Ind. Code ch. 6-2.5-3

Ind. Code ch. 6-2.5-3
in effect

Ind. Code § 6-2.5-3-0.3 Intent of general assembly in construction of amendments to section 1 of this chapter

Sec. 0.3. It is the intent of the general assembly that the amendments made to section 1 of this chapter by P.L.70-1993 be construed liberally in favor of persons, corporations, partnerships, or other entities contracting with commercial printers. As added by P.L.220-2011, SEC.134.

Ind. Code § 6-2.5-3-1 Definitions

Sec. 1. For purposes of this chapter: (a) "Use" means the exercise of any right or power of ownership over tangible personal property. (b) "Storage" means the keeping or retention of tangible personal property in Indiana for any purpose except temporary storage. (c) "Temporary storage" means the keeping or retention of tangible personal property in Indiana for a period of not more than one hundred eighty (180) days and only for the purpose of the subsequent use of that property solely outside Indiana. (d) Notwithstanding any other provision of this section, tangible or intangible property that is: (1) owned or leased by a person that has contracted with a commercial printer for printing; and (2) located at the premises of the commercial printer; shall not be considered to be, or to create, an office, a place of distribution, a sales location, a sample location, a warehouse, a storage place, or other place of business maintained, occupied, or used in any way by the person. A commercial printer with which a person has contracted for printing shall not be considered to be in any way a representative, an agent, a salesman, a canvasser, or a solicitor for the person. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.70-1993, SEC.2; P.L.81-2004, SEC.3; P.L.242-2015, SEC.6; P.L.146-2020, SEC.7.

Ind. Code § 6-2.5-3-2 Imposition of use tax; contractor's conversion of construction material into real property

Sec. 2. (a) An excise tax, known as the use tax, is imposed on the storage, use, or consumption of tangible personal property in Indiana if the property was acquired in a retail transaction, regardless of the location of that transaction or of the retail merchant making that transaction. (b) The use tax is also imposed on the storage, use, or consumption of a vehicle, an aircraft, or a watercraft, if the vehicle, aircraft, or watercraft: (1) is acquired in a transaction that is an isolated or occasional sale; and (2) is required to be titled, licensed, or registered by this state for use in Indiana. (c) The use tax is imposed on a contractor's conversion of construction material into real property if that construction material was purchased by the contractor. However, the use tax does not apply to conversions of construction material described in this subsection, if: (1) the state gross retail or use tax has been previously imposed on the contractor's acquisition or use of that construction material; (2) the person for whom the construction material is being converted could have purchased the material exempt from the state gross retail and use taxes, as evidenced by a properly issued exemption certificate, if that person had directly purchased the construction material from a retail merchant in a retail transaction; or (3) the conversion of the construction material into real property is governed by a time and material contract as described in IC 6-2.5-4-9(b). (d) The use tax is imposed on a person who: (1) manufactures, fabricates, or assembles tangible personal property from materials either within or outside Indiana; and (2) uses, stores, distributes, or consumes tangible personal property in Indiana. (e) Notwithstanding any other provision of this section, the use tax is not imposed on the keeping, retaining, or exercising of any right or power over tangible personal property, if: (1) the property is delivered into Indiana by or for the purchaser of the property; (2) the property is delivered in Indiana for the sole purpose of being processed, printed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property; and (3) the property is subsequently transported out of state for use solely outside Indiana. (f) As used in subsection (g) and IC 6-2.5-5-42: (1) "completion work" means the addition of tangible personal property to or reconfiguration of the interior of an aircraft, if the work requires the issuance of an airworthiness certificate from the: (A) Federal Aviation Administration; or (B) equivalent foreign regulatory authority; due to the change in the type certification basis of the aircraft resulting from the addition to or reconfiguration of the interior of the aircraft; (2) "delivery" means the physical delivery of the aircraft regardless of who holds title; and (3) "prepurchase evaluation" means an examination of an aircraft by a potential purchaser for the purpose of obtaining information relevant to the potential purchase of the aircraft. (g) Notwithstanding any other provision of this section, the use tax is not imposed on the keeping, retaining, or exercising of any right or power over an aircraft, if: (1) the aircraft is or will be titled, registered, or based (as defined in IC 6-6-6.5-1(m)) in another state or country; (2) the aircraft is delivered to Indiana by or for a nonresident owner or purchaser of the aircraft; (3) the aircraft is delivered to Indiana for the sole purpose of being repaired, refurbished, remanufactured, or subjected to completion work or a prepurchase evaluation; and (4) after completion of the repair, refurbishment, remanufacture, completion work, or prepurchase evaluation, the aircraft is transported to a destination outside Indiana. (h) The amendments made to this section by P.L.153-2012 shall be interpreted to specify and not to change the general assembly's intent with respect to this section. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.26-1985, SEC.3; P.L.335-1989(ss), SEC.2; P.L.162-2006, SEC.20; P.L.211-2007, SEC.9; P.L.153-2012, SEC.1; P.L.13-2013, SEC.20; P.L.181-2016, SEC.18.

