Ind. Code ch. 6-2.5-4

Ind. Code ch. 6-2.5-4
in effect

Ind. Code § 6-2.5-4-1 Selling at retail

Sec. 1. (a) A person is a retail merchant making a retail transaction when the person engages in selling at retail. (b) A person is engaged in selling at retail when, in the ordinary course of the person's regularly conducted trade or business, the person: (1) acquires tangible personal property for the purpose of resale; and (2) transfers that property to another person for consideration. (c) For purposes of determining what constitutes selling at retail, it does not matter whether: (1) the property is transferred in the same form as when it was acquired; (2) the property is transferred alone or in conjunction with other property or services; or (3) the property is transferred conditionally or otherwise. (d) Notwithstanding any provision of this article, a person is not making a retail transaction when the person: (1) acquires tangible personal property owned by another person; (2) provides industrial processing or servicing, including enameling or plating, on the property; and (3) transfers the property back to the owner to be sold by that owner either in the same form or as a part of other tangible personal property produced by that owner in the owner's business of manufacturing, assembling, constructing, refining, or processing. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.2-1987, SEC.14; P.L.6-1987, SEC.5; P.L.277-1993(ss), SEC.40; P.L.257-2003, SEC.19; P.L.81-2004, SEC.5; P.L.227-2013, SEC.2; P.L.146-2020, SEC.12; P.L.137-2022, SEC.17.

Ind. Code § 6-2.5-4-2 Repealed

As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.246-1985, SEC.9. Repealed by P.L.137-2022, SEC.18.

Ind. Code § 6-2.5-4-3 Water softening and conditioning business

Sec. 3. (a) A person is a retail merchant making a retail transaction when he regularly and occupationally engages in the business of softening and conditioning water. (b) For purposes of this section, the business of softening and conditioning water includes the exchange of water softening and conditioning tanks in the ordinary course of the business, but does not include the preparatory plumbing and work necessary for the first installation of tanks. As added by Acts 1980, P.L.52, SEC.1.

Ind. Code § 6-2.5-4-4 Renting or furnishing rooms, lodgings, or other accommodations; facilitator is retail merchant

Sec. 4. (a) A person is a retail merchant making a retail transaction when the person rents or furnishes rooms, lodgings, or other accommodations, such as booths, display spaces, banquet facilities, and cubicles or spaces used for adult relaxation, massage, modeling, dancing, or other entertainment to another person: (1) if those rooms, lodgings, or accommodations are rented or furnished for periods of less than thirty (30) days; and (2) if the rooms, lodgings, and accommodations are located in: (A) a hotel, motel, inn, tourist camp, tourist cabin, gymnasium, hall, coliseum, or other place, where rooms, lodgings, or accommodations are furnished for consideration; or (B) a house, condominium, or apartment in which rooms, lodgings, or accommodations are rented or furnished for transient residential housing for consideration. (b) Each rental or furnishing by a retail merchant under subsection (a) is a separate unitary transaction regardless of whether consideration is paid to an independent contractor or directly to the retail merchant. (c) For purposes of this section, "consideration" includes a membership fee charged to a customer. (d) Notwithstanding subsection (a), a person is not a retail merchant making a retail transaction if: (1) the person is a promoter that rents a booth or display space to an exhibitor; and (2) the booth or display space is located in a facility that: (A) is described in subsection (a)(2); and (B) is operated by a political subdivision (including a capital improvement board established under IC 36-10-8 or IC 36-10-9) or the state fair commission. This subsection does not exempt from the state gross retail tax the renting of accommodations by a political subdivision or the state fair commission to a promoter or an exhibitor. (e) The gross retail income derived from a transaction to which this section applies is equal to the total amount of consideration paid by the purchaser, including the payment of any fee (including a facilitation fee), commission, or other charge by the retail merchant (including a marketplace facilitator), except that the gross retail income does not include any taxes on the transaction that are imposed directly on the consumer. (f) A marketplace facilitator who is considered a retail merchant under section 18 of this chapter for a transaction to which this section applies shall collect and remit innkeeper's taxes imposed under IC 6-9 on the retail transaction. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.93-1987, SEC.1; P.L.85-1989, SEC.1; P.L.20-1990, SEC.7; P.L.181-2016, SEC.19; P.L.108-2019, SEC.109.

