Ind. Code ch. 6-2.5-2

Ind. Code ch. 6-2.5-2
in effect

Ind. Code § 6-2.5-2-1 Imposition; liability; payment; collection

Sec. 1. (a) An excise tax, known as the state gross retail tax, is imposed on retail transactions made in Indiana. (b) The person who acquires property in a retail transaction is liable for the tax on the transaction and, except as otherwise provided in this chapter, shall pay the tax to the retail merchant as a separate added amount to the consideration in the transaction. A retail merchant that has either physical presence in Indiana as described in subsection (c) or that meets the threshold in subsection (d) shall collect the tax as agent for the state. (c) A retail merchant has physical presence in Indiana when the retail merchant: (1) maintains an office, place of distribution, sales location, sample location, warehouse, storage place, or other place of business which is located in Indiana and which the retail merchant maintains, occupies, or uses, either permanently or temporarily, either directly or indirectly, and either by the retail merchant or through a representative, agent, or subsidiary; (2) maintains a representative, agent, salesperson, canvasser, or solicitor who, while operating in Indiana under the authority of and on behalf of the retail merchant or a subsidiary of the retail merchant, sells, delivers, installs, repairs, assembles, sets up, accepts returns of, bills, invoices, or takes orders for sales of tangible personal property or services to be used, stored, or consumed in Indiana; or (3) is otherwise required to register as a retail merchant under IC 6-2.5-8-1. (d) A retail merchant that does not have a physical presence in Indiana shall, as an agent for the state, collect the gross retail tax on a retail transaction made in Indiana, remit the gross retail tax as provided in this article, and comply with all applicable procedures and requirements of this article as if the retail merchant has a physical presence in Indiana, if the retail merchant's gross revenue from any combination of: (1) the sale of tangible personal property that is delivered into Indiana; (2) a product transferred electronically into Indiana; or (3) a service delivered in Indiana; exceeds one hundred thousand dollars ($100,000) for the calendar year in which the retail transaction is made or for the calendar year preceding the calendar year in which the retail transaction is made. (e) A marketplace facilitator must include both transactions made on its own behalf and transactions facilitated for sellers under IC 6-2.5-4-18 for purposes of establishing the requirement to collect gross retail tax without having a physical presence in Indiana for purposes of subsection (d). In addition, except in instances where the marketplace facilitator has not met the threshold in subsection (d), the transactions of the seller made through the marketplace are not counted toward the seller for purposes of determining whether the seller has met the threshold in subsection (d). As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.247-2017, SEC.2; P.L.108-2019, SEC.108; P.L.146-2020, SEC.5; P.L.118-2024, SEC.4.

Ind. Code § 6-2.5-2-2 Tax rate; rounding rules

Sec. 2. (a) The state gross retail tax is measured by the gross retail income received by a retail merchant in a retail unitary or bundled transaction and is imposed at seven percent (7%) of that gross retail income. (b) If the tax computed under subsection (a) carried to the third decimal place results in the numeral in the third decimal place being greater than four (4), the amount of the tax shall be rounded to the next additional cent. (c) A seller may elect to round the tax under subsection (b) on a transaction on an item basis or an invoice basis. However, a seller may not round the tax under subsection (b) to circumvent the tax that would otherwise be imposed on a transaction using an invoice basis. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.2-1982(ss), SEC.2; P.L.192-2002(ss), SEC.49; P.L.146-2008, SEC.310; P.L.113-2010, SEC.47; P.L.87-2014, SEC.1; P.L.146-2020, SEC.6.

Ind. Code § 6-2.5-2-3 Tax rate on certain motor vehicle purchases

Sec. 3. (a) As used in this section, "motor vehicle" means a vehicle that would be subject to the vehicle excise tax imposed under IC 6-6-5 if the vehicle were to be used in Indiana. (b) Notwithstanding section 2 of this chapter, the state gross retail tax rate on a motor vehicle that a purchaser intends to: (1) transport to a destination outside Indiana within thirty (30) days after delivery; and (2) title or register for use in another state or country; is the rate of that state or country (excluding any locally imposed tax rates) as certified by the seller and purchaser in an affidavit satisfying the requirements of subsection (c). (c) The department of state revenue shall prescribe the form of the affidavit required by subsection (b). In addition to the certification required by subsection (b), the affidavit must include the following: (1) The name of the state or country in which the motor vehicle will be titled or registered. (2) An affirmation by the purchaser under the penalties for perjury that the information contained in the affidavit is true. (3) Any other information required by the department of state revenue for the purpose of verifying the information contained in the affidavit. (d) The department may audit affidavits submitted under this section and make a proposed assessment of the amount of unpaid tax due with respect to any incorrect information submitted in an affidavit required by this section. As added by P.L.166-2014, SEC.9. Amended by P.L.256-2017, SEC.2.

Ind. Code § 6-2.5-2-5 Cargo trailers and recreational vehicles

Sec. 5. (a) As used in this section, "cargo trailer" has the meaning set forth in IC 6-2.5-5-39. (b) As used in this section, "nonreciprocal state" means a state that does not provide an exemption from sales, use, or similar taxes imposed on a cargo trailer or recreational vehicle that is purchased in that state or country by an Indiana resident and will be titled or registered in Indiana. (c) As used in this section, "recreational vehicle" has the meaning set forth in IC 6-2.5-5-39. (d) Notwithstanding section 2 of this chapter, in the case of a transaction that: (1) is not exempt from taxation under IC 6-2.5-5-39; and (2) involves a cargo trailer or recreational vehicle that: (A) is purchased by a: (i) resident of a nonreciprocal state; or (ii) resident of a foreign country; (B) the purchaser intends to: (i) transport to a destination outside Indiana within thirty (30) days after delivery; and (ii) title or register for use in the nonreciprocal state or foreign country; and (C) will not be titled or registered for use in Indiana; the state gross retail tax rate on the cargo trailer or recreational vehicle is the rate of the nonreciprocal state or foreign country (excluding any locally imposed tax rates) in which the cargo trailer or recreational vehicle will be titled or registered, as certified by the seller and purchaser in an affidavit satisfying the requirements of subsection (e). (e) The department shall prescribe the form of the affidavit required by subsection (d). In addition to the certification required by subsection (d), the affidavit must include the following: (1) The name of the state or country in which the cargo trailer or recreational vehicle will be titled or registered. (2) An affirmation by the purchaser under the penalties for perjury that the information contained in the affidavit is true. (3) Any other information required by the department for the purpose of verifying the information contained in the affidavit. (f) The department shall create a certificate of sales tax paid form for a cargo trailer or recreational vehicle that may be completed by the dealer and provided to the purchaser of a cargo trailer or recreational vehicle sold in Indiana. (g) The department may audit affidavits submitted under this section and make a proposed assessment of the amount of unpaid tax due with respect to any incorrect information submitted in an affidavit required by this section. As added by P.L.98-2020, SEC.1.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026