Citations Affected: IC 6-2.5.
Synopsis: Sales tax collection and call centers. Provides that a person
is not required to register as a retail merchant or to collect or remit the
state sales or use tax in Indiana if the sole contact with Indiana is a
contract with a call center in Indiana that provides telephone call
services to the person. Provides that property owned or leased by the
person and located on the call center's premises is not considered, and
does not create, a place of business maintained by the person in Indiana
as long as the property is not held for sale or shipment in response to
an order received by the call center. Provides that for purposes of sales
and use tax collection and remittance, the call center operator is not
considered to be an agent of the person.
Effective: July 1, 2003.
January 7, 2003, read first time and referred to Committee on Finance.
February 27, 2003, reported favorably _ Do Pass.
March 3, 2003, read second time, amended, ordered engrossed.
March 4, 2003, engrossed. Read third time, passed. Yeas 48, nays 0.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1. IC 6-2.5-8-12 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Sec. 12. (a) Notwithstanding any other provision of this
article, the following do not cause a person that has contracted
with a call center operator for a telephone service to have a duty to
register as a retail merchant or to collect or remit the state gross
retail or use tax imposed by this article:
(1) The ownership or leasing by the person of tangible or
intangible property that is:
(A) located at the Indiana premises of the call center
operator;
(B) used to provide or assist directly with the provision of
a telephone service as described in subsection (c); and
(C) not held for sale, shipment, or distribution in response
to orders received as a result of a telephone service
provided by the call center operator.
(2) The activities of any kind performed by or on behalf of the
person at the Indiana premises of the call center operator.
(3) The activities of any kind performed by the call center
operator in Indiana for or on behalf of the person.
(b) Tangible or intangible property that is:
(1) owned or leased by a person that has contracted with a call
center operator for a telephone service;
(2) located at the premises of the call center operator;
(3) used to provide or assist directly with the provision of a
telephone service as described in subsection (c); and
(4) not held for sale, shipment, or distribution in response to
orders received as a result of a telephone service provided by
the call center operator;
shall not be considered to be, or to create, an office, a place of
distribution, a sales location, a sample location, a warehouse, a
storage place, or other place of business maintained, occupied, or
used in any way by the person. For purposes of this section, a call
center operator with which a person has contracted for a telephone
service shall not be considered to be in any way a representative,
an agent, a salesman, a canvasser, or a solicitor for the person.
(c) For purposes of this section, a telephone service includes
soliciting orders by telephone, accepting orders by telephone, and
making and receiving any other telephone calls.