Citations Affected: IC 6-2.5.
Synopsis: Sales tax on bundled telecommunications products or
services. Provides that in a sale of bundled telecommunications
products or services, which include both taxable and nontaxable
products or services, the part of the products or 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 12, 2004, read first time and referred to Committee on Utility and Regulatory
Affairs.
January 22, 2004, amended, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
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 telecommunications
products or 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 telecommunications
products or 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.
SECTION 2. An emergency is declared for this act.