There are several interesting sales tax exemptions and product definitions in Indiana. For example, candy is subject to sales tax and is defined as “preparations of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients in the form of bars, drops, or pieces.”
Under this definition, beer nuts party mix, almond bark, and caramel apples are considered taxable. However, items considered candy, but that contain flour (such as Kit-Kat, Nestle Crunch, and Twix bars) are exempt from sales tax, as are items “commonly thought of as candy, but which are not bars, drops, or pieces” including the powdered sugar treat Pixie Stix. Furthermore, while potato chips are exempt from sales tax, chocolate-covered potato chips are not.
Check out the following list to see if your business can take advantage of a few more odd definitions and strange, yet legitimate, exemptions:
- Professional motor racing vehicle: Two-seater Indy cars and related vehicle parts are exempt from sales tax, as long as the car or equipment is leased, owned, or operated by a professional racing team.
- Golf Courses: Transactions involving tangible personal property are exempt from sales tax if the property is acquired by a city or town for the use or operation of a municipal golf course.
- Rolling stock: The sale of rolling stock, or rail transportation equipment, is exempt from sales tax, including locomotives and freight cars of any type, such as box and flatbed cars.
Do you have other questions regarding Indiana sales tax exemptions? Check out our Guide to Indiana Sales Tax.
