Sourcing of purchases among multiple points of use
Sec. 2. (a) Notwithstanding section 1 of this chapter, a business
purchaser that:
(1) is not a holder of a direct pay permit; and
(2) knows at the time of its purchase of a digital good, computer
software delivered electronically, or a service that the digital
good, computer software delivered electronically, or service
will be concurrently available for use in more than one (1)
jurisdiction;
shall deliver to the seller in conjunction with its purchase a form
disclosing this fact ("multiple points of use" or "MPU" exemption
form).
(b) Upon receipt of the MPU exemption form, the seller is
relieved of all obligation to collect, pay, or remit the applicable tax
and the purchaser shall be obligated to collect, pay, or remit the
applicable tax on a direct pay basis.
(c) A purchaser delivering the MPU exemption form may use any
reasonable, but consistent and uniform, method of apportionment
that is supported by the purchaser's business records as they exist at
the time of the consummation of the sale.
(d) The MPU exemption form remains in effect for all future sales
by the seller to the purchaser (except as to the subsequent sale's
specific apportionment that is governed by the principle of
subsection (c) and the facts existing at the time of the sale) until it is
revoked in writing.
(e) A holder of a direct pay permit shall not be required to deliver
a MPU exemption form to the seller. A direct pay permit holder shall
follow the provisions of subsection (c) in apportioning the tax due on
a digital good or a service that will be concurrently available for use
in more than one (1) jurisdiction.
As added by P.L.257-2003, SEC.32.
Last modified: May 28, 2006