Use of enhanced ZIP codes
Sec. 16. (a) If an electronic data base is not provided under
section 15 of this chapter, a home service provider shall be held
harmless from any tax, charge, or fee liability in Indiana that
otherwise would be due solely as a result of an assignment of a street
address to an incorrect taxing jurisdiction if, subject to section 18 of
this chapter, the home service provider employs an enhanced ZIP
code to assign each street address to a specific taxing jurisdiction for
each level of taxing jurisdiction and exercises due diligence at each
level of taxing jurisdiction to ensure that each street address is
assigned to the correct taxing jurisdiction. If an enhanced ZIP code
overlaps boundaries of taxing jurisdictions of the same level, the
home service provider must designate one (1) specific jurisdiction
within the enhanced ZIP code for use in taxing the activity for that
enhanced ZIP code for each level of taxing jurisdiction. Any
enhanced ZIP code assignment changed in accordance with section
18 of this chapter is considered to be in compliance with this section.
(b) For purposes of this section, there is a rebuttable presumption
that a home service provider has exercised due diligence if the home
service provider demonstrates that it has:
(1) expended reasonable resources to implement and maintain
an appropriately detailed electronic data base of street address
assignments to taxing jurisdictions;
(2) implemented and maintained reasonable internal controls to
promptly correct misassignments of street addresses to taxing
jurisdictions; and
(3) used all reasonably obtainable and usable data pertaining to
municipal annexation, incorporations, reorganizations, and any
other changes in jurisdictional boundaries that materially affect
the accuracy of the data base.
(c) This section applies to a home service provider that is in
compliance with the requirements of this section until the later of:
(1) eighteen (18) months after the nationwide standard numeric
code described in the federal Mobile Telecommunications
Sourcing Act (4 U.S.C. 116 et seq.) has been approved by the
Federation of Tax Administrators and the Multistate Tax
Commission; or
(2) six (6) months after the department or a designated data base
provider provides a data base as described in section 15 of this
chapter.
As added by P.L.104-2002, SEC.2.
Last modified: May 28, 2006