Ind. Code § 6-2.5-4-5 Power subsidiaries of public utilities

Sec. 5. A power subsidiary or a person engaged as a public utility is a retail merchant making a retail transaction when the subsidiary or person furnishes or sells electrical energy, natural or artificial gas, water, steam, or steam heating service to a person for commercial or domestic consumption. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.48-1984, SEC.1; P.L.71-1993, SEC.4; P.L.81-2004, SEC.19; P.L.190-2005, SEC.1; P.L.203-2005, SEC.3; P.L.162-2006, SEC.21; P.L.180-2006, SEC.3; P.L.1-2007, SEC.51; P.L.32-2007, SEC.1; P.L.58-2012, SEC.2; P.L.137-2012, SEC.46; P.L.288-2013, SEC.28; P.L.137-2022, SEC.19.

Ind. Code § 6-2.5-4-6 Taxation of telecommunication services; aggregation of taxable and nontaxable services on customer bills

Sec. 6. (a) A person is a retail merchant making a retail transaction when the person: (1) furnishes or sells an intrastate telecommunication service; and (2) receives gross retail income from billings or statements rendered to customers. (b) Notwithstanding subsection (a), a person is not a retail merchant making a retail transaction when: (1) the person furnishes or sells telecommunication services to another person described in this section or in section 5 of this chapter; (2) the person furnishes telecommunications services to another person who is providing prepaid calling services or prepaid wireless calling services in a retail transaction to customers who access the services described in section 13 of this chapter; (3) the person furnishes intrastate mobile telecommunications service (as defined in IC 6-8.1-15-7) to a customer with a place of primary use that is not located in Indiana (as determined under IC 6-8.1-15); or (4) the person furnishes or sells value added nonvoice data services in a retail transaction to a customer. (c) Subject to IC 6-2.5-12 and IC 6-8.1-15, and notwithstanding subsections (a) and (b), if charges for telecommunication services, ancillary services, Internet access, audio services, or video services that are not taxable under this article are aggregated with and not separately stated from charges subject to taxation under this article, the charges for nontaxable telecommunication services, ancillary services, Internet access, audio services, or video services are subject to taxation unless the service provider can reasonably identify the charges not subject to the tax from the service provider's books and records kept in the regular course of business. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.71-1993, SEC.5; P.L.8-1996, SEC.3; P.L.8-1998, SEC.1; P.L.104-2002, SEC.1; P.L.5-2004, SEC.1; P.L.145-2007, SEC.7; P.L.84-2011, SEC.1.

Ind. Code § 6-2.5-4-8 Governmental entities; private or proprietary activities

Sec. 8. An Indiana governmental entity, agency, instrumentality, or political subdivision (including a state college or university) is a retail merchant making a retail transaction when it performs private or proprietary activities that would constitute retail transactions under this article if those activities were performed by a retail merchant. However, this section does not apply to a political subdivision when it performs an activity that is related to an annual festival, carnival, fair, or similar event. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.93-1987, SEC.2; P.L.234-2019, SEC.4.

