Stay up to date with sales tax: Join our mailing list!


In a case against the Indiana Department of Revenue, an automotive component manufacturer was entitled to an exemption from Indiana sales and use tax for equipment and supplies that were either consumed or used in the process of manufacturing. In the process of creating the plastic automobile parts, the taxpayer had to use other materials that were in question for the exemption. It was found that the mask processing equipment and related supplies were an integral part of the process and were given the same exemption that the parts received under the manufacturing process. (Indiana Tax Court, No. 49T10-9812-TA-211, June 30, 2004)

(08/05/2004)

Effective March 9, 2004, nontaxable telecommunication services that are bundled with other taxable service charges can still be considered exempt from sales tax as long as the telecommunication provider “can reasonably identify the charges not subject to the sales tax from the service provider’s books and records kept in the regular course of business.” Typically in these situations, most states say that if nontaxable items are not separately stated and are bundled with taxable items, the exemption allowed for the nontaxable item is null and void. Some telecommunication services that are nontaxable in the state of Indiana include: value added services, sales of services to public utilities, and charges for installing or servicing telecommunication services. (Information Bulletin #51T, Indiana Department of Revenue – Sales Tax, July 2004)

(07/28/2004)

Effective July 1, 2004, the Commissioner’s Directives No. 24 and 25 declare Form ST-137, and Form ST-136A no longer effective exemption documentation. ST-137 allowed the exemption from Indiana sales tax of out-of-state purchase and delivery of a motor vehicle, aircraft, or watercraft, to be registered outside of Indiana. ST-136A allowed out-of-state purchasers to claim an exemption from Indiana sales tax for purchases in Indiana that would be exempt if purchased in their state of residence. Exemption forms ST-104, ST-105, and ST-106 are still allowable. (Commissioner's Directive No. 24 and No. 25, Indiana Department of Revenue, July 2004)

(07/28/2004)

Purchasing agents for the department of administration and state educational institutions must provide the department of revenue with a list of vendors who want to sell them property or services. The department will do a check and get back to the department or institution who submitted the vendor's name on whether or not the vendor is registered with the state to collect sales and use tax or if the vendor has any outstanding accounts with the state. (IC 6-2.5-4-14, July 1, 2003)

(06/15/2004)

In Mid America Publishing, Inc v. Indiana Department of Revenue the court decided that sales of custom printed calendars bearing the logo of the publishing company and an image of Indiana University's Men's basketball team were subject to sales tax. Claims by Mid America Publishing, Inc that the calendars were exempt due to the "but for" test were denied. The "but for" test is used in Indiana to determine the true object of a mixed transaction. It was determined that the calendars were the critical part of the transaction and therefore the transaction was taxable as a retail sale. The exempt advertising service provided to the University was the incidental purpose of the transaction. (Mid America Publishing v. Indiana Department of Revenue. Docket No. 49T10-9912-TA-239, March 16, 2004)

(06/15/2004)

Pages

Scroll to Top