Ind. Code § 6-2.5-3-3 Rates; certain transactions defined

Sec. 3. The use tax is measured by the gross retail income received in a retail unitary or bundled transaction and is imposed at the same rates as the state gross retail tax under IC 6-2.5-2-2. For purposes of this chapter, transactions described in section 2(b) and 2(c) of this chapter shall be treated as retail transactions within the meaning of IC 6-2.5-1-2. As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1981, P.L.78, SEC.1; P.L.146-2020, SEC.8.

Ind. Code § 6-2.5-3-4 Exemptions

Sec. 4. (a) The storage, use, and consumption of tangible personal property in Indiana is exempt from the use tax if: (1) the property was acquired in a retail transaction and the state gross retail tax has been paid on the acquisition of that property; or (2) the property was acquired in a transaction that is wholly or partially exempt from the state gross retail tax under any part of IC 6-2.5-5 and the property is being used, stored, or consumed for the purpose for which it was exempted. (b) If a person issues a state gross retail or use tax exemption certificate for the acquisition of tangible personal property and subsequently uses, stores, or consumes that property for a nonexempt purpose, then the person shall pay the use tax. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.146-2020, SEC.9; P.L.137-2022, SEC.16.

Ind. Code § 6-2.5-3-5 Credit for payment of other taxes

Sec. 5. A person is entitled to a credit against the use tax imposed on the use, storage, or consumption of a particular item of tangible personal property equal to the amount, if any, of sales tax, purchase tax, or use tax paid to another state, territory, or possession of the United States for the acquisition of that property. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.26-1985, SEC.4; P.L.335-1989(ss), SEC.3; P.L.81-2004, SEC.4.

Ind. Code § 6-2.5-3-6 Liability; payment; collection; computation

Sec. 6. (a) For purposes of this section, "person" includes an individual who is personally liable for use tax under IC 6-2.5-9-3. (b) The person who uses, stores, or consumes the tangible personal property acquired in a retail transaction is personally liable for the use tax. (c) The person liable for the use tax shall pay the use tax to the department. (d) Notwithstanding subsection (c), a person liable for the use tax imposed in respect to a vehicle, watercraft, or aircraft under section 2(b) of this chapter shall pay the tax: (1) to the titling agency when the person applies for a title for the vehicle or the watercraft; (2) to the registering agency when the person registers the aircraft; or (3) to the registering agency when the person registers the watercraft because it is a United States Coast Guard documented vessel; unless the person presents proof to the agency that the use tax or state gross retail tax has already been paid with respect to the purchase of the vehicle, watercraft, or aircraft or proof that the taxes are inapplicable because of an exemption under this article. (e) At the time a person pays the use tax for the purchase of a vehicle to a titling agency pursuant to subsection (d), the titling agency shall compute the tax due based on the presumption that the sale price was the average selling price for that vehicle, as determined under a used vehicle buying guide to be chosen by the titling agency. However, the titling agency shall compute the tax due based on the actual sale price of the vehicle if the buyer, at the time the buyer pays the tax to the titling agency, presents documentation to the titling agency sufficient to rebut the presumption set forth in this subsection and to establish the actual selling price of the vehicle. As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1981, P.L.79, SEC.1; P.L.26-1985, SEC.5; P.L.335-1989(ss), SEC.4; P.L.18-1994, SEC.6; P.L.28-1997, SEC.8; P.L.182-2009(ss), SEC.175; P.L.146-2020, SEC.10.

