§ 6-2.5-11-12 — Review of software; limited relief from liability

Indiana § 6-2.5-11-12

• Jurisdiction: Indiana
• Art. 2.5: STATE GROSS RETAIL AND USE TAXES
• Ch. 11: Simplified Sales and Use Tax Administration Act

Text

(a) The department shall review software
submitted to the governing board for certification as a certified
automated system. The review is to determine that the program
adequately classifies product based exemptions granted under IC 6-2.5-5. Upon satisfactory completion of the review, the department
shall certify to the governing board the department's acceptance of the
classifications made by the system.
(b) The governing board and the member states are not responsible
for classification of an item or a transaction within the product based
exemptions certified by the department. The relief from liability
provided in this section is not available to a certified service provider
or Model 2 seller that has incorrectly classified an item or a transaction
into a product based exemption certified by the department. This
subsection does not apply to the individual listing of items or
transactions within a product definition approved by the governing
board or the member states.
(c) If the department determines that an item or a transaction is
incorrectly classified as to the taxability of the item or transaction, the
department shall notify the certified service provider or Model 2 seller
of the incorrect classification. The certified service provider or Model
2 seller must revise the classification within ten (10) days after
receiving notice of the determination from the department. If the
classification error is not corrected within ten (10) days after receiving
the department's notice, the certified service provider or Model 2 seller
is liable for failure to collect the correct amount of sales or use tax due
and owing.

Legislative History

As added by P.L.145-2007, SEC.11.