ILNews

Wine bar’s programmable cards not subject to tax exemption

Back to TopCommentsE-mailPrintBookmark and Share

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.”
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. For many years this young man was "family" being my cousin's son. Then he decided to ignore my existence and that of my daughter who was very hurt by his actions after growing up admiring, Jason. Glad he is doing well, as for his opinion, if you care so much you wouldn't ignore the feelings of those who cared so much about you for years, Jason.

  2. Good riddance to this dangerous activist judge

  3. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  4. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  5. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

ADVERTISEMENT