Bill Text: IN HB1546 | 2013 | Regular Session | Engrossed
Bill Title: Tax administration.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2013-06-12 - Veto overridden by the Senate; Roll Call 2: yeas 34, nays 12 [HB1546 Detail]
Download: Indiana-2013-HB1546-Engrossed.html
Citations Affected: IC 6-2.5; IC 6-3; IC 6-3.5; IC 6-4.1; IC 6-6;
IC 6-8; IC 6-8.1; IC 7.1-3; IC 9-18; IC 34-24; IC 35-43.
Effective: July 1, 2012 (retroactive); January 1, 2013 (retroactive);
July 1, 2013; January 1, 2014.
(SENATE SPONSOR _ HERSHMAN)
January 22, 2013, read first time and referred to Committee on Ways and Means.
February 18, 2013, amended, reported _ Do Pass.
February 20, 2013, read second time, ordered engrossed. Engrossed.
February 25, 2013, read third time, passed. Yeas 92, nays 0.
February 27, 2013, read first time and referred to Committee on Tax and Fiscal Policy.
April 4, 2013, amended, reported favorably _ Do Pass.
Digest Continued
conditions are met. Repeals obsolete provisions in the commercial vehicle excise tax law. Repeals the Indiana estate tax and the Indiana generation skipping transfer tax. Provides that the office of management and budget may enter into an offset agreement with the Secretary of the Treasury of the United States to participate in a reciprocal Treasury Offset Program under federal law. Provides certain exemptions for an out-of-state business that performs disaster emergency related work in Indiana. Extends the period during which Jackson County may impose an additional 0.1% county adjusted gross income tax (CAGIT) rate to operate and maintain a jail and a juvenile detention center until 2024. Legalizes and validates taxes collected at the additional rate after June 30, 2011, and before July 1, 2013.
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.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) is the state of Indiana, an agency or instrumentality of the state, a political subdivision of the state, or an agency or instrumentality of a political subdivision of the state, including a county solid waste management district or a joint solid waste management district established under IC 13-21 or IC 13-9.5-2 (before its repeal); and
(2) predominantly uses the property, accommodations, commodities, or service to perform its governmental functions.
"private benefit or gain" does not include reasonable compensation
paid to an employee for work or services actually performed.
(b) Sales of food and food ingredients are exempt from the state
gross retail tax if:
(1) the seller meets the filing requirements under subsection (d)
and is any of the following:
(A) A fraternity, a sorority, or a student cooperative housing
organization that is connected with and under the supervision
of a postsecondary educational institution if no part of its
income is used for the private benefit or gain of any member,
trustee, shareholder, employee, or associate.
(B) Any:
(i) institution;
(ii) trust;
(iii) group;
(iv) united fund;
(v) affiliated agency of a united fund;
(vi) nonprofit corporation;
(vii) cemetery association; or
(viii) organization;
that is organized and operated exclusively for religious,
charitable, scientific, literary, educational, or civic purposes if
no part of its income is used for the private benefit or gain of
any member, trustee, shareholder, employee, or associate.
(C) A group, an organization, or a nonprofit corporation that
is organized and operated for fraternal or social purposes, or
as a business league or association, and not for the private
benefit or gain of any member, trustee, shareholder, employee,
or associate.
(D) A:
(i) hospital licensed by the state department of health;
(ii) shared hospital services organization exempt from
federal income taxation by Section 501(c)(3) or 501(e) of
the Internal Revenue Code;
(iii) labor union;
(iv) church;
(v) monastery;
(vi) convent;
(vii) school that is a part of the Indiana public school
system;
(viii) parochial school regularly maintained by a recognized
religious denomination; or
(ix) trust created for the purpose of paying pensions to members of a particular profession or business who created the trust for the purpose of paying pensions to each other;
if the taxpayer is not organized or operated for private profit or gain;
(2) the purchaser is a person confined to
(3) the seller delivers the food and food ingredients to the purchaser; and
(4) the delivery is prescribed as medically necessary by a physician licensed to practice medicine in Indiana.
(c) Sales of food and food ingredients are exempt from the state gross retail tax if the seller is an organization described in subsection (b)(1), and the purchaser is a patient in a hospital operated by the seller.
(d) To obtain the exemption provided by this section, a taxpayer must file an application for exemption with the department
In addition, the taxpayer must file an annual report with the department on or before the fifteenth day of the fifth month following the close of each taxable year. If a taxpayer fails to file the report, the department shall notify the taxpayer of the failure. If within sixty (60) days after receiving such notice the taxpayer does not provide the report, the taxpayer's exemption shall be canceled. However, the department may reinstate the taxpayer's exemption if the taxpayer shows by petition that the failure was due to excusable neglect.
(1) is an organization described in section 21(b)(1) of this chapter;
(2) primarily uses the property, accommodations, or service to carry on or to raise money to carry on its not-for-profit purpose; and
(3) is not an organization operated predominantly for social purposes.
(b) Transactions
retail tax, if the person acquiring the property or service:
(1) is a fraternity, sorority, or student cooperative housing
organization described in section 21(b)(1)(A) of this chapter; and
(2) uses the property or service to carry on its ordinary and usual
activities and operations as a fraternity, sorority, or student
cooperative housing organization.
(1) The total number of gallons of gasoline sold from a metered pump during the period covered by the report.
(2) The total amount of money received from the sale of gasoline described in subdivision (1) during the period covered by the report.
(3) That portion of the amount described in subdivision (2) which represents state and federal taxes imposed under this article, IC 6-6-1.1, or Section 4081 of the Internal Revenue Code.
(4) The total number of gallons of special fuel sold from a metered pump during the period covered by the report.
(5) The total amount of money received from the sale of special fuel during the period covered by the report.
(6) That portion of the amount described in subdivision (5) that represents state and federal taxes imposed under this article, IC 6-6-2.5, or Section 4041 of the Internal Revenue Code.
(7) The total number of gallons of E85 sold from a metered pump during the period covered by the report.
(b) Concurrently with filing the report, the retail merchant shall remit the state gross retail tax in an amount which equals six and fifty-four hundredths percent (6.54%) of the gross receipts, including state gross retail taxes but excluding Indiana and federal gasoline and special fuel taxes, received by the retail merchant from the sale of the gasoline and special fuel that is covered by the report and on which the retail merchant was required to collect state gross retail tax. The retail merchant shall remit that amount regardless of the amount of state gross retail tax which the merchant has actually collected under this chapter. However, the retail merchant is entitled to deduct and retain the amounts prescribed in subsection (c), IC 6-2.5-6-10, and IC 6-2.5-6-11.
(c) A retail merchant is entitled to deduct from the amount of
state gross retail tax required to be remitted under subsection (b)
an amount equal to:
(1) the sum of the prepayment amounts made during the
period covered by the retail merchant's report; minus
(2) the sum of prepayment amounts collected by the retail
merchant, in the merchant's capacity as a qualified
distributor, during the period covered by the retail
merchant's report.
For purposes of this section, a prepayment of the gross retail tax is
presumed to occur on the date on which it is invoiced.
(1) First, the credit shall be applied against gross retail and use tax liability of the retail merchant that is required to be remitted under IC 6-2.5-6.
(2) Second, any amount remaining shall be applied against the gasoline tax liability of the retail merchant, as determined under IC 6-6-1.1, excluding any liability for gasoline delivered to a taxable marine facility.
A retail merchant may file a claim for a refund instead of taking a credit or for a refund of any excess tax payment remaining after the credits allowed by this section. In addition, a retail merchant may file a claim for a refund under section 12 of this chapter.
(b) A retail merchant that is entitled to a refund under this section must file a claim for the refund on the refund claim form approved by the department and must include any supporting documentation reasonably required by the department. If a retail merchant files a completed refund claim form that includes all supporting documentation, the excess tax payment that is not refunded within ninety (90) days accrues interest as provided in IC 6-8.1-9-2.
(c) Before the fifth day of each month, the department shall determine and notify the treasurer of state of the amount of credits applied during the preceding month against the gasoline tax under this section. The treasurer of state shall transfer from the general fund:
(1) to the highway, road and street fund, twenty-five percent (25%) of the amount set forth in the department's notice; and
(2) to the motor fuel tax fund of the motor vehicle highway account, seventy-five percent (75%) of the amount set forth in the department's notice.
(b) A distributor that:
(1) prepays the state gross retail tax under this chapter;
(2) is a retail merchant; and
(3) sells gasoline that is exempt from the gross retail tax, as evidenced by a purchaser's exemption certificate issued by the department;
may not require the exempt purchaser to pay the gross retail taxes prepaid in the gasoline sold to the exempt purchaser. A distributor that has prepaid gross retail taxes and has not been reimbursed because the gasoline is sold to an exempt purchaser may file a claim for a refund (in addition to any claim for a refund filed under section 6.5 of this chapter), if the amount of unreimbursed prepaid gross retail taxes exceeds five hundred dollars ($500). A claim for a refund must be on the form approved by the department and include all supporting documentation reasonably required by the department. If a distributor files a completed refund claim form that includes all supporting documentation, the department shall authorize the auditor of state to issue a warrant for the refund.
(b) A retail merchant may obtain a registered retail merchant's certificate by filing an application with the department and paying a registration fee of twenty-five dollars ($25) for each place of business listed on the application. The retail merchant shall also provide such security for payment of the tax as the department may require under IC 6-2.5-6-12.
(c) The retail merchant shall list on the application the location (including the township) of each place of business where the retail
merchant makes retail transactions. However, if the retail merchant
does not have a fixed place of business, the retail merchant shall list the
retail merchant's residence as the retail merchant's place of business. In
addition, a public utility may list only its principal Indiana office as its
place of business for sales of public utility commodities or service, but
the utility must also list on the application the places of business where
it makes retail transactions other than sales of public utility
commodities or service.
