MR. PRESIDENT:
The Senate Committee on Finance, to which was referred Senate Bill No. 465, has had the same under
consideration and begs leave to report the same back to the Senate with the recommendation that said
bill be AMENDED as follows:
made on a debt or account shall be applied first
proportionally to the taxable price of the property and the
state gross retail tax or use tax thereon, and secondly to
interest, service charges, and any other charges.
(7) A retail merchant claiming a deduction for an
uncollectible receivable may allocate that receivable among
the states that are members of the streamlined sales and use
tax agreement if the books and records of the retail merchant
support that allocation.".
requirements of this article, and the lease or rental of these
items must be sourced according to subsection (f).
(3) Telecommunications services, as set forth in
IC 6-8.1-16
,
shall be sourced in accordance with
IC 6-8.1-16.
(d) The retail sale, excluding lease or rental, of a product shall
be sourced as follows:
(1) When the product is received by the purchaser at a
business location of the seller, the sale is sourced to that
business location.
(2) When the product is not received by the purchaser at a
business location of the seller, the sale is sourced to the
location where receipt by the purchaser (or the purchaser's
donee, designated as such by the purchaser) occurs, including
the location indicated by instructions for delivery to the
purchaser (or donee), known to the seller.
(3) When subdivisions (1) and (2) do not apply, the sale is
sourced to the location indicated by an address for the
purchaser that is available from the business records of the
seller that are maintained in the ordinary course of the seller's
business when use of this address does not constitute bad
faith.
(4) When subdivisions (1), (2), and (3) do not apply, the sale is
sourced to the location indicated by an address for the
purchaser obtained during the consummation of the sale,
including the address of a purchaser's payment instrument, if
no other address is available, when use of this address does
not constitute bad faith.
(5) When none of the previous rules of subdivisions (1), (2),
(3), or (4) apply, including the circumstance in which the
seller is without sufficient information to apply the previous
rules, then the location will be determined by the address
from which tangible personal property was shipped, from
which the digital good or the computer software delivered
electronically was first available for transmission by the
seller, or from which the service was provided (disregarding
for these purposes any location that merely provided the
digital transfer of the product sold).
(e) The lease or rental of tangible personal property, other than
property identified in subsection (f) or (g), shall be sourced as
follows:
(1) For a lease or rental that requires recurring periodic
payments, the first periodic payment is sourced the same as a
retail sale in accordance with the provisions of subsection (d).
Periodic payments made subsequent to the first payment are
sourced to the primary property location for each period
covered by the payment. The primary property location shall
be as indicated by an address for the property provided by the
lessee that is available to the lessor from its records
maintained in the ordinary course of business, when use of
this address does not constitute bad faith. The property
location shall not be altered by intermittent use at different
locations, such as use of business property that accompanies
employees on business trips and service calls.
(2) For a lease or rental that does not require recurring
periodic payments, the payment is sourced the same as a retail
sale in accordance with the provisions of subsection (d).
This subsection does not affect the imposition or computation of
sales or use tax on leases or rentals based on a lump sum or an
accelerated basis, or on the acquisition of property for lease.
(f) The lease or rental of motor vehicles, trailers, semitrailers,
or aircraft that do not qualify as transportation equipment, as
defined in subsection (g), shall be sourced as follows:
(1) For a lease or rental that requires recurring periodic
payments, each periodic payment is sourced to the primary
property location. The primary property location shall be as
indicated by an address for the property provided by the
lessee that is available to the lessor from its records
maintained in the ordinary course of business, when use of
this address does not constitute bad faith. This location shall
not be altered by intermittent use at different locations.
(2) For a lease or rental that does not require recurring
periodic payments, the payment is sourced the same as a retail
sale in accordance with the provisions of subsection (d).
This subsection does not affect the imposition or computation of
sales or use tax on leases or rentals based on a lump sum or
accelerated basis, or on the acquisition of property for lease.
