Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 1 - Definitions › Section 1-1 - General definitions

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 1.
(a) Unitary
				Transaction. For purposes of the state gross retail tax and use tax, such taxes
				shall apply and be computed in respect to each retail unitary transaction. A
				unitary transaction shall include all items of property and/or services for
				which a total combined charge or selling price is computed for payment
				irrespective of the fact that services which would not otherwise be taxable are
				included in the charge or selling price.
(b) Unitary Transaction-Public Utility. For
				purposes of the state gross retail tax and use tax, all public utility services
				and commodities subject to said taxes invoiced in a single billing or
				statement, including a minimum charge, submitted to a consumer for payment
				shall constitute a unitary transaction.
(c) Retail Transaction. The state gross
				retail tax is imposed on retail transactions made in Indiana. Three general
				categories are designated as "retail transactions". The first category is
				described as transactions of a retail merchant that constitute selling at
				retail as described in IC 6-2.5-4-1. The second category is described as
				transactions of a retail merchant that constitute making a wholesale sale as
				described in IC 6-2.5-4-2. The third category is described as a transaction
				that is described in any other section of IC 6-2.5-4.
(d) Casual Sales. The Indiana gross retail
				tax is not imposed on gross receipts from casual sales except for gross
				receipts from casual sales of motor vehicles and sales of rental property. A
				casual sale is an isolated or occasional sale by the owner of tangible personal
				property purchased or otherwise acquired for his use or consumption, where he
				is not regularly engaged in the business of making such sales.
(e) Retail Unitary Transaction. Regulatory
				definition of "retail unitary transaction" is used synonymously with the act
[IC 6-2.5]
.
(f)
				Person. Regulatory definition of "person" is used synonymously with the act
[IC 6-2.5]
.
(g)
				Department. Regulatory definition of "department" as the Indiana department of
				state revenue is used synonymously with the act
[IC
				6-2.5]
.
(h) Gross Retail
				Income. Regulatory definition of "gross retail income" is used synonymously
				with the act
[IC 6-2.5]
.
(i) Gross Retail Income of a Public Utility
				or Power Subsidiary. Gross retail income includes all gross retail income
				including minimum charge, flat charge, membership fee, or any other form of
				charge or billing.
(j) Like Kind
				Exchange: Additional Consideration. Non-taxability extends only to the amount
				of value of the property received. Any additional consideration, commonly known
				as "boot", received either in cash or property of unlike kind, must be reported
				for taxation at actual value. However, when any property is clearly used as a
				medium of exchange in lieu of cash, the element of taxable exchange will be
				present.
(k) Like Kind Exchange:
				Limited to Two Parties. Non-taxable "exchanges" include only transactions for a
				swap or barter of property between two parties. Property received in an
				exchange transaction in which a third party is involved, with or without
				property, is subject to gross retail tax. This rule is not meant to deny
				non-taxability of exchanges where one or both of the parties in a two-party
				exchange employ an agent in carrying out the agreement.
(l) Like Kind Exchange: Property to be Owned
				by Parties at Time of Exchange. Non-taxable "exchanges" include only
				transactions in which the property exchanged is owned by the parties thereto at
				the time the exchange agreement is entered into. Transactions in which the
				property to be exchanged is acquired by one party after the agreement to
				exchange has been arranged are taxable. The exchange agreement must specify the
				definite units or quantity of property to be exchanged. However, "retail
				merchants" are allowed to consider as non-taxable the full value of tangible
				personal property of like kind received in allowable exchanges, even though
				ownership of the property received is encumbered by a conditional sales
				contract, retail installment contract, or a chattel mortgage.
(m) Internal Revenue Code. Regulatory
				definition of "Internal Revenue Code" as the Internal Revenue Code of 1986, is
				used synonymously with the act
[IC 6-2.5]
.
(n) Retail Merchant. Regulatory definition of
				"retail merchant" is used synonymously with the act
[IC
				6-2.5]
.
(o) Tax Year or
				Taxable Year. Regulatory definition of "tax year" or "taxable year" is used
				synonymously with the act
[IC 6-2.5]
.