However, Taxpayer has identified a series of equipment and
supply purchases which it states were sold to the customer which held the
direct pay permit. Based on that assertion, Taxpayer claims that it was error
for the audit to include as taxable certain equipment and supplies purchased
for or consumed in the provision of lawn care services for the direct pay
customer.
…
Taxpayer cites to various purchases which it believes are
exempt on the ground that the item or items purchased were provided to its
single customer which held a direct pay permit. For example, Taxpayer cites to
2009 purchases from "John Deere Landscapes," a purchase from
"Erosion Runner Midwest," and a series of purchases from
"Advanced Turf Solutions." While the Department has no reason to
doubt Taxpayer's good intentions, there is nothing in the record which
indicates that these particular transactions were specifically intended for
Taxpayer's direct pay permit customer.
Taxpayer's records do not support its contention. Indiana
law requires that Taxpayer's maintain records sufficient to establish what is
taxable and what is not taxable… Under IC § 6-8.1-5-1(c), Taxpayer has failed
to meet its burden of establishing that the proposed assessment is wrong.
