Senate Bill 245 Summary

• Amends Indiana Code IC 6-2.5-5-38.2 to exclude motor vehicle rebates and employee discounts from gross retail income for sales tax calculation purposes.

• Exempts third-party payments or credits (including employee discounts) from gross retail tax on motor vehicle sales and leases when specific conditions are met.

• Requires the customer's purchase agreement to document that the discount is directly related to a price reduction, that the seller must pass it through to the purchaser, that the amount is fixed and determinable at the time of sale, and that it is identified as a third-party price reduction.

• Effective date: July 1, 2010.