Introduced Version






HOUSE BILL No. 1387

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-2.5-5-44.

Synopsis: Sales tax exemption for drainage equipment. Provides that a component of a farm drainage system is exempt from sales tax if a farmer acquires the component. Provides that equipment designed specifically to install, repair, or maintain a farm drainage system is exempt from sales tax if the equipment is acquired by a farmer or a person in the business of installing, repairing, or maintaining farm drainage systems.

Effective: July 1, 2009.





Gutwein, Grubb




    January 13, 2009, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 116th General Assembly (2009)


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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HOUSE BILL No. 1387



    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 6-2.5-5-44; (09)IN1387.1.1. -->     SECTION 1. IC 6-2.5-5-44 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 44. (a) As used in this section, "farm drainage system" means a system of drainage tubing, drainage tiles, and related control systems designed to facilitate the drainage of agricultural land.
    (b) Transactions involving a component of a farm drainage system are exempt from the state gross retail tax
if the person acquiring the component is engaged in the business of agriculture.
    (c) Transactions involving equipment designed specifically to install, repair, or maintain farm drainage systems are exempt from the state gross retail tax if the person acquiring the equipment is engaged in the business of:
        (1) agriculture; or
        (2) installing, repairing, or maintaining farm drainage systems.