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).





Buell, Harris




    January 11, 2000, read first time and referred to Committee on Ways and Means.







Introduced

Second Regular Session 111th General Assembly (2000)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 1999 General Assembly.

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.

SOURCE: ; (00)IN1344.1.2. -->     SECTION 2. An emergency is declared for this act.