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The public transportation exemption is found at IC § 6-2.5-5-27,
which states: Transactions involving tangible personal property and services are
exempt from the state gross retail tax, if the person acquiring the property or
service directly uses or consumes it in providing public transportation for persons
or property.
....
Also, the Indiana Tax Court has addressed the application of the
public transportation exemption. In Carnahan Grain, Inc. v. Indiana Dep't of State Revenue, 828 N.E.2d
465, 468 (Ind. Tax Ct. 2005), the court provided: [I]f the property is not predominately used
for third-party transportation (i.e., it is predominantly used to transport the
taxpayer's own property), then the taxpayer is not entitled to the exemption.
Therefore, the property in question must be used predominantly for
transporting the property of another for consideration in order to qualify for
the public transportation exemption.
In the instant case, Taxpayer has not provided any documentation
in support of its position that it qualifies for the exemption provided under
IC § 6-2.5-5-27. Neither has Taxpayer provided a detailed written explanation
of its position. Taxpayer has not met its burden of proving the proposed
assessments wrong, as required by IC §6-8.1-5-1(c).
FINDING
Taxpayer's protest is denied.
