Temporary Storage of Trade-Show Booths Not Taxable in Indiana

Apr 17th, 2017

The Indiana Tax Court recently ruled that the temporary storage of components for trade show booths is not subject to use tax.

The taxpayer was a medical device manufacturer that regularly set up booths at out-of-state trade shows to exhibit its products. Between shows, the taxpayer stored the booth components in Indiana. The taxpayer repaired some of the booths while they were in storage.

Indiana taxes the storage of tangible personal property unless it is for exclusive out-of-state use. The taxpayer's booth components were stored in Indiana for use at out-of-state trade shows. However, repairs that were not incidental to storage would make the storage taxable. Repairs made in Indiana were "use" in Indiana. As a result, the booths repaired in Indiana were taxable, but the booths that were just stored in Indiana were not taxable.