§ 6-2.5-12-16 — Sourcing of particular types of telecommunications services

Indiana § 6-2.5-12-16

• Jurisdiction: Indiana
• Art. 2.5: STATE GROSS RETAIL AND USE TAXES
• Ch. 12: Taxing Situs of Nonmobile Telecommunications

Text

The sale of the following
telecommunications services shall be sourced to each level of taxing
jurisdiction as follows:
(1) A sale of mobile telecommunications services, other than air
to ground radiotelephone service and prepaid calling service, is
sourced to the customer's place of primary use as required by the
Mobile Telecommunications Sourcing Act and IC 6-8.1-15.
(2) A sale of post paid calling service is sourced to the origination
point of the telecommunications signal as first identified by
either:
(A) the seller's telecommunications system; or
(B) information received by the seller from its service provider,
where the system used to transport such signals is not that of
the seller.
(3) A sale of prepaid calling service or a sale of prepaid wireless
calling service is sourced in the following manner:
(A) When the service is received by the purchaser at a business
location of the seller, the sale is sourced to that business
location.
(B) When the service is not received by the purchaser at a
business location of the seller, the sale is sourced to the location
where receipt by the purchaser (or the purchaser's donee,
designated as such by the purchaser) occurs, including the
location indicated by instructions for delivery to the purchaser
(or donee), known to the seller.
(C) When clauses (A) and (B) do not apply, the sale is sourced
to the location indicated by an address for the purchaser that is
available from the business records of the seller that are
maintained in the ordinary course of the seller's business when
use of this address does not constitute bad faith.
(D) When clauses (A) through (C) do not apply, the sale is
sourced to the location indicated by an address for the
purchaser obtained during the consummation of the sale,
including the address of a purchaser's payment instrument, if no
other address is available, when use of this address does not
constitute bad faith.
(E) When clauses (A) through (D) do not apply, including the
circumstance in which the seller is without sufficient
information to apply the previous clauses, the location will be
determined by either:
(i) the address from which tangible personal property was
shipped, from which any digital good or computer software
delivered electronically was first available for transmission
by the seller, or from which the service was provided
(disregarding for these purposes any location that merely
provided the digital transfer of the product sold); or
(ii) in the case of a sale of mobile telecommunications service
that is a prepaid telecommunications service, the location
associated with the mobile telephone number.
(4) A sale of a private communications service is sourced as
follows:
(A) Service for a separate charge related to a customer channel
termination point is sourced to each level of jurisdiction in
which such customer channel termination point is located.
(B) Service where all customer termination points are located
entirely within one (1) jurisdiction or level of jurisdiction is
sourced in such jurisdiction in which the customer channel
termination points are located.
(C) Service for segments of a channel between two (2)
customer channel termination points located in different
jurisdictions and which segments of channel are separately
charged is sourced fifty percent (50%) in each level of
jurisdiction in which the customer channel termination points
are located.
(D) Service for segments of a channel located in more than one
(1) jurisdiction or level of jurisdiction and which segments are
not separately billed is sourced in each jurisdiction based on the
percentage determined by dividing the number of customer
channel termination points in such jurisdiction by the total
number of customer channel termination points.

Legislative History

As added by P.L.257-2003, SEC.31. Amended by P.L.145-2007, SEC.14.