Introduced Version
HOUSE BILL No. 1344
_____
DIGEST OF INTRODUCED BILL
Citations Affected:
IC 6-2.5-6-9.
Synopsis: Sales tax refunds. Allows a deduction from sales taxes due
for receivables of an entity that is a member of the same brother-sister
controlled group as the retail merchant.
Effective: January 1, 2000 (retroactive).
January 11, 2000, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 111th General Assembly (2000)
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HOUSE BILL No. 1344
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 6-2.5-6-9; (00)IN1344.1.1. -->
SECTION 1. IC 6-2.5-6-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)]:
Sec. 9. (a) In determining the amount of state gross retail and use taxes
which
he a retail merchant must remit under section 7 of this chapter,
a the retail merchant shall deduct, from
his the merchant's gross retail
income from retail transactions made during a particular reporting
period, an amount equal to
his receivables
which of the retail
merchant or a related entity that:
(1) resulted from retail transactions in which the retail merchant
did not collect the state gross retail or use tax from the purchaser;
(2) resulted from retail transactions on which the retail merchant
has previously paid the state gross retail or use tax liability to the
department; and
(3) were written off as an uncollectible debt for federal tax
purposes during the particular reporting period
by the retail
merchant or a related entity.
(b) If a retail merchant deducts a receivable under subsection (a)
and the retail merchant or a related entity subsequently collects that
receivable, then the retail merchant shall include the amount collected
as part of his the retail merchant's gross retail income from retail
transactions for the particular reporting period in which he the retail
merchant or a related entity makes the collection.
(c) For purposes of this section, a corporation is a related entity
to a retail merchant only if the corporation and the retail merchant
are members of the same brother-sister controlled group of
corporations within the meaning of Section 1563(a)(2) of the
Internal Revenue Code except, for purposes of determining
whether a person is a related entity under this section, more than
fifty percent (50%) shall be substituted for at least eighty percent
(80%) wherever at least eighty percent (80%) appears in Section
1563(a)(2) of the Internal Revenue Code.