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Wine bar’s programmable cards not subject to tax exemption

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An Indianapolis wine bar’s programmable cards that customers purchase to dispense samples are not subject to resale tax exemption, the Indiana Tax Court ruled Monday.

Judge Mary Blood Wentworth affirmed the final determination of the Indiana Department of Revenue in Tannins of Indianapolis, LLC v. Indiana Department of State Revenue, 49T10-1303-SC-45. The business operates the Tastings wine bar in downtown Indianapolis. Visitors use prepaid programmable cards allowing them to choose and pay for wine by the glass, including 9 percent sales tax.

Tannins appealed proposed assessments for 2009, 2010 and 2011. The wine bar claimed its purchases of the cards were exempt from sales and use tax because it resold them to customers.

“This Court has consistently explained that for a resale to exist, the buyer and seller must separately bargain for the property in exchange for the payment of consideration,” Wentworth wrote. Tannins could not prevail on its argument that the cards should be exempt because they were a secondary object delivered prior to the main object of the transaction, the wine samples.

“This distinction lacks legal significance," Wentworth wrote. "Tannins did not present any legal authority or any rationale to persuade the Court that the timing of delivery changes this standard’s usefulness.

“Tannins’ purchases of tasting cards are not exempt from use tax under Indiana Code § 6-2.5-5-8(b), the purchase for resale exemption. The Court therefore affirms the Department’s final determination.”
 

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  1. Linda, I sure hope you are not seeking a law license, for such eighteenth century sentiments could result in your denial in some jurisdictions minting attorneys for our tolerant and inclusive profession.

  2. Mazel Tov to the newlyweds. And to those bakers, photographers, printers, clerks, judges and others who will lose careers and social standing for not saluting the New World (Dis)Order, we can all direct our Two Minutes of Hate as Big Brother asks of us. Progress! Onward!

  3. My daughter was taken from my home at the end of June/2014. I said I would sign the safety plan but my husband would not. My husband said he would leave the house so my daughter could stay with me but the case worker said no her mind is made up she is taking my daughter. My daughter went to a friends and then the friend filed a restraining order which she was told by dcs if she did not then they would take my daughter away from her. The restraining order was not in effect until we were to go to court. Eventually it was dropped but for 2 months DCS refused to allow me to have any contact and was using the restraining order as the reason but it was not in effect. This was Dcs violating my rights. Please help me I don't have the money for an attorney. Can anyone take this case Pro Bono?

  4. If justice is not found in a court room, it's time to clean house!!! Even judges are accountable to a higher Judge!!!

  5. The small claims system, based on my recent and current usage of it, is not exactly a shining example of justice prevailing. The system appears slow and clunky and people involved seem uninterested in actually serving justice within a reasonable time frame. Any improvement in accountability and performance would gain a vote from me. Speaking of voting, what do the people know about judges and justice from the bench perspective. I think they have a tendency to "vote" for judges based on party affiliation or name coolness factor (like Stoner, for example!). I don't know what to do in my current situation other than grin and bear it, but my case is an example of things working neither smoothly, effectively nor expeditiously. After this experience I'd pay more to have the higher courts hear the case -- if I had the money. Oh the conundrum.

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