(d) Upon receiving a proper application, the correct fee, and the
security for payment, if required, the department shall issue to the retail
merchant a separate registered retail merchant's certificate for each
place of business listed on the application. Each certificate shall bear
a serial number and the location of the place of business for which it is
issued.
(e) If a retail merchant intends to make retail transactions during a
calendar year at a new Indiana place of business, the retail merchant
must file a supplemental application and pay the fee for that place of
business.
(f) Except as provided in subsection (h), a registered retail
merchant's certificate is valid for two (2) years after the date the
registered retail merchant's certificate is originally issued or renewed.
If the retail merchant has filed all returns and remitted all taxes the
retail merchant is currently obligated to file or remit, the department
shall renew the registered retail merchant's certificate within thirty (30)
days after the expiration date, at no cost to the retail merchant.
(g) The department may not renew a registered retail merchant
certificate of a retail merchant who is delinquent in remitting
withholding taxes required to be remitted under IC 6-3-4 or sales or use
tax. The department, at least sixty (60) days before the date on which
a retail merchant's registered retail merchant's certificate expires, shall
notify a retail merchant who is delinquent in remitting withholding
taxes required to be remitted under IC 6-3-4 or sales or use tax that the
department will not renew the retail merchant's registered retail
merchant's certificate.
(h) If:
(1) a retail merchant has been notified by the department that
the retail merchant is delinquent in remitting withholding
taxes or sales or use tax in accordance with subsection (g);
and
(2) the retail merchant pays the outstanding liability before
the expiration of the retail merchant's registered retail
merchant's certificate;
the department shall renew the retail merchant's registered retail
merchant's certificate for one (1) year.
(h) (i) A retail merchant engaged in business in Indiana as defined
in IC 6-2.5-3-1(c) who makes retail transactions that are only subject
to the use tax must obtain a registered retail merchant's certificate
before making those transactions. The retail merchant may obtain the
certificate by following the same procedure as a retail merchant under
subsections (b) and (c), except that the retail merchant must also
include on the application:
(1) the names and addresses of the retail merchant's principal
employees, agents, or representatives who engage in Indiana in
the solicitation or negotiation of the retail transactions;
(2) the location of all of the retail merchant's places of business in
Indiana, including offices and distribution houses; and
(3) any other information that the department requests.
(i) (j) The department may permit an out-of-state retail merchant to
collect the use tax. However, before the out-of-state retail merchant
may collect the tax, the out-of-state retail merchant must obtain a
registered retail merchant's certificate in the manner provided by this
section. Upon receiving the certificate, the out-of-state retail merchant
becomes subject to the same conditions and duties as an Indiana retail
merchant and must then collect the use tax due on all sales of tangible
personal property that the out-of-state retail merchant knows is
intended for use in Indiana.
(j) (k) Except as provided in subsection (k), (l), the department shall
submit to the township assessor, or the county assessor if there is no
township assessor for the township, before July 15 of each year:
(1) the name of each retail merchant that has newly obtained a
registered retail merchant's certificate between March 2 of the
preceding year and March 1 of the current year for a place of
business located in the township or county; and
(2) the address of each place of business of the taxpayer in the
township or county.
(k) (l) If the duties of the township assessor have been transferred
to the county assessor as described in IC 6-1.1-1-24, the department
shall submit the information listed in subsection (j) (k) to the county
assessor.
been revoked or suspended by the department commits a Class B Class
A misdemeanor.
(1) shall be liable to the state of Indiana for the payment of the tax required to be deducted and withheld under this section and shall not be liable to any individual for the amount deducted from the individual's wages and paid over in compliance or intended compliance with this section; and
(2) shall make return of and payment to the department monthly of the amount of tax which under this article and IC 6-3.5 the employer is required to withhold.
(b) An employer shall pay taxes withheld under subsection (a) during a particular month to the department no later than thirty (30) days after the end of that month. However, in place of monthly reporting periods, the department may permit an employer to report and pay the tax for a calendar year reporting period, if the
(c) For purposes of determining whether an employee is subject to taxation under IC 6-3.5, an employer is entitled to rely on the statement of an employee as to the employee's county of residence as represented by the statement of address in forms claiming exemptions for purposes of withholding, regardless of when the employee supplied the forms. Every employee shall notify the employee's employer within five (5) days after any change in the employee's county of residence.
(d) A county that makes payments of wages subject to tax under this article:
(1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
(2) for the performance of the duties of the precinct election officer imposed by IC 3 that are performed on election day;
is not required, at the time of payment of the wages, to deduct and retain from the wages the amount prescribed in withholding instructions issued by the department.
(e) Every employer shall, at the time of each payment made by the employer to the department, deliver to the department a return upon the form prescribed by the department showing:
(1) the total amount of wages paid to the employer's employees;
(2) the amount deducted therefrom in accordance with the provisions of the Internal Revenue Code;
(3) the amount of adjusted gross income tax deducted therefrom in accordance with the provisions of this section;
(4) the amount of income tax, if any, imposed under IC 6-3.5 and deducted therefrom in accordance with this section; and
(5) any other information the department may require.
Every employer making a declaration of withholding as provided in this section shall furnish the employer's employees annually, but not later than thirty (30) days after the end of the calendar year, a record of the total amount of adjusted gross income tax and the amount of each income tax, if any, imposed under IC 6-3.5, withheld from the employees, on the forms prescribed by the department.
(f) All money deducted and withheld by an employer shall immediately upon such deduction be the money of the state, and every employer who deducts and retains any amount of money under the provisions of this article shall hold the same in trust for the state of Indiana and for payment thereof to the department in the manner and at the times provided in this article. Any employer may be required to post a surety bond in the sum the department determines to be appropriate to protect the state with respect to money withheld pursuant to this section.
(g) The provisions of IC 6-8.1 relating to additions to tax in case of
delinquency and penalties shall apply to employers subject to the
provisions of this section, and for these purposes any amount deducted
or required to be deducted and remitted to the department under this
section shall be considered to be the tax of the employer, and with
respect to such amount the employer shall be considered the taxpayer.
In the case of a corporate or partnership employer, every officer,
employee, or member of such employer, who, as such officer,
employee, or member is under a duty to deduct and remit such taxes
shall be personally liable for such taxes, penalties, and interest.
(h) Amounts deducted from wages of an employee during any
calendar year in accordance with the provisions of this section shall be
considered to be in part payment of the tax imposed on such employee
for the employee's taxable year which begins in such calendar year, and
a return made by the employer under subsection (b) shall be accepted
by the department as evidence in favor of the employee of the amount
so deducted from the employee's wages. Where the total amount so
deducted exceeds the amount of tax on the employee as computed
under this article and IC 6-3.5, the department shall, after examining
the return or returns filed by the employee in accordance with this
article and IC 6-3.5, refund the amount of the excess deduction.
However, under rules promulgated by the department, the excess or any
part thereof may be applied to any taxes or other claim due from the
taxpayer to the state of Indiana or any subdivision thereof. No refund
shall be made to an employee who fails to file the employee's return or
returns as required under this article and IC 6-3.5 within two (2) years
from the due date of the return or returns. In the event that the excess
tax deducted is less than one dollar ($1), no refund shall be made.
(i) This section shall in no way relieve any taxpayer from the
taxpayer's obligation of filing a return or returns at the time required
under this article and IC 6-3.5, and, should the amount withheld under
the provisions of this section be insufficient to pay the total tax of such
taxpayer, such unpaid tax shall be paid at the time prescribed by
section 5 of this chapter.
(j) Notwithstanding subsection (b), an employer of a domestic
service employee that enters into an agreement with the domestic
service employee to withhold federal income tax under Section 3402
of the Internal Revenue Code may withhold Indiana income tax on the
domestic service employee's wages on the employer's Indiana
individual income tax return in the same manner as allowed by Section
3510 of the Internal Revenue Code.
(k) To the extent allowed by Section 1137 of the Social Security
Act, an employer of a domestic service employee may report and remit
state unemployment insurance contributions on the employee's wages
on the employer's Indiana individual income tax return in the same
manner as allowed by Section 3510 of the Internal Revenue Code.
(l) A person who knowingly fails to remit trust fund money as set
forth in this section commits a Class D felony.
(1) shall be liable to the state of Indiana for the payment of the tax required to be deducted and retained under this section and shall not be liable to such partner for the amount deducted from such payment or credit and paid over in compliance or intended compliance with this section; and
(2) shall make return of and payment to the department monthly whenever the amount of tax due under IC 6-3 and IC 6-3.5 exceeds an aggregate amount of fifty dollars ($50) per month with such payment due on the thirtieth day of the following month, unless an earlier date is specified by section 8.1 of this chapter.
Where the aggregate amount due under IC 6-3 and IC 6-3.5 does not exceed fifty dollars ($50) per month, then such partnership shall make return and payment to the department quarterly, on such dates and in such manner as the department shall prescribe, of the amount of tax which, under IC 6-3 and IC 6-3.5, it is required to withhold.
(b) Every partnership shall, at the time of each payment made by it to the department pursuant to this section, deliver to the department a return upon such form as shall be prescribed by the department showing the total amounts paid or credited to its nonresident partners, the amount deducted therefrom in accordance with the provisions of this section, and such other information as the department may require. Every partnership making the deduction and retention provided in this section shall furnish to its nonresident partners annually, but not later than the fifteenth day of the third month after the end of its taxable year, a record of the amount of tax deducted and retained from such partners on forms to be prescribed by the department.
