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DIGEST OF INTRODUCED BILL
Use tax nexus and collection. Provides that for purposes of the Indiana sales and use tax law, a "retail merchant engaged in business in Indiana" includes any retail merchant who: (1) makes retail transactions in which a person acquires personal property or taxable services for use, storage, or consumption in Indiana; and (2) enters into an arrangement with any person, other than a common carrier, to facilitate the retail merchant's delivery of property to customers in Indiana by allowing customers to pick up property sold by the retail merchant at a place of business maintained by the person in Indiana. Specifies that a retail merchant may be required to collect and remit sales or use taxes if the retail merchant conducts activities in Indiana on behalf of the retail merchant that are significantly associated with the retail merchant's ability to establish and maintain a market in Indiana. Provides that a retail merchant is presumed to be engaged in business in Indiana if an affiliate of the retail merchant has substantial nexus in Indiana and certain additional conditions are satisfied. Provides that a retail merchant is presumed to be engaged in business in Indiana if the retail merchant enters into an agreement with one or more residents of Indiana under which the resident directly or indirectly refers potential customers to the retail merchant, if the cumulative gross receipts from the sales by the retail merchant to customers in Indiana who are referred to the retail merchant by all residents is greater than $10,000 during the preceding 12 months. Specifies that the presumptions may be rebutted. Provides that the use tax nexus provisions are effective on the earlier of January 1, 2014, or the third month after the budget agency certifies that a requirement for sellers to collect use tax on remote sales has been enacted into law by the United States Congress. Requires the department of state revenue to include a use tax liability lookup table for a typical person to cover items with a purchase price of not more than $1,000. Permits a person to use the lookup table for these purchases if the table reasonably represents the amount of these purchases made by the person. Requires the department to provide a section on the income tax return for a taxpayer to affirm the amount of use tax owed.