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Indiana Exempts Blood Glucose Monitors and Olympic Medals

  • Apr 4, 2014 | Gail Cole

 Indiana: Olympic medals won after January 1, 2014, are tax exempt.

A new law in Indiana covers a variety of topics: blood glucose monitoring devices, Olympic medals and prize money, and rounding taxes. Senate Bill 161 was signed by Governor Mike Pence (R) on March 25, 2014.

Blood glucose monitoring meters

This section of the new law, which helps the state to conform to the Streamlined Sales and Use Tax Agreement, takes effect July 1, 2014.

Blood glucose monitoring meters are removed from the definition of “blood glucose monitoring supply.”

“Diabetic supply distributor” is defined as “a person that primarily sells blood glucose meters for resale and not for retail sale.”

“Blood glucose meters and the packaging or literature for a blood glucose meter furnished without charge by a diabetic supply distributor” are exempt from the state gross retail tax.

Blood glucose meters are also exempt from sales tax when prescribed by a physician.

Rounding the tax

Indiana has a single state sales tax rate (7%) and no local rates. Under current law when “the gross retail income received by a retail merchant in a retail unitary transaction… carried to the third decimal place results in the numeral in the third decimal place being greater than four (4), the amount of tax shall be rounded to the next additional cent.”

The new law, effective July 1, 2014, allows sellers to “round the tax” referenced above on a transaction on an item basis or an invoice basis.”

However, the law stipulates that “a seller may not round the tax [on an item basis] to circumvent the tax that would otherwise be imposed on a transaction using an invoice basis.”

Olympic medals and prize money

Effective for taxable years beginning after December 31, 2013, Olympians are entitled to an exemption from the adjusted gross income tax equal to the sum of:

  • The value of an Olympic medal won during the taxable year;
  • The amount of income received during the taxable year from the United States Olympic Committee as prize money for winning the Olympic medal.

Dealing with change

When tax laws change, businesses are impacted. An automated sales tax solution helps you file the right amount of tax, on time, every time. Learn how it works.

photo credit: Daniel Coomber via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.