Fillable Form Urt-1 - Indiana Utility Receipts Tax Return

Instructions for Indiana Utility

• Holding company receipts from electric mem-

ber cooperatives;

Receipts Tax Form URT-1 (8-11)

• Joint agency receipts from member municipal

General Statement

electric utilities;

The tax is imposed on the taxable gross receipts of an

• Refundable deposits paid by a customer to the

entity providing the retail sale of utility services for

taxpayer; or

the taxable year.

• An occasional sale of utility services by a tax-

payer that is not regularly engaged in the trade

The tax is an income tax imposed at a rate of 1.4

or business of selling utility services.

percent on the taxable gross receipts described below.

All entities are subject to the tax if their taxable gross

Gross receipts from the sale of utility services between

receipts exceed $1,000. Utility services are defined as

members of a controlled group of corporations or an

providing:

affiliated group are exempt if the seller is the producer

• Electrical energy;

of the utility service and the purchaser is the end user,

• Natural gas (other than propane or liquefied

and the seller and purchaser exist at the same location

petroleum gas) used for heat, light, cooling, or

or adjacent locations.

power;

Exempt Entities

• Water;

• Steam;

Gross receipts received by the following entities are

• Sewage; or telecommunications.

exempt from the utility receipt tax:

• Conservancy districts;

All entities are subject to the tax if they exceed the

• Regional water, sewage, or solid waste districts;

• Nonprofit corporations formed solely for the

$1,000 limitation mentioned previously. This includes

S corporations, partnerships, limited liability compa-

purpose of supplying water to the public;

nies, and limited liability partnerships.

• Corporations formed for the purpose of pro-

viding a combination of water and sewer to the

Taxable Receipts

public;

Taxable receipts include the retail sale of utility servic-

• County solid waste management districts;

es; judgments or settlements as compensation for lost

• Joint solid waste management districts;

retail sales; sales to a reseller if the utility is used in

• County onsite waste management districts; and

hotels, mobile home parks, or marinas; sales of water

• Political subdivisions for sewer and sewer

or gas to another for rebottling; installation, mainte-

service.

nance, repair, equipment, or leasing services provided

Taxable Year

and charges for the removal of the equipment; and all

other receipts not segregated between retail and non-

Estimated Payments

retail transactions.

If a taxpayer’s annual tax liability exceeds $2,500, the

taxpayer is required to file quarterly estimated pay-

Nontaxable Receipts

ments and remit 25 percent of the estimated annual

The following receipts are excluded from the compu-

tax due on each quarterly return.

tation of the utility receipts tax:

• Sales to the U.S. government;

If the taxpayer’s annual liability exceeds $40,000, the

• Interstate sales to the extent the state is pro-

taxpayer is required to pay the quarterly estimated tax

hibited from taxing the gross receipts by the

liability by electronic funds transfer (EFT). If the pay-

Constitution of the United States;

ment is made by EFT, the taxpayer is not required to

• Collections by a taxpayer of a tax, fee, or sur-

file an estimated return. Estimated payments are due

charge imposed by a governmental unit if the

on the 20th day of the fourth, sixth, ninth, and twelfth

tax is imposed solely on the sales at retail of

months of the taxpayer’s taxable year. If you have

utility services and if the taxpayer collects the

questions about the EFT registration process, you can

tax separately;

call (317) 232-5500. You can get the EFT registration

• Wholesale sales to another generator or re-

form (EFT-1) on the Department’s website at

seller of utilities;

Form Urt-1 - Indiana Utility Receipts Tax Return - 2011 Page 3

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