Sec. 2. The following definitions apply throughout this chapter:

(1) "Department" refers to the department of state revenue.

(2) "Gross retail income" has the meaning set forth in IC 6-2.5-1-5, except that the term does not include taxes imposed under IC 6-2.5 or the excise tax imposed under this chapter.

(3) "Heavy rental equipment" means all rented tangible personal property:

(A) that is owned by a person or business that:

(i) primarily rents equipment described in 532412 of the North American Industry Classification System Manual in effect on January 1, 2018; and

(ii) is a retail merchant in the business of renting heavy equipment, including any attachments or accessories;

(B) that is not intended to be permanently affixed to any real property; and

(C) that is not subject to registration under IC 9-18.1 for use on a public highway (as defined in IC 9-25-2-4).

A person is considered to primarily rent equipment described in 532412 of the North American Industry Classification System Manual in effect on January 1, 2018, if the rental of the equipment generates the largest portion of the person's gross revenue and the person lists 532412 as the person's principal business activity code on the person's Indiana adjusted gross income tax return. In the case of a person who is an affiliate included in an Indiana consolidated or combined adjusted gross income tax return, the person may provide a copy of the federal Form 851 filed with the Internal Revenue Services that lists 532412 as the person's principal business activity code. For purposes of this chapter, the department may rely on the principal business activity code listed for the person on the person's Indiana adjusted gross income tax return of the federal Form 851, and the person may not apply any change to the listing on any amended return or subsequent return or federal form for purposes of this chapter without the approval of the department.

(4) "Person" has the meaning set forth in IC 6-2.5-1-3.

(5) "Rental" means any transfer of possession or control of heavy rental equipment for consideration:

(A) for a period not to exceed three hundred sixty-five (365) days; or

(B) for a period that is open ended under the terms of the rental contract with no specified end date.

(6) "Retail merchant" has the meaning set forth in IC 6-2.5-1-8.

As added by P.L.188-2018, SEC.3. Amended by P.L.10-2019, SEC.41; P.L.234-2019, SEC.25.