(c) All money deducted and retained by the partnership, as provided in this section, shall immediately upon such deduction be the money of
the state of Indiana and every partnership which deducts and retains
any amount of money under the provisions of IC 6-3 shall hold the
same in trust for the state of Indiana and for payment thereof to the
department in the manner and at the times provided in IC 6-3. Any
partnership may be required to post a surety bond in such sum as the
department shall determine to be appropriate to protect the state of
Indiana with respect to money deducted and retained pursuant to this
section.
(d) The provisions of IC 6-8.1 relating to additions to tax in case of
delinquency and penalties shall apply to partnerships subject to the
provisions of this section, and for these purposes any amount deducted,
or required to be deducted and remitted to the department under this
section, shall be considered to be the tax of the partnership, and with
respect to such amount it shall be considered the taxpayer.
(e) Amounts deducted from payments or credits to a nonresident
partner during any taxable year of the partnership in accordance with
the provisions of this section shall be considered to be in part payment
of the tax imposed on such nonresident partner for the nonresident
partner's taxable year within or with which the partnership's taxable
year ends. A return made by the partnership under subsection (b) shall
be accepted by the department as evidence in favor of the nonresident
partner of the amount so deducted for the nonresident partner's
distributive share.
(f) This section shall in no way relieve any nonresident partner from
the nonresident partner's obligations of filing a return or returns at the
time required under IC 6-3 or IC 6-3.5, and any unpaid tax shall be paid
at the time prescribed by section 5 of this chapter.
(g) Instead of the reporting periods required under subsection (a),
the department may permit a partnership to file one (1) return and
payment each year if the partnership pays or credits amounts to its
nonresident partners only one (1) time each year. The return and
payment are due on or before the fifteenth day of the fourth month after
the end of the year.
(h) A partnership shall file a composite adjusted gross income tax
return on behalf of all nonresident individual partners. The composite
return must include each nonresident individual partner regardless of
whether or not the nonresident individual partner has other Indiana
source income.
(i) If a partnership does not include all nonresident partners in the
composite return, the partnership is subject to the penalty imposed
under IC 6-8.1-10-2.1(j).
(j) For taxable years beginning after December 31, 2013, the
department may not impose a late payment penalty on a
partnership for the failure to file a return, pay the full amount of
the tax shown on the partnership's return, or pay the deficiency of
the withholding taxes due under this section if the partnership pays
the department at least:
(1) eighty percent (80%) of the withholding tax due for the
current year; or
(2) one hundred percent (100%) of the withholding tax due
for the preceding year before the fifteenth day of the fourth
month after the end of the partnership's taxable year.
(1) shall be liable to the state of Indiana for the payment of the tax required to be withheld under this section and shall not be liable to such shareholder for the amount withheld and paid over in compliance or intended compliance with this section; and
(2) when the aggregate amount due under IC 6-3 and IC 6-3.5 exceeds one hundred fifty dollars ($150) per quarter, then such corporation shall make return and payment to the department quarterly, on such dates and in such manner as the department shall prescribe, of the amount of tax which, under IC 6-3 and IC 6-3.5, it is required to withhold.
(b) Every corporation shall, at the time of each payment made by it to the department pursuant to this section, deliver to the department a return upon such form as shall be prescribed by the department showing the total amounts paid or credited to its nonresident shareholders, the amount withheld in accordance with the provisions of this section, and such other information as the department may require. Every corporation withholding as provided in this section shall furnish to its nonresident shareholders annually, but not later than the fifteenth day of the third month after the end of its taxable year, a record of the amount of tax withheld on behalf of such shareholders on forms to be prescribed by the department.
(c) All money withheld by a corporation, pursuant to this section, shall immediately upon being withheld be the money of the state of Indiana and every corporation which withholds any amount of money
under the provisions of this section shall hold the same in trust for the
state of Indiana and for payment thereof to the department in the
manner and at the times provided in IC 6-3. Any corporation may be
required to post a surety bond in such sum as the department shall
determine to be appropriate to protect the state of Indiana with respect
to money withheld pursuant to this section.
(d) The provisions of IC 6-8.1 relating to additions to tax in case of
delinquency and penalties shall apply to corporations subject to the
provisions of this section, and for these purposes any amount withheld,
or required to be withheld and remitted to the department under this
section, shall be considered to be the tax of the corporation, and with
respect to such amount it shall be considered the taxpayer.
(e) Amounts withheld from payments or credits to a nonresident
shareholder during any taxable year of the corporation in accordance
with the provisions of this section shall be considered to be a part
payment of the tax imposed on such nonresident shareholder for his the
shareholder's taxable year within or with which the corporation's
taxable year ends. A return made by the corporation under subsection
(b) shall be accepted by the department as evidence in favor of the
nonresident shareholder of the amount so withheld from the
shareholder's distributive share.
(f) This section shall in no way relieve any nonresident shareholder
from the shareholder's obligation of filing a return or returns at the time
required under IC 6-3 or IC 6-3.5, and any unpaid tax shall be paid at
the time prescribed by section 5 of this chapter.
(g) Instead of the reporting periods required under subsection (a),
the department may permit a corporation to file one (1) return and
payment each year if the corporation pays or credits amounts to its
nonresident shareholders only one (1) time each year. The withholding
return and payment are due on or before the fifteenth day of the fourth
month after the end of the taxable year of the corporation.
(h) If a distribution will be made with property other than money or
a gain is realized without the payment of money, the corporation shall
not release the property or credit the gain until it has funds sufficient
to enable it to pay the tax required to be withheld under this section. If
necessary, the corporation shall obtain such funds from the
shareholders.
(i) If a corporation fails to withhold and pay any amount of tax
required to be withheld under this section and thereafter the tax is paid
by the shareholders, such amount of tax as paid by the shareholders
shall not be collected from the corporation but it shall not be relieved
from liability for interest or penalty otherwise due in respect to such
failure to withhold under IC 6-8.1-10.
(j) A corporation described in subsection (a) shall file a composite
adjusted gross income tax return on behalf of all nonresident
shareholders. The composite return must include each nonresident
individual shareholder regardless of whether or not the nonresident
individual shareholder has other Indiana source income.
(k) If a corporation described in subsection (a) does not include all
nonresident shareholders in the composite return, the corporation is
subject to the penalty imposed under IC 6-8.1-10-2.1(j).
(l) For taxable years beginning after December 31, 2013, the
department may not impose a late payment penalty on a
corporation for the failure to file a return, pay the full amount of
the tax shown on the corporation's return, or pay the deficiency of
the withholding taxes due under this section if the corporation pays
the department at least:
(1) eighty percent (80%) of the withholding tax due for the
current year; or
(2) one hundred percent (100%) of the withholding tax due
for the preceding year before the fifteenth day of the fourth
month after the end of the corporation's taxable year.
revenue derived from a tax rate of one-tenth percent (0.1%) on adjusted
gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating a jail and
juvenile detention center opened after July 1, 1998; and
(3) may not be considered by the department of local government
finance in determining the county's maximum permissible
property tax levy limit under IC 6-1.1-18.5.
(b) This subsection applies to an additional tax rate imposed after June 30, 2011, and before July 1, 2013. Notwithstanding section 2.5 of this chapter (as in effect on January 1, 2013), the imposition, collection, and distribution of county adjusted gross income taxes attributable to the additional tax rate is legalized and validated.
(c) Any action described in subsection (b) of:
(1) the department;
(2) the budget agency; or
(3) an officer or employee of Jackson County;
is legalized and validated.
(d) The additional tax rate:
(1) authorized by the county council under section 2.5 of this chapter (as in effect on January 1, 2013); and
(2) legalized and validated by subsection (c);
remains in effect for the calendar years specified in section 2.5(c) of this chapter without additional county council action. However, this subsection may not be construed to limit the ability of the county council to decrease the rate or rescind the tax in the manner provided under this chapter.
tax or Indiana estate tax (paid before its repeal) which has been
erroneously or illegally collected. Except as provided in section 2 of
this chapter, the person must file the claim within:
(1) three (3) years after the tax is paid; or
within (2) one (1) year after the tax is finally determined under
IC 6-4.1-5-10, IC 6-4.1-5-15, or IC 6-4.1-5-16;
whichever is later.
(b) A person shall file a claim for a refund on a form prescribed
by the department of state revenue that must include:
(1) the amount of the refund claimed; and
(2) the reason the person is entitled to a refund.
(b) (c) The amount of the refund that a person is entitled to receive
under this chapter equals the amount of the erroneously or illegally
collected tax, plus interest calculated as specified in subsection (c). (d).
(c) (d) If a tax payment that has been erroneously or illegally
collected is not refunded within ninety (90) days after the later of the
date on which:
(1) the refund claim is filed with the department of state revenue;
or
(2) the department of state revenue receives:
(A) the inheritance tax return is received by the department of
state revenue; and order required under IC 6-4.1-5-10, in
the case of a resident decedent; or
(B) the inheritance tax return, in the case of a nonresident
decedent;
interest accrues at the rate of six percent (6%) per annum computed
from the date under subdivision (1) or (2), whichever applies, until the
tax payment is refunded.
(b) The court which has jurisdiction over an appeal initiated under this section is:
(1) the probate court of the county in which administration of the estate is pending, if the appeal involves either a resident or a nonresident decedent's estate and administration of the estate is pending;
(2) the probate court of the county in which the decedent was domiciled at the time of
(3) the probate court of any county in which any of the decedent's property was located at the time of
appraisal date of tangible personal property and real estate which had
an actual situs in Indiana at the time of the decedent's death and which
is included in the decedent's gross estate for federal estate tax purposes
under Sections 2031 through 2044 of the Internal Revenue Code.
(c) For purposes of this section, the value of a resident decedent's
Indiana gross estate equals the total fair market value on the appraisal
date of personal property and real estate that had an actual situs in
Indiana at the time of the decedent's death and all intangible personal
property wherever located that is included in the decedent's gross estate
for federal estate tax purposes.