Ind. Code § 6-2.5-4-9 Sale of property to be added to structures or facilities; time and material contracts; contractor required to collect sales tax; exemption

Sec. 9. (a) A person is a retail merchant making a retail transaction when the person sells tangible personal property which: (1) is to be added to a structure or facility by the purchaser; and (2) after its addition to the structure or facility, would become a part of the real estate on which the structure or facility is located. (b) A contractor is a retail merchant making a retail transaction when the contractor: (1) disposes of tangible personal property; or (2) converts tangible personal property into real property; under a time and material contract. As such a retail merchant, a contractor described in this subsection shall collect, as an agent of the state, the state gross retail tax on the resale of the construction material and remit the state gross retail tax as provided in this article. (c) Notwithstanding subsections (a) and (b), a transaction described in subsection (a) or (b) is not a retail transaction, if the ultimate purchaser or recipient of the property to be added to a structure or facility would be exempt from the state gross retail and use taxes if that purchaser or recipient had directly purchased the property from the supplier for addition to the structure or facility. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.181-2016, SEC.21.

Ind. Code § 6-2.5-4-10 Rental or leasing of personal property; sale of property rented or leased in course of business; exclusion

Sec. 10. (a) A person, other than a public utility, is a retail merchant making a retail transaction when the person rents or leases tangible personal property to another person other than for subrent or sublease. (b) A person is a retail merchant making a retail transaction when the person sells any tangible personal property which has been rented or leased in the regular course of the person's rental or leasing business. (c) Notwithstanding subsection (a), a person is not a retail merchant making a retail transaction when the person rents or leases motion picture film, audio tape, or video tape to another person. However, this exclusion only applies if: (1) the person who pays to rent or lease the film charges admission to those who view the film; or (2) the person who pays to rent or lease the film or tape broadcasts the film or tape for home viewing or listening. (d) The sharing of passenger motor vehicles and trucks through a peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) is a retail transaction. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.257-2003, SEC.20; P.L.108-2019, SEC.111.

Ind. Code § 6-2.5-4-11 Cable television service; satellite television or radio service

Sec. 11. (a) A person is a retail merchant making a retail transaction when the person furnishes cable television or radio service or satellite television or radio service that terminates in Indiana. (b) Notwithstanding subsection (a), a person is not a retail merchant making a retail transaction when the person provides, installs, constructs, services, or removes tangible personal property which is used in connection with the furnishing of cable television or radio service or satellite television or radio service. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.81-2004, SEC.6; P.L.2-2005, SEC.20.

Ind. Code § 6-2.5-4-12 Auction sales; exceptions

Sec. 12. (a) A person is a retail merchant making a retail transaction when he sells tangible personal property at auction. (b) Notwithstanding subsection (a), a person is not a retail merchant making a retail transaction when: (1) he makes isolated or occasional sales of tangible personal property at auction; (2) the sales occur on the premises of the owner of the tangible personal property; and (3) the owner of the tangible personal property did not originally acquire that property for resale. As added by Acts 1980, P.L.52, SEC.1.

Ind. Code § 6-2.5-4-13 Definition of retail merchant making retail transaction

Sec. 13. A person is a retail merchant making a retail transaction when a person sells: (1) a prepaid calling service or prepaid wireless calling service at retail; (2) a prepaid calling service authorization number or prepaid wireless calling service authorization number at retail; (3) the reauthorization of a prepaid calling service or prepaid wireless calling service; or (4) the reauthorization of a prepaid calling service authorization number or prepaid wireless calling service authorization number. As added by P.L.8-1998, SEC.2. Amended by P.L.84-2011, SEC.2.

Ind. Code § 6-2.5-4-14 Notice; proposed public vendors; identification of delinquent taxpayers

Sec. 14. The department of administration and each purchasing agent for a state educational institution shall provide the department with a list of every person who desires to enter into a contract to sell tangible personal property to an agency (as defined in IC 4-13-2-1) or a state educational institution. The department shall notify the department of administration or the purchasing agent of the state educational institution if a person on the list does not have a registered retail merchant certificate or is delinquent in remitting or paying amounts due to the department under this article. As added by P.L.254-2003, SEC.4. Amended by P.L.2-2007, SEC.118; P.L.211-2007, SEC.11.

