Power subsidiary; utilities furnished to industrial consumers not subject to the gross retail tax

Sec. 13. (a) In general, the furnishing of electricity, gas, water, steam, or steam heating services by public utilities to consumers is subject

to tax.

(b) The gross receipt of every person engaged as a power subsidiary or a public utility derived from selling electrical energy, gas, water,

or steam to consumers for direct use in direct manufacturing, mining, production, refining, oil or mineral extraction, irrigation, agriculture,

horticulture, or another public utility or power subsidiary described in IC 6-2.5-4-5 shall not constitute gross retail income of a retail

merchant received from a retail transaction. Electrical energy, gas, water, or steam will only be considered directly used in direct production,

manufacturing, mining, refining, oil or mineral extraction, irrigation, agriculture, or horticulture if the utilities would be exempt under IC 6-2.5-

5-5.1.

(c) Sales of public utility services or commodities to consumers engaged in manufacturing, mining, production, refining, oil or mineral

extraction, irrigation, agriculture, horticulture, or another public utility or power subsidiary described in IC 6-2.5-4-5, based on a single

meter charge, flat rate charge, or other charge, are excepted if such services are separately metered or billed and will be used predominantly for the

excepted purposes.

(d) Sales of public utility services and commodities to consumers engaged in manufacturing, mining, production, refining, oil or mineral

extraction, irrigation, agriculture, or horticulture, based on a single meter charge, flat rate charge, or other charge, which will be used for both

excepted and nonexcepted purposes are taxable unless such services and commodities are used predominantly for excepted purposes.

(e) Where public utility services are sold from a single meter and the services or commodities are utilized for both exempt and nonexempt

uses, the entire gross receipts will be subject to tax unless the services or commodities are used predominantly for excepted purposes. Predominant

use shall mean that more than fifty percent (50%) of the utility services and commodities are consumed for excepted uses.