Senate Bill 174 Summary

• Reduces Indiana's state gross retail and use tax rate from 7% to 6% effective January 1, 2011, contingent on a property tax constitutional amendment not being agreed to by the 116th General Assembly before November 3, 2010.

• Establishes a 6% tax rate on retail transactions of $1.09 or more, with a tiered schedule for transactions under $1.09 ranging from $0 to $0.06 tax.

• Provides retail merchants with collection allowances of 0.83%, 0.6%, or 0.3% depending on their prior year tax liability to compensate for tax collection and remittance.

• Requires special reporting and tax collection procedures for gasoline and special fuel sales from metered pumps, with a 5.66% gross receipts tax rate.

• Directs tax collection deposits to the state general fund (99.067%), public mass transportation fund (0.76%), industrial rail service fund (0.033%), and commuter rail service fund (0.14%).