This text of Indiana § 6-7-1-17.5 (Credit against the cost of certain stamps) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
5.
(a)Except as otherwise provided in this
section, in determining the amount to pay for stamps purchased under
this chapter, a distributor is entitled to a credit against the cost of
stamps purchased in an amount equal to the distributor's receivables
that:
(1)are attributable to stamps purchased by the distributor under
this chapter and affixed to cigarettes that were transferred to a
retailer;
(2)resulted from a transfer of cigarettes to a retailer in which the
distributor did not collect the tax imposed by this chapter from the
retailer; and
(3)were written off as an uncollectible debt for federal tax
purposes under Section 166 of the Internal Revenue Code after
December 31, 2006.
(b)If a distributor claims a credit under subsection (a) and
subsequently collects all of the associa
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5. (a) Except as otherwise provided in this
section, in determining the amount to pay for stamps purchased under
this chapter, a distributor is entitled to a credit against the cost of
stamps purchased in an amount equal to the distributor's receivables
that:
(1) are attributable to stamps purchased by the distributor under
this chapter and affixed to cigarettes that were transferred to a
retailer;
(2) resulted from a transfer of cigarettes to a retailer in which the
distributor did not collect the tax imposed by this chapter from the
retailer; and
(3) were written off as an uncollectible debt for federal tax
purposes under Section 166 of the Internal Revenue Code after
December 31, 2006.
(b) If a distributor claims a credit under subsection (a) and
subsequently collects all of the associated receivable, the distributor
shall remit the entire amount of the credit previously claimed under
subsection (a) to the department within thirty (30) days of collection.
(c) If a distributor claims a credit under subsection (a) and
subsequently collects part of the associated receivable, the distributor
shall remit the amount determined under STEP SIX of the following
formula to the department within thirty (30) days after collection:
STEP ONE: Determine the part of the associated receivable
before collection that is attributable to the taxable price of the
products subject to the tax imposed by this chapter.
STEP TWO: Determine the part of the associated receivable
before collection that is attributable to the amount paid by the
distributor for the stamps affixed to the products that were
transferred to the retailer.
STEP THREE: Determine the sum of:
(A) the STEP ONE result; plus
(B) the STEP TWO result.
STEP FOUR: Determine the lesser of:
(A) the amount collected; or
(B) the STEP THREE result.
STEP FIVE: Divide:
(A) the STEP TWO result; by
(B) the STEP THREE result.
STEP SIX: Multiply:
(A) the STEP FOUR result; by
(B) the STEP FIVE result.
(d) If the amount of the credit to which a distributor is entitled under
subsection (a) exceeds the cost of the stamps that the distributor seeks
to purchase, the remainder of the credit may be applied to future
purchases of stamps by the distributor. For any uncollectible receivable
used to establish a credit under subsection (a), the amount of the credit
that is available to be applied to a purchase of stamps is the total
amount of the credit determined under subsection (a) reduced by the
sum of partial credits applied by the distributor to previous purchases
of stamps.
(e) As used in this subsection, "affiliated group" means any
combination of the following:
(1) An affiliated group within the meaning provided in Section
1504 of the Internal Revenue Code (except that the ownership
percentage in Section 1504(a)(2) of the Internal Revenue Code
shall be determined using fifty percent (50%) instead of eighty
percent (80%)) or a relationship described in Section 267(b)(11)
of the Internal Revenue Code.
(2) Two (2) or more partnerships (as defined in IC 6-3-1-19),
including limited liability companies and limited liability
partnerships, that have the same degree of mutual ownership as
an affiliated group described in subdivision (1), as determined
under the rules adopted by the department.
The right to a credit under this section is not assignable to an individual
or entity that is not part of the same affiliated group as the assignor.