Taxpayer is an Indiana resident who became interested in purchasing a particular car. Taxpayer dealt with a Kentucky dealer to purchase that vehicle. The Kentucky dealer acquired this particular vehicle from a California dealer for resale to Taxpayer. Taxpayer paid the Kentucky dealer the purchase price for the car and arranged for a third-party carrier to transport the vehicle from California and deliver it to an Ohio location.
Taxpayer titled the car with a Montana LLC. As an individual, Taxpayer is the single member of the Montana LLC.
The Department of Revenue issued a "Proposed Assessment" for use tax based on the purchase price of the vehicle.
Taxpayer argues that he does not owe use tax because the car was never "used" in Indiana.
Taxpayer has provided documentary information establishing that Taxpayer purchased the vehicle from a Kentucky dealer and that Taxpayer – or his single member LLC – paid the Kentucky dealer the price of the vehicle. Taxpayer has provided documentary information establishing that the car was transported from California by a third-party carrier and delivered to Ohio. Taxpayer has provided information establishing that, during the brief period that Taxpayer retained the vehicle, it was driven exclusively in Ohio. Taxpayer has provided documentary evidence establishing that Taxpayer retained ownership of the vehicle for approximately 45 days before being traded to an Ohio dealership for yet another vehicle.
Taxpayer has met his burden of proof under IC § 6-8.1-5-1(c) of establishing that the Department's use tax assessment was erroneous because the vehicle was not "consumed," stored, nor used in Indiana.
