Sec. 26. (a) Sales of tangible personal property by an organization described in section 25(a)(1) of this chapter are exempt from the state gross retail tax, if:
(1) the organization makes the sale to make money to carry on a not-for-profit purpose; and
(2) the organization does not make more than twenty thousand dollars ($20,000) in sales in a calendar year.
Once sales of an organization exceed the amount described in subdivision (2), the organization is required to collect state gross retail tax on sales on an ongoing basis for the remainder of the calendar year.
(b) For purposes of subsection (a), the sales of an organization include sales made by all units operating under the organization's registration pursuant to section 25(c) of this chapter.
(c) If the qualifications of subsection (a) are not met, sales of tangible personal property by an organization described in section 25(a)(1) of this chapter are exempt from the state gross retail tax, if:
(1) the organization is not operated predominantly for social purposes;
(2) the property sold is designed and intended primarily either for the organization's educational, cultural, or religious purposes, or for improvement of the work skills or professional qualifications of the organization's members; and
(3) the property sold is not designed or intended primarily for use in carrying on a private or proprietary business.
(d) Sales of tangible personal property by a public library, or a charitable organization described in section 25(a)(1) of this chapter formed to support a public library, are exempt from the state gross retail tax if the property sold consists of:
(1) items in the library's circulated and publicly available collections, including items from the library's holdings; or
(2) items that would typically be included in the library's circulated and publicly available collections and that are donated by individuals or organizations to a public library or to a charitable organization described in section 25(a)(1) of this chapter formed to support a public library.
The exemption provided by this subsection does not apply to any other sales of tangible personal property by a public library.
(e) The exemption provided by this section does not apply to an accredited college or university's sales of books, stationery, haberdashery, supplies, or other property.
(f) To obtain the exemption provided by this section, a taxpayer must follow the procedures set forth in section 25(c) of this chapter.
As added by Acts 1980, P.L.52, SEC.1. Amended by Acts 1981, P.L.77, SEC.6; P.L.192-2002(ss), SEC.57; P.L.214-2018(ss), SEC.1; P.L.137-2022, SEC.31.
Structure Indiana Code
Article 2.5. State Gross Retail and Use Taxes
Chapter 5. Exempt Transactions of Retail Merchant
6-2.5-5-0.4. Intent of General Assembly Adding Section 36 of This Chapter
6-2.5-5-1. Animals, Feed, Seed, and Chemicals; Race Horse in a Claiming Race
6-2.5-5-2. Agricultural Machinery, Tools, and Equipment
6-2.5-5-3. Exemption; Acquisition for Direct Use in Direct Production
6-2.5-5-4. Property for Use in Producing Machinery, Tools, or Equipment
6-2.5-5-6. Exemption; Acquisition for Incorporation Into Product for Sale
6-2.5-5-7. Materials Used in Construction Business, Public Street, or Utility Service
6-2.5-5-8.5. Power Subsidiary; Public Utility
6-2.5-5-9. Returnable Containers; Nonreturnable Packaging
6-2.5-5-10. Electric or Steam Utilities; Production Plant or Power Production Expenses
6-2.5-5-11. Gas Utilities; Production or Storage Plants and Expenses
6-2.5-5-12. Water Utilities; Plants and Expenses
6-2.5-5-12.5. Wastewater Utilities; Plants and Expenses
6-2.5-5-14. Public Utilities; Acquisitions of Personal Property
6-2.5-5-15.5. Motor Vehicles; Intrafamilial Title Transfers
6-2.5-5-16. State or Local Government Acquisitions
6-2.5-5-18. Drugs, Medical Equipment, Supplies, and Devices; Acquisition by Patient
6-2.5-5-19. Drugs, Insulin, Oxygen, Blood, or Blood Plasma; Acquisition by Licensed Practitioner
6-2.5-5-19.5. Drugs; Insulin; Oxygen; Blood Glucose Monitoring Supply; Blood or Blood Plasma
6-2.5-5-20. "Food and Food Ingredients for Human Consumption"
6-2.5-5-22. Exemption; Sales of Meals; Schools; Fraternities; Sororities; Student Cooperatives
6-2.5-5-23. School Building Materials
6-2.5-5-29. Manufactured Homes; Industrialized Residential Structures
6-2.5-5-30. Environmental Quality Compliance; Manufacturing, Mining, Agriculture, or Recycling
6-2.5-5-31. Free Distribution Newspaper; Related Transactions
6-2.5-5-33. Tangible Personal Property Purchased With Food Stamps
6-2.5-5-34. Sale of Lottery Tickets; Gross Retail Tax
6-2.5-5-35. Tangible Personal Property Transactions
6-2.5-5-36. Commercial Printing Contracts
6-2.5-5-38.1. Qualified Computer Equipment Sales
6-2.5-5-38.2. Vehicle Lease Transactions
6-2.5-5-39. Cargo Trailers and Recreational Vehicles Registered for Use Outside Indiana
6-2.5-5-40. Research and Development Property
6-2.5-5-42. Aircraft Titled, Registered, or Based Outside Indiana
6-2.5-5-43. Type Ii Gambling Games
6-2.5-5-44. Sales to City or Town for Municipal Golf Course
6-2.5-5-45. Gross Retail and Use Tax Exemption; Cigarette and Tobacco Tax Meter Machines
6-2.5-5-45.8. Recycling and Recycling Materials
6-2.5-5-46. Aircraft Repair and Maintenance
6-2.5-5-47. Coins, Bullion, and Legal Tender
6-2.5-5-48. Drainage Water Management System
6-2.5-5-50. Required Product Labels
6-2.5-5-52. Hot Mix Asphalt Plant Equipment; Trucks; Pavers
6-2.5-5-54. Special Rule for Sharing of a Passenger Motor Vehicle for Fewer Than 15 Days
6-2.5-5-55. "Public Safety Equipment and Materials"; Exemption