Exemption; sales of food and food ingredients by nonprofit entities
to confined or hospitalized persons
Sec. 21. (a) For purposes of this section, "private benefit or gain"
does not include reasonable compensation paid to an employee for
work or services actually performed.
(b) Sales of food and food ingredients are exempt from the state
gross retail tax if:
(1) the seller meets the filing requirements under subsection (d)
and is any of the following:
(A) A fraternity, a sorority, or a student cooperative housing
organization that is connected with and under the
supervision of a college, a university, or any other
educational institution if no part of its income is used for the
private benefit or gain of any member, trustee, shareholder,
employee, or associate.
(B) Any:
(i) institution;
(ii) trust;
(iii) group;
(iv) united fund;
(v) affiliated agency of a united fund;
(vi) nonprofit corporation;
(vii) cemetery association; or
(viii) organization;
that is organized and operated exclusively for religious,
charitable, scientific, literary, educational, or civic purposes
if no part of its income is used for the private benefit or gain
of any member, trustee, shareholder, employee, or associate.
(C) A group, an organization, or a nonprofit corporation that
is organized and operated for fraternal or social purposes, or
as a business league or association, and not for the private
benefit or gain of any member, trustee, shareholder,
employee, or associate.
(D) A:
(i) hospital licensed by the state department of health;
(ii) shared hospital services organization exempt from
federal income taxation by Section 501(c)(3) or 501(e) of
the Internal Revenue Code;
(iii) labor union;
(iv) church;
(v) monastery;
(vi) convent;
(vii) school that is a part of the Indiana public school
system;
(viii) parochial school regularly maintained by a
recognized religious denomination; or
(ix) trust created for the purpose of paying pensions to
members of a particular profession or business who
created the trust for the purpose of paying pensions to each
other;
if the taxpayer is not organized or operated for private profit
or gain;
(2) the purchaser is a person confined to his home because of
age, sickness, or infirmity;
(3) the seller delivers the food and food ingredients to the
purchaser; and
(4) the delivery is prescribed as medically necessary by a
physician licensed to practice medicine in Indiana.
(c) Sales of food and food ingredients are exempt from the state
gross retail tax if the seller is an organization described in subsection
(b)(1), and the purchaser is a patient in a hospital operated by the
seller.
(d) To obtain the exemption provided by this section, a taxpayer
must file an application for exemption with the department:
(1) before January 1, 2003, under IC 6-2.1-3-19 (repealed); or
(2) not later than one hundred twenty (120) days after the
taxpayer's formation.
In addition, the taxpayer must file an annual report with the
department on or before the fifteenth day of the fifth month
following the close of each taxable year. If a taxpayer fails to file the
report, the department shall notify the taxpayer of the failure. If
within sixty (60) days after receiving such notice the taxpayer does
not provide the report, the taxpayer's exemption shall be canceled.
However, the department may reinstate the taxpayer's exemption if
the taxpayer shows by petition that the failure was due to excusable
neglect.
As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1981,
P.L.77, SEC.2; P.L.192-2002(ss), SEC.53; P.L.257-2003, SEC.26.
Last modified: May 28, 2006