Bill Text: IN HB1139 | 2010 | Regular Session | Introduced
Bill Title: Sales tax on home energy.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-07 - First reading: referred to Committee on Ways and Means [HB1139 Detail]
Download: Indiana-2010-HB1139-Introduced.html
Citations Affected: IC 6-2.5.
Synopsis: Sales tax on home energy. Provides a sales tax exemption
for the sale of power, light, and heat for residential use. Eliminates
references to the sales tax exemption for home energy acquired through
home energy assistance, which expired July 2, 2009.
Effective: Upon passage; July 1, 2010.
January 7, 2010, read first time and referred to Committee on Ways and Means.
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
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(b) A power subsidiary or a person engaged as a public utility is a retail merchant making a retail transaction when the subsidiary or person furnishes or sells electrical energy, natural or artificial gas, water, steam, or steam heating service to a person for commercial or domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a person engaged as a public utility is not a retail merchant making a retail transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs, constructs, services, or removes tangible personal property which is used in
connection with the furnishing of the services or commodities
listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, refining, oil extraction,
mineral extraction, irrigation, agriculture, or horticulture.
However, this exclusion for sales of the services and commodities
only applies if the services are consumed as an essential and
integral part of an integrated process that produces tangible
personal property and those sales are separately metered for the
excepted uses listed in this subdivision, or if those sales are not
separately metered but are predominately used by the purchaser
for the excepted uses listed in this subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the part
of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), a military base recovery site
designated under IC 6-3.1-11.5, or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
(E) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(2), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the qualified military base (as defined in IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
(5) The power subsidiary or person sells services or commodities
that:
(A) are referred to in subsection (b); and
(B) qualify as home energy (as defined in IC 6-2.5-5-16.5);
to a person who acquires the services or commodities after June
30, 2006, and before July 1, 2009, through home energy
assistance (as defined in IC 6-2.5-5-16.5).
(b) As used in this section, "home energy" means electricity, oil, gas, coal, propane, or any other fuel for use as the principal source of power, heat, or light in a residential dwelling or residential building, including a unit of a building that is served by a master meter and used as a residential dwelling. The term includes
charges described in IC 6-2.5-1-5(c).
(c) As used in this section, "home energy supplier" means a
person, including a trustee or receiver appointed by a court,
engaged in furnishing or selling home energy in Indiana.
(d) As used in this section, "master meter" refers to a master
meter described in IC 8-1-2-36.5.
(e) As used in this section, "residential or rental housing user"
means a person that receives home energy from a home energy
supplier primarily for:
(1) personal, family, or household residential purposes; or
(2) use in a residential dwelling or residential building,
including a unit of a building that is served by a master meter
and primarily rented to tenants who use the rented facilities
primarily for personal, family, or household residential
purposes.
(f) A retail transaction involving the sale of home energy to a
residential or rental housing user is exempt from the state gross
retail tax.
(g) The department may establish streamlined procedures for
the implementation of this section that minimize or eliminate the:
(1) need to apply for an exemption certificate or a refund to
obtain the exemption provided by this section; and
(2) record keeping requirements and procedures that a retail
merchant must follow to make retail transactions that are
exempt under this section.
(h) This subsection applies when electricity, oil, gas, coal,
propane, or any other fuel is delivered through a master meter to
a building that has both residential or rental housing users and
persons that are not residential or rental housing users. The
department may establish procedures for the apportionment of
sales for the building between exempt and nonexempt transactions
based on an estimate computed under a formula approved by the
department.
(1) the price per unit before the addition of state and federal taxes; multiplied by
(2) seven percent (7%).
The retail merchant shall collect the state gross retail tax prescribed in this section even if the transaction is exempt from taxation under IC 6-2.5-5.
(b) With respect to the sale of special fuel or kerosene which is dispensed from a metered pump, unless the purchaser provides an exemption certificate in accordance with IC 6-2.5-8-8, a retail merchant shall collect, for each unit of special fuel or kerosene sold, state gross retail tax in an amount equal to the product, rounded to the nearest one-tenth of one cent ($0.001), of:
(1) the price per unit before the addition of state and federal taxes; multiplied by
(2) seven percent (7%).
Except to the extent that a different procedure is permitted under IC 6-2.5-5-16.7, unless the exemption certificate is provided, the retail merchant shall collect the state gross retail tax prescribed in this section even if the transaction is exempt from taxation under IC 6-2.5-5.
(b) For purposes of IC 6-2.5-5-16.7, as added by this act, and IC 6-2.5-4-5 and IC 6-2.5-7-3, both as amended by this act, only transactions for which the charges are collected upon original statements and billings dated after July 31, 2010, shall be considered as having occurred after June 30, 2010.
(c) The department may adopt temporary rules in the manner provided for the adoption of emergency rules under IC 4-22-2-37.1 to implement any combination of IC 6-2.5-5-16.7, as added by this act, and IC 6-2.5-4-5 and IC 6-2.5-7-3, both as amended by this act.
(d) A rule adopted under this SECTION expires on the earliest of the following:
(1) The date a rule is adopted by the department under IC 4-22-2 that repeals, amends, or supersedes the temporary rule.
(2) The date another temporary rule is adopted under this SECTION to replace an earlier rule adopted under this SECTION.
(3) The date specified in the temporary rule.
(4) December 31, 2010.
