Introduced Version






SENATE BILL No. 44

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-2.5-5-13.

Synopsis: Sales tax exemption for certain Internet property. Provides a sales tax exemption for transactions involving property that is: (1) capable of providing broadband Internet service; (2) owned by or leased to a broadband service provider; and (3) located outside a customer's premises.

Effective: July 1, 2004.





Ford




    November 21, 2003, read first time and referred to Committee on Finance.







Introduced

Second Regular Session 113th General Assembly (2004)


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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SENATE BILL No. 44



    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 6-2.5-5-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 13. (a) As used in this section, "broadband service" means a connection to the Internet at speeds greater than two hundred (200) kilobits per second downstream.
    (b) As used in this section, "broadband service provider" means a person or an entity providing broadband service.

     (c) As used in this section, "customer" refers to a customer who receives broadband service from a broadband service provider.
     (d) The following transactions involving tangible personal property are exempt from the state gross retail tax: if:
        (1) the Transactions involving property that is:
            (A) classified as central office equipment, station equipment or apparatus, station connection, wiring, or large private branch exchanges according to the uniform system of accounts which was adopted and prescribed for the utility by the Indiana utility regulatory commission; or


            (B) mobile telecommunications switching office equipment, radio or microwave transmitting or receiving equipment, including, without limitation, towers, antennae, and property that perform a function similar to the function performed by any of the property described in clause (A). and
        (2) Transactions involving property described in this subdivision are exempt from the state gross retail tax only if the person acquiring the property furnishes or sells intrastate telecommunication service in a retail transaction described in IC 6-2.5-4-6.
         (2) Transactions involving property that is:
            (A) capable of providing broadband service;
            (B) owned by or leased to a broadband service provider; and
            (C) located outside a customer's premises.
        The exemption provided by this subdivision does not apply to transactions involving property that is normally located inside a customer's premises, including personal computers, modems, set top boxes, and related items used by the customer to facilitate broadband connection within the customer's home or business.

    SECTION 2. [EFFECTIVE JULY 1, 2004] IC 6-2.5-5-13(d)(2), as added by this act, applies to retail transactions occurring after June 30, 2004.