SB 408 – Various Tax Matters
Authored by Sen. Travis Holdman (R-Markle)

Removes references to an out-of-state merchant’s collection of the state use tax. (Under current law, an out-of-state merchant is required to collect the state gross retail tax (not the use tax) on retail transactions made in Indiana if certain threshold conditions are met.) Requires the state geographical information systems (GIS) officer, in coordination with the Office of Technology and the Management Performance Hub, to establish a geographic information system with parcel level data for each county that may be used by the state Department of Revenue’s tax system. Requires each county to periodically submit certain date to the GIS officer. Makes clarifying and technical changes to the definitions of “bundled transaction,” “unitary transaction” and “gross retail income” in the state sales tax statute, plus “adjusted gross receipts” in the sports wagering statute. Removes outdated references to the gross income tax and adjusted gross income tax. Makes a technical correction in the gasoline use tax statute. Full details.

The latest: House Ways and Means Committee heard testimony. This bill is being held and is likely to be amended before it is voted out of committee.

Chamber position: Support in part

Indiana Chamber action/commentary: The Chamber expressed its appreciation to the Department of Revenue and the author for working with us on certain provisions in this bill. We asked for the inclusion of language addressing how Indiana taxpayers would be required to respond to changes in federal partnership audit procedures. These provisions were in the introduced bill but amended out in the Senate Tax and Fiscal Policy Committee after extensive conversations and agreement among the stakeholders that it would be more timely to address most of the issues next session.

Another piece of the bill has to do with what is now referred to as “loans arising in factoring.” This provision was intended to provide some clarity, but as originally drafted raised many questions. The department worked with Indiana Chamber Tax Committee members to arrive at what is now in the bill. Finally, we testified to the need for one additional amendment to specify the appeal rights in a new procedure for review of audits. The department has indicated it would be willing work with us further to achieve this fix (and others). This is a technical bill and all the details are quite important.

Resource: Bill Waltz at (317) 264-6887 or email: [email protected]