Indiana – New Definition Of Physical Presence Set To Begin July 1, 2017

SALT Report 3901 – On April 28, 2017, Indiana Gov. Eric Holcomb signed House Bill 1129, requiring remote sellers with no physical presence in Indiana to collect, remit, comply with all applicable provisions of the Indiana gross retail tax code and otherwise act as a retail agent for the state when remote sales are made to Indiana customers. This new sales tax provision becomes effective July 1, 2017.

If either of the following criteria is met in the current or previous calendar year, the remote seller must collect and remit the gross retail tax and follow the Indiana tax code as if it had physical presence in Indiana:

  1. The retail merchant’s gross revenue from tangible personal property, products transferred electronically or service delivered into Indiana exceeds $100,000.
  2. The retail merchant sells tangible personal property, products transferred electronically or service delivered into Indiana in 200 or more separate transactions.

For More Information:
HB 1129