apply to sales of any tangible personal
				property consumed in direct production by the purchaser in the business of
				producing tangible personal property by manufacturing, processing, refining, or
				mining.
(b) The exemption provided
				by this regulation
[45 IAC 2.2]
applies only to tangible
				personal property to be directly consumed in direct production by
				manufacturing, processing, refining, or mining. It does not apply to machinery,
				tools, and equipment used in direct production or to materials incorporated
				into the tangible personal property produced.
(c) The state gross retail tax does not apply
				to purchases of materials to be directly consumed in the production process or
				in mining, provided that such materials are directly used in the production
				process; i.e., they have an immediate effect on the article being produced. The
				property has an immediate effect on the article being produced if it is an
				essential and integral part of an integrated process which produces tangible
				personal property.
(d)
				Pre-production and post-production activities.
(1) Direct consumption in the production
				process begins at the point of the first operation or activity constituting
				part of the integrated production process and ends at the point that the
				production process has altered the item to its completed form, including
				packaging, if required.
(2) "Direct
				use in mining" begins with the drilling of the shaft or well or the first
				removal of overburden in surface mining or quarrying. It ends when the item
				being mined or extracted has been physically removed from the mine, well, or
				quarry.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-13 - Sales of tangible personal property directly consumed in agriculture, horticulture, floriculture, or arboriculture

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 13.
(a) The
				state gross retail tax shall not apply to sales of tangible personal property
				as a material which is to be directly consumed in direct production by the
				purchaser in the business of producing agricultural, horticultural,
				floricultural, or arboricultural commodities.
(b) General rule. Purchases of materials to
				be directly consumed by the purchaser in the business of producing tangible
				personal property are exempt from tax provided that such materials are directly
				used in the production process; i.e., they have an immediate effect upon the
				commodities being produced. Property has an immediate effect on the commodities
				being produced if it is an essential and integral part of an integrated process
				which produces tangible personal property.
(c) Refer to Regs. 6-2.5-5-5.1(010)(7)
[ 45 IAC 2.2-5-12(g) ]
for the definition of "consumed" as
				used in this regulation
[45 IAC 2.2]
.
(d) Refer to Regs. 6-2.5-5-1
[ 45 IAC
				2.2-5-1 ]
for the definition of "farmer" and "farming" as used in this
				regulation
[45 IAC 2.2]
.
(e) The term "farmer" will be used in this
				regulation
[45 IAC 2.2]
to signify both "farmers" and "other
				persons engaged in the business of producing food and agricultural
				commodities".
(f) "The business of
				producing tangible personal property by agriculture" means "farming" for
				purposes of interpreting this regulation
[45 IAC
				2.2]
.
(g)
(1) "Have an immediate effect upon
				commodities being produced". Purchases of materials to be consumed during
				production of commodities are taxable unless the consumption of such materials
				has an immediate effect upon either (1) the food or agricultural commodities
				being produced, or
(2) machinery,
				tools, or equipment which are both used in direct production of commodities and
				are exempt from tax under these regulations
[45 IAC 2.2]
. The
				consumption of property has an immediate effect on the commodity being produced
				or on the machinery, tools, or equipment engaged in direct production of
				commodities if the consumption is an essential and integral part of an
				integrated process which produces food or an agricultural commodity.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-14 - Material incorporated into tangible personal property produced for resale

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 14.
(a) The
				state gross retail tax shall not apply to sales of any tangible personal
				property which is to be incorporated by the purchaser as a material or an
				integral part into tangible personal property produced for sale by such
				purchaser in the business of manufacturing, assembling, refining or
				processing.
(b) The exemption
				provided by this regulation
[45 IAC 2.2]
applies only to
				tangible personal property to be incorporated as a material or an integral part
				into tangible personal property produced for sale by a purchaser engaged in the
				business of manufacturing, assembling, refining or processing. This regulation
[45 IAC 2.2]
does not apply to persons engaged in producing
				tangible personal property for their own use.
(c) This regulation
[45 IAC 2.2]
does not exempt from tax tangible personal property to be used in
				production, such as supplies, parts, fuel, machinery, etc., refer to Regs.
				6-2.5-5-5(010) and 6-2.5-5-5(020) (dealing with material consumed in direct
				production) for the application of those regulations to taxpayers engaged in
				the production of tangible personal property.
(d) The purchase of tangible personal
				property which is to be incorporated by the purchaser as a material or an
				integral part is exempt from tax. "Incorporated as a material or an integral
				part into tangible personal property for sale by such purchaser" means:
(1) That the material must be physically
				incorporated into and become a component of the finished product;
(2) The material must constitute a material
				or an integral part of the finished product; and
(3) The tangible personal property must be
				produced for sale by the purchaser.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-15 - Sales for resale

