(a) The storage, use, and consumption of tangible personal property in Indiana is exempt from the use tax if:

1. (1) the property was acquired in a retail transaction and the state gross retail tax has been paid on the acquisition of that property; or
2. (2) the property was acquired in a transaction that is wholly or partially exempt from the state gross retail tax under any part of IC 6-2.5-5 and the property is being used, stored, or consumed for the purpose for which it was exempted.

(b) If a person issues a state gross retail or use tax exemption certificate for the acquisition of tangible personal property and subsequently uses, stores, or consumes that property for a nonexempt purpose, then the person shall pay the use tax.

As added by Acts 1980, P.L.52, SEC.1. Amended by P.L.146-2020, SEC.9; P.L.137-2022, SEC.16.