(d) For purposes of this section, the value of a resident or
nonresident decedent's total gross estate for federal estate tax purposes
equals the total fair market value on the appraisal date of the property
included in the decedent's gross estate for federal estate tax purposes
under Sections 2031 through 2044 of the Internal Revenue Code.
(e) For purposes of determining the value of a decedent's Indiana
gross estate and the decedent's total gross estate, the appraisal date for
each property interest is the date on which the property interest is
valued for federal estate tax purposes.
(f) The estate tax does not apply to a property interest transfer made
by a resident decedent if the interest transferred is in:
(1) real property located outside Indiana, regardless of whether
the property is held in a trust or whether the trustee is required to
distribute the property in-kind; or
(2) real property located in Indiana, if:
(A) the real property was transferred to an irrevocable trust
during the decedent's lifetime;
(B) the transfer to the trust was not made in contemplation of
the transferor's death, as determined under IC 6-4.1-2-4; and
(C) the decedent does not have a retained interest in the trust.
1, 2013]. Sec. 4. If Indiana estate tax is not paid on or before the due
date, the person liable for the tax shall pay interest on the delinquent
portion of the tax from the due date until it is paid at the rate of six
percent (6%) per year.
STEP ONE: Determine the amount of inheritance tax revenue retained by each county in each state fiscal year beginning with the state fiscal year that began July 1, 1990, and ending with the state fiscal year that ends June 30, 1997.
STEP TWO: Determine the average annual amount of inheritance tax revenue retained by each county using five (5) of the seven (7) state fiscal years described in STEP ONE after excluding the two (2) years in which each county retained its highest and lowest totals of inheritance tax revenue.
STEP THREE: Determine the remainder of the STEP TWO amount minus the amount of inheritance taxes retained by the county during the immediately preceding state fiscal year.
before July 1, 2022, the department of state revenue shall determine the
inheritance tax replacement amount for each county using the
following formula:
STEP ONE: Determine the inheritance tax replacement amount
distributed to the county for the state fiscal year that began on
July 1, 2011.
STEP TWO: FOUR: Multiply the amount determined under
STEP ONE THREE by the appropriate percentage as follows:
(A) Ninety-one percent (91%) for the state fiscal year
beginning July 1, 2012. distributions made in 2013.
(B) Eighty-two percent (82%) for the state fiscal year
beginning July 1, 2013. distributions made in 2014.
(C) Seventy-three percent (73%) for the state fiscal year
beginning July 1, 2014. distributions made in 2015.
(D) Sixty-four percent (64%) for the state fiscal year beginning
July 1, 2015. distributions made in 2016.
(E) Fifty-five percent (55%) for the state fiscal year beginning
July 1, 2016. distributions made in 2017.
(F) Forty-five percent (45%) for the state fiscal year beginning
July 1, 2017. distributions made in 2018.
(G) Thirty-six percent (36%) for the state fiscal year beginning
July 1, 2018. distributions made in 2019.
(H) Twenty-seven percent (27%) for the state fiscal year
beginning July 1, 2019. distributions made in 2020.
(I) Eighteen percent (18%) for the state fiscal year beginning
July 1, 2020. distributions made in 2021.
(J) Nine percent (9%) for the state fiscal year beginning July
1, 2021. distributions made in 2022.
(e) (c) A county is not entitled to a distribution under subsection (b)
(a) for a state fiscal year beginning after June 30, after December 31,
2022.
vehicles.
(b) Owners of commercial vehicles paying an apportioned
registration to the state under the International Registration Plan shall
pay an apportioned excise tax calculated by dividing in-state actual
miles by total fleet miles generated during the preceding year. If
in-state miles are estimated for purposes of proportional registration,
these miles are divided by total actual and estimated fleet miles.
(c) The tax imposed by this chapter is a listed tax and subject to the
provisions of IC 6-8.1.
(d) No commercial vehicle subject to taxation under this chapter
shall be assessed as personal property for the purpose of the assessment
and levy of personal property taxes or shall be subject to ad valorem
taxes, first due and payable in 2001 or thereafter, whether or not such
vehicle is in fact registered pursuant to the motor vehicle registration
laws. No person shall be required to give proof of the payment of ad
valorem property taxes as a condition to the registration of any vehicle
that is subject to the tax imposed by this chapter.
STEP ONE: Determine the total amount of base revenue
of base revenue for all taxing units shall be determined as
provided in section 19 of this chapter. For calendar years that
begin after December 31, 2001, and before January 1, 2009, the
total amount of base revenue for all taxing units shall be
determined by multiplying the previous year's base revenue for all
taxing units by one hundred five percent (105%). For calendar
years that begin after December 31, 2008, the total amount of
base revenue for all taxing units shall be determined as provided
in for all taxing units using the base revenue determined for
each taxing unit under section 19 of this chapter.
STEP TWO: Determine the sum of fees paid to register the
following commercial vehicles in Indiana under the following
statutes during the fiscal year that ends June 30 immediately
preceding the calendar year for which the tax is first due and
payable:
(A) Total registration fees collected under IC 9-29-5-3 for
commercial vehicles with a declared gross weight in excess of
eleven thousand (11,000) pounds, including trucks, tractors
not used with semitrailers, traction engines, and other similar
vehicles used for hauling purposes;
(B) Total registration fees collected under IC 9-29-5-5 for
tractors used with semitrailers;
(C) Total registration fees collected under IC 9-29-5-6 for
semitrailers used with tractors;
(D) Total registration fees collected under IC 9-29-5-4 for
trailers having a declared gross weight in excess of three
thousand (3,000) pounds; and
(E) Total registration fees collected under IC 9-29-5-13 for
trucks, tractors and semitrailers used in connection with
agricultural pursuits usual and normal to the user's farming
operation, multiplied by two hundred percent (200%).
STEP THREE: Determine the tax factor by dividing the STEP
ONE result by the STEP TWO result.
(b) Except as otherwise provided in this chapter, the annual excise
tax for commercial vehicles with a declared gross weight in excess of
eleven thousand (11,000) pounds, including trucks, tractors not used
with semitrailers, traction engines, and other similar vehicles used for
hauling purposes, shall be determined by multiplying the registration
fee under IC 9-29-5-3 by the tax factor determined in subsection (a).
(c) Except as otherwise provided in this chapter, the annual excise
tax for tractors used with semitrailers shall be determined by
multiplying the registration fee under IC 9-29-5-5 by the tax factor
determined in subsection (a).
(d) Except as otherwise provided in this chapter, the annual excise
tax for trailers having a declared gross weight in excess of three
thousand (3,000) pounds shall be determined by multiplying the
registration fee under IC 9-29-5-4 by the tax factor determined in
subsection (a).
(e) The annual excise tax for a semitrailer shall be determined by
multiplying the average annual registration fee under IC 9-29-5-6 by
the tax factor determined in subsection (a). The average annual
registration fee for a semitrailer under IC 9-29-5-6 is sixteen dollars
and seventy-five cents ($16.75).
(f) The annual excise tax determined under this section shall be
rounded upward to the next full dollar amount.
Chapter 13. Disaster Recovery Exemptions
Sec. 1. As used in this chapter, "department" refers to the department of state revenue.
Sec. 2. As used in this chapter, "disaster emergency" means the following:
(1) A disaster emergency declared under IC 10-14-3-12.
(2) A state of energy emergency declared under IC 10-14-3-13.
(3) A local disaster emergency declared under IC 10-14-3-29.
(4) A request by a registered business for disaster or emergency assistance under a mutual assistance agreement.
Sec. 3. As used in this chapter, "disaster period" means the period:
(1) beginning on the date ten (10) days before the day on which a disaster emergency is declared; and
(2) ending sixty (60) days after the date on which the disaster emergency declaration ends.
Sec. 4. As used in this chapter, "disaster emergency related work" means:
(1) repairing, renovating, installing, or building; or
(2) rendering services or transacting other business activities related to;
infrastructure that is damaged, impaired, or destroyed by an event that caused a disaster emergency to be declared.
Sec. 5. As used in this chapter, "registered business" means an entity that is registered with the department to do business in Indiana before a disaster emergency is declared.
Sec. 6. As used in this chapter, "entity" has the meaning set forth in IC 23-1-20-10.
Sec. 7. As used in this chapter, "infrastructure" means the following:
(1) Real or personal property or equipment owned or used by:
(A) a public utility (as defined in IC 8-1-2-1(a) or IC 8-1-8.5-1(a));
(B) a municipally owned utility (as defined in IC 8-1-2-1(h));
(C) a joint agency (as defined in IC 8-1-2.2-2(e)); or
(D) a communications service provider (as defined in IC 8-1-32.6-3).
(2) Public roads and bridges and related support facilities.
Sec. 7.5. As used in this chapter, "mutual assistance agreement" means an agreement to which one (1) or more registered businesses and one (1) or more out-of-state businesses are parties and under which a public utility, municipally owned utility, or joint agency owning, operating, or owning and operating infrastructure in Indiana may request and receive assistance from an out-of-state
business to perform disaster emergency related work during a
disaster period.
Sec. 8. (a) As used in this chapter, "out-of-state business" means
an entity that:
(1) is not:
(A) a registered business;
(B) incorporated in Indiana; or
(C) otherwise authorized to do business in Indiana;
on the date on which a disaster period begins; and
(2) does not maintain a physical presence in Indiana during
the taxable year in which a disaster emergency is declared.
(b) The term includes the following:
(1) A business whose services are requested by a registered
business or by a state or local government for performing
disaster emergency related work in Indiana.
(2) A business entity that is affiliated with a registered
business in Indiana solely through common ownership.
Sec. 9. As used in this chapter, "out-of-state employee" means
an individual who is:
(1) employed by an out-of-state business at any time during a
disaster period; and
(2) for purposes of section 14 of this chapter, not a resident of
Indiana.
