Automobile Lessor Cries “Rich Uncle” but Department of Revenue Determines that Dealer Buyout Payments are Subject to Indiana Sales Tax

Letter of Findings 04-20110564 and 04-20120271, released Wednesday by the Indiana Department of Revenue, involved a taxpayer ("Auto") engaged in the business of leasing vehicles.  Auto would contract with a customer ("Customer") to lease a vehicle for a set period of time, after which Auto would typically sell the … [Read more...]

A Common Carrier “On the Move”: Denial of Taxpayer’s Public Transportation Exemption for Sales and Use Tax Reversed by Indiana Tax Court

On October 30th, the Indiana Tax Court in Wendt LLP v. Indiana Department of State Revenue, Cause No. 02T10-0701-TA-2, held that certain purchases by Wendt, a licensed common carrier headquartered in Wabash, Indiana, qualified for the public transportation exemption (Ind. Code § 6-2.5-5-27) from sales and use tax, … [Read more...]