Introduced Version
SENATE BILL No. 354
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-2.5-5-44; IC 6-3-2-21.
Synopsis: Tax-free art districts. Exempts from the gross retail and use
taxes the sale of original and creative works of art in an arts and
cultural district. Provides that an arts and cultural district must be
established by a local economic development commission and be
certified by the Indiana arts commission. Exempts from state and local
adjusted gross income tax the income of a writer, a composer, or an
artist who has a business located in an arts and cultural district.
Provides that the income tax exemption applies to that part of the
individual's income that is derived from sources within the arts and
cultural district and is attributable to original and creative works of art
created within the district.
Effective: July 1, 2010; January 1, 2011.
Simpson
January 12, 2010, read first time and referred to Committee on Tax and Fiscal Policy.
Introduced
Second Regular Session 116th General Assembly (2010)
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SENATE BILL No. 354
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; (10)IN0354.1.1. -->
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, 2010]: Sec. 44. (a) As used in this section, "arts and cultural
district" refers to a district that:
(1) is established by an economic development commission
under IC 36-7-12; and
(2) is certified by the Indiana arts commission as an arts and
cultural district under IC 4-23-2-7.
(b) As used in this section, "original and creative work" means
a process or an activity, or both, whether written, composed,
created, or produced, for a one-of-a-kind limited production in one
(1) of the following categories:
(1) A book or other writing.
(2) A play or the performance of a play.
(3) A musical composition or the performance of a musical
composition.
(4) A painting or other like picture.
(5) A sculpture.
(6) A traditional and fine craft.
(7) The creation of a film or the acting within a film.
(8) The creation of a dance or the performance of a dance.
The term includes any tangible personal property resulting from
an original and creative work. The term does not include tangible
personal property used for an industry oriented or related
production.
(c) A transaction involving an original and creative work is
exempt from the state gross retail and use taxes if the transaction
occurs in an arts and cultural district.
(d) A purchaser that makes a purchase in a transaction that is
exempt from the state gross retail and use taxes under this section
shall sign an exemption certificate provided by the retail merchant
under IC 6-2.5-8-8 or pay the tax.
SOURCE: IC 6-3-2-21; (10)IN0354.1.2. -->
SECTION 2. IC 6-3-2-21 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2011]:
Sec. 21. (a) As used in this section, "arts and
cultural district" has the meaning set forth in IC 6-2.5-5-44.
(b) As used in this section, "commission" refers to the Indiana
arts commission created by IC 4-23-2-1.
(c) As used in this section, "original and creative work" has the
meaning set forth in IC 6-2.5-5-44.
(d) An individual may apply for an exemption designation by
the commission under this section. The exemption provided by this
section applies only to an individual who has been designated by
the commission as being eligible for the exemption. In January
each year, the commission may adopt a resolution under
IC 4-23-2-1(e) designating an individual or individuals as eligible
for the exemption for the previous year. To designate an individual
for the exemption, the commission must find that during the
previous year the individual:
(1) was a writer, a composer, or an artist;
(2) either solely or jointly wrote, composed, created, or
produced an original and creative work in the arts and
cultural district; and
(3) had a business located within the territory of the arts and
cultural district.
The commission may adopt rules under IC 4-22-2 that are
necessary to carry out this section.
(e) The commission shall provide the department with a copy of
the resolution listing the individuals the commission has designated
for the previous year.
(f) The part of an individual's adjusted gross income that was
derived from:
(1) sources within an arts and cultural district; and
(2) an original and creative work that was written, composed,
created, or produced in a district;
is exempt from the adjusted gross income tax imposed by IC 6-3-1
through IC 6-3-7.
SOURCE: ; (10)IN0354.1.3. -->
SECTION 3. [EFFECTIVE JULY 1, 2010] (a) For purposes of
IC 6-2.5-5-44, as added by this act, the following apply to a
transaction by a retail merchant described in IC 6-2.5-5-44:
(1) Except as provided in subdivision (2), a transaction shall
be considered as having occurred after June 30, 2010, to the
extent that delivery of the property constituting selling at
retail is made after that date to the purchaser or to the place
of delivery designated by the purchaser.
(2) A transaction shall be considered as having occurred
before July 1, 2010, to the extent that:
(A) the agreement of the parties to the transaction is
entered into before July 1, 2010; and
(B) payment for the property furnished in the transaction
is made before July 1, 2010;
notwithstanding the delivery of the property or services after
June 30, 2010.
(b) This SECTION expires July 1, 2011.
SOURCE: ; (10)IN0354.1.4. -->
SECTION 4. [EFFECTIVE JULY 1, 2010]
IC 6-3-2-21, as added
by this act, applies to taxable years beginning after December 31,
2010.