Indiana – Use Tax Amnesty Program for Race Horse Claiming Transactions

SALT Report 2478 – Indiana Governor Mike Pence recently signed the State’s Biennial Budget Bill which provides an amnesty program for unpaid use tax specific to race horses. House Bill 1001 requires that the Department of Revenue establish the amnesty program for taxpayers who have unpaid use tax liabilities for race horse claiming transactions that occurred prior to June 1, 2012.

To qualify for the amnesty program, the taxpayer must enter into a written agreement with the Department to pay their unpaid use taxes. If approved for amnesty, the taxpayer must pay all past use tax liabilities by January 1, 2014. The taxpayer must also comply with any amnesty conditions that may be adopted by the Department and are in effect on the date the use tax payment is made.

For any taxpayer who has entered into an amnesty agreement with the Department and successfully pays all their past due use tax, the Department will:

  • Abate, and not seek to collect any interest, penalties, collection fees, or costs,
  • Release any liens that may be imposed,
  • Refrain from seeking civil or criminal prosecution against any individual or entity, and
  • Refrain from issuing, or if issued, withdraw, an assessment, demand notice or a warrant for payment, or another law against an individual entity

If a taxpayer fails to pay the Department all use taxes due, or fails to abide by the terms of the agreement, the amnesty granted will be invalidated. Additionally, the Department will enforce the provisions that prohibit a taxpayer who enters into this amnesty from receiving amnesty in any other program offered by the state.

The provisions in this Bill are effective July 1, 2013.

For Further Information

Indiana General Assembly – House Bill 1001, Laws 2013