Introduced Version




Citations Affected: IC 6-2.5-4-6.

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.


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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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-2.5-4-6; (04)IN1114.1.1. -->     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 the person:
        (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 subsection (a);
        (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 IC 6-8.1-15).
     (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 business.

SOURCE: ; (04)IN1114.1.2. -->     SECTION 2. An emergency is declared for this act.