New business tax laws
October 9, 2007
In this installment of our business-tax series, Joetta and Jay highlight some of the new laws that may affect your business.
Doesn’t it seem like every year you hear about new laws that may have an impact on your business? You want to operate your business on the up-and-up, but with all the changes, it’s a challenge keeping it all straight. Right?
Well, we’ve got the solution to this problem. The best source for new state tax law information is at our Web site at http://www.in.gov/dor/index.html
First, check out the Notices right in the middle of our home page. Many of the most current updates are posted there. Examples include:
- changes to county tax rates for withholding agents
- current procedures on how to claim a refund
- cigarette and other tobacco product changes
We recommend checking this area at least once a week or so just to keep on top of any changes that may have an impact on your business.
Now, if you really want to dig in to all the laws the Department administers, or were passed this year, get yourself a strong cup of java and visit our online Reference Library at http://www.in.gov/dor/reference Just click on Legal Resources and then Summaries of State Legislation Affecting the Indiana Department of Revenue.
Here you’ll find a summary of the 2007 changes/updates by topic and tax type (such as sales tax, withholding tax, etc.). Again, you might want to grab that cup of Joe – we’re serious … because this is serious reading.
But if you just want the highlights, check out the list below. These are some of the tax laws passed by the 2007 Indiana General Assembly.
Telecommunications
If your business involves telecommunications, you definitely need to check out the Web site. 2007 legislation affected 11 sales/use tax statutes. Some of the changes defined ancillary services, intrastate telecommunications services, prepaid calling service, telecommunication services, non-voice data service, and sourcing of prepaid wireless calling services. The law provides that Internet access services and ancillary services will be sourced in accordance with telecommunication sourcing provisions – to put it in legal-like terms.
Aircraft
Legislation affecting aircraft (for purposes of the aircraft license excise tax) states that a repair station is a person who holds a repair station certificate issued to that person by FAA. If a nonresident bases an aircraft in Indiana with a repair station solely for repairing, remodeling, or refurbishing the aircraft, the aircraft is not required to be registered with the Department. However, the repair station is required to report quarterly to the Department the N number of the aircraft that were based in Indiana after the end of each calendar quarter.
An aircraft is exempt from sales tax if the purchaser is a nonresident, and takes the aircraft outside of Indiana within 30 days after accepting delivery, or a repair, refurbishment, or remanufacture of the aircraft is completed. The purchaser is required to supply the seller with a copy of the purchaser’s registration or title for the state where the aircraft is registered or titled within 60 days.
Low income home energy assistance
The sales tax exemption for the low-income, home-energy assistance program has been extended to July 1, 2009.
Electronic Funds Transfer (EFT) Threshold reduction for electronic filers
Effective Jan. 1, 2008, the threshold for remitting the sales tax by EFT is reduced from $10,000 to $5,000.
Collection allowance
The collection allowance provided to retailers, except for utilities, has changed. For the first $60,000 in accrued sales tax due, the collection allowance remains at .83%. However, If the accrued sales tax due ranges between $60,001 to $600,000, the allowance is reduced to .6%. And, if the accrued sales tax due is greater than $600,000, the collection allowance is .3%.
Remember, these are just a few of the new law changes that could affect your business. So, keep our Web site in your Favorites for updated notices that can help keep your business on the up-and-up.
Now, to close out our business-tax series ... just in time for the World Series, we might add, visit us the week of Oct. 22. If you ever wonder about what’s involved in closing a business, we’ll walk you through the process.
In the meantime, stock up on sodas, hot dogs, and Cracker Jacks and take a “tax break” with the World Series. (Get it .. tax break! Oh, okay. Revenue humor can be so “taxing.” Oh, I crack me up!)
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- Have more time to file my taxes and I think I will owe the Department.
Welcome to Tax Talk, hosted by DiB (dye-bee), the Indiana Department of Revenue’s individual income tax guru. DiB, who says she’s been with the Department “since the earth cooled” (though it’s actually 30+ years), writes and develops Indiana’s individual income-tax instruction booklets and forms. DiB created Tax Talk to address Indiana individual income tax questions and issues during the filing season. If you would like to submit a question or topic suggestions, please send those to DiB at feedback@dor.in.gov
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