Citations Affected: IC 6-2.5-6-1; IC 6-2.5-8.
Synopsis: Monthly sales tax reports by nonprofit entities. Provides that
a nonprofit entity is not required to file sales tax returns if the only
reason the entity is registered as a retail merchant is because the entity
makes exempt purchases. Provides that the exempt organization is
required to renew its exempt organization certificate every two years.
(Current law provides that an exempt organization certificate is
renewed by the department of state revenue every two years if the
organization has no outstanding liabilities.)
Effective: Upon passage; July 1, 2007.
January 26, 2007, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
days after the end of that month.
(b) If a person files a combined sales and withholding tax report and
either this section or IC 6-3-4-8.1 requires sales or withholding tax
reports to be filed and remittances to be made within twenty (20) days
after the end of each month, then the person shall file the combined
report and remit the sales and withholding taxes due within twenty (20)
days after the end of each month.
(c) Instead of the twelve (12) monthly reporting periods required by
subsection (a), the department may permit a person to divide a year into
a different number of reporting periods. The return and payment for
each reporting period is due not more than twenty (20) days after the
end of the period.
(d) Instead of the reporting periods required under subsection (a),
the department may permit a retail merchant to report and pay the
merchant's state gross retail and use taxes for a period covering:
(1) a calendar year, if the retail merchant's average monthly state
gross retail and use tax liability in the previous calendar year does
not exceed ten dollars ($10);
(2) a calendar half year, if the retail merchant's average monthly
state gross retail and use tax liability in the previous calendar year
does not exceed twenty-five dollars ($25); or
(3) a calendar quarter, if the retail merchant's average monthly
state gross retail and use tax liability in the previous calendar year
does not exceed seventy-five dollars ($75).
A retail merchant using a reporting period allowed under this
subsection must file the merchant's return and pay the merchant's tax
for a reporting period not later than the last day of the month
immediately following the close of that reporting period.
(e) If a retail merchant reports the merchant's adjusted gross income
tax, or the tax the merchant pays in place of the adjusted gross income
tax, over a fiscal year or fiscal quarter not corresponding to the
calendar year or calendar quarter, the merchant may, without prior
departmental approval, report and pay the merchant's state gross retail
and use taxes over the merchant's fiscal period that corresponds to the
calendar period the merchant is permitted to use under subsection (d).
However, the department may, at any time, require the retail merchant
to stop using the fiscal reporting period.
(f) If a retail merchant files a combined sales and withholding tax
report, the reporting period for the combined report is the shortest
period required under:
(1) this section;
(2) IC 6-3-4-8; or
listed on the application. The retail merchant shall also provide such
security for payment of the tax as the department may require under
IC 6-2.5-6-12.
(c) The retail merchant shall list on the application the location
(including the township) of each place of business where the retail
merchant makes retail transactions. However, if the retail merchant
does not have a fixed place of business, the retail merchant shall list the
retail merchant's residence as the retail merchant's place of business. In
addition, a public utility may list only its principal Indiana office as its
place of business for sales of public utility commodities or service, but
the utility must also list on the application the places of business where
it makes retail transactions other than sales of public utility
commodities or service.
(d) Upon receiving a proper application, the correct fee, and the
security for payment, if required, the department shall issue to the retail
merchant a separate registered retail merchant's certificate for each
place of business listed on the application. Each certificate shall bear
a serial number and the location of the place of business for which it is
issued.
(e) If a retail merchant intends to make retail transactions during a
calendar year at a new Indiana place of business, the retail merchant
must file a supplemental application and pay the fee for that place of
business.
(f) Except as provided in section 4 of this chapter, a registered
retail merchant's certificate is valid for two (2) years after the date the
registered retail merchant's certificate is originally issued or renewed.
If the retail merchant has filed all returns and remitted all taxes the
retail merchant is currently obligated to file or remit, the department
shall renew the registered retail merchant's certificate within thirty (30)
days after the expiration date, at no cost to the retail merchant.
(g) The department may not renew a registered retail merchant
certificate of a retail merchant who is delinquent in remitting sales or
use tax. The department, at least sixty (60) days before the date on
which a retail merchant's registered retail merchant's certificate expires,
shall notify a retail merchant who is delinquent in remitting sales or use
tax that the department will not renew the retail merchant's registered
retail merchant's certificate.
(h) A retail merchant engaged in business in Indiana as defined in
IC 6-2.5-3-1(c) who makes retail transactions that are only subject to
the use tax must obtain a registered retail merchant's certificate before
making those transactions. The retail merchant may obtain the
certificate by following the same procedure as a retail merchant under
subsections (b) and (c), except that the retail merchant must also
include on the application:
(1) the names and addresses of the retail merchant's principal
employees, agents, or representatives who engage in Indiana in
the solicitation or negotiation of the retail transactions;
(2) the location of all of the retail merchant's places of business in
Indiana, including offices and distribution houses; and
(3) any other information that the department requests.
(i) The department may permit an out-of-state retail merchant to
collect the use tax. However, before the out-of-state retail merchant
may collect the tax, the out-of-state retail merchant must obtain a
registered retail merchant's certificate in the manner provided by this
section. Upon receiving the certificate, the out-of-state retail merchant
becomes subject to the same conditions and duties as an Indiana retail
merchant and must then collect the use tax due on all sales of tangible
personal property that the out-of-state retail merchant knows is
intended for use in Indiana.
(j) The department shall submit to the township assessor before July
15 of each year:
(1) the name of each retail merchant that has newly obtained a
registered retail merchant's certificate between March 2 of the
preceding year and March 1 of the current year for a place of
business located in the township; and
(2) the address of each place of business of the taxpayer in the
township.
registered exempt organization's certificate as provided under
section 1(f) of this chapter. However, the department may request
the exempt organization file a renewal application. The exempt
organization shall renew the exempt organization certificate within
thirty (30) days after the expiration date, at no cost to the exempt
organization.