Exemption for property held for shipment to out-of-state
destination; manufacturer's or processor's property stored in
in-state warehouse; inventory; printed material held by
commercial printer
Sec. 29. (a) As used in this section, "manufacturer" or "processor"
means a person that performs an operation or continuous series of
operations on raw materials, goods, or other personal property to
alter the raw materials, goods, or other personal property into a new
or changed state or form. The operation may be performed by hand,
machinery, or a chemical process directed or controlled by an
individual. The terms include a person that:
(1) dries or prepares grain for storage or delivery; or
(2) publishes books or other printed materials.
(b) Personal property owned by a manufacturer or processor is
exempt from property taxation if the owner is able to show by
adequate records that the property:
(1) is stored and remains in its original package in an in-state
warehouse for the purpose of shipment, without further
processing, to an out-of-state destination;
(2) is inventory (as defined in IC 6-1.1-3-11) that will be used
in an operation or a continuous series of operations to alter the
personal property into a new or changed state or form and the
resulting personal property will be shipped, or will be
incorporated into personal property that will be shipped, to an
out-of-state destination; or
(3) consists of books or other printed materials that are stored
at an in-state commercial printer's facility for the purpose of
shipment, without further processing, to an out-of-state
destination.
(c) Personal property that is manufactured in Indiana and that
would be exempt under subsection (b)(1), except that it is not stored
in its original package, is exempt from property taxation if the owner
can establish in accordance with exempt inventory procedures,
regulations, and rules of the department of local government finance
that:
(1) the property is ready for shipment without additional
manufacturing or processing, except for packaging; and
(2) either:
(A) the property will be damaged or have its value impaired
if it is stored in its original package; or
(B) the final packaging of finished inventory items is not
practical until receipt of a final customer order because
fulfillment of the customer order requires the accumulation
of a number of distinct finished inventory items into a single
shipping package.
(d) A manufacturer or processor that possesses personal property
owned by another person may claim an exemption under subsection
(b) or (c) if:
(1) the manufacturer or processor includes the property on the
manufacturer's or processor's personal property tax return; and
(2) the manufacturer or processor is able to show that the owner
of the personal property would otherwise have qualified for an
exemption under subsection (b)(1), (b)(3), or (c).
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,
P.L.63, SEC.2; P.L.41-1984, SEC.2; P.L.78-1989, SEC.1;
P.L.77-1989, SEC.2; P.L.46-1996, SEC.1; P.L.260-1999, SEC.1;
P.L.90-2002, SEC.100; P.L.192-2002(ss), SEC.30.
Last modified: May 28, 2006