Indiana Code 6-2.5-11-12. Review of software; limited relief from liability
Current as of: 2023 | Check for updates
|
Other versions
Sec. 12. (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.
(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.
(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.
Terms Used In Indiana Code 6-2.5-11-12
- Certified automated system: means software certified jointly by the states that are signatories to the agreement to calculate the tax imposed by each jurisdiction on a transaction, to determine the amount of tax to remit to the appropriate state, and to maintain a record of the transaction. See Indiana Code 6-2.5-11-2
- Certified service provider: means an agent certified jointly by the states that are signatories to the agreement to perform all of the seller's sales tax functions. See Indiana Code 6-2.5-11-2
- Seller: means any person making sales, leases, or rentals of personal property or services. See Indiana Code 6-2.5-11-2
- Use tax: means the use tax levied under Indiana Code 6-2.5-11-2
As added by P.L.145-2007, SEC.11.