Indiana Code 6-2.5-4-9. Sale of property to be added to structures or facilities; time and material contracts; contractor required to collect sales tax; exemption
(1) is to be added to a structure or facility by the purchaser; and
Terms Used In Indiana Code 6-2.5-4-9
- Contract: A legal written agreement that becomes binding when signed.
- Personal property: includes goods, chattels, evidences of debt, and things in action. See Indiana Code 1-1-4-5
- Personal property: All property that is not real property.
- Property: includes personal and real property. See Indiana Code 1-1-4-5
(b) A contractor is a retail merchant making a retail transaction when the contractor:
(1) disposes of tangible personal property; or
(2) converts tangible personal property into real property;
under a time and material contract. As such a retail merchant, a contractor described in this subsection shall collect, as an agent of the state, the state gross retail tax on the resale of the construction material and remit the state gross retail tax as provided in this article.
(c) Notwithstanding subsections (a) and (b), a transaction described in subsection (a) or (b) is not a retail transaction, if the ultimate purchaser or recipient of the property to be added to a structure or facility would be exempt from the state gross retail and use taxes if that purchaser or recipient had directly purchased the property from the supplier for addition to the structure or facility.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.181-2016, SEC.21.