Introduced Version




Citations Affected: IC 6-2.5-5-42.

Synopsis: Sales tax holiday. Provides a sales tax exemption for clothing, clothing accessories, school instructional material, and school supplies that are purchased during the seven day period from July 25 through July 31.

Effective: April 1, 2007 (retroactive).


    January 11, 2007, read first time and referred to Committee on Commerce, Energy and Utilities.


First Regular Session 115th General Assembly (2007)

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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2006 Regular Session of the General Assembly.


    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 6-2.5-5-42; (07)IN1259.1.1. -->     SECTION 1. IC 6-2.5-5-42 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2007 (RETROACTIVE)]: Sec. 42. (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, "clothing" means all human wearing apparel for general use, including the following:
        (1) Bathing caps.
        (2) Belts and suspenders.
        (3) Coats and jackets.
        (4) Diapers.
        (5) Dresses.
        (6) Footwear.
        (7) Gloves or mittens.
        (8) Hats or caps.
        (9) Neckties.
        (10) Pants.
        (11) Scarves.
        (12) Shirts.
        (13) Skirts.
        (14) Socks or hosiery.
        (15) Undergarments.
        (16) Uniforms.
    (c) As used in this section, "clothing accessories or equipment" means incidental items worn on the person or in conjunction with clothing, including the following:
        (1) Briefcases.
        (2) Cosmetics.
        (3) Hair notions, including the following:
            (A) Barrettes.
            (B) Hair bows.
            (C) Hair nets.
        (4) Handbags.
        (5) Handkerchiefs.
        (6) Jewelry.
        (7) Nonprescription sunglasses.
        (8) Umbrellas.
        (9) Wallets.
        (10) Watches.
        (11) Wigs and hair pieces.
    (d) As used in this section, "school instructional material" means written material commonly used by a student in a course of study as a reference and to learn the subject being taught. The term is limited to the following:
        (1) Reference books.
        (2) Reference maps and globes.
        (3) Textbooks.
        (4) Workbooks.
    (e) As used in this section, "school supplies" means an item commonly used by a student in a course of study. The term is limited to the following:
        (1) Binders.
        (2) Book bags.
        (3) Calculators.
        (4) Cellophane tape.
        (5) Blackboard chalk.
        (6) Compasses.
        (7) Composition books.
        (8) Crayons.
        (9) Erasers.
        (10) Folders, limited to the following:
            (A) Expandable folders.
            (B) Pocket folders.
            (C) Plastic folders.
            (D) Manila folders.
        (11) Glue, paste, and paste sticks.
        (12) Highlighters.
        (13) Index cards.
        (14) Index card boxes.
        (15) Legal pads.
        (16) Lunch boxes.
        (17) Markers.
        (18) Notebooks.
        (19) Paper, limited to the following:
            (A) Loose leaf ruled notebook paper.
            (B) Copy paper.
            (C) Graph paper.
            (D) Tracing paper.
            (E) Manila paper.
            (F) Colored paper.
            (G) Poster board.
            (H) Construction paper.
        (20) Pencil boxes and other school supply boxes.
        (21) Pencil sharpeners.
        (22) Pencils.
        (23) Pens.
        (24) Protractors.
        (25) Rulers.
        (26) Scissors.
        (27) Writing tablets.
    (f) Sales of:
        (1) clothing;
        (2) clothing accessories or equipment;
        (3) school instructional material; and
        (4) 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.

SOURCE: ; (07)IN1259.1.2. -->     SECTION 2. An emergency is declared for this act.