Rep. Karickhoff supports Indiana businesses
STATEHOUSE – State Representative Mike Karickhoff (R-Kokomo) authored legislation to benefit Hoosier businesses. House Bill (HB) 1271 would allow grocers and similar retailers to maintain their sales tax exemption when they purchase labels that are required for the sale of certain products. The bill passed unanimously out of the Senate.
“Grocery stores are intended to receive a sales tax exemption for the purchase of certain labels as their food products cannot be sold without them,” said Rep. Karickhoff. “The purpose of this legislation is to protect and codify this exemption, especially for the businesses that are being required to pay this tax.”
Currently, no law exists that requires sales tax revenue to be collected on labels that are required to comply with governmental regulations. These labels can be found on certain meat, bakery items and deli products.
Recent audits conducted by the Department of Revenue, which has the authority to determine what items are taxable and non-taxable, has required some grocery stores and retailers to repay that sales tax on these labels. Businesses will be protected from these unintended fees or charges by codifying this tax exemption in the Indiana code.
“Legislation that benefits Hoosier businesses is essential to our economy,” said Rep. Karickhoff. “It is important to ensure that today’s market remains fair and competitive, fostering growth across the state.”
This bill now goes to the governor’s office to be signed. Visit iga.in.gov to learn more about HB 1271.
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State Rep. Mike Karickhoff serves as Budget Subcommittee Chairman of the Ways and Means Committee and on the Natural Resources Committee. He is also the chair of the Indiana Advisory Commission on Intergovernmental Relations. Rep. Karickhoff represents portions of Howard and Grant counties, most of the city of Kokomo and the towns of Swayzee and Greentown.
