Recent Developments in Indiana Taxation - I.U. School of Law ...

1132 INDIANA LAW REVIEW [Vol. 40:1103
property that is delivered or shipped to a purchaser in Indiana is considered a sale
in Indiana, regardless of the f.o.b. point or other conditions of the sale. 294
For taxable years beginning after June 30, 2006, a corporation is required to
add back deductions taken on its federal income tax return for intangible
expenses or directly related intangible interest expenses incurred in transactions
295
with related parties. A taxpayer filing a combined return must petition the
DOR within 30 days after the end of its tax year to discontinue filing a combined
tax return. 296
The GA now permits a taxpayer to take a credit against Indiana personal
adjusted gross income tax for contributions made to a College Choice 529
297
Education Savings Plan, effective January 1, 2007. The non-refundable credit
is equal to the lesser of 20% of the contribution made during the taxable year or
298 $1000. Also, effective July 1, 2006, the Neighborhood Assistance tax credit
is no longer available directly to individuals who provide community services. 299
Instead, it is available to taxpayers who contribute to neighborhood organizations
that provide community services in economically disadvantaged areas or to
economically disadvantaged households. 300
E. Inheritance Tax
The GA took no substantive action in this area.
F. Sales and Use Tax
Indiana is a full member of the Streamlined Sales and Use Tax (“SST”)
Agreement. Thus, the GA made a number of changes to Indiana sales tax law to
harmonize the law with the SST Agreement. First, effective July 1, 2006, the
term “direct mail” is defined as printed material (including accompanying
tangible personal property) that is delivered to a mass audience or to addresses
301
on a mailing list for which the recipient is not charged. The term already
302
appeared in the sales tax law, but had not been defined. Also effective July 1,
294. Id.
295. Id. § 6-3-1-3.5(b)(9) (as added by 2006 Ind. Legis. Serv. P.L. 162-2006 (H.E.A. 1001)
§ 24 (West)).
296. Id. § 6-3-2-2.
297. Id. § 6-3-3-12 (as added by 2006 Ind. Legis. Serv. P.L. 192-2006 (H.E.A. 1029) § 4
(West)).
298. Id.
299. Id. § 6-3.1-9-2 (as amended by 2006 Ind. Legis. Serv. P.L. 181-2006 (H.E.A. 1261) § 45
(West)).
300. Id. § 6-3.1-9-1 (as amended by 2006 Ind. Legis. Serv. P.L. 181-2006 (H.E.A. 1261) § 44
(West)).
301. Id. § 6-2.5-1-6.5 (as added by 2006 Ind. Legis. Serv. P.L. 153-2006 (S.E.A. 258) § 2
(West)).
302. See id. § 6-2.5-13-3 (regarding sourcing of purchases of direct mail).