Play It Again (Play) sells musical instruments in Indiana. In doing so, Play sales personnel solicit orders from customers, and the orders are sent to Play headquarters outside Indiana for acceptance or rejection. If accepted, the orders are shipped via common carrier from an inventory located outside Indiana.

Play sales personnel have an extensive knowledge of the products, and regularly describe why their products are better than their competitors. If a customer experiences a problem with an instrument, Play sales personnel will perform repair services on the spot. Such repairs services are provided often, and are part of the sales personnel's assigned functions. Play has no other activities in Indiana.

Using the MTC Statement of Information on P.L. 86-272, are Play's activities in Indiana protected from the imposition of a net income tax in Indiana.

A. Yes. All of Play's activities constitute the solicitation of orders for the sale of tangible personal property or are entirely ancillary to such solicitation.

B. No. The performance of repair services is not protected under the MTC Statement and is not de minimis under the facts.

C. Yes. Under the MTC Statement, activities typically assigned to sales personnel are protected, provided that Play does not have an office, plant or warehouse in Indiana.

D. No. According to the Court in Wrigley, P.L. 86-272 is strictly limited to the act of requesting an order, and does not protect activities that are entirely ancillary to such solicitation.

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