CHAPTER 3. BUSINESS TRANSACTION RULES
IC 6-5.5-3
Chapter 3. Business Transaction Rules
IC 6-5.5-3-1
Transacting business within state
Sec. 1. For the purposes of this article, a taxpayer is transacting
business within Indiana in a taxable year only if the taxpayer:
(1) maintains an office in Indiana;
(2) has an employee, representative, or independent contractor
conducting business in Indiana;
(3) regularly sells products or services of any kind or nature to
customers in Indiana that receive the product or service in
Indiana;
(4) regularly solicits business from potential customers in
Indiana;
(5) regularly performs services outside Indiana that are
consumed within Indiana;
(6) regularly engages in transactions with customers in Indiana
that involve intangible property, including loans, but not
property described in section 8(5) of this chapter, and result in
receipts flowing to the taxpayer from within Indiana;
(7) owns or leases tangible personal or real property located in
Indiana; or
(8) regularly solicits and receives deposits from customers in
Indiana.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-2
Maintains office
Sec. 2. For purposes of this chapter, a taxpayer is considered to
maintain an office wherever the taxpayer has established a regular,
continuous, and fixed place of business.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-3
Conducting business
Sec. 3. An employee, representative, or independent contractor is
considered to be conducting business in Indiana if:
(1) the employee, representative, or independent contractor is
regularly engaged in the business of the taxpayer in Indiana;
(2) the office from which the employee's, representative's, or
independent contractor's activities are directed or controlled is
located in Indiana and a majority of the employee's,
representative's, or independent contractor's service is not
performed in any other taxing jurisdiction; or
(3) a contribution to the Indiana employment security fund is
required under IC 22-4-2 with respect to compensation paid to
the employee.
As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.27.
IC 6-5.5-3-4
Regularly solicit business; presumption
Sec. 4. A person is presumed, subject to rebuttal, to regularly
solicit business within Indiana if:
(1) the person conducts activities described in section 1(3),
1(5), and 1(6) of this chapter with twenty (20) or more
customers within Indiana during the taxable year; or
(2) the sum of the person's assets, including the assets arising
from loan transactions, and the absolute value of the person's
deposits attributable to Indiana equal at least five million
dollars ($5,000,000).
As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.28; P.L.68-1991, SEC.10.
IC 6-5.5-3-5
Tangible assets, intangible assets, and deposits attributable to state
Sec. 5. For purposes of this chapter, tangible assets are
attributable to this state if they are located in Indiana. Intangible
assets are attributable to this state if the income earned on those
assets is attributable to this state under this article. Deposits are
attributed to this state if they are deposits made by this state or
residents, political subdivisions, or agencies and instrumentalities of
this state regardless of whether the deposits are accepted or
maintained by the taxpayer at locations within Indiana.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-6
Tangible property; located in state
Sec. 6. Except as otherwise provided in section 7 of this chapter,
tangible property, including leased property, is considered to be
located in Indiana if the property is physically situated in Indiana.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-7
Moving property; located in state
Sec. 7. For purposes of this article, tangible personal property that
is characteristically moving property, such as motor vehicles, rolling
stock, aircraft, vessels, and mobile equipment, is considered to be
located in Indiana if:
(1) the operation of the property is entirely in Indiana; or
(2) the operation of the property is not entirely in Indiana and:
(A) the operation outside Indiana is occasional and
incidental to the operation in Indiana;
(B) the principal base of operations from which the property
is sent out is in Indiana; or
(C) Indiana is the commercial domicile of the lessee or other
user of the property and there is no principal base of
operations.
As added by P.L.347-1989(ss), SEC.1.
IC 6-5.5-3-8
Events not considered transacting business in state
Sec. 8. Notwithstanding any other provision of this chapter, a
taxpayer, except for a trust company formed under IC 28-1-4, is not
considered to be transacting business in Indiana if the only activities
of the taxpayer in Indiana are or are in connection with any of the
following:
(1) Maintaining or defending an action or suit.
(2) Filing, modifying, renewing, extending, or transferring a
mortgage, deed of trust, or security interest.
(3) Acquiring, foreclosing, or otherwise conveying property in
Indiana as a result of a default under the terms of a mortgage,
deed of trust, or other security instrument relating to the
property.
(4) Selling tangible personal property, if taxation under this
article is precluded by 15 U.S.C. 381 through 384.
(5) Owning an interest in the following types of property,
including those activities within Indiana that are reasonably
required to evaluate and complete the acquisition or disposition
of the property, the servicing of the property or the income from
the property, the collection of income from the property, or the
acquisition or liquidation of collateral relating to the property:
(A) An interest in a real estate mortgage investment conduit,
a real estate investment trust, or a regulated investment
company (as those terms are defined in the Internal Revenue
Code).
(B) An interest in a loan backed security representing
ownership or participation in a pool of promissory notes or
certificates of interest that provide for payments in relation
to payments or reasonable projections of payments on the
notes or certificates.
(C) An interest in a loan or other asset from which the
interest is attributed in IC 6-5.5-4-4, IC 6-5.5-4-5, and
IC 6-5.5-4-6 and in which the payment obligations were
solicited and entered into by a person that is independent and
not acting on behalf of the owner.
(D) An interest in the right to service or collect income from
a loan or other asset from which interest on the loan or other
asset is attributed in IC 6-5.5-4-4, IC 6-5.5-4-5, and
IC 6-5.5-4-6 and in which the payment obligations were
solicited and entered into by a person that is independent and
not acting on behalf of the owner.
(E) An amount held in an escrow or a trust account with
respect to property described in this subdivision.
(6) Acting:
(A) as an executor of an estate;
(B) as a trustee of a benefit plan;
(C) as a trustee of an employees' pension, profit sharing, or
other retirement plan;
(D) as a trustee of a testamentary or inter vivos trust or
corporate indenture; or
(E) in any other fiduciary capacity, including holding title to
real property in Indiana.
As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991,
SEC.11.