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Tuesday, April 01, 2014

Ind. Decisions - New Tax Court opinion, filed March 31st

In Tannins of Indianapolis, LLC v. Indiana Department of State Revenue, a 7-page opinion, Judge Wentworth writes:

This case asks whether Tannins of Indianapolis, LLC is entitled to the purchase for resale exemption on its 2009, 2010, and 2011 purchases of programmable cards that operate its wine sample dispensing equipment. The Court finds that Tannins’ purchases of the cards are not exempt. * * *

Tannins claims that its purchases of tasting cards are exempt from sales and use
tax under Indiana Code § 6-2.5-5-8(b) because it resold them to its customers. * * *

This Court has consistently explained that for a resale to exist, the buyer and seller must separately bargain for the property in exchange for the payment of consideration. * * *

For the above-stated reasons, the Court finds that Tannins’ purchases of tasting cards are not exempt from use tax under Indiana Code § 6-2.5-5-8(b), the purchase for resale exemption. The Court therefore AFFIRMS the Department’s final determination.

Posted by Marcia Oddi on April 1, 2014 10:31 AM
Posted to Ind. Tax Ct. Decisions