UPS Overpaid Fuel Tax on Private Road Travel, Indiana Judge Says

United Parcel Service Inc. is entitled to a refund because Indiana’s special fuel tax only applies to consumption of fuel on highways, not private roads, the state tax court ruled Wednesday.

The state tax code’s exemption for fuel “used for nonhighway purposes” applies to travel on private roads, regardless of whether UPS’s use of private roads was just incidental to deliveries via public highway, Indiana Tax Court Judge Justin L. McAdam wrote for the court. The court granted summary judgment to UPS on the issue, but will hold further proceedings on the extent to which the company is entitled to ...