Introduced Version




Citations Affected: IC 6-2.5-5-41.

Synopsis: Sales tax holiday. Provides a sales tax exemption for bags, books, clothing, wallets, and school supplies that are purchased during the seven day period from July 25th through July 31st.

Effective: July 1, 2006.


    January 9, 2006, read first time and referred to Committee on Ways and Means.


Second Regular Session 114th General Assembly (2006)

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 6-2.5-5-41; (06)IN1175.1.1. -->     SECTION 1. IC 6-2.5-5-41 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 41. (a) This section applies to transactions occurring during the seven (7) day period beginning 12:01 a.m. on July 25 and ending 11:59 p.m. on July 31.
    (b) As used in this section "bag" includes a handbag, backpack, and fanny pack. The term does not include a briefcase, diaper bag, suitcase or other garment bag.
    (c) As used in this section, "book" means a set of printed sheets that are bound together and published in a volume. The term does not include a newspaper, magazine, or other periodical.
    (d) As used in this section, "clothing" means any item of wearing apparel that is intended to be worn on or about the human body, including the following:
        (1) A shirt.
        (2) A pair of pants.
        (3) A pair of socks or hosiery.
        (4) Footwear.
        (5) An undergarment.
        (6) A belt or belt buckle.
        (7) A jacket or an overcoat.
        (8) A pair of gloves or mittens.
        (9) A hat.
The term does not include a watch, jewelry, an umbrella, a handkerchief, skis, swim fins, roller blades, or roller skates.
    (e) As used in this section, "school supply" means an item commonly used by a student in a course of study. The term is limited to the following:
        (1) Calculators.
        (2) Cellophane tape.
        (3) Compasses.
        (4) Composition books.
        (5) Computer disks.
        (6) Crayons.
        (7) Erasers.
        (8) Glue, paste, and paste sticks.
        (9) Legal pads.
        (10) Notebooks.
        (11) Notebook filler paper.
        (12) Pencils.
        (13) Pens.
        (14) Poster paper.
        (15) Protractors.
        (16) Rulers.
        (17) Scissors.
    (f) Sales of:
        (1) books;
        (2) clothing;
        (3) wallets;
        (4) bags; and
        (5) school supplies;
are exempt from the state gross retail tax during the period described in subsection (a), if the sales price of the item purchased does not exceed fifty dollars ($50).
    (g) The department may adopt rules under IC 4-22-2 to implement this section.