Sec. 10. (a) An out-of-state business that enters Indiana shall,
upon request, provide the department a statement that the business
is in Indiana for purposes of responding to a disaster emergency.
The statement must include:
(1) the name of the business;
(2) the state in which the business is domiciled;
(3) the principal business address of the business;
(4) the federal tax identification number of the business;
(5) the date the business entered Indiana; and
(6) contact information for the business.
(b) A registered business shall, upon request, provide the
information required by subsection (a) for any affiliate that enters
Indiana as an out-of-state business. The notification must include
contact information for the registered business.
Sec. 11. An out-of-state business that performs disaster
emergency related work in Indiana during a disaster period is
exempt from the following during the disaster period:
(1) Paying any state or local taxes, including ad valorem and
payroll taxes, regardless of the manner in which the
out-of-state business reports, files, or remits the taxes. For
purposes of any state or local tax on or measured by, in whole
or in part, gross or net income or receipts, all activity of the
out-of-state business that is conducted in Indiana in
accordance with this chapter is disregarded with respect to
any filing requirement of the tax, including a filing
requirement for a unitary or combined group of which the
out-of-state business may be a part.
(2) Paying state gross retail and use tax on equipment used or
consumed during the disaster period.
(3) Complying with any state or local business, occupational
licensing, or registration requirements.
(4) Providing worker's compensation insurance under
IC 22-3-5.
(5) Making employer contributions to the unemployment
compensation system under IC 22-4-10.
Sec. 12. An out-of-state employee is not considered to have
established residency or a presence in Indiana that would require
the employee or the employee's employer to:
(1) file and pay state or local income taxes;
(2) be subject to income tax withholding; or
(3) file and pay any other state or local tax or fee;
during a disaster period. This includes any related state or local
employer withholding or remittance obligations.
Sec. 13. An out-of-state employee is exempt from state and local
licensing and registration requirements with respect to disaster
emergency related work performed during a disaster period.
Sec. 14. Unless otherwise exempted during a disaster period, an
out-of-state business or an out-of-state employee shall pay
transaction taxes and fees, including:
(1) fuel taxes;
(2) hotel taxes;
(3) car rental taxes; or
(4) gross retail taxes or use taxes on a purchase of materials
or services by the out-of-state business or out-of-state
employee for use or consumption during the disaster period,
unless the purchase is otherwise exempt during a disaster
period.
(1) employs security procedures to provide, send, deliver, or
otherwise communicate electronic records to the intended
recipient using:
(A) security methods such as passwords, encryption, and
matching electronic addresses to United States postal
addresses; or
(B) other security methods that are consistent with
applicable law or industry standards; and
(2) operates subject to the applicable requirements of the
Electronic Signatures in Global and National Commerce Act
(15 U.S.C. 7001 et seq.) or IC 5-24.
(a) (b) When a statute specifies that the department is required to
send a document by mail, and the particular statute is silent as to the
class or type of mailing to be used, the department satisfies the mailing
requirement by mailing the document through the United States mail
in any of the following methods:
(1) United States first-class mail;
(2) United States registered mail, return receipt requested;
(3) United States certified mail; or
(4) a certificate of mailing; or
(5) a secure electronic delivery service, if the use of the secure
electronic delivery service is authorized under IC 6-8.1-6-7(b).
Subject to IC 6-8.1-6-7(b), the choice of the method is at the
department's discretion.
(b) (c) The department may use any form of mailing in cases where
a mailing is not required by statute.
(b) This subsection applies to a taxpayer required to report and remit state gross retail taxes or amounts withheld under IC 6-3-4-8 electronically. If the taxpayer provides written consent to the department, the department may provide the taxpayer with any documents that would otherwise require delivery by mail by using a secure electronic delivery service developed by the department under IC 6-8.1-3-11.
(c) The department may adopt rules to establish procedures to implement this section.
evasion charge. Unless in accordance with a judicial order or as
otherwise provided in this chapter, the department, its employees,
former employees, counsel, agents, or any other person may not divulge
the amount of tax paid by any taxpayer, terms of a settlement
agreement executed between a taxpayer and the department,
investigation records, investigation reports, or any other information
disclosed by the reports filed under the provisions of the law relating
to any of the listed taxes, including required information derived from
a federal return, except to:
(1) members and employees of the department;
(2) the governor;
(3) a member of the general assembly or an employee of the
house of representatives or the senate when acting on behalf
of a taxpayer located in the member's legislative district who
has provided sufficient information to the member or
employee for the department to determine that the member
or employee is acting on behalf of the taxpayer;
(3) (4) the attorney general or any other legal representative of the
state in any action in respect to the amount of tax due under the
provisions of the law relating to any of the listed taxes; or
(4) (5) any authorized officers of the United States;
when it is agreed that the information is to be confidential and to be
used solely for official purposes.
(b) The information described in subsection (a) may be revealed
upon the receipt of a certified request of any designated officer of the
state tax department of any other state, district, territory, or possession
of the United States when:
(1) the state, district, territory, or possession permits the exchange
of like information with the taxing officials of the state; and
(2) it is agreed that the information is to be confidential and to be
used solely for tax collection purposes.
(c) The information described in subsection (a) relating to a person
on public welfare or a person who has made application for public
welfare may be revealed to the director of the division of family
resources, and to any director of a county office of the division of
family resources located in Indiana, upon receipt of a written request
from either director for the information. The information shall be
treated as confidential by the directors. In addition, the information
described in subsection (a) relating to a person who has been
designated as an absent parent by the state Title IV-D agency shall be
made available to the state Title IV-D agency upon request. The
information shall be subject to the information safeguarding provisions
of the state and federal Title IV-D programs.
(d) The name, address, Social Security number, and place of
employment relating to any individual who is delinquent in paying
educational loans owed to a postsecondary educational institution may
be revealed to that institution if it provides proof to the department that
the individual is delinquent in paying for educational loans. This
information shall be provided free of charge to approved postsecondary
educational institutions (as defined by IC 21-7-13-6(a)). The
department shall establish fees that all other institutions must pay to the
department to obtain information under this subsection. However, these
fees may not exceed the department's administrative costs in providing
the information to the institution.
(e) The information described in subsection (a) relating to reports
submitted under IC 6-6-1.1-502 concerning the number of gallons of
gasoline sold by a distributor and IC 6-6-2.5 concerning the number of
gallons of special fuel sold by a supplier and the number of gallons of
special fuel exported by a licensed exporter or imported by a licensed
transporter may be released by the commissioner upon receipt of a
written request for the information.
(f) The information described in subsection (a) may be revealed
upon the receipt of a written request from the administrative head of a
state agency of Indiana when:
(1) the state agency shows an official need for the information;
and
(2) the administrative head of the state agency agrees that any
information released will be kept confidential and will be used
solely for official purposes.
(g) The information described in subsection (a) may be revealed
upon the receipt of a written request from the chief law enforcement
officer of a state or local law enforcement agency in Indiana when it is
agreed that the information is to be confidential and to be used solely
for official purposes.
(h) The name and address of retail merchants, including township,
as specified in IC 6-2.5-8-1(j) IC 6-2.5-8-1(k) may be released solely
for tax collection purposes to township assessors and county assessors.
(i) The department shall notify the appropriate innkeepers' tax
board, bureau, or commission that a taxpayer is delinquent in remitting
innkeepers' taxes under IC 6-9.
(j) All information relating to the delinquency or evasion of the
motor vehicle excise tax may be disclosed to the bureau of motor
vehicles in Indiana and may be disclosed to another state, if the
information is disclosed for the purpose of the enforcement and
collection of the taxes imposed by IC 6-6-5.
(k) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable to the bureau of motor
vehicles in Indiana may be disclosed to the bureau and may be
disclosed to another state, if the information is disclosed for the
purpose of the enforcement and collection of the taxes imposed by
IC 6-6-5.5.
(l) All information relating to the delinquency or evasion of
commercial vehicle excise taxes payable under the International
Registration Plan may be disclosed to another state, if the information
is disclosed for the purpose of the enforcement and collection of the
taxes imposed by IC 6-6-5.5.
(m) All information relating to the delinquency or evasion of the
excise taxes imposed on recreational vehicles and truck campers that
are payable to the bureau of motor vehicles in Indiana may be disclosed
to the bureau and may be disclosed to another state if the information
is disclosed for the purpose of the enforcement and collection of the
taxes imposed by IC 6-6-5.1.
(n) This section does not apply to:
(1) the beer excise tax, including brand and packaged type
(IC 7.1-4-2);
(2) the liquor excise tax (IC 7.1-4-3);
(3) the wine excise tax (IC 7.1-4-4);
(4) the hard cider excise tax (IC 7.1-4-4.5);
(5) the malt excise tax (IC 7.1-4-5);
(6) the motor vehicle excise tax (IC 6-6-5);
(7) the commercial vehicle excise tax (IC 6-6-5.5); and
(8) the fees under IC 13-23.
(o) The name and business address of retail merchants within each
county that sell tobacco products may be released to the division of
mental health and addiction and the alcohol and tobacco commission
solely for the purpose of the list prepared under IC 6-2.5-6-14.2.
(1) That the person has ten (10) days from the date the department
mails the notice to either pay the amount demanded or show
reasonable cause for not paying the amount demanded.
(2) The statutory authority of the department for the issuance of
a tax warrant.
(3) The earliest date on which a tax warrant may be filed and
recorded.
(4) The statutory authority for the department to levy against a
person's property that is held by a financial institution.
(5) The remedies available to the taxpayer to prevent the filing
and recording of the judgment.
If the department files a tax warrant in more than one (1) county, the
department is not required to issue more than one (1) demand notice.
