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.
A BILL FOR AN ACT to amend the Indiana Code concerning
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:
(B) A handbag.
(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.