(g) The retail sale, including lease or rental, of transportation
equipment shall be sourced the same as a retail sale in accordance
with the provisions of subsection (d), notwithstanding the exclusion
of lease or rental in subsection (d). As used in this subsection,
"transportation equipment" means any of the following:
(1) Locomotives and railcars that are used for the carriage of
persons or property in interstate commerce.
(2) Trucks and truck-tractors with a gross vehicle weight
rating (GVWR) of ten thousand one (10,001) pounds or
greater, trailers, semitrailers, or passenger buses that are:
(A) registered through the International Registration Plan;
and
(B) operated under authority of a carrier authorized and
certificated by the U.S. Department of Transportation or
another federal authority to engage in the carriage of
persons or property in interstate commerce.
(3) Aircraft that are operated by air carriers authorized and
certificated by the U.S. Department of Transportation or
another federal or a foreign authority to engage in the
carriage of persons or property in interstate or foreign
commerce.
(4) Containers designed for use on and component parts
attached or secured on the items set forth in subdivisions (1)
through (3).
Sec. 2. (a) Notwithstanding section 1 of this chapter, a business
purchaser that:
(1) is not a holder of a direct pay permit; and
(2) knows at the time of its purchase of a digital good,
computer software delivered electronically, or a service that
the digital good, computer software delivered electronically,
or service will be concurrently available for use in more than
one (1) jurisdiction;
shall deliver to the seller in conjunction with its purchase a form
disclosing this fact ("multiple points of use" or "MPU" exemption
form).
(b) Upon receipt of the MPU exemption form, the seller is
relieved of all obligation to collect, pay, or remit the applicable tax
and the purchaser shall be obligated to collect, pay, or remit the
applicable tax on a direct pay basis.
(c) A purchaser delivering the MPU exemption form may use
any reasonable, but consistent and uniform, method of
apportionment that is supported by the purchaser's business
records as they exist at the time of the consummation of the sale.
(d) The MPU exemption form remains in effect for all future
sales by the seller to the purchaser (except as to the subsequent
sale's specific apportionment that is governed by the principle of
subsection (c) and the facts existing at the time of the sale) until it
is revoked in writing.
(e) A holder of a direct pay permit shall not be required to
deliver a MPU exemption form to the seller. A direct pay permit
holder shall follow the provisions of subsection (c) in apportioning
the tax due on a digital good or a service that will be concurrently
available for use in more than one (1) jurisdiction.
Sec. 3. (a) Notwithstanding section 1 of this chapter, a purchaser
of direct mail that is not a holder of a direct pay permit shall
provide to the seller in conjunction with the purchase either a
direct mail form or information to show the jurisdictions to which
the direct mail is delivered to recipients.
(b) Upon receipt of the direct mail form, the seller is relieved of
all obligations to collect, pay, or remit the applicable tax and the
purchaser is obligated to pay or remit the applicable tax on a direct
pay basis. A direct mail form remains in effect for all future sales
of direct mail by the seller to the purchaser until it is revoked in
writing.
(c) Upon receipt of information from the purchaser showing the
jurisdictions to which the direct mail is delivered to recipients, the
seller shall collect the tax according to the delivery information
provided by the purchaser. In the absence of bad faith, the seller is
relieved of any further obligation to collect tax on any transaction
where the seller has collected tax under the delivery information
provided by the purchaser.
(d) If the purchaser of direct mail does not have a direct pay
permit and does not provide the seller with either a direct mail
form or delivery information, as required by subsection (a), the
seller shall collect the tax according to section 1(d)(5) of this
chapter. Nothing in this subsection limits a purchaser's obligation
for sales or use tax to any state to which the direct mail is
delivered.
(e) If a purchaser of direct mail provides the seller with
documentation of direct pay authority, the purchaser shall not be
required to provide a direct mail form or delivery information to
the seller.".
Renumber all SECTIONS consecutively.
(Reference is to SB 465 as introduced.)
and when so amended that said bill do pass .
Committee Vote: Yeas 14, Nays 0.