(b) If the person does not pay the amount demanded or show
reasonable cause for not paying the amount demanded within the ten
(10) day period, the department may issue a tax warrant for the amount
of the tax, interest, penalties, collection fee, sheriff's costs, clerk's costs,
and fees established under section 4(b) of this chapter when applicable.
When the department issues a tax warrant, a collection fee of ten
percent (10%) of the unpaid tax is added to the total amount due.
(c) When the department issues a tax warrant, it may not file the
warrant with the circuit court clerk of any county in which the person
owns property until at least twenty (20) days after the date the demand
notice was mailed to the taxpayer. The department may also send the
warrant to the sheriff of any county in which the person owns property
and direct the sheriff to file the warrant with the circuit court clerk:
(1) at least twenty (20) days after the date the demand notice was
mailed to the taxpayer; and
(2) no later than five (5) days after the date the department issues
the warrant.
(d) When the circuit court clerk receives a tax warrant from the
department or the sheriff, the clerk shall record the warrant by making
an entry in the judgment debtor's column of the judgment record,
listing the following:
(1) The name of the person owing the tax.
(2) The amount of the tax, interest, penalties, collection fee,
sheriff's costs, clerk's costs, and fees established under section
4(b) of this chapter when applicable.
(3) The date the warrant was filed with the clerk.
(e) When the entry is made, the total amount of the tax warrant
becomes a judgment against the person owing the tax. The judgment
creates a lien in favor of the state that attaches to all the person's
interest in any:
(1) chose in action in the county; and
(2) real or personal property in the county;
excepting only negotiable instruments not yet due.
(f) A judgment obtained under this section is valid for ten (10) years from the date the judgment is filed. The department may renew the judgment for additional ten (10) year periods by filing an alias tax warrant with the circuit court clerk of the county in which the judgment previously existed.
(g) A judgment arising from a tax warrant in a county shall be released by the department:
(1) after the judgment, including all accrued interest to the date of payment, has been fully satisfied; or
(2) if the department determines that the tax assessment or the issuance of the tax warrant was in error.
(h) If the department determines that the filing of a tax warrant was in error, the department shall mail a release of the judgment to the taxpayer and the circuit court clerk of each county where the warrant was filed. The circuit court clerk of each county where the warrant was filed shall expunge the warrant from the judgment debtor's column of the judgment record. The department shall mail the release and the order for the warrant to be expunged as soon as possible but no later than seven (7) days after:
(1) the determination by the department that the filing of the warrant was in error; and
(2) the receipt of information by the department that the judgment has been recorded under subsection (d).
(i) If the department determines that a judgment described in subsection (h) is obstructing a lawful transaction, the department shall immediately upon making the determination mail:
(1) a release of the judgment to the taxpayer; and
(2) an order requiring the circuit court clerk of each county where the judgment was filed to expunge the warrant.
(j) A release issued under subsection (h) or (i) must state that the filing of the tax warrant was in error. Upon the request of the taxpayer, the department shall mail a copy of a release and the order for the warrant to be expunged issued under subsection (h) or (i) to each major credit reporting company located in each county where the judgment was filed.
(k) The commissioner shall notify each state agency or officer supplied with a tax warrant list of the issuance of a release under subsection (h) or (i).
(l) If the sheriff collects the full amount of a tax warrant, the sheriff
shall disburse the money collected in the manner provided in section
3(c) of this chapter. If a judgment has been partially or fully satisfied
by a person's surety, the surety becomes subrogated to the department's
rights under the judgment. If a sheriff releases a judgment:
(1) before the judgment is fully satisfied;
(2) before the sheriff has properly disbursed the amount collected;
or
(3) after the sheriff has returned the tax warrant to the department;
the sheriff commits a Class B misdemeanor and is personally liable for
the part of the judgment not remitted to the department.
(m) A lien on real property described in subsection (e)(2) is void if
both of the following occur:
(1) The person owing the tax provides written notice to the
department to file an action to foreclose the lien.
(2) The department fails to file an action to foreclose the lien not
later than one hundred eighty (180) days after receiving the
notice.
(n) A person who gives notice under subsection (m) by registered
or certified mail to the department may file an affidavit of service of the
notice to file an action to foreclose the lien with the circuit court clerk
in the county in which the property is located. The affidavit must state
the following:
(1) The facts of the notice.
(2) That more than one hundred eighty (180) days have passed
since the notice was received by the department.
(3) That no action for foreclosure of the lien is pending.
(4) That no unsatisfied judgment has been rendered on the lien.
(o) Upon receipt of the affidavit described in subsection (n), the
circuit court clerk shall make an entry showing the release of the
judgment lien in the judgment records for tax warrants.
(b) A taxpayer described in subsection (a) is not entitled to a demand notice under section 2(a) of this chapter that would negate the tax warrant if the taxpayer:
(1) files a tax return subsequent to the issuance of the tax warrant; and
(2) fails to remit the amount of the tax liability identified on
an applicable tax return.
Chapter 9.7. Treasury Offset Program
Sec. 1. As used in this chapter, "debt" means a delinquent state tax or non-tax debt certified by the treasurer of state or a federal non-tax debt certified by a federal official. The term includes, but is not limited to, fines, fees, penalties, and other non-tax assessments imposed by or payable to the state or federal government that are finally determined to be due and owing.
Sec. 2. As used in this chapter, "federal official" means a unit or official of the federal government that:
(1) is charged with the collection of non-tax liabilities payable to the federal government; and
(2) has the authority to make offsets under an offset agreement.
Sec. 3. As used in this chapter, "offset agreement" means an agreement between the office of management and budget and the Secretary of the Treasury of the United States authorized by this chapter.
Sec. 4. As used in this chapter, "person" means an individual, vendor, contractor, partnership, society, association, joint stock company, limited liability company, corporation, estate, receiver, trustee, or assignee, any other person acting in a fiduciary or representative capacity whether appointed by a court or otherwise, or any combination of such individuals or entities.
Sec. 5. (a) As used in this chapter, "state payments" includes tax refunds and any vendor or contractor payments made by the state to any person, including expense reimbursements to an employee of the state.
(b) The term does not include salary, wages, pension payments, and any other type, class, or amount of payment that the office of management and budget determines has an impact on the health or welfare of the citizens of Indiana and should not be subject to an offset agreement.
Sec. 6. As used in this chapter, "tax refund" means an amount described as a refund of tax under the provision of the state tax law that authorized the payment of the refund.
Sec. 7. Notwithstanding any other law, the office of management and budget may enter into an offset agreement with the Secretary of the Treasury of the United States government to participate in
a reciprocal Treasury Offset Program under 31 U.S.C. 3716 for the
collection of any debts owed to the state or to state agencies from
federal payments to vendors, contractors, and taxpayers. The
offset agreement may provide for the federal government to submit
non-tax debts owed to federal agencies for offset against state
payments otherwise due and owing to taxpayers and to vendors
and contractors providing goods or services to the state or to the
state's departments, agencies, or institutions.
Sec. 8. If the office of management and budget enters into an
offset agreement, a federal official may do the following as
provided in the offset agreement:
(1) Certify to the office of management and budget the
existence of a person's delinquent non-tax debt owed by the
person to the federal government, by providing:
(A) the full name and address of the person and any other
names known to be used by the person;
(B) the person's Social Security number or federal tax
identification number;
(C) the amount of the person's federal non-tax debt;
(D) a statement certifying that the person's federal non-tax
debt is past due, that due process has been provided to the
person, and that the person's federal non-tax debt is legally
enforceable in the amount certified, which may be
provided in procedures for certifying payments as
specified in the offset agreement; and
(E) any other information required by the offset
agreement.
(2) Request the office of management and budget to withhold
any state payment to which the person is entitled.
(3) Retain a part of the proceeds of any federal administrative
setoff authorized by the federal offset program.
Sec. 9. The following apply if the office of management and
budget enters into an offset agreement:
(1) The office of management and budget shall do the
following as provided in the offset agreement:
(A) Determine if a person whose name has been certified
by a federal official as provided in the offset agreement is
due a state payment.
(B) Withhold a state payment that is due a person whose
name has been certified by a federal official as provided in
the offset agreement.
(C) Notify the person from whom a state payment is
withheld under this section of the amount withheld in
accordance with the offset agreement.
(D) Pay to the federal official making the certification
under section 8 of this chapter the lesser of:
(i) the entire state payment withheld; or
(ii) the amount certified by the federal official.
If the amount certified by the federal official is less than a
state payment due to the person, the office of management
and budget shall pay to the person the part of the state
payment due to the person that exceeds the certified
amount, less any fee under section 10 of this chapter.
(2) If an individual filed a joint income tax return and the
debt certified by a federal official is not the liability of both
parties to the joint income tax return, the office of
management and budget may not withhold or pay to the
federal official the part of the income tax refund attributable
to the individual not owing the debt. The department shall
notify taxpayers filing a joint income tax return of a proposed
offset of a state income tax refund for a debt certified by a
federal official. A taxpayer that filed a joint income tax return
and that receives such a notice may, not more than sixty (60)
days after the notice is sent, notify the department in writing
that the taxpayer asserts that a part of the income tax refund
is attributable to the individual not owing the debt. If a
taxpayer that is a party to the joint income tax return does
not notify the department of such an assertion not more than
sixty (60) days after the department's notice is sent, all of the
income tax refund is considered attributable to the individual
owing the debt.
(3) The office of management and budget may do the
following as provided in the offset agreement:
(A) Certify to a federal official a person's delinquent debt
owed to the state by providing the federal official:
(i) the full name and address of the person and any other
names known to be used by the person;
(ii) the person's Social Security number or federal tax
identification number;
(iii) the amount of the person's debt owed to the state;
(iv) a statement certifying that the person's debt is past
due, that due process has been provided to the person,
and that the person's debt is legally enforceable in the
amount certified, which may be provided in procedures
for certifying payments as specified in the offset
agreement; and
(v) any other information required by state law or rules
applicable to the collection of the debt by offset of federal
payments or required by the offset agreement.
