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Senate Bill 0397


Senate Bill 0397

ARCHIVE (2012)

Latest Information

 

DIGEST OF INTRODUCED BILL


Use tax collection on remote sales. 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 not be required to collect and remit sales or use taxes unless: (1) the retail merchant has a physical presence in Indiana; or (2) the activities conducted in Indiana on behalf of the retail merchant 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 these changes regarding remote sellers take effect January 1, 2013. Provides that a person's unpaid use tax liability that was due and payable for tangible personal property acquired before January 1, 2012, is forgiven.
    Current Status:
     In Committee - first House
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