HOUSE BILL No. 1387
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
Effective: July 1, 2009.
January 13, 2009, read first time and referred to Committee on Ways and Means.
First Regular Session 116th General Assembly (2009)
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HOUSE BILL No. 1387
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 6-2.5-5-44; (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
(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