Fillable Form Urt-1 - 2012 Indiana Utility Receipts Tax Return

Instructions for Indiana Utility

utility services and if the taxpayer collects the

tax separately;

Receipts Tax Form URT-1 (8-12)

• Wholesale sales to another generator or re-

General Statement

seller of utilities;

The tax is imposed on the taxable gross receipts of an

• Holding company receipts from electric mem-

entity providing the retail sale of utility services for

ber cooperatives;

the taxable year.

• Joint agency receipts from member municipal

electric utilities;

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

• Refundable deposits paid by a customer to the

percent on the taxable gross receipts described below.

taxpayer; or

All entities are subject to the tax if their taxable gross

• An occasional sale of utility services by a tax-

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

payer that is not regularly engaged in the trade

providing:

or business of selling utility services.

• Electrical energy;

• Natural gas (other than propane or liquefied

Gross receipts from the sale of utility services between

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

members of a controlled group of corporations or an

power;

affiliated group are exempt if the seller is the producer

• Water;

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

• Steam;

and the seller and purchaser exist at the same loca-

• Sewage; or telecommunications.

tion or adjacent locations. Note: Effective Jan. 1, 2013,

gross receipts received by a taxpayer from an electric-

All entities are subject to the tax if they exceed the

ity supplier as payment of severance damages or other

$1,000 limitation mentioned previously. This includes

compensation resulting from a change in assigned

S corporations, partnerships, limited liability compa-

service area boundaries are also exempt.

nies, and limited liability partnerships.

Exempt Entities

Taxable Receipts

Gross receipts received by the following entities are

Taxable receipts include the following:

exempt from the utility receipt tax:

• Retail sale of utility services;

• Conservancy districts;

• Judgments or settlements as compensation for

• Regional water, sewage, or solid waste districts;

lost retail sales;

• Nonprofit corporations formed solely for the

• Sales to a reseller if the utility is used in hotels,

purpose of supplying water to the public;

mobile home parks, or marinas;

• Corporations formed for the purpose of pro-

• Sales of water or gas to another for rebottling;

viding a combination of water and sewer to the

• Installation, maintenance, repair, equipment,

public;

or leasing services provided and charges for

• County solid waste management districts;

the removal of the equipment; and

• Joint solid waste management districts;

• All other receipts not segregated between retail

• County onsite waste management districts; and

and nonretail transactions.

• Political subdivisions for sewer and sewer

service.

Nontaxable Receipts

Taxable Year

The following receipts are excluded from the compu-

tation of the utility receipts tax:

Estimated Payments

• Sales to the U.S. government;

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

• Interstate sales to the extent the state is pro-

taxpayer is required to file quarterly estimated pay-

hibited from taxing the gross receipts by the

ments and remit 25 percent of the estimated annual

Constitution of the United States;

tax due on each quarterly return.

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

charge imposed by a governmental unit if the

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

tax is imposed solely on the sales at retail of

taxpayer is required to pay the quarterly estimated tax

Form Urt-1 - 2012 Indiana Utility Receipts Tax Return - 2012 Page 3

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