Bill Text: IN HB1350 | 2013 | Regular Session | Introduced
Bill Title: Sales and use taxes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-17 - First reading: referred to Committee on Ways and Means [HB1350 Detail]
Download: Indiana-2013-HB1350-Introduced.html
Citations Affected: IC 4-31-8-7; IC 6-2.5.
Synopsis: Sales and use taxes. Provides that a person may not claim
a race horse unless the person has on deposit with a permit holder an
amount sufficient to pay the use tax on the claimed horse. Provides for
the collection and remittance of the use tax on claimed horses for
claiming transactions occurring after June 30, 2013. Provides that when
a race horse is claimed for a subsequent time, the use tax rate is applied
to the increase in the claiming price from the previous claiming
transaction, if any. Requires the department of state revenue to
establish an amnesty program for collecting the use tax on claiming
transactions occurring before June 1, 2012.
Effective: July 1, 2013.
January 15, 2013, 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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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) the amount required to make a claim under the rules of the commission; and
(2) an amount sufficient to pay the use tax imposed on the claiming transaction under IC 6-2.5-14.
SECTION 311, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 7. Except as otherwise provided in
IC 6-2.5-7, or in this chapter, or IC 6-2.5-14, a retail merchant shall
pay to the department, for a particular reporting period, an amount
equal to the product of:
(1) seven percent (7%); multiplied by
(2) the retail merchant's total gross retail income from taxable
transactions made during the reporting period.
The amount determined under this section is the retail merchant's state
gross retail and use tax liability regardless of the amount of tax the
retail merchant actually collects.
Chapter 14. Collection and Remittance of Use Tax on Claimed Race Horses
Sec. 1. (a) This chapter applies to a claiming transaction made after June 30, 2013, at an Indiana race track.
(b) The department shall disregard any claiming transaction occurring before July 1, 2013, when determining the use tax liability under this chapter for a claiming transaction occurring after June 30, 2013.
Sec. 2. As used in this chapter, "base claiming price" refers to the claiming price for a race horse in a claiming transaction that occurs:
(1) after June 30, 2013; and
(2) immediately preceding the particular claiming transaction for which the purchaser's use tax liability is being determined under this chapter.
Sec. 3. As used in this chapter, "claiming transaction" refers to the sale and purchase of a race horse under the procedures set forth in 71 IAC 6-1 or 71 IAC 6.5-1.
Sec. 4. As used in this chapter, "Indiana race track" refers to a race track operated by a permit holder for the purpose of conducting a pari-mutuel horse racing meeting under IC 4-31.
Sec. 5. As used in this chapter, "permit holder" has the meaning set forth in IC 4-31-2-14.
Sec. 6. A person acquiring a race horse in a claiming transaction at an Indiana race track is subject to the use tax imposed under IC 6-2.5-3. However, the amount of the person's use tax liability is determined under section 7 of this chapter.
Sec. 7. (a) The use tax imposed on the first claiming transaction
involving a particular race horse occurring after June 30, 2013, is
equal to the product of:
(1) seven percent (7%); multiplied by
(2) the claiming price of the race horse.
(b) Except as provided in subsection (c), the use tax imposed on
each subsequent claiming transaction involving a race horse
previously claimed in a transaction described in subsection (a) is
equal to the product of:
(1) seven percent (7%); multiplied by
(2) the remainder of:
(A) the claiming price of the race horse; minus
(B) the base claiming price of the race horse.
(c) If the claiming price of a race horse does not exceed the base
claiming price of that race horse, no use tax is imposed on the
claiming transaction.
Sec. 8. A person acquiring a race horse in a claiming transaction
shall pay the use tax liability, if any, incurred in the claiming
transaction to the permit holder operating the race track at which
the claiming transaction occurs. The person shall pay the use tax
from money placed on deposit with the permit holder. The tax is
due at the same time that the claiming price for the race horse is
paid.
Sec. 9. The permit holder operating the race track at which the
claiming transaction occurs shall collect the use tax from each
person required to pay the use tax under section 8 of this chapter.
Sec. 10. A permit holder shall remit use taxes collected under
this chapter to the department in the manner required by
IC 6-2.5-6.
Sec. 11. (a) The department shall establish an amnesty program
for taxpayers having an unpaid use tax liability for a claiming
transaction occurring before June 1, 2012. This section does not
apply to a taxpayer's state gross retail or use tax liability from any
other type of transaction.
(b) The time in which a voluntary payment of tax liability may
be made (or the taxpayer may enter into a payment program
acceptable to the department for the payment of the unpaid use
taxes in full in the manner and time established in a written
payment program agreement between the department and the
taxpayer) under the amnesty program is limited to the period
ending before January 1, 2014.
(c) The amnesty program must require the following:
(1) That a taxpayer who enters an agreement described in
subsection (b) is not eligible for any other amnesty program
that may be established.
(2) That the taxpayer shall comply with all other amnesty
conditions adopted under a rule of the department in effect on
the date the voluntary payment is made.
(d) Upon payment by a taxpayer to the department of all use
taxes due from the taxpayer for a tax period (or payment of the
unpaid use taxes in full in the manner and time established in a
written payment program agreement between the department and
the taxpayer), the department:
(1) shall abate and not seek to collect any interest, penalties,
collection fees, or costs that would otherwise be applicable;
(2) shall release any liens imposed;
(3) shall not seek civil or criminal prosecution against any
individual or entity; and
(4) shall not issue, or, if issued, shall withdraw, an assessment,
a demand notice, or a warrant for payment under
IC 6-8.1-5-3, IC 6-8.1-8-2, or another law against any
individual or entity;
for use taxes due from the taxpayer for the tax period for which
amnesty has been granted to the taxpayer.
(e) Amnesty granted under this section is binding on the state
and its agents. However, failure to pay the department all use taxes
due for a tax period invalidates any amnesty granted under this
section for that tax period.
(f) The department shall enforce an agreement with a taxpayer
that prohibits the taxpayer from receiving amnesty in another
amnesty program.
