§ 6-2.5-5-26 — Nonprofit organizations; less than $100,000 in sales; sale for educational, cultural, or religious purpose; sale by a church or school; sale by a public library

Indiana § 6-2.5-5-26

• Jurisdiction: Indiana
• Art. 2.5: STATE GROSS RETAIL AND USE TAXES
• Ch. 5: Exempt Transactions of Retail Merchant

Text

(a) Sales of tangible personal property by an
organization are exempt from the state gross retail tax if either of the
following apply:
(1) The organization:
(A) is described in section 25(a)(1)(A) through 25(a)(1)(C) of
this chapter, section 25(a)(1)(D)(i) through 25(a)(1)(D)(iii) of
this chapter, or section 25(a)(1)(D)(ix) of this chapter;
(B) makes the sale to make money to carry on a not-for-profit
purpose; and
(C) did not make more than one hundred thousand dollars
($100,000) in sales in the current calendar year or the previous
calendar year.
(2) The organization:
(A) is described in section 25(a)(1)(D)(iv) through
25(a)(1)(D)(viii) of this chapter; or
(B) is a youth organization focused on agriculture.
Once sales of an organization that meets the qualifications under
subdivision (1), but does not meet the qualifications under subdivision
(2), exceed the amount described in subdivision (1), the organization
is required to collect state gross retail tax on sales on an ongoing basis
for the remainder of the calendar year and each calendar year thereafter
until the organization makes less than one hundred thousand dollars
($100,000) in sales for two (2) consecutive years.
(b) For purposes of subsection (a), the sales of an organization
include sales made by all units operating under the organization's
registration pursuant to section 25(c) of this chapter.
(c) If the qualifications of subsection (a) are not met, sales of
tangible personal property by an organization described in section
25(a)(1) of this chapter are exempt from the state gross retail tax, if:
(1) the organization is not operated predominantly for social
purposes;
(2) the property sold is designed and intended primarily either for
the organization's educational, cultural, or religious purposes, or
for improvement of the work skills or professional qualifications
of the organization's members; and
(3) the property sold is not designed or intended primarily for use
in carrying on a private or proprietary business.
(d) Sales of tangible personal property by a public library, or a
charitable organization described in section 25(a)(1) of this chapter
formed to support a public library, are exempt from the state gross
retail tax if the property sold consists of:
(1) items in the library's circulated and publicly available
collections, including items from the library's holdings; or
(2) items that would typically be included in the library's
circulated and publicly available collections and that are donated
by individuals or organizations to a public library or to a
charitable organization described in section 25(a)(1) of this
chapter formed to support a public library.
The exemption provided by this subsection does not apply to any other
sales of tangible personal property by a public library.
(e) The exemption provided by this section does not apply to an
accredited college or university's sales of books, stationery,
haberdashery, supplies, or other property.
(f) To obtain the exemption provided by this section, a taxpayer
must follow the procedures set forth in section 25(c) of this chapter.
As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1981,
P.L.77, SEC.6; P.L.192-2002(ss), SEC.57; P.L.214-2018(ss), SEC.1;
P.L.137-2022, SEC.31; P.L.193-2023, SEC.1.