Ind. Code § 6-2.5-4-15 Bundled transactions

Sec. 15. (a) This section applies to retail transactions occurring after December 31, 2007. (b) A person is a retail merchant making a retail transaction when the person sells tangible personal property as part of a bundled transaction. As added by P.L.153-2006, SEC.4.

Ind. Code § 6-2.5-4-16.2 Aircraft leasing or renting and flight instruction services

Sec. 16.2. (a) This section applies to transactions occurring after June 30, 2008. (b) A person is a retail merchant making a retail transaction when the person: (1) leases or rents an aircraft to another person; and (2) provides flight instruction services to the lessee or renter during the term of the lease or rental. (c) The amount of the gross retail income attributable to a retail transaction described in subsection (b) is the amount charged by the retail merchant for the lease or rental of the aircraft used in conjunction with the flight instruction services provided to the lessee or renter. As added by P.L.1-2009, SEC.47.

Ind. Code § 6-2.5-4-16.4 Specified digital products

Sec. 16.4. (a) As used in this section, "end user" does not include a person who receives by contract a product transferred electronically for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or exhibition of the product, in whole or in part, to another person or persons. (b) A person is a retail merchant making a retail transaction when the person: (1) electronically transfers specified digital products to an end user; and (2) grants to the end user the right of permanent use of the specified digital products that is not conditioned upon continued payment by the purchaser. (c) The sale of a digital code that may be used to obtain a product transferred electronically shall be taxed in the same manner as the product transferred electronically. As used in this subsection, a digital code means a method that permits a purchaser to obtain at a later date a product transferred electronically. As added by P.L.1-2009, SEC.48. Amended by P.L.113-2010, SEC.48.

Ind. Code § 6-2.5-4-16.7 Prewritten computer software

Sec. 16.7. (a) Except as provided in subsection (b), a person is a retail merchant making a retail transaction when the person sells, rents, leases, or licenses for consideration the right to use prewritten computer software delivered electronically. (b) A transaction in which an end user purchases, rents, leases, or licenses the right to remotely access prewritten computer software over the Internet, over private or public networks, or through wireless media: (1) is not considered to be a transaction in which prewritten computer software is delivered electronically; and (2) does not constitute a retail transaction. As added by P.L.200-2018, SEC.1.

Ind. Code § 6-2.5-4-17 Computer software maintenance contracts

Sec. 17. A person is a retail merchant making a retail transaction when the person enters into a computer software maintenance contract to provide future updates or upgrades to computer software. As added by P.L.113-2010, SEC.49.

Ind. Code § 6-2.5-4-18 Marketplace facilitator considered the retail merchant of retail transactions facilitated for sellers on its marketplace

Sec. 18. (a) A marketplace facilitator shall be considered the retail merchant of each retail transaction (including a retail transaction under section 4 of this chapter) that is facilitated on its marketplace, regardless as to whether the marketplace facilitator has a contractual relationship with the seller, when it does any of the following: (1) Collects the sales price or purchase price of the seller's products. (2) Provides access to payment processing services, either directly or indirectly. (3) Charges, collects, or otherwise receives fees or other consideration from the purchaser for transactions made on its electronic marketplace. (b) A marketplace facilitator is required to do the following with each retail transaction made on its marketplace: (1) Collect and remit the gross retail tax, even if a seller for whom a transaction was facilitated: (A) does not have a registered retail merchant certificate; or (B) would not have been required to collect gross retail tax had the transaction not been facilitated by the marketplace facilitator. (2) Comply with all applicable procedures and requirements imposed under this article as the retail merchant in such transaction. (c) The gross retail income from a transaction under this section is equal to the total amount of consideration paid by the purchaser, including the payment of any fee, commission, or other charge by the marketplace facilitator, except that the gross retail income does not include any taxes on the transaction that are imposed directly on the consumer other than taxes described under IC 6-2.5-1-5(c)(2). As added by P.L.108-2019, SEC.112. Amended by P.L.146-2020, SEC.13; P.L.137-2022, SEC.20.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026

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