January 30, 2004
HOUSE BILL No. 1114
DIGEST OF HB 1114
(Updated January 27, 2004 7:33 pm - DI 92)
Citations Affected: IC 6-2.5.
Synopsis: Sales tax on bundled telecommunication services. Provides
that in a sale of bundled telecommunication services, which include
both taxable and nontaxable services, the part of the services not
ordinarily subject to the state sales tax is taxable unless the provider
can reasonably identify the nontaxable part based on the provider's
regularly kept business records.
Effective: Upon passage.
January 13, 2004, read first time and referred to Committee on Ways and Means.
January 29, 2004, reported _ Do Pass.
January 30, 2004
Second Regular Session 113th General Assembly (2004)
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HOUSE BILL No. 1114
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-2.5-4-6; (04)HB1114.1.1. -->
SECTION 1. IC 6-2.5-4-6, AS AMENDED BY P.L.104-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) As used in this section,
"telecommunication services" means the transmission of messages or
information by or using wire, cable, fiber optics, laser, microwave,
radio, satellite, or similar facilities. The term does not include value
added services in which computer processing applications are used to
act on the form, content, code, or protocol of the information for
purposes other than transmission.
(b) A person is a retail merchant making a retail transaction when
(1) furnishes or sells an intrastate telecommunication service; and
(2) receives gross retail income from billings or statements
rendered to customers.
(c) Notwithstanding subsection (b), a person is not a retail merchant
making a retail transaction when:
(1) the person provides, installs, constructs, services, or removes
tangible personal property which is used in connection with the
furnishing of the telecommunication services described in
(2) the person furnishes or sells the telecommunication services
described in subsection (a) to another person described in this
section or in section 5 of this chapter;
(3) the person furnishes telecommunications services described
in subsection (a) to another person who is using a prepaid
telephone calling card or prepaid telephone authorization number
described in section 13 of this chapter; or
(4) the person furnishes intrastate mobile telecommunications
service (as defined in IC 6-8.1-15-7) to a customer with a place of
primary use that is not located in Indiana (as determined under
(d) Subject to IC 6-2.5-12 and IC 6-8.1-15, and notwithstanding
subsections (a), (b), and (c), if charges for telecommunication
services not taxable under this article are aggregated with and not
separately stated from charges subject to taxation under this
article, the charges for nontaxable telecommunication services are
subject to taxation unless the service provider can reasonably
identify the charges not subject to the tax from the service
provider's books and records kept in the regular course of
SOURCE: ; (04)HB1114.1.2. -->
SECTION 2. An emergency is declared for this act.