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The Indiana Supreme Court recently held that a company properly classified a driver as an independent contractor, not an employee, for unemployment insurance tax purposes. The company connected drivers with vehicle manufacturers that needed large vehicles driven to their customers or dealerships. When a former driver filed a claim for state UI benefits, the Indiana…

In a letter of finding, the Indiana Department of Revenue concluded that a pharmacy benefit management provider was required to include in its sales factor receipts from prescription drugs sold to Indiana customers. The taxpayer contracted with insurance companies, retail pharmacies and drug manufacturers to provide health benefit plans and beneficiaries access to discounted prescription…

On December 5, 2018, the Indiana Supreme Court in a 3-2 split decision held that an RV dealership was liable for uncollected sales tax on RV sales even though it delivered the RVs to buyers at out-of-state locations.

The RV dealership’s protocol for transferring possession of its RVs to customers depended on the customer’s state…

On May 14, 2018, Indiana Governor Eric Holcomb signed into law H.B 1316 (the Bill). The Bill provides a number of changes to Indiana’s tax laws, including responding to provisions of the federal Tax Cuts and Jobs Act. Some notable provisions of the Bill include:

  • updating Indiana’s conformity to the Internal Revenue Code from January

…

By Maria Todorova and Chris Beaudro

Effective July 1, 2017, Indiana has added an economic nexus provision to its sales tax law. Indiana Code Section 6-2.5-2-1 has been amended to provide that a retail merchant with no physical presence in Indiana must collect sales tax on its sales made into the state if the retail…

By Dmitrii Gabrielov and Jonathan Feldman

An Indiana federal court remanded a lawsuit brought under the Indiana False Claims and Whistleblower Protection Act (False Claims Act) back to Indiana state court. The relator, Michael Harmeyer, alleges that Kroger and affiliates violated the False Claims Act by failing to collect sales tax on various items at…

By Nick Kump and Carley Roberts

The Indiana Tax Court held that the plain language of Indiana’s utility receipts tax (URT) does not require taxpayers to separately state taxable and nontaxable receipts on their returns. The URT provides that nontaxable receipts are taxable if such “receipts are not separated from the taxable receipts on the…

By Stephen Burroughs and Jonathan Feldman

The Indiana Tax Court granted summary judgment to Columbia Sportswear USA Corp., (“Columbia”), determining that: (1) Indiana’s alternative apportionment statute did not permit the Department to equitably adjust Columbia’s tax base; and (2) Indiana’s standard sourcing rules clearly reflected Columbia’s Indiana source income because transfer pricing studies supported Columbia’s…