Property used or consumed in providing public transportation; retail merchant entitled under certain circumstances to presume use for exempt purpose or that purchaser will determine taxability; retail merchant not liable for failure to collect tax under certain circumstances
Ind. Code § 6-2.5-3-7.5
in effectSec. 7.5. (a) This section applies to a retail merchant if:
(1) the retail merchant obtains the information described in section 7(c)(1) through 7(c)(3) of this chapter from a person purchasing tangible personal property for use or consumption in providing public transportation under IC 6-2.5-5-27; and
(2) the person purchasing the tangible personal property provides to the retail merchant the signed affirmation required under section 7(c) of this chapter.
(b) Except as provided in subsection (c), the following apply to a retail merchant that meets the requirements of subsection (a):
(1) Based on the information described in section 7(c)(1) through 7(c)(3) of this chapter and the signed affirmation required under section 7(c) of this chapter, the retail merchant is entitled to assume that the person purchasing the tangible personal property:
(A) will use the tangible personal property for an exempt purpose; or
(B) will make the determination regarding whether use tax is due on the storage, use, or consumption of the tangible personal property, and will pay any use tax that is due on the storage, use, or consumption of the tangible personal property.
(2) The retail merchant is not liable for a failure to collect any use tax that may be due on the storage, use, or consumption of the tangible personal property.
(c) Subsection (b) does not apply to a retail merchant if the retail merchant's reliance on the information described in section 7(c)(1) through 7(c)(3) of this chapter and the signed affirmation required under section 7(c) of this chapter was unreasonable. The department has the burden of proving that the retail merchant's reliance on the information described in section 7(c)(1) through 7(c)(3) of this chapter and the signed affirmation required under section 7(c) of this chapter was unreasonable.
As added by P.L.204-2016, SEC.14.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026