Citations Affected: IC 6-2.5-2-1; IC 6-2.5-3-1.
Synopsis: Use tax nexus and collection. Provides that for purposes of
the Indiana sales and use tax law, a "retail merchant engaged in
business in Indiana" includes any retail merchant who: (1) makes retail
transactions in which a person acquires personal property or taxable
services for use, storage, or consumption in Indiana; and (2) enters into
an arrangement with any person, other than a common carrier, to
facilitate the retail merchant's delivery of property to customers in
Indiana by allowing customers to pick up property sold by the retail
merchant at a place of business maintained by the person in Indiana.
Specifies that a retail merchant may be required to collect and remit
sales or use taxes if the retail merchant conducts activities in Indiana
on behalf of the retail merchant that are significantly associated with
the retail merchant's ability to establish and maintain a market in
Indiana. Provides that a retail merchant is presumed to be engaged in
business in Indiana if an affiliate of the retail merchant has substantial
nexus in Indiana and certain additional conditions are satisfied.
Provides that a retail merchant is presumed to be engaged in business
in Indiana if the retail merchant enters into an agreement with one or
more residents of Indiana under which the resident directly or
indirectly refers potential customers to the retail merchant, if the
cumulative gross receipts from the sales by the retail merchant to
customers in Indiana who are referred to the retail merchant by all
residents is greater than $10,000 during the preceding 12 months.
Permits the presumptions to be rebutted. Specifies that the use tax
nexus provisions apply to transactions that occur after June 30, 2013.
Effective: July 1, 2013.
January 8, 2013, read first time and referred to Committee on Appropriations.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
property in Indiana for any purpose except the subsequent use of that
property solely outside Indiana.
(c) "A retail merchant engaged in business in Indiana" includes any
retail merchant who makes retail transactions in which a person
acquires personal property or services for use, storage, or consumption
in Indiana and who:
(1) maintains an office, place of distribution, sales location,
sample location, warehouse, storage place, or other place of
business which is located in Indiana and which the retail
merchant maintains, occupies, or uses, either permanently or
temporarily, either directly or indirectly, and either by the retail
merchant or through a representative, agent, or subsidiary, or
affiliate;
(2) maintains a representative, agent, salesman, canvasser, or
solicitor who, while operating in Indiana under the authority of
and on behalf of the retail merchant or a subsidiary or an affiliate
of the retail merchant, sells, delivers, installs, repairs, assembles,
sets up, accepts returns of, bills, invoices, or takes orders for sales
of tangible personal property or services to be used, stored, or
consumed in Indiana;
(3) enters into an arrangement with any person, other than a
common carrier, to facilitate the retail merchant's delivery of
property to customers in Indiana by allowing the retail
merchant's customers to pick up property sold by the retail
merchant at an office, distribution facility, warehouse, storage
place, or similar place of business maintained by the person
in Indiana;
(3) (4) is otherwise required to register as a retail merchant under
IC 6-2.5-8-1; or
(4) (5) may be required by the state to collect tax under this article
to the extent allowed under the Constitution of the United States
and federal law.
(d) Notwithstanding any other law, a person may be required to
collect and remit gross retail tax or use tax as a retail merchant
engaged in business in Indiana under subsection (c) if the activities
conducted by the person in Indiana on behalf of a retail merchant
are significantly associated with the retail merchant's ability to
establish and maintain a market in Indiana.
(d) (e) Notwithstanding any other provision of this section, tangible
or intangible property that is:
(1) owned or leased by a person that has contracted with a
commercial printer for printing; and
during the preceding twelve (12) months. This proof may consist of
sworn written statements that:
(1) are from all the Indiana residents with whom the retail
merchant has an agreement described in subsection (h);
(2) are provided and obtained in good faith; and
(3) state that the Indiana residents did not engage in any
solicitation in Indiana on behalf of the retail merchant during
the preceding twelve (12) months.
(j) For purposes of this section, "affiliate" means any:
(1) person that is a member of the same controlled group of
corporations (as defined in 26 U.S.C. 1563(a)) as the retail
merchant; or
(2) other entity that, notwithstanding its form of organization,
bears the same ownership relationship to the retail merchant
as a corporation that is a member of the same controlled
group of corporations (as defined in 26 U.S.C. 1563(a)).