Utilities Receipts Tax Flashcards
Indiana Utilities Receipts Tax
Tax on the gross receipts of utilities operating in Indiana
Utilities Subject to the Utilities Receipts Tax
Applies to any type of business or governmental entity (e.g., a municipality or special taxing district) that has gross receipts from the retail sale of utility services
Resident vs. Nonresident Taxpayers
If the utility is a resident or is domiciled in Indiana, the ENTIRE TAXABLE GROSS RECEIPTS of the utility are subject to the utilities receipts tax
If the utility is a nonresident taxpayer, only the taxable gross receipts DERIVED FROM BUSINESS, ACTIVITES, OR OTHER SOURCES IN INDIANA are subject to the utilities receipts tax.
Tax Rate
1.4% on gross receipts from retail utility service sales
Definition of “Gross Receipts”
For purposes of the utilities receipts tax means anything of value that the taxpayer receives in consideration for a retail sale of utility services for consumption
Exclusions: Government Fees
Government-imposed taxes, fees, or charges collected by the utility taxpayer on behalf of the government and paid over to the government ARE NOT gross receipts subject to the utilities receipts tax
Exclusions: Wholesale Sales
Utilities receipts tax is only on RETAIL SALES
Gross receipts for purposes of the utilities receipts tax do not include a wholesale sale to another generator or reseller of utility services
Standard Yearly Deduction
Each taxable year, a utility taxpayer is entitled to deduct from the taxpayer’s gross receipts $1,000
Bad Debt Deduction
Each taxable year, a taxpayer that reports the taxpayer’s gross receipts on an accrual basis is entitled to deduct bad debts from the taxpayer’s gross receipts
Resource Recovery System Deduction
In general, a utility taxpayer is entitled to a deduction for purposes of the utilities receipts tax if allowed a depreciation deduction for federal income tax purposes for a solid waste or hazardous waste recovery system
