Introduced Version
SENATE BILL No. 564
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-2.5-3-7; IC 6-3.1-27-10; IC 6-6-2.1-207.
Synopsis: Taxation of diesel and biodiesel. Provides that a retail
merchant may verify an exempt sale of tangible personal property used
or consumed in providing public transportation by obtaining certain
information from the purchaser. Increases the total amount of the
blended biodiesel income tax credit that may be awarded by the
economic development corporation from $1,000,000 to $2,000,000.
Exempts farm vehicles from the special fuel tax.
Effective: January 1, 2007 (retroactive); July 1, 2007.
Weatherwax
January 23, 2007, read first time and referred to Committee on Tax and Fiscal Policy.
Introduced
First Regular Session 115th General Assembly (2007)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE BILL No. 564
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 6-2.5-3-7; (07)IN0564.1.1. -->
SECTION 1. IC 6-2.5-3-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) A person who
acquires tangible personal property from a retail merchant for delivery
in Indiana is presumed to have acquired the property for storage, use,
or consumption in Indiana. However, unless the person or the retail
merchant can produce evidence to rebut that presumption.
(b) A retail merchant is not required to produce evidence of
nontaxability under subsection (a) if the retail merchant receives from
the person who acquired the property an exemption certificate which
certifies, in the form prescribed by the department, that the acquisition
is exempt from the use tax.
(c) A retail merchant who sells tangible personal property to a
person who purchases the tangible personal property for use or
consumption in providing public transportation under
IC 6-2.5-5-27 may verify the exemption by obtaining the person's:
(1) name;
(2) address; and
(3) motor carrier number, United States Department of
Transportation number, or any other identifying number
authorized by the department.
The person engaged in public transportation shall provide a
signature to affirm under penalties of perjury the information
provided to the retail merchant is correct and that the tangible
personal property is being purchased for an exempt purpose.
SOURCE: IC 6-3.1-27-10; (07)IN0564.1.2. -->
SECTION 2. IC 6-3.1-27-10, AS AMENDED BY P.L.122-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 10. (a) A taxpayer that:
(1) is a dealer; and
(2) distributes at retail blended biodiesel in a taxable year;
is entitled to a credit against the taxpayer's state tax liability.
(b) The amount of the credit allowed under this section is the
product of:
(1) one cent ($0.01); multiplied by
(2) the total number of gallons of blended biodiesel distributed at
retail by the taxpayer in a taxable year.
(c) The total amount of credits allowed under this section may not
exceed one two million dollars ($1,000,000) ($2,000,000) for all
taxpayers and all taxable years.
(d) A credit under this section may not be taken for blended
biodiesel distributed at retail after December 31, 2010.
SOURCE: IC 6-6-2.1-207; (07)IN0564.1.3. -->
SECTION 3. IC 6-6-2.1-207 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 207. This chapter does not apply to trucks, trailers,
or semitrailers and tractors that are qualified to be registered and
used as farm trucks, farm trailers, or farm semitrailers and
tractors and that are registered as such by the bureau of motor
vehicles under IC 9-18 or under a similar law of another state.
SOURCE: ; (07)IN0564.1.4. -->
SECTION 4. [EFFECTIVE JANUARY 1, 2007 (RETROACTIVE)]
(a) As used in this SECTION, "department" refers to the
department of state revenue.
(b) The general assembly recognizes that the department
replaced form ST-135 with form ST-105, which requires additional
information not required on form ST-135. Therefore, a retail
merchant who previously sold tangible personal property to a
person who used or consumed the tangible personal property in
providing public transportation under IC 6-2.5-5-27 may verify the
sale was exempt with information contained in form ST-135.
(c) A retail merchant that provides the department with the
documentation described in subsection (b) may request:
(1) a refund of gross retail tax plus any penalties and interest
paid to the department; or
(2) that the department satisfy any outstanding gross retail
tax liabilities, including any penalties and interest for tax
liabilities;
for the tangible personal property used or consumed in providing
public transportation.
SOURCE: ; (07)IN0564.1.5. -->
SECTION 5.
An emergency is declared for this act.