(B) Request that the federal official withhold from any
federal payment to which the person is entitled the lesser
of:
(i) the entire federal payment; or
(ii) the amount certified by the office of management and
budget;
as provided in the offset agreement. If the amount certified
by the office of management and budget is less than a
federal payment due to the person, the federal official may
pay to the person the part of the federal payment due to
the person that exceeds the certified amount, less any fee
under section 10 of this chapter.
Sec. 10. (a) The office of management and budget may, by rule,
establish a reasonable administrative fee to be charged to a person
for the provision of the state offset of a federal debt or the federal
offset of a state debt.
(b) A fee authorized by this section is a separate debt and may
be withheld from any refund, reimbursement, or other money held
for the person.
(c) The office of management and budget may charge the person
who is the subject of state offset of a federal debt or the federal
offset of a state debt the fee authorized by this section.
(d) Any fees collected under this section may be retained by the
office of management and budget and used for the costs of the
intercept program, including reporting, and for costs associated
with other revenue generation and cost savings initiatives as
determined by the office of management and budget.
(1) fails to file a return for any of the listed taxes;
(2) fails to pay the full amount of tax shown on the person's return on or before the due date for the return or payment;
(3) incurs, upon examination by the department, a deficiency that is due to negligence;
(4) fails to timely remit any tax held in trust for the state; or
(5) is required to make a payment by electronic funds transfer (as defined in IC 4-8.1-2-7), overnight courier, or personal delivery and the payment is not received by the department by the due date in funds acceptable to the department;
(b) Except as provided in subsection (g), the penalty described in subsection (a) is ten percent (10%) of:
(1) the full amount of the tax due if the person failed to file the return;
(2) the amount of the tax not paid, if the person filed the return but failed to pay the full amount of the tax shown on the return;
(3) the amount of the tax held in trust that is not timely remitted;
(4) the amount of deficiency as finally determined by the department; or
(5) the amount of tax due if a person failed to make payment by electronic funds transfer, overnight courier, or personal delivery by the due date.
(c) For purposes of this section, the filing of a substantially blank or unsigned return does not constitute a return.
(d) If a person subject to the penalty imposed under this section can show that the failure to file a return, pay the full amount of tax shown on the person's return, timely remit tax held in trust, or pay the deficiency determined by the department was due to reasonable cause and not due to willful neglect, the department shall waive the penalty.
(e) A person who wishes to avoid the penalty imposed under this section must make an affirmative showing of all facts alleged as a reasonable cause for the person's failure to file the return, pay the amount of tax shown on the person's return, pay the deficiency, or timely remit tax held in trust, in a written statement containing a declaration that the statement is made under penalty of perjury. The statement must be filed with the return or payment within the time prescribed for protesting departmental assessments. A taxpayer may also avoid the penalty imposed under this section by obtaining a ruling from the department before the end of a particular tax period on the amount of tax due for that tax period.
(f) The department shall adopt rules under IC 4-22-2 to prescribe the circumstances that constitute reasonable cause and negligence for purposes of this section.
(g) A person who fails to file a return for a listed tax that shows no tax liability for a taxable year, other than an information return (as defined in section 6 of this chapter), on or before the due date of the return shall pay a penalty of ten dollars ($10) for each day that the
return is past due, up to a maximum of two hundred fifty dollars
($250).
(h) A:
(1) corporation which otherwise qualifies under IC 6-3-2-2.8(2);
(2) partnership; or
(3) trust;
that fails to withhold and pay any amount of tax required to be withheld
under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15 shall pay a penalty
equal to twenty percent (20%) of the amount of tax required to be
withheld under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15. This penalty
shall be in addition to any penalty imposed by section 6 of this chapter.
(i) Subsections (a) through (c) do not apply to a motor carrier fuel
tax return.
(j) If a partnership or an S corporation fails to include all
nonresidential individual partners or nonresidential individual
shareholders in a composite return as required by IC 6-3-4-12(h) or
IC 6-3-4-13(j), a penalty of five hundred dollars ($500) per partnership
or S corporation is imposed on the partnership or S corporation.
(b) When a penalty is imposed under subsection (a), the department shall notify the person by mail that the check, credit card, debit card, or electronic funds transfer was not honored and that the person has ten (10) days after the date the notice is mailed to pay the tax and the penalty either in cash, by certified check, or other guaranteed payment. If the person fails to make the payment within the ten (10) day period, the penalty is increased to
(c) If a person has been assessed a penalty under subsection (a) more than one (1) time, the department may require all future payments for all listed taxes to be remitted with guaranteed funds.
(d) If the person subject to the penalty under this section can show
that there is reasonable cause for the check, credit card, debit card, or
electronic funds transfer not being honored, the department may waive
the penalty imposed under this section.
(1) is seeking a renewal and the applicant has not paid all the property taxes under IC 6-1.1 and the innkeeper's tax under IC 6-9 that are due currently;
(2) is seeking a transfer and the applicant has not paid all the property taxes under IC 6-1.1 and innkeeper's tax under IC 6-9 for the assessment periods during which the transferor held the permit;
(3) is seeking a renewal or transfer and is at least thirty (30) days delinquent in remitting state gross retail taxes under IC 6-2.5 or withholding taxes required to be remitted under IC 6-3-4; or
(b) The commission shall issue, renew, or transfer a permit that the commission denied under subsection (a) when the appropriate one (1) of the following occurs:
(1) The person, if seeking a renewal, provides to the commission a statement from the county treasurer of the county in which the property of the applicant was assessed indicating that all the property taxes under IC 6-1.1 and, in a county where the county treasurer collects the innkeeper's tax, the innkeeper's tax under IC 6-9 that were delinquent have been paid.
(2) The person, if seeking a transfer of ownership, provides to the commission a statement from the county treasurer of the county in which the property of the transferor was assessed indicating that all the property taxes under IC 6-1.1 and, in a county where the county treasurer collects the innkeeper's tax, the innkeeper's tax under IC 6-9 have been paid for the assessment periods during which the transferor held the permit.
(3) The person provides to the commission a statement from the commissioner of the department of state revenue indicating that the person's tax warrant has been satisfied, including any delinquency in innkeeper's tax if the state collects the innkeeper's tax for the county in which the person seeks the permit.
(4) The commission receives a notice from the commissioner of the department of state revenue under IC 6-8.1-8-2(k).
(5) The commission receives a notice from the commissioner of the department of state revenue stating that the state gross retail and withholding taxes described in subsection (a)(3) have been remitted to the department.
(c) An applicant may not be considered delinquent in the payment of listed taxes if the applicant has filed a proper protest under IC 6-8.1-5-1 contesting the remittance of those taxes. The applicant shall be considered delinquent in the payment of those taxes if the applicant does not remit the taxes owed to the state department of revenue after
(1) The expiration of the period in which the applicant may appeal the listed tax to the tax court, in the case of an applicant who does not file a timely appeal of the listed tax.
(2) When a decision of the tax court concerning the applicant's appeal of the listed tax becomes final, in the case of an applicant who files a timely appeal of the listed tax.
(d) The commission may require that an applicant for the issuance, renewal, or transfer of a wholesaler's, retailer's, or dealer's, or other permit of any type furnish proof of the payment of a listed tax (as defined by IC 6-8.1-1-1), tax warrant, or taxes imposed by IC 6-1.1.
(b) If the registered owner of at least twenty-five (25) commercial vehicles submits the application of registration for the commercial vehicles on an aggregate basis by electronic means, the
(c) The registration for a commercial vehicle is void when the registered owner:
(1) sells;
(2) disposes of; or
(3) does not renew the registration of;
the commercial vehicle. Neither the certificate of registration nor the plate may be transferred to another vehicle.
(d) This section does not relieve the owner of the vehicle from payment of any applicable commercial vehicle excise tax under IC 6-6-5.5 on a yearly basis.
(e) The
(f) The following apply to rules adopted by the bureau before January 1, 2014, under subsection (e):
(1) The rules are transferred to the department of state revenue on January 1, 2014, and are considered, after December 31, 2013, rules of the department of state revenue.
(2) After December 31, 2013, the rules are treated as if they had been adopted by the department of state revenue.
(1) government agency, dealer, or person who owns a bus shall apply directly to the bureau in the state central office to register a vehicle; and
(2) person who is registered under the International Registration Plan shall apply to the department of state revenue under rules adopted under IC 4-22-2.
(b) A person who registers a vehicle under subsection (a)(1) shall file with the bureau or a license branch an application for the registration of the vehicle upon an appropriate form furnished by the bureau.
(c) A person who registers a vehicle under subsection (a)(2) shall file electronically with the department of state revenue an application for the registration of the vehicle.
(1) All vehicles (as defined by IC 35-31.5-2-346), if they are used or are intended for use by the person or persons in possession of them to transport or in any manner to facilitate the transportation of the following:
(A) A controlled substance for the purpose of committing, attempting to commit, or conspiring to commit any of the following:
(i) Dealing in or manufacturing cocaine or a narcotic drug (IC 35-48-4-1).
(ii) Dealing in methamphetamine (IC 35-48-4-1.1).
(iii) Dealing in a schedule I, II, or III controlled substance (IC 35-48-4-2).
(iv) Dealing in a schedule IV controlled substance (IC 35-48-4-3).
(v) Dealing in a schedule V controlled substance (IC 35-48-4-4).
(vi) Dealing in a counterfeit substance (IC 35-48-4-5).
(vii) Possession of cocaine or a narcotic drug (IC 35-48-4-6).
(viii) Possession of methamphetamine (IC 35-48-4-6.1).
