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For more information, contact City of South Bend Business License Administrator, Michelle Adams | madams@southbendin.gov | 574.235.5912 | 13 <br />RESOURCE GUIDE <br />INDIANA USE TAX <br />Use tax is due on tangible personal property <br />brought into Indiana for use, storage, or <br />consumption that was acquired in a retail <br />transaction and sales tax was not paid at the <br />point of purchase. Exceptions for this tax may be <br />found in the Indiana Code (IC 6-2.5-5 and IC <br />6-2.5-3). The Indiana use tax rate is 7% as of <br />April 1, 2008. Registered retail merchants must <br />report and pay the use tax due on Form ST-103 <br />Indiana Sales Tax Return. Business entities that <br />are not retail merchants must report and pay the <br />use tax due on the income tax return of the <br />entity or on a ST-115 Consumer’s Use Tax <br />Return. <br />TYPES OF PURCHASES THAT ARE <br />SUBJECT TO INDIANA USE TAX: <br />●Catalog purchases by phone or mail <br />from out-of-state vendors. <br />●Internet purchases from out-of-state <br />vendors. <br />●Items withdrawn from inventory for <br />personal use or to give away. <br />WITHHOLDING TAX <br />Employers are considered to be withholding <br />agents if they make payments of salaries, wages, <br />tips, fees, bonuses, and commissions that are <br />subject to Indiana state and/or county taxes, <br />and are required by the Internal Revenue Code <br />to withhold federal income tax on those types <br />of payments. <br />Withholding agents are required to register <br />with the Indiana Department of Revenue by <br />filing Form BT-1 (no fee required) and to <br />withhold state income tax and county income <br />tax, if applicable, from the income of all <br />employees. <br />Independent contractors are required to file <br />quarterly estimated income tax payments. For <br />more information, contact the Indiana <br />Department of Revenue, Withholding at <br />317.232.2240.