§ 6-2.5-5-5.1 — Exemption; acquisition for direct consumption in direct production; industrial processing service; direct application of fertilizers; direct harvesting of agricultural commodities

Indiana § 6-2.5-5-5.1

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

Text

1. (a) As used in this section, "tangible
personal property" includes electricity, gas, water, and steam.
(b) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring the property
acquires it for direct consumption as a material to be consumed in the
direct production of other tangible personal property in the person's
business of manufacturing, mining, production, processing, repairing,
recycling (as defined in section 45.8 of this chapter), refining, oil
extraction, mineral extraction, irrigation, agriculture, floriculture,
arboriculture, or horticulture. This exemption includes transactions
involving acquisitions of tangible personal property used in
commercial printing.
(c) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring that property:
(1) acquires it for the person's direct consumption as a material to
be consumed in an industrial processing service; and
(2) is an industrial processor.
(d) Transactions involving tangible personal property are exempt
from the state gross retail tax if the person acquiring the property:
(1) acquires it for the person's direct consumption as a material to
be consumed in:
(A) the direct application of fertilizers, pesticides, fungicides,
seeds, and other tangible personal property; or
(B) the direct extraction, harvesting, or processing of
agricultural commodities;
for consideration; and
(2) is occupationally engaged in providing the services described
in subdivision (1) on property that is:
(A) owned or rented by another person occupationally engaged
in agricultural production; and
(B) used for agricultural production.
(e) Transactions involving electricity, gas, water, and steam
delivered through a single meter provided by a public utility are exempt
if the electrical energy, natural or artificial gas, water, steam, or steam
heat is consumed for a purpose exempted pursuant to this section and
the electricity, gas, water, or steam is predominately used by the
purchaser for one (1) or more of the purposes exempted by this section.
(f) A retail merchant that receives seventy-five percent (75%) or
more of its receipts from the sale of prepared food as defined in section
20(c)(4), 20(c)(5), and 20(c)(6) of this chapter, including bakery items,
may elect to claim an exemption equal to fifty percent (50%) of the
gross retail tax imposed on transactions involving electricity purchased
by the retail merchant that is derived through a single meter. The
election must be submitted on forms provided by the department. Upon
acceptance of the election, the department shall issue a partial
exemption certificate to the utility and any third party suppliers, if
applicable. The election may also be submitted with a claim for refund.
The election is irrevocable for any period for which the partial
exemption has already been claimed. The election can be withdrawn on
a prospective basis.
As added by Acts 1981, P.L.63, SEC.6. Amended by
P.L.23-1986, SEC.2; P.L.78-1989, SEC.5; P.L.192-2002(ss), SEC.51;
P.L.172-2011, SEC.50; P.L.137-2012, SEC.47; P.L.242-2015, SEC.7;
P.L.239-2017, SEC.7; P.L.137-2022, SEC.21; P.L.118-2024,
SEC.5.