Bill Text: IN SB0245 | 2010 | Regular Session | Introduced
Bill Title: Sales tax treatment of motor vehicle discounts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-01-11 - First reading: referred to Committee on Tax and Fiscal Policy [SB0245 Detail]
Download: Indiana-2010-SB0245-Introduced.html
Introduced Version
SENATE BILL No. 245
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-2.5-5-38.2.
Synopsis: Sales tax treatment of motor vehicle discounts. Provides
that a rebate or employee discount on the sale of a motor vehicle is not
part of the gross retail income received by the seller when determining
the sales and use tax amount.
Effective: July 1, 2010.
Buck
January 11, 2010, read first time and referred to Committee on Tax and Fiscal Policy.
Introduced
Second Regular Session 116th General Assembly (2010)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
SENATE BILL No. 245
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-2.5-5-38.2; (10)IN0245.1.1. -->
SECTION 1. IC 6-2.5-5-38.2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 38.2. (a) The value of
an owned vehicle is exempt from the Indiana gross retail tax in a
vehicle lease transaction if the owned vehicle is exchanged for a like
kind vehicle.
(b) The value of a third party's payment or credit, including an employee discount, on the sale or lease of a motor vehicle is exempt from the gross retail tax if the customer's purchase agreement shows that:
(1) the payment or credit is directly related to a price reduction or discount on the sale or lease;
(2) the seller or lessor has an obligation to pass the price reduction or discount through to the purchaser;
(3) the amount of the price reduction or discount is fixed and determinable by the seller or lessor at the time of the sale or lease to the purchaser; and
(4) the price reduction or discount is identified as a third
(b) The value of a third party's payment or credit, including an employee discount, on the sale or lease of a motor vehicle is exempt from the gross retail tax if the customer's purchase agreement shows that:
(1) the payment or credit is directly related to a price reduction or discount on the sale or lease;
(2) the seller or lessor has an obligation to pass the price reduction or discount through to the purchaser;
(3) the amount of the price reduction or discount is fixed and determinable by the seller or lessor at the time of the sale or lease to the purchaser; and
(4) the price reduction or discount is identified as a third
party price reduction or discount.