Issues of the Indiana Retail Council

Some of the issues the Indiana Retail Council will be preparing for in the 2004 session of the General Assembly are:

• Defend the progress made in the tax area during the 2002 special session
  Specifically defend the repeal of the corporate gross income tax, the scheduled elimination of the inventory tax in 2007, the ability of counties to eliminate the inventory tax, and the restoration of the 35% inventory valuation deduction.



• Oppose any effort to reduce or repeal the retail vendors collection allowance
  The allowance was reduced with the increase in the sales tax in December of 2002 from 1% to .83%.



• Oppose an increase in the sales tax from its current 6% level



• Oppose an expansion of the sales tax to include services
  The Council has had a position for several years in opposition to the sales tax on advertising.



• Support the Streamlined Sales Tax effort
  Indiana's support of the national Streamlined Sales Tax Program will contribute to a uniform sales tax system in the US that will ease remote seller compliance with state sales tax collections. The Streamlined bill was passed in the 2003 session and the Council is now working with the Department of Revenue on rules needed for implementation.



• Support legislation to reduce the penalty imposed for undervaluing inventory for tax purposes
  Legislation introduced at the request of the Council failed to pass last session.



• Support the creation of a Sales Tax Holiday



• Oppose any effort to increase current excise taxes on tobacco products



• Oppose any effort to add a new excise tax on soft drinks (including non-nutritional beverages)



• Oppose an increase in the individual income tax



• Oppose an increase in current alcoholic beverage excise taxes



• Defend the ability of drug, grocery and convenience stores to sell alcoholic beverages and tobacco responsibly
  Included in this position is support for a new permit type for gourmet wine shops and support for the sale of cold beer in the above locations and the sale of distilled spirits in grocery stores.



• Support legislation to increase the service fee that can be imposed on bad check writers from $20 to $25
  Legislation introduced at the request of the Council passed last session increasing the service fee to $27.50.



• Monitor (oppose) legislation that would prohibit shelf space agreements between retailers and their suppliers
  Shelf space agreements are a standard part of sole retail store operations and would be adversely impacted by legislative intervention in this area.



• Support efforts to permit telemarketer calls to individuals with whom they have a prior business relationship



• Monitor legislation impacting pharmacy
  While there are no known threats to pharmacy at this time, Indiana's budget problems could lead to another effort to cut reimbursement in the Medicaid program.



• Support legislation to protect the solvency of the Underground Storage Tank Fund



• Support legislation to repeal Section 68 of the budget bill requiring drug stores to report to the Medicaid department discounts, rebates and price concessions they receive from suppliers



• Support legislation creating a procedure for employers to replace lost employee pay checks