Introduced Version






HOUSE BILL No. 1213

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-2.5-5-47.

Synopsis: Sales tax exemption for data warehouse equipment. Provides a state sales tax exemption for the sale or lease of certain enterprise information technology equipment. Requires that the investment in the equipment must be at least $100,000,000. Specifies that the investment must be in a high technology district area established by a municipality or county fiscal body. Requires that the exemption must be preapproved by the Indiana economic development corporation. Requires the equipment purchase to be made after June 30, 2013, and before July 1, 2017.

Effective: July 1, 2013.





Messmer, Hale




    January 10, 2013, read first time and referred to Committee on Commerce, Small Business and Economic Development.







Introduced

First Regular Session 118th General Assembly (2013)


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HOUSE BILL No. 1213



    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 6-2.5-5-47; (13)IN1213.1.1. -->     SECTION 1. IC 6-2.5-5-47 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 47. (a) As used in this section, "eligible business" means an entity that meets the following requirements:
        (1) The entity is engaged in a business that:
            (A) operates; or
            (B) leases;
        enterprise information technology equipment for use in a data center dedicated to computing, networking, or data storage activities.
        (2) The entity's enterprise information technology equipment is located     in a high technology district area established under IC 6-1.1-10-44, and the designating body has entered into an agreement under IC 6-1.1-10-44(i) with the entity.
        (3) The entity, the lessor of enterprise information technology equipment (if the entity is a lessee), and all lessees of enterprise information technology equipment invest in the

aggregate at least one hundred million dollars ($100,000,000) in enterprise information technology equipment that will be located at one (1) or more data centers.
    (b) As used in this section, "enterprise information technology equipment" means the following:
        (1) Hardware supporting computing, networking, or data storage functions, including servers and routers.
        (2) Networking systems having an industry designation as equipment within the "enterprise" or "data center" class of networking systems that support the computing, networking, or data storage functions.
        (3) Generators and other equipment used to ensure an uninterrupted power supply to equipment described in subdivision (1) or (2).
The term does not include computer hardware designed for single user, workstation, or departmental level use.
    (c) An entity that proposes to purchase or lease enterprise information technology equipment and desires to be an eligible business under this section must file with the Indiana economic development corporation an application for exemption. The Indiana economic development corporation shall review the application to determine if the applicant qualifies as an eligible business under this section. The Indiana economic development corporation shall provide its determination to the applicant and to the department.
    (d) A transaction involving enterprise information technology equipment is exempt from the state gross retail tax if the department has received, before the date of the transaction, the determination of the Indiana economic development corporation that the transaction is by an eligible business.
    (e) The exemption provided by this section may be obtained by issuing the eligible business a specific transaction exemption certificate or by the eligible business applying for a refund after paying the state gross retail tax.

    (f) This section applies to transactions that occur after June 30, 2013, and before July 1, 2017.