OUR THOUGHTS ON:

Indiana Sales and Use Tax Exemptions for Waste Haulers

State and Local Tax|Transportation & Logistics

By Mark Rossetti

On April 25, 2012, the Indiana Department of Revenue (IDR) issued Letter of Findings 04-20110476, which deals with the sales tax exemption afforded to persons providing public transportation. The taxpayer was a waste products hauler that transported items between steel mills and the landfill.

The IDR asserted that the taxpayer was the owner of the waste items and therefore did not qualify for the exemption. This assertion was rebutted by the taxpayer having a contract stating that “Title to any and all Waste handled or disposed of by [the customer] shall at all times remain with [the customer] and Broker (if a Broker is involved).” The tax court agreed with the taxpayer and rightly affirmed their exemption for diesel fuel and repair parts for its vehicles.

Although the decision in this case was based upon the specific facts and circumstances of the taxpayer, those companies that operate a similar business model should analyze whether they would meet the same fact pattern to qualify for the exemption.

If you have questions about the Indiana tax court decision, please contact Mark Rossetti in the SALT group at (614)586-7234. 

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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