Title 6, TAXATION

Sec. 13. The term "nonresident" means any person who is not a resident of Indiana. Formerly: Acts 1963(ss), c.32, s.113.

Sec. 14. The term "person" means an individual, trust or estate: Provided, That no corporation shall be considered to be a person. Formerly: Acts 1963(ss), c.32, s.114.

Sec. 15. The term "taxpayer" means any person or any corporation subject to taxation under this article. Formerly: Acts 1963(ss), c.32, s.115. As amended by P.L.2-1988, SEC.5.

Sec. 16. The term "taxable year" with respect to any taxpayer means the taxable year of such taxpayer as shown on his return required to be filed or filed pursuant to the Internal Revenue Code. Where a taxpayer does not file a return pursuant to the Internal Revenue Code, his tax…

Sec. 19. (a) The term "partnership" means an entity subject to the requirements of Subchapter K of the Internal Revenue Code. (b) The term "partner" means a member of a partnership. Formerly: Acts 1963(ss), c.32, s.119; Acts 1965, c.233, s.6. As amended by P.L.2-1988, SEC.6; P.L.…

Sec. 2. Except where the context otherwise requires, the definitions given in this article govern the construction of this article. Formerly: Acts 1963(ss), c.32, s.102. As amended by P.L.2-1988, SEC.4.

Sec. 2.5. "Armed forces of the United States" has the meaning set forth in IC 5-9-4-3. As added by P.L.144-2007, SEC.1.

Sec. 2.7. "National Guard" has the meaning set forth in IC 5-9-4-4. As added by P.L.144-2007, SEC.2.

Sec. 20. The term "business income" means all income that is apportionable to the state under the Constitution of the United States. Formerly: Acts 1963(ss), c.32, s.120; Acts 1965, c.233, s.7. As amended by P.L.250-2015, SEC.13.

Sec. 21. The term "nonbusiness income" means all income other than business income. Formerly: Acts 1963(ss), c.32, s.121; Acts 1965, c.233, s.8.

Sec. 22. The term "commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed. Formerly: Acts 1963(ss), c.32, s.122; Acts 1965, c.233, s.9.

Sec. 23. The term "compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services. Formerly: Acts 1963(ss), c.32, s.123; Acts 1965, c.233, s.10.

Sec. 24. The term "sales" means: (1) in the case of the maturity, redemption, sale, exchange, loan, or other disposition of stocks, bonds, notes, options, forward contracts, future contracts, and similar instruments or securities, the net gain from the sale or exchange of such co…

Sec. 25. The term "state" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. Formerly: Acts 1963(ss), c.32, s.125; Acts 1965, …

Sec. 26. "Foreign corporation" means a foreign corporation as defined in Section 7701 of the Internal Revenue Code. As added by P.L.75-1985, SEC.1.

Sec. 27. "United States", when used in a geographical sense, means the United States as defined in Section 7701 of the Internal Revenue Code. As added by P.L.75-1985, SEC.2.

Sec. 28. "Combined income tax return" means any income tax return on which one (1) or more taxpayers report income, deductions, and credits on a combined basis with one (1) or more other entities. As added by P.L.75-1985, SEC.3.

Sec. 29. As used in this chapter, "eligible individual" means: (1) a person who was systematically persecuted for racial or religious reasons by Nazi Germany or any other Axis regime; or (2) an heir of a person described in subdivision (1). As added by P.L.128-1999, SEC.2.…

Sec. 3.5. When used in this article, the term "adjusted gross income" shall mean the following: (a) In the case of all individuals, "adjusted gross income" (as defined in Section 62 of the Internal Revenue Code), modified as follows: (1) Subtract income that is exempt from taxati…

Sec. 30. As used in this chapter, "Holocaust victim's settlement payment" means a payment received: (1) as a result of the settlement of the action entitled "In re Holocaust Victims' Asset Litigation", (E.D. NY) C.A. No. 96-4849; (2) under the German Act Regulating Unresolved Pro…

Sec. 31. As used in this article, "victim of the September 11 terrorist attack" means an individual who: (1) died from the crash (including those on the airplane and those on the ground) of any of the four (4) commercial jet airplanes that were hijacked in the United States on Se…

Sec. 32. As used in this article, "September 11 terrorist attack settlement payment" means any compensation paid to a victim of the September 11 terrorist attack: (1) in recognition of; or (2) to compensate for; losses incurred by the victim as a result of the crash of any of the…

Sec. 33. As used in this article, "bonus depreciation" means an amount equal to that part of any depreciation allowance allowed in computing the taxpayer's federal adjusted gross income or federal taxable income that is attributable to the additional first-year special depreciati…

Sec. 34. "Qualified military income" means the following: (1) Wages that are paid to a member of a reserve component of the armed forces of the United States, including the United States Space Force, or the National Guard for the member's service in the reserve component or Natio…

