…
45 IAC
2.2-3-5(g) states that: The dealer
or license branch must collect sales tax in the usual manner from any purchaser
claiming exemption from the sales tax for a reason other than those shown on
the ST-108. The purchaser may apply for a refund of this tax from the Indiana
Department of Revenue, Sales Tax Division.
Previously, there was a sales tax
exemption for sales of vehicles that were immediately transported outside
Indiana and title or registered in another state. However, effective July 1,
2004, the Indiana legislature repealed that exemption. IC § 6-2.5-5-15
(Repealed, P.L. 81-2004, Sec. 60). Since that repeal on July 1, 2004, Indiana sales
tax applies to all motor vehicles, trailers, watercraft, or aircraft purchased
in Indiana. 45 IAC
2.2-2-1.
Taxpayer, therefore, had a legal
obligation to collect and remit the sales tax due from the out-of-state
customers on the sales of the vehicles since the sales were not specifically
exempted.
Furthermore, Sales Tax Information
Bulletin 28S (October 2007), 20071031 Ind. Reg. 045080050NRA, and Sales Tax
Information Bulletin 28S (February 2008), 20080130 Ind. Reg. 045080050NRA,
states in a section that discusses interstate commerce: A vehicle or trailer sold in interstate commerce
[emphasis in original] is not subject to the Indiana sales tax. To qualify as
being "sold in interstate commerce" the vehicle or trailer must be
physically delivered, by
the selling dealer, to a delivery point outside Indiana. The
delivery may be made by the dealer or the dealer may hire a third party
carrier. Terms and method of delivery must be indicated on the sales invoice.
The dealer must document terms of delivery and must keep a copy of such terms
of delivery to substantiate the interstate sale. (Emphasis
added).
Pursuant to the above, if the
customer is deemed to have taken possession of the vehicle in Indiana, then the
purchase is subject to Indiana sales tax.
…It is clear Taxpayer had a legal duty to collect sales tax on the non-exempt retail transactions in question, and to remit those taxes to the Department. Taxpayer's post-hearing documentation is not sufficient to meet the requirements expressed in Sales Tax Bulletin 28S, which requires Taxpayer to submit original documentation pertaining to delivery. Taxpayer has not met its burden of proving the proposed assessment wrong, as required by IC § 6-8.1-5-1(c).
