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IN HB1446

IN HB1446
Sales tax exemption for utility service.


summary

Introduced
01/21/2025
In Committee
01/21/2025
Crossed Over
Passed
Dead
04/24/2025

Introduced Session

2025 Regular Session

Bill Summary

Sales tax exemption for utility service. Provides a sales tax exemption for the sale or furnishing of the following services or commodities by a power subsidiary or a person engaged as a public utility to a person for commercial or domestic consumption: (1) Electrical energy. (2) Natural or artificial gas. (3) Water. (4) Steam. (5) Steam heating service.

AI Summary

This bill provides a sales tax exemption for utility services such as electrical energy, natural or artificial gas, water, steam, and steam heating service when these services are sold or furnished by a power subsidiary or public utility to a person for commercial or domestic consumption. Specifically, the bill amends several sections of Indiana tax law to remove previous provisions related to sales tax collection for utility services and introduces a new section that explicitly exempts these utility services from state gross retail tax. The changes will take effect on July 1, 2025, and aim to simplify the tax treatment of utility services by creating a clear and straightforward exemption. The bill removes complex language about how utility services were previously taxed and replaces it with a straightforward exemption that applies to all utility services sold for commercial or domestic use. This change could potentially reduce administrative complexity for utility providers and potentially lower costs for consumers by eliminating sales tax on essential utility services.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

First reading: referred to Committee on Ways and Means (on 01/21/2025)

bill text


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