Indiana § 6-2.5-3-7.5 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

Indiana Statutes

§ 6-2.5-3-7.5 — 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

Indiana § 6-2.5-3-7.5

Art. 2.5STATE GROSS RETAIL AND USE TAXES

Ch. 3Use Tax

This text of Indiana § 6-2.5-3-7.5 (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) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 6-2.5-3-7.5 (2026).

Text

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 per

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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.