1. (a) Each person in Indiana who is required under the Internal Revenue Code to withhold federal tax from winnings shall deduct and retain adjusted gross income tax at the time and in the amount described in withholding instructions issued by the department.

2. (b) In addition to amounts withheld under subsection (a), every person engaged in a gambling operation (as defined in IC 4-33-2-10 ) or a gambling game (as defined in IC 4-35-2-5 ) and making a payment in the course of the gambling operation (as defined in IC 4-33-2-10 ) or a gambling game (as defined in IC 4-35-2-5 ) of:

   1. (1) winnings (not reduced by the wager) valued at one thousand two hundred dollars ($1,200) or more from slot machine play; or

   2. (2) winnings (reduced by the wager) valued at one thousand five hundred dollars ($1,500) or more from a keno game;

      shall deduct and retain adjusted gross income tax at the time and in the amount described in withholding instructions issued by the department. The department's instructions must provide that amounts withheld shall be paid to the department before the close of the business day following the day the winnings are paid, actually or constructively. Slot machine and keno winnings from a gambling operation (as defined in IC 4-33-2-10 ) or a gambling game (as defined in IC 4-35-2-5 ) that are reportable for federal income tax purposes shall be treated as subject to withholding under this section, even if federal tax withholding is not required.

3. (c) The adjusted gross income tax due on prize money or prizes:

   1. (1) received from a winning lottery ticket purchased under IC 4-30 ; and

   2. (2) exceeding one thousand two hundred dollars ($1,200) in value;

      shall be deducted and retained at the time and in the amount described in withholding instructions issued by the department, even if federal withholding is not required.

4. (d) In addition to the amounts withheld under subsection (a), a qualified organization (as defined in IC 4-32.2-2-24 (a)) that awards a prize under IC 4-32.2 exceeding one thousand two hundred dollars ($1,200) in value shall deduct and retain adjusted gross income tax at the time and in the amount described in withholding instructions issued by the department. The department's instructions must provide that amounts withheld shall be paid to the department before the close of the business day following the day the winnings are paid, actually or constructively.

As added by P.L.28-1997, SEC.16. Amended by P.L.192-2002(ss), SEC.82; P.L.91-2006, SEC.8; P.L.182-2009(ss), SEC.200.