Senate Bill No. 124 Summary

• Amends Indiana Code IC 6-2.5-5-38.2 to exclude rebates and employee discounts from gross retail income when calculating sales and use tax on motor vehicle sales or leases.

• Exempts third-party payments or credits, including employee discounts, from gross retail tax if the customer's purchase agreement documents the discount as a price reduction with seller obligation to pass it through.

• Requires the discount amount to be fixed and determinable at the time of sale or lease and identified in the agreement as a third-party price reduction.

• Effective July 1, 2011.