The public transportation exemption is available for taxpayers who transport the property of other persons. The issue in this case is whether Taxpayer owns the waste generated and transported.
Taxpayer notes that, in general, transporting of residential
and general business garbage does not qualify for the exemption provided under
IC § 6-2.5-5-27. However, Taxpayer asserts that the contractual and regulatory
requirements governing the waste transported by Taxpayer cannot permit
ownership in that waste by anyone other than the customer.
In this particular case, Taxpayer has provided a copy of the
standard contract between the landfill operator and the steel mill. Pursuant to
the terms of the contract, "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)." Furthermore, the contract provides the
landfill operator has the right to inspect and reject any waste that was sent
to the landfill prior to disposal at the landfill.
Further, Taxpayer cites to various regulations under 329 IAC 10
which provide for notification and inspection requirements related to the
customer's waste. However, the specific regulations cited by Taxpayer–with one
exception–were repealed in July 2004.
Even given the requirement that exemption statutes be
narrowly construed against a taxpayer and in favor of taxation, this Taxpayer
has met its burden of demonstrating that the waste it transports on behalf of
its customers was in fact the customer's property. Therefore, Taxpayer has
affirmatively established it transported its customer's property and the items
assessed were used in public transportation.
http://www.in.gov/legislative/iac/20120425-IR-045120182NRA.xml.html
