Indiana Code 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
(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.
Terms Used In Indiana Code 6-2.5-5-5.1
- 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
(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.
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.