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 15.
(a) The
				state gross retail tax shall not apply to sales of any tangible personal
				property to a purchaser who purchases the same for the purpose of reselling,
				renting or leasing, in the regular course of the purchaser's business, such
				tangible personal property in the form in which it is sold to such
				purchaser.
(b) General rule. Sales
				of tangible personal property for resale, rental or leasing are exempt from tax
				if all of the following conditions are satisfied:
(1) The tangible personal property is sold to
				a purchaser who purchases this property to resell, rent or lease it;
(2) The purchaser is occupationally engaged
				in reselling, renting or leasing such property in the regular course of his
				business; and
(3) The property is
				resold, rented or leased in the same form in which it was purchased.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-16 - Wrapping materials and containers

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 16.
(a) The
				state gross retail tax shall not apply to sales of nonreturnable wrapping
				materials and empty containers to be used by the purchaser as enclosures or
				containers for selling contents to be added, and returnable containers
				containing contents sold in a sale constituting selling at retail and
				returnable containers sold empty for refilling.
(b) In general the gross proceeds from the
				sale of tangible personal property in a transaction of a retail merchant
				constituting selling at retail are taxable. This regulation
[45 IAC
				2.2]
provided an exemption for wrapping materials and
				containers.
(c) General rule. The
				receipt from a sale by a retail merchant of the following types of tangible
				personal property are exempt from state gross retail tax:
(1) Nonreturnable containers and wrapping
				materials including steel strap and shipping pallets to be used by the
				purchaser as enclosures for selling tangible personal property.
(2) Deposits for returnable containers
				received as an incident to a transaction of a retail merchant constituting
				selling at retail.
(3) Returnable
				containers sold empty for refilling.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-17 - Exempt accounts for utilities which furnish or sell electrical energy; steam or steam heating service

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 17.
(a)
				Production Plant.
(1) Steam Production
310. Land and land rights.
311. Structures and improvements.
312. Boiler plant equipment
313. Engines and engine driven generators.
314. Turbogenerator units.
315. Accessory electric equipment.
316. Miscellaneous power plant equipment.
(2) Nuclear Production
320. Land and land rights.
321. Structures and improvements.
322. Reactor plant equipment.
323. Turbogenerator units.
324. Accessory electric equipment.
325. Miscellaneous power plant equipment.
(3) Hydraulic Production
330. Land and land rights.
331. Structures and improvements.
332. Reservoirs, dams and waterways.
333. Water wheels, turbines and generators.
334. Accessory electric equipment.
335. Miscellaneous power plant equipment.
336. Roads, railroads, and bridges.
(4) Other Production
340. Land and land rights.
341. Structures and improvements.
342. Fuel holders, producers and accessories.
343. Prime movers.
344. Generators.
345. Accessory electric-equipment.
346. Miscellaneous power plant equipment.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-18 - Exempt accounts for utilities which furnish or sell natural or artificial gas or mixtures

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 18.
(a)
				Production Plant
(1) Manufactured Gas
				Production Plant
304. Land and land rights.
305. Structures and improvements.
306. Boiler plant equipment.
307. Other power equipment.
308. Coke ovens.
309. Producer gas equipment.
310. Water
311. Liquefied petroleum gas equipment.
312. Oil gas generating equipment.
313. Generating equipment-other processes.
314. Coal, coke, and ash handling equipment.
315. Catalytic cracking equipment.
316. Other reforming equipment.
317. Purification equipment.
318. Residual refining equipment.
319. Gas mixing equipment.
320. Other equipment.
(2) Natural Gas Production Plant
(A) Natural gas production and gathering
				plant.
325.1 Producing land.
325.2 Producing leaseholds.
325.3 Gas rights.
325.4 Rights-of-way.
325.5 Other land and land rights.
326. Gas well structures.
327. Field compressor station structures.
328. Field measuring and regulating station
				  structures.
329. Other structures.
330. Producing gas wells-well construction.
331. Producing gas wells-well equipment.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-19 - Exempt accounts for utilities which furnish or sell water