Sec. 34.5. (a) Except as provided in subsection (b), "captive real estate investment trust" means a corporation, a trust, or an association: (1) that is considered a real estate investment trust for the taxable year under Section 856 of the Internal Revenue Code; (2) that is not …

Sec. 35. As used in this article, "pass through entity" means: (1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2); (2) a partnership; (3) a trust; (4) an estate; (5) a limited liability company; or (6) a limited liability partnership. As add…

Sec. 36. As used in this article, "eligible community foundation" means an organization that: (1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; (2) satisfies the public support test of Section 170(b)(1)(A)(vi) of the Internal Revenue…

Sec. 37. The term "telecommunication services" has the meaning set forth in IC 6-2.5-1-27.5, except that telecommunication services also includes those items described in the following: (1) IC 6-2.5-1-27.5(c)(1) associated with telecommunications services. (2) IC 6-2.5-1-27.5(c)(…

Sec. 38. The term "broadcast services" means the transmission, conveyance, and routing of video broadcasts, regardless of the medium, including the furnishing of transmission, conveyance, and routing of the services by a television broadcast network, a cable program network, or a…

Sec. 39. (a) The term "preliminary federal net operating loss" means: (1) in the case of a taxpayer that has a federal net operating loss for a taxable year, the taxpayer's federal net operating loss under Section 172 of the Internal Revenue Code; and (2) in the case of a taxpaye…

Sec. 4. The term "department" means the Indiana department of state revenue. Formerly: Acts 1963(ss), c.32, s.104.

Sec. 40. (a) The term "separately stated net operating loss" means a federal net operating loss, or a portion of a federal net operating loss, determined according to the Internal Revenue Code that is: (1) computed as an allowable federal net operating loss with regard to a taxab…

Sec. 41. The term "investment partnership" means a partnership for federal income tax purposes that meets the following requirements: (1) Not less than ninety percent (90%) of the partnership's cost of its total assets consists of qualifying investment securities, deposits at ban…

Sec. 42. The term "qualifying investment securities" means the following: (1) Common stock, including preferred or debt securities convertible into common stock, and preferred stock. (2) Bonds, debentures, and other debt securities. (3) Foreign and domestic currency deposits secu…

Sec. 43. The term "qualifying investment partnership income" means the adjusted gross income from qualifying investment securities, excluding any income or loss from an asset described in section 42(13) of this chapter. As added by P.L.230-2025, SEC.68.

Sec. 5. The term "employer" means "employer" as defined in section 3401(d) of the Internal Revenue Code. Formerly: Acts 1963(ss), c.32, s.105.

Sec. 6. The term "employee" means "employee" as defined in section 3401(c) of the Internal Revenue Code. Formerly: Acts 1963(ss), c.32, s.106.

Sec. 7. "Fiduciary" means any guardian, trustee, executor, administrator, receiver, conservator, or any person, whether individual or corporate, acting in any fiduciary capacity for any individual, trust, guardian, or estate. Formerly: Acts 1963(ss), c.32, s.107. As amended by P.…

Sec. 8. The term "gross income" shall mean gross income as defined by section 61(a) of the Internal Revenue Code. Formerly: Acts 1963(ss), c.32, s.108.

Sec. 9. The term "individual" means a natural person, whether married or unmarried, adult or minor. Formerly: Acts 1963(ss), c.32, s.109.

Sec. 1. (a) It is the intent and purpose of this chapter to impose a tax on all cigarettes sold, used, consumed, handled, or distributed within this state, which shall be collected from the person who first sells, uses, consumes, handles, or distributes the cigarettes. (b) It is …

Sec. 10. As used in this chapter, "counterfeit stamp" means any stamp, label, print, indicium, or character which evidences, or purports to evidence the payment of any tax levied by this chapter, and which stamp, label, print, indicium, or character has not been printed, manufact…

Sec. 11. As used in this chapter, "drop shipment" means any shipment billed to one other than the person receiving such shipment. Formerly: Acts 1947, c.222, s.10 1/2. As amended by P.L.128-2026, SEC.41.

Sec. 12. The following taxes are imposed, and shall be collected and paid as provided in this chapter, upon the sale, exchange, bartering, furnishing, giving away, or otherwise disposing of cigarettes within the state of Indiana: (1) On cigarettes weighing not more than three (3)…

Sec. 13.5. A common carrier is liable for any unpaid taxes imposed under this chapter on: (1) cigarettes, where the carrier takes possession of the cigarettes because they were damaged or they were not accepted by the consignee, and where the carrier does not return the cigarette…

Sec. 14. (a) A tax is levied, assessed, and imposed upon the use, consumption, or possession for use of cigarettes within Indiana at the rates set forth and in the manner provided in section 12 of this chapter. (b) Payment of the taxes levied, assessed, and imposed by this chapte…