Section 45IAC2.2-5-56. Fraternities, sororities, and student cooperative housing organizations; acquisitions

   (a) The state gross retail tax exempts transactions occuring [sic.] after December 31, 1976, and involving tangible personal property or service, if the person acquiring the property or service:

(1) Is a fraternity, sorority, or student cooperative housing organization which is granted a gross income tax exempt under IC 6-2.1-3-19; and

(2) Uses the property or service to carry on its ordinary and usual activities and operations as a fraternity, sorority, or student cooperative housing organization.

  (b) Purchases for the private benefit of any member of the organization or for any other individual are not eligible for exemption.

─EXAMPLE─

(1) A sorority purchases furniture for the sorority house. The state gross retail tax will not apply. The furniture is tangible personal property used by the sorority to carry on its ordinary and usual activities.

(2) A fraternity member purchases a television set for his own individual use in the fraternity house. The purchase would not be exempt. The fraternity member can not use the fraternity's exemption to purchase tangible personal property for his private benefit.

(Department of State Revenue; Ch. 5, Reg. 6-2.5-5-25(b)(010); filed Dec 1, 1982, 10:35 am: 6 IR 52)