Ind. Code § 6-2.5-3-7 Presumption of taxability; exemption certificate; verification for property used or consumed in providing public transportation

Sec. 7. (a) A person who acquires tangible personal property from a retail merchant for delivery in Indiana is presumed to have acquired the property for storage, use, or consumption in Indiana. However, the person or the retail merchant can produce evidence to rebut that presumption. (b) A retail merchant is not required to produce evidence of nontaxability under subsection (a) if the retail merchant receives from the person who acquired the property an exemption certificate which certifies, in the form prescribed by the department, that the acquisition is exempt from the use tax. (c) A retail merchant that sells tangible personal property to a person that purchases the tangible personal property for use or consumption in providing public transportation under IC 6-2.5-5-27 may verify the exemption by obtaining the person's: (1) name; (2) address; and (3) motor carrier number, United States Department of Transportation number, or any other identifying number authorized by the department. The person engaged in public transportation shall provide a signature to affirm under penalties of perjury that the information provided to the retail merchant is correct and that the tangible personal property is being purchased for an exempt purpose. As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.211-2007, SEC.10.

Ind. Code § 6-2.5-3-7.5 Property used or consumed in providing public transportation; retail merchant entitled under certain circumstances to presume use for exempt purpose or that purchaser will determine taxability; retail merchant not liable for failure to collect tax under certain circumstances

Sec. 7.5. (a) This section applies to a retail merchant if: (1) the retail merchant obtains the information described in section 7(c)(1) through 7(c)(3) of this chapter from a person purchasing tangible personal property for use or consumption in providing public transportation under IC 6-2.5-5-27; and (2) the person purchasing the tangible personal property provides to the retail merchant the signed affirmation required under section 7(c) of this chapter. (b) Except as provided in subsection (c), the following apply to a retail merchant that meets the requirements of subsection (a): (1) Based on the information described in section 7(c)(1) through 7(c)(3) of this chapter and the signed affirmation required under section 7(c) of this chapter, the retail merchant is entitled to assume that the person purchasing the tangible personal property: (A) will use the tangible personal property for an exempt purpose; or (B) will make the determination regarding whether use tax is due on the storage, use, or consumption of the tangible personal property, and will pay any use tax that is due on the storage, use, or consumption of the tangible personal property. (2) The retail merchant is not liable for a failure to collect any use tax that may be due on the storage, use, or consumption of the tangible personal property. (c) Subsection (b) does not apply to a retail merchant if the retail merchant's reliance on the information described in section 7(c)(1) through 7(c)(3) of this chapter and the signed affirmation required under section 7(c) of this chapter was unreasonable. The department has the burden of proving that the retail merchant's reliance on the information described in section 7(c)(1) through 7(c)(3) of this chapter and the signed affirmation required under section 7(c) of this chapter was unreasonable. As added by P.L.204-2016, SEC.14.

Ind. Code § 6-2.5-3-8 Receipt for payment; issuance; evidence of payment

Sec. 8. (a) When a retail merchant collects the use tax from a person, he shall, upon request, issue a receipt to that person for the use tax collected. (b) If the department assesses the use tax against a person for the person's storage, use, or consumption of tangible personal property in Indiana, and if the person has already paid the use tax in relation to that property to a retail merchant who is registered under IC 6-2.5-6, to the department, or, in the case of a vehicle or aircraft, to the proper state agency, then the person may avoid paying the use tax to the department if he can produce a receipt or other written evidence showing that he has so made the use tax payment. As added by Acts 1980, P.L.52, SEC.1.

Ind. Code § 6-2.5-3-10 Required publication; duty to pay use tax

Sec. 10. The department shall publish on the department's website the information needed to communicate a person's obligation to remit use tax on the exercise of any right or power of ownership over tangible personal property in Indiana for which gross retail tax has not been paid, including purchases using the Internet or a catalog. As added by P.L.229-2011, SEC.81. Amended by P.L.1-2025, SEC.94.

Ind. Code § 6-2.5-3-11 Liability for uncollected gross retail tax

Sec. 11. If: (1) a person purchases services or items other than tangible personal property in a retail transaction subject to tax under this article; (2) the person does not remit the full amount of gross retail tax on the transaction; and (3) the transaction is not exempt from tax under this article; the person is liable for the gross retail tax not collected. Any tax due under this section shall be reported and remitted in the same manner as prescribed by the department for the use tax under this chapter. As added by P.L.205-2025, SEC.2.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026