Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Transaction. For purposes of the state gross retail tax and use tax, such taxes
shall apply and be computed in respect to each retail unitary transaction. A
unitary transaction shall include all items of property and/or services for
which a total combined charge or selling price is computed for payment
irrespective of the fact that services which would not otherwise be taxable are
included in the charge or selling price.
(b) Unitary Transaction-Public Utility. For
purposes of the state gross retail tax and use tax, all public utility services
and commodities subject to said taxes invoiced in a single billing or
statement, including a minimum charge, submitted to a consumer for payment
shall constitute a unitary transaction.
(c) Retail Transaction. The state gross
retail tax is imposed on retail transactions made in Indiana. Three general
categories are designated as "retail transactions". The first category is
described as transactions of a retail merchant that constitute selling at
retail as described in IC 6-2.5-4-1. The second category is described as
transactions of a retail merchant that constitute making a wholesale sale as
described in IC 6-2.5-4-2. The third category is described as a transaction
that is described in any other section of IC 6-2.5-4.
(d) Casual Sales. The Indiana gross retail
tax is not imposed on gross receipts from casual sales except for gross
receipts from casual sales of motor vehicles and sales of rental property. A
casual sale is an isolated or occasional sale by the owner of tangible personal
property purchased or otherwise acquired for his use or consumption, where he
is not regularly engaged in the business of making such sales.
(e) Retail Unitary Transaction. Regulatory
definition of "retail unitary transaction" is used synonymously with the act
Person. Regulatory definition of "person" is used synonymously with the act
Department. Regulatory definition of "department" as the Indiana department of
state revenue is used synonymously with the act [IC
(h) Gross Retail
Income. Regulatory definition of "gross retail income" is used synonymously
with the act [IC 6-2.5].
(i) Gross Retail Income of a Public Utility
or Power Subsidiary. Gross retail income includes all gross retail income
including minimum charge, flat charge, membership fee, or any other form of
charge or billing.
(j) Like Kind
Exchange: Additional Consideration. Non-taxability extends only to the amount
of value of the property received. Any additional consideration, commonly known
as "boot", received either in cash or property of unlike kind, must be reported
for taxation at actual value. However, when any property is clearly used as a
medium of exchange in lieu of cash, the element of taxable exchange will be
(k) Like Kind Exchange:
Limited to Two Parties. Non-taxable "exchanges" include only transactions for a
swap or barter of property between two parties. Property received in an
exchange transaction in which a third party is involved, with or without
property, is subject to gross retail tax. This rule is not meant to deny
non-taxability of exchanges where one or both of the parties in a two-party
exchange employ an agent in carrying out the agreement.
(l) Like Kind Exchange: Property to be Owned
by Parties at Time of Exchange. Non-taxable "exchanges" include only
transactions in which the property exchanged is owned by the parties thereto at
the time the exchange agreement is entered into. Transactions in which the
property to be exchanged is acquired by one party after the agreement to
exchange has been arranged are taxable. The exchange agreement must specify the
definite units or quantity of property to be exchanged. However, "retail
merchants" are allowed to consider as non-taxable the full value of tangible
personal property of like kind received in allowable exchanges, even though
ownership of the property received is encumbered by a conditional sales
contract, retail installment contract, or a chattel mortgage.
(m) Internal Revenue Code. Regulatory
definition of "Internal Revenue Code" as the Internal Revenue Code of 1986, is
used synonymously with the act [IC 6-2.5].
(n) Retail Merchant. Regulatory definition of
"retail merchant" is used synonymously with the act [IC
(o) Tax Year or
Taxable Year. Regulatory definition of "tax year" or "taxable year" is used
synonymously with the act [IC 6-2.5].