Revenue Finds Exemption was not in Place at Time Taxpayer Purchased Car Crusher for Recycling Purposes

Taxpayer is an Indiana business. As the result of an audit, the Indiana Department of Revenue ("Department") determined that Taxpayer had not paid sales tax on some taxable purchases of tangible personal property during the tax years 2010 and 2011. The Department therefore issued proposed assessments for use tax and interest.
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Taxpayer protests the imposition of use tax on a car crusher. Taxpayer states that the car crusher is used for recycling purposes and is therefore exempt. ...
 

Taxpayer protests that it is occupationally engaged as a recycler and that the car crusher is used for recycling. Taxpayer therefore believes that its purchase of the car crusher was exempt from taxes under IC § 6-2.5-5-45.8. The Department notes that this statute was not in effect until January 1, 2012 and that Taxpayer purchased the car crusher in tax year 2010. Therefore the statute to which Taxpayer has referred was not in existence when the car crusher was purchased and is not applicable to that purchase. As a result the Taxpayer has not met its burden to prove proposed assessments wrong, as provided by IC § 6-8.1-5-1(c).

 

http://www.in.gov/legislative/iac/20130925-IR-045130435NRA.xml.html