Indiana DOR Determines Taxpayer’s Purchases of Resale Vehicles Were Tax-Exempt

The Indiana Department of Revenue (DOR) June 14 determined in a letter ruling that Taxpayer’s purchases of vehicles for resale were sales and use tax exempt because Taxpayer was a registered retail merchant, not a new car dealer selling new motor vehicles. Taxpayer, a vehicle wrap installation business, purchased two vehicles from an out-of-state auction house and paid the relevant state sales taxes during the sales. Taxpayer made repairs on the vehicles and sold them in Indiana. Taxpayer paid additional tax while registering the vehicles in Indiana and applied for a refund, which was denied. On appeal, the DOR found: ...