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 19.
(a) Source
				of Supply Plant
(1)
310. Land and land rights.
311. Structures and improvements.
312. Collecting and impounding reservoirs.
313. Lake, river and other intakes.
314. Wells and springs.
315. Infiltration galleries and tunnels.
316. Supply mains.
317. Other water source plant.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-24 - Sales to Indiana and its instrumentalities

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 24.
(a) As used
				in this rule, "predominantly for use in the performance of a governmental
				function" means that the property acquired will be used for more than fifty
				percent (50%) for the performance of a governmental function.
(b) The state gross retail tax shall not
				apply to sales to the state of Indiana, its agencies and instrumentalities, all
				counties, townships, and municipal corporations, their respective agencies and
				instrumentalities, and all other state governmental entities and subdivisions
				of tangible personal property and public utility services and commodities
				predominantly for use in the performance of governmental functions.
(c) Purchases by all state governmental
				agencies of tangible personal property, public utility services, and
				commodities are exempt from the gross retail tax, provided such purchases are
				used predominantly in the performance of governmental functions. This exemption
				applies only to those purchases which are directly invoiced to the governmental
				entity and paid out of government funds.
(d) Purchases must be predominantly for use
				in performance of governmental functions. Purchases of tangible personal
				property, public utility services, and commodities by the state or subdivisions
				thereof are exempt from gross retail tax provided the items purchased are
				predominantly used in the performance of governmental functions.
(e) Purchases must be invoiced directly to
				the governmental entity and paid out of governmental funds. Purchases of
				tangible personal property, public utility services, and commodities by the
				state or a subdivision thereof are exempt from gross retail tax, provided the
				purchases are invoiced directly to the governmental entity and paid for out of
				government funds. Purchases which are for use by the governmental entity, but
				which are not invoiced directly to the state or subdivision or are not paid for
				out of governmental funds, are subject to the gross retail tax.
(f) Purchases of tangible personal property
				to be incorporated into improvements to real estate owned by a governmental
				unit by contractors under a contractual obligation with a governmental entity
				of tangible personal property incorporated into real property used for a
				governmental purpose are exempt from the gross retail tax. However, purchases
				of machinery, tools, forms, and supplies which are used in the construction but
				are not incorporated into the structure are subject to tax.
(g) All purchases of public utility services
				used predominantly for governmental functions by the s tate or qualified
				subdivisions thereof are exempt.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-25 - Government agencies and units purchases; application of sales tax

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 25.
(a) There is
				not a blanket exemption from the sales tax for purchases by governmental
				agencies and units. It provides that only the purchase of tangible personal
				property used by the governmental agency in connection with a governmental
				function may be purchased exempt from sales tax.
(b) Purchases by a governmental agency or
				subdivision to be used in connection with or for a proprietary activity are
				subject to the sales tax.
(c)
				Proprietary activities by governmental agencies and subdivisions include:
(1) Activities in connection with the sale of
				tangible personal property, such as college book stores, food services,
				concessions, etc.
(2) Activities in
				connection with the rental of tangible personal property made to the general
				public.
Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 5 - Exempt Transactions of a Retail Merchant › Section 5-26 - Sales of newspapers

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 26.
(a) General
				rule. In general, sales of all publications irrespective of format are taxable.
				The exemption provided by this rule
[45 IAC 2.2]
is limited to
				sales of newspapers.
(b)
				Application of general rule. For purposes of the state gross retail tax, the
				term "newspaper" means only those publications which are:
(1) commonly understood to be
				newspapers;
(2) published for the
				dissemination of news of importance and of current interest to the general
				public, general news of the day, and information of current events;
(3) circulated among the general
				public;
(4) published at stated
				short intervals;
(5) entered or are
				qualified to be admitted and entered as second class mail matter at a post
				office in the county where published; and
(6) printed for resale and are
				sold.