(ix) Dealing in paraphernalia (IC 35-48-4-8.5).
(x) Dealing in marijuana, hash oil, hashish, salvia, or a synthetic cannabinoid (IC 35-48-4-10).
(B) Any stolen (IC 35-43-4-2) or converted property (IC 35-43-4-3) if the retail or repurchase value of that property is one hundred dollars ($100) or more.
(C) Any hazardous waste in violation of IC 13-30-10-1.5.
(D) A bomb (as defined in IC 35-31.5-2-31) or weapon of mass destruction (as defined in IC 35-31.5-2-354) used to commit, used in an attempt to commit, or used in a conspiracy to commit an offense under IC 35-47 as part of or in furtherance of an act of terrorism (as defined by IC 35-31.5-2-329).
(2) All money, negotiable instruments, securities, weapons, communications devices, or any property used to commit, used in an attempt to commit, or used in a conspiracy to commit an offense under IC 35-47 as part of or in furtherance of an act of terrorism or commonly used as consideration for a violation of IC 35-48-4 (other than items subject to forfeiture under IC 16-42-20-5 or IC 16-6-8.5-5.1 before its repeal):
(A) furnished or intended to be furnished by any person in exchange for an act that is in violation of a criminal statute;
(B) used to facilitate any violation of a criminal statute; or
(C) traceable as proceeds of the violation of a criminal statute.
(3) Any portion of real or personal property purchased with money that is traceable as a proceed of a violation of a criminal statute.
(4) A vehicle that is used by a person to:
(A) commit, attempt to commit, or conspire to commit;
(B) facilitate the commission of; or
(C) escape from the commission of;
murder (IC 35-42-1-1), kidnapping (IC 35-42-3-2), criminal
confinement (IC 35-42-3-3), rape (IC 35-42-4-1), child molesting
(IC 35-42-4-3), or child exploitation (IC 35-42-4-4), or an offense
under IC 35-47 as part of or in furtherance of an act of terrorism.
(5) Real property owned by a person who uses it to commit any of
the following as a Class A felony, a Class B felony, or a Class C
felony:
(A) Dealing in or manufacturing cocaine or a narcotic drug
(IC 35-48-4-1).
(B) Dealing in methamphetamine (IC 35-48-4-1.1).
(C) Dealing in a schedule I, II, or III controlled substance
(IC 35-48-4-2).
(D) Dealing in a schedule IV controlled substance
(IC 35-48-4-3).
(E) Dealing in marijuana, hash oil, hashish, salvia, or a
synthetic cannabinoid (IC 35-48-4-10).
(6) Equipment and recordings used by a person to commit fraud
under IC 35-43-5-4(10).
(7) Recordings sold, rented, transported, or possessed by a person
in violation of IC 24-4-10.
(8) Property (as defined by IC 35-31.5-2-253) or an enterprise (as
defined by IC 35-45-6-1) that is the object of a corrupt business
influence violation (IC 35-45-6-2).
(9) Unlawful telecommunications devices (as defined in
IC 35-45-13-6) and plans, instructions, or publications used to
commit an offense under IC 35-45-13.
(10) Any equipment, including computer equipment and cellular
telephones, used for or intended for use in preparing,
photographing, recording, videotaping, digitizing, printing,
copying, or disseminating matter in violation of IC 35-42-4.
(11) Destructive devices used, possessed, transported, or sold in
violation of IC 35-47.5.
(12) Tobacco products that are sold in violation of IC 24-3-5,
tobacco products that a person attempts to sell in violation of
IC 24-3-5, and other personal property owned and used by a
person to facilitate a violation of IC 24-3-5.
(13) Property used by a person to commit counterfeiting or
forgery in violation of IC 35-43-5-2.
(14) After December 31, 2005, if a person is convicted of an
offense specified in IC 25-26-14-26(b) or IC 35-43-10, the
following real or personal property:
(A) Property used or intended to be used to commit, facilitate,
or promote the commission of the offense.
(B) Property constituting, derived from, or traceable to the gross proceeds that the person obtained directly or indirectly as a result of the offense.
(15) Except as provided in subsection (e), a vehicle used by a person who operates the vehicle:
(A) while intoxicated, in violation of IC 9-30-5-1 through IC 9-30-5-5, if in the previous five (5) years the person has two (2) or more prior unrelated convictions:
(i) for operating a motor vehicle while intoxicated in violation of IC 9-30-5-1 through IC 9-30-5-5; or
(ii) for an offense that is substantially similar to IC 9-30-5-1 through IC 9-30-5-5 in another jurisdiction; or
(B) on a highway while the person's driving privileges are suspended in violation of IC 9-24-19-2 through IC 9-24-19-4, if in the previous five (5) years the person has two (2) or more prior unrelated convictions:
(i) for operating a vehicle while intoxicated in violation of IC 9-30-5-1 through IC 9-30-5-5; or
(ii) for an offense that is substantially similar to IC 9-30-5-1 through IC 9-30-5-5 in another jurisdiction.
If a court orders the seizure of a vehicle under this subdivision, the court shall transmit an order to the bureau of motor vehicles recommending that the bureau not permit a vehicle to be registered in the name of the person whose vehicle was seized until the person possesses a current driving license (as defined in IC 9-13-2-41).
(16) The following real or personal property:
(A) Property used or intended to be used to commit, facilitate, or promote the commission of an offense specified in IC 23-14-48-9, IC 30-2-9-7(b), IC 30-2-10-9(b), or IC 30-2-13-38(f).
(B) Property constituting, derived from, or traceable to the gross proceeds that a person obtains directly or indirectly as a result of an offense specified in IC 23-14-48-9, IC 30-2-9-7(b), IC 30-2-10-9(b), or IC 30-2-13-38(f).
(17) An automated sales suppression device (as defined in IC 35-43-5-4.6(a)(1)) or phantom-ware (as defined in IC 35-43-5-4.6(a)(3)).
(b) A vehicle used by any person as a common or contract carrier in the transaction of business as a common or contract carrier is not subject to seizure under this section, unless it can be proven by a preponderance of the evidence that the owner of the vehicle knowingly
permitted the vehicle to be used to engage in conduct that subjects it to
seizure under subsection (a).
(c) Equipment under subsection (a)(10) may not be seized unless it
can be proven by a preponderance of the evidence that the owner of the
equipment knowingly permitted the equipment to be used to engage in
conduct that subjects it to seizure under subsection (a)(10).
(d) Money, negotiable instruments, securities, weapons,
communications devices, or any property commonly used as
consideration for a violation of IC 35-48-4 found near or on a person
who is committing, attempting to commit, or conspiring to commit any
of the following offenses shall be admitted into evidence in an action
under this chapter as prima facie evidence that the money, negotiable
instrument, security, or other thing of value is property that has been
used or was to have been used to facilitate the violation of a criminal
statute or is the proceeds of the violation of a criminal statute:
(1) IC 35-48-4-1 (dealing in or manufacturing cocaine or a
narcotic drug).
(2) IC 35-48-4-1.1 (dealing in methamphetamine).
(3) IC 35-48-4-2 (dealing in a schedule I, II, or III controlled
substance).
(4) IC 35-48-4-3 (dealing in a schedule IV controlled substance).
(5) IC 35-48-4-4 (dealing in a schedule V controlled substance)
as a Class B felony.
(6) IC 35-48-4-6 (possession of cocaine or a narcotic drug) as a
Class A felony, Class B felony, or Class C felony.
(7) IC 35-48-4-6.1 (possession of methamphetamine) as a Class
A felony, Class B felony, or Class C felony.
(8) IC 35-48-4-10 (dealing in marijuana, hash oil, hashish, salvia,
or a synthetic cannabinoid) as a Class C felony.
(e) A vehicle operated by a person who is not:
(1) an owner of the vehicle; or
(2) the spouse of the person who owns the vehicle;
is not subject to seizure under subsection (a)(15) unless it can be
proven by a preponderance of the evidence that the owner of the
vehicle knowingly permitted the vehicle to be used to engage in
conduct that subjects it to seizure under subsection (a)(15).
(1) "Automated sales suppression device" means a software program:
(A) carried on a memory stick or removable compact disc;
(B) accessed through an Internet link; or
(C) accessed through any other means;
that falsifies the electronic records of electronic cash registers and other point-of-sale systems, including transaction data and transaction reports.
(2) "Electronic cash register" means a device that keeps a register or supporting documents through the means of an electronic device or a computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data in any manner.
(3) "Phantom-ware" means a hidden, a pre-installed, or an installed at a later time programming option embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that:
(A) can be used to create a virtual second till; or
(B) may eliminate or manipulate transaction records that may or may not be preserved in digital formats to represent the true or manipulated record of transactions in the electronic cash register.
(4) "Transaction data" includes information regarding:
(A) items purchased by a customer;
(B) the price for each item;
(C) a taxability determination for each item;
(D) a segregated tax amount for each of the taxed items;
(E) the amount of cash or credit tendered;
(F) the net amount returned to the customer in change;
(G) the date and time of the purchase;
(H) the name, address, and identification number of the vendor; and
(I) the receipt or invoice number of the transaction.
(5) "Transaction report" means:
(A) a report that includes:
(i) the sales;
(ii) taxes collected;
(iii) media totals; and
(iv) discount voids;
at an electronic cash register that is printed on cash register tape at the end of a day or shift; or
(B) a report documenting every action at an electronic cash register that is stored electronically.
(6) "Zapper" refers to an automated sales suppression device.
(b) A person who knowingly or intentionally sells, purchases, installs, transfers, or possesses:
(1) an automated sales suppression device or a zapper; or
(2) phantom-ware;
after June 30, 2013, commits unlawful sale or possession of a transaction manipulation device, a Class C felony.
