HOUSE BILL No. 1175
DIGEST OF INTRODUCED BILL
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)
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HOUSE BILL No. 1175
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 6-2.5-5-41; (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.
(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:
(2) Cellophane tape.
(4) Composition books.
(5) Computer disks.
(8) Glue, paste, and paste sticks.
(9) Legal pads.
(11) Notebook filler paper.
(14) Poster paper.
(f) Sales of:
(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.