ILNews

Common carrier entitled to more tax exemptions

Back to TopCommentsE-mailPrintBookmark and Share

A Wabash-based company that relocates oversized factory machinery won a partial victory in the Indiana Tax Court Tuesday. Judge Martha Wentworth ordered the Indiana State Department of Revenue to reassess the company’s tax obligations after finding some property should be considered exempt.

 Wendt LLC provides its relocation services within a transportation process that includes four operational phases – project planning, pre-transport preparations, transportation and reassembly. Wendt sought to recover the sales and use tax remitted on purchases made during the 2001 to 2004 tax years, claiming they were exempt. The revenue department denied Wendt’s claims, finding most of the purchases were partially or fully taxable.

In analyzing whether Wendt’s property is necessary and integral to its integrated public transportation process, which allows it to qualify for the exemption, Wentworth partially affirmed the revenue department. The tax judge agreed that property used in preparing estimates for potential customers is not necessary and integral to Wendt’s public transportation process, nor are the reassembly services as they are a convenience for its customers. She also agreed that property used for lawn care is not entitled to the public transportation sales and use tax exemption.

Wentworth found that property used to plan transportation routes, obtain permits, and disassemble, load and secure the machinery onto trucks for transport are necessary and integral to Wendt’s public transportation process, as well as the property used to transport and escort the machinery.

Warehouse storage and transportation of machinery to third-party locations for repair services also fall within the scope of public transportation, she concluded in Wendt, LLP v. Indiana Department of State Revenue, 02T10-0701-TA-2.

Wendt was able to show that it predominately uses the tangible property at issue in providing public transportation, so Wentworth ordered the department of revenue to make the necessary determinations regarding the tax exemption in accordance with this opinion.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. "So we broke with England for the right to "off" our preborn progeny at will, and allow the processing plant doing the dirty deeds (dirt cheap) to profit on the marketing of those "products of conception." I was completely maleducated on our nation's founding, it would seem. (But I know the ACLU is hard at work to remedy that, too.)" Well, you know, we're just following in the footsteps of our founders who raped women, raped slaves, raped children, maimed immigrants, sold children, stole property, broke promises, broke apart families, killed natives... You know, good God fearing down home Christian folk! :/

  2. Who gives a rats behind about all the fluffy ranking nonsense. What students having to pay off debt need to know is that all schools aren't created equal and students from many schools don't have a snowball's chance of getting a decent paying job straight out of law school. Their lowly ranked lawschool won't tell them that though. When schools start honestly (accurately) reporting *those numbers, things will get interesting real quick, and the looks on student's faces will be priceless!

  3. Whilst it may be true that Judges and Justices enjoy such freedom of time and effort, it certainly does not hold true for the average working person. To say that one must 1) take a day or a half day off work every 3 months, 2) gather a list of information including recent photographs, and 3) set up a time that is convenient for the local sheriff or other such office to complete the registry is more than a bit near-sighted. This may be procedural, and hence, in the near-sighted minds of the court, not 'punishment,' but it is in fact 'punishment.' The local sheriffs probably feel a little punished too by the overwork. Registries serve to punish the offender whilst simultaneously providing the public at large with a false sense of security. The false sense of security is dangerous to the public who may not exercise due diligence by thinking there are no offenders in their locale. In fact, the registry only informs them of those who have been convicted.

  4. Unfortunately, the court doesn't understand the difference between ebidta and adjusted ebidta as they clearly got the ruling wrong based on their misunderstanding

  5. A common refrain in the comments on this website comes from people who cannot locate attorneys willing put justice over retainers. At the same time the judiciary threatens to make pro bono work mandatory, seemingly noting the same concern. But what happens to attorneys who have the chumptzah to threatened the legal status quo in Indiana? Ask Gary Welch, ask Paul Ogden, ask me. Speak truth to power, suffer horrendously accordingly. No wonder Hoosier attorneys who want to keep in good graces merely chase the dollars ... the powers that be have no concerns as to those who are ever for sale to the highest bidder ... for those even willing to compromise for $$$ never allow either justice or constitutionality to cause them to stand up to injustice or unconstitutionality. And the bad apples in the Hoosier barrel, like this one, just keep rotting.

ADVERTISEMENT