Imposition
Sec. 2. (a) An excise tax, known as the use tax, is imposed on the
storage, use, or consumption of tangible personal property in Indiana
if the property was acquired in a retail transaction, regardless of the
location of that transaction or of the retail merchant making that
transaction.
(b) The use tax is also imposed on the storage, use, or
consumption of a vehicle, an aircraft, or a watercraft, if the vehicle,
aircraft, or watercraft:
(1) is acquired in a transaction that is an isolated or occasional
sale; and
(2) is required to be titled, licensed, or registered by this state
for use in Indiana.
(c) The use tax is imposed on the addition of tangible personal
property to a structure or facility, if, after its addition, the property
becomes part of the real estate on which the structure or facility is
located. However, the use tax does not apply to additions of tangible
personal property described in this subsection, if:
(1) the state gross retail or use tax has been previously imposed
on the sale or use of that property; or
(2) the ultimate purchaser or recipient of that property would
have been exempt from the state gross retail and use taxes if
that purchaser or recipient had directly purchased the property
from the supplier for addition to the structure or facility.
(d) Notwithstanding any other provision of this section, the use
tax is not imposed on the keeping, retaining, or exercising of any
right or power over tangible personal property, if:
(1) the property is delivered into Indiana by or for the purchaser
of the property;
(2) the property is delivered in Indiana for the sole purpose of
being processed, printed, fabricated, or manufactured into,
attached to, or incorporated into other tangible personal
property; and
(3) the property is subsequently transported out of state for use
solely outside Indiana.
As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.26-1985,
SEC.3; P.L.335-1989(ss), SEC.2.
Last modified: May 28, 2006