Citations Affected: IC 6-2.5.
Synopsis: Sales tax collection by small vendors. Provides that a person
who sells tangible property as part of a hobby or leisure activity is not
selling at retail and is not liable for collecting the state gross retail tax
on sales under certain circumstances.
Effective: July 1, 2003.
January 21, 2003, read first time and referred to Committee on Ways and Means.
February 17, 2003, amended, reported _ Do Pass. Recommitted to Committee on Ways
and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
hundred dollars ($1,200) of gross retail income in a year from
all of the person's hobby or leisure activities, including
consignment sales.
(d) For purposes of determining what constitutes selling at retail, it
does not matter whether:
(1) the property is transferred in the same form as when it was
acquired;
(2) the property is transferred alone or in conjunction with other
property or services; or
(3) the property is transferred conditionally or otherwise.
(d) (e) Notwithstanding subsection (b), a person is not selling at
retail if he the person is making a wholesale sale as described in
section 2 of this chapter.
(e) (f) The gross retail income received from selling at retail is only
taxable under this article to the extent that the income represents:
(1) the price of the property transferred, without the rendition of
any service; and
(2) except as provided in subsection (g), (h), any bona fide
charges which are made for preparation, fabrication, alteration,
modification, finishing, completion, delivery, or other service
performed in respect to the property transferred before its transfer
and which are separately stated on the transferor's records.
(f) (g) Notwithstanding subsection (e): (f):
(1) in the case of retail sales of gasoline (as defined in
IC 6-6-1.1-103) and special fuel (as defined in IC 6-6-2.5-22), the
gross retail income received from selling at retail is the total sales
price of the gasoline or special fuel minus the part of that price
attributable to tax imposed under IC 6-6-1.1, IC 6-6-2.5, or
Section 4041(a) or Section 4081 of the Internal Revenue Code;
and
(2) in the case of retail sales of cigarettes (as defined in
IC 6-7-1-2), the gross retail income received from selling at retail
is the total sales price of the cigarettes including the tax imposed
under IC 6-7-1.
(g) (h) Gross retail income does not include income that represents
charges for serving or delivering food or beverages furnished, prepared,
or served for consumption at a location, or on equipment, provided by
the retail merchant. However, the exclusion under this subsection only
applies if the charges for the serving or delivery are stated separately
from the price of the food or beverages when the purchaser pays the
charges.