Introduced Version




Citations Affected: IC 6-2.5-5-39.

Synopsis: Sales tax holiday for clothing purchases. Provides a sales tax exemption for an article of clothing that is: (1) priced less than $100; and (2) purchased during the seven day period beginning on the first Friday in August and ending on the following Thursday.

Effective: July 1, 2001.


    January 16, 2001, read first time and referred to Committee on Finance.


First Regular Session 112th General Assembly (2001)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 6-2.5-5-39 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 39. (a) This section applies to transactions under subsection (c) occurring during the seven (7) day period beginning 12:01 a.m. on the first Friday in August and ending 11:59 p.m. on the Thursday that follows seven (7) days later.
    (b) As used in this section, "article of clothing" means a garment intended to be worn on the human body, including footwear. The term does not include the following:
        (1) Special clothing or footwear that is:
            (A) primarily designed for athletic activity or protective use; and
            (B) not normally worn except when used for the athletic activity or protective use for which it is designed.
        (2) An accessory, including the following:
            (A) Jewelry.
            (B) A handbag.

            (C) Luggage.
            (D) An umbrella.
            (E) A wallet.
            (F) A watch.
            (G) A similar item carried on or about the human body, whether or not it is worn on the body in a manner characteristic of clothing.
        (3) The rental of clothing or footwear.
    (c) The sale of an article of clothing priced less than one hundred dollars ($100) is exempt from the state gross retail tax.
    (d) The department shall adopt rules under IC 4-22-2 to implement this section.