Retail Merchant Certificate

The Indiana Department of Revenue has announced that beginning Jan. 1, 2007, businesses that are delinquent in their Indiana sales tax payments could find themselves out of business, thanks to new legislation.

The new law requires all businesses to renew their retail merchant certificates every two years. Previously, registration for a retail merchant certificate was a one-time event, good for life. Certificate renewals will be phased in over a two-year period.

According to the Indiana Department of Revenue, businesses that are delinquent in paying their sales taxes will be denied renewal and if they continue to operate without a valid retail merchant certificate, the company's responsible officers could face a class B misdemeanor, which is punishable by imprisonment, fines, or both.

The new law provides the state with added leverage to encourage businesses to pay timely. Registration for businesses whose sales tax payments are current is automatic and at no cost. However, serious consequences could be awaiting businesses that are delinquent.

For a more specific schedule of the due date of renewals, see: http://in.gov/legislative/register/20061115-IR-045060510ERA.xml.html

The Department will notify all businesses that owe sales and use tax at least 60 days prior to the scheduled expiration of their current Retail Merchant Certificate.