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To comply with the Streamlined Sales and Use Tax Agreement, Indiana now includes delivery charges in gross retail income and taxes them regardless of shipping terms or invoice documentation. Similarly, installation charges are now taxable whether they are separately stated or not. (Indiana Department of Revenue Sales Tax Clarification Letter, January 2004)

(03/15/2004)

Generally in Indiana, canned or prewritten software is taxable and custom software is exempt. Following are four specific provisions that further define what Indiana constitutes as prewritten software effective January 1, 2004.
(1) The combining of two (2) or more prewritten computer software programs or prewritten parts of the programs does not cause the combination to be other than prewritten computer software.
(2) Prewritten computer software includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than the purchaser.
(3) If a person modifies or enhances computer software of which the person is not the author or creator, the person is considered to be the author or creator only of the person's modifications or enhancements.
(4) Prewritten computer software or a prewritten part of the software that is modified or enhanced to any degree, where the modification or enhancement is designed and developed to the specifications of a specific purchaser, remains prewritten computer software. However, where there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for such a modification or enhancement, the modification or enhancement is not prewritten computer software. (IC 6-2.5-1-24, Laws 2003)

(12/15/2003)

An Indiana court ruled that satellite dish installation services were subject to sales tax because they were combined with the sale of a satellite dish and not separately stated. Additionally, transfer of title did not pass at delivery, but after installation since the contract was not complete until the dish was installed. (Indiana Tax Court, No. 49T10-9611-TA-168, June 19, 2003)

(12/15/2003)

The purchase of an ammonia refrigerator, intended for the use of refrigerating ready-to-bake dough, is exempt from sales and use tax when involved in the production process. During a 48-hour period, the equipment is used to maintain a proper temperature within the taxpayer's storage area so that a certain air pressure and weight density can be reached within the individual dough containers, in turn completing production of the dough. The refrigerator's involvement in the production process makes it exempt from sales and use tax. On the other hand, an identical refrigerator which is used not to produce, but rather to store finished dough, is not exempt from sales and use tax. (Indiana Letter Findings, No. 02-0057, February 1, 2003)

(06/15/2003)

The purchase of an ammonia refrigerator, intended for the use of refrigerating ready-to-bake dough, is exempt from sales and use tax when involved in the production process. During a 48-hour period, the equipment is used to maintain a proper temperature within the taxpayer's storage area so that a certain air pressure and weight density can be reached within the individual dough containers, in turn completing production of the dough. The refrigerator's involvement in the production process makes it exempt from sales and use tax. On the other hand, an identical refrigerator which is used not to produce, but rather to store finished dough, is not exempt from sales and use tax. (Indiana Letter Findings, No. 02-0057, February 1, 2003)

(06/15/2003)

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