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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. Thank you, John Smith, for pointing out a needed correction. The article has been revised.

  2. The "National institute for Justice" is an agency for the Dept of Justice. That is not the law firm you are talking about in this article. The "institute for justice" is a public interest law firm. http://ij.org/ thanks for interesting article however

  3. I would like to try to find a lawyer as soon possible I've had my money stolen off of my bank card driver pressed charges and I try to get the information they need it and a Social Security board is just give me a hold up a run around for no reason and now it think it might be too late cuz its been over a year I believe and I can't get the right information they need because they keep giving me the runaroundwhat should I do about that

  4. It is wonderful that Indiana DOC is making some truly admirable and positive changes. People with serious mental illness, intellectual disability or developmental disability will benefit from these changes. It will be much better if people can get some help and resources that promote their health and growth than if they suffer alone. If people experience positive growth or healing of their health issues, they may be less likely to do the things that caused them to come to prison in the first place. This will be of benefit for everyone. I am also so happy that Indiana DOC added correctional personnel and mental health staffing. These are tough issues to work with. There should be adequate staffing in prisons so correctional officers and other staff are able to do the kind of work they really want to do-helping people grow and change-rather than just trying to manage chaos. Correctional officers and other staff deserve this. It would be great to see increased mental health services and services for people with intellectual or developmental disabilities in the community so that fewer people will have to receive help and support in prisons. Community services would like be less expensive, inherently less demeaning and just a whole lot better for everyone.

  5. Can I get this form on line,if not where can I obtain one. I am eligible.

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