Sales Tax Exemptions Available for Professional Racing Teams in Indiana

Friday, April 27th, 2012


The Indiana Department of Revenue recently issued an Information Bulletin discussing the taxability of items purchased by professional motor racing teams and owners of two-seater Indianapolis 500-style race cars. Ind. Sales Tax Info. Bull. No. 67 (Dept. of Revenue Apr. 2012). The "purchase, lease or operation of a qualified part of a motor racing vehicle . . . by professional racing teams are exempt from Indiana sales and use tax." However, tires and tire accessories are specifically excluded from the exemption and are therefore subject to tax. Additionally, the owner, lessee, or operator of a company that participates in the sport of competitive racing during competitive racing events will also qualify for the exemption when purchasing qualifying tangible personal property that "comprises any part of a two-seater Indianapolis 500-style race car." (Ind. Code Ann. sec. 6-2.5-5-37).

For purposes of the exemption, the following terms are defined as follows:

  • Professional Racing Team: Those racing operations qualified to file under the Internal Revenue Code as for-profit businesses.
  • Accessories: Any and all instrumentation and telemetry equipment that is not permanently attached to the racing vehicle. Accessories also include consumables and all elements of motor vehicle driver's protective clothing and headgear. Accessories do not include instrumentation and telemetry equipment permanently affixed to the racing vehicle.

Any Indiana-based professional racing team or owner, operator, or lessee of a two-seater Indianapolis 500-style race car looking to take advantage of the exemption must indicate so on Form ST-105 General Sales Tax Exemption Certificate, which is available on the Department of Revenue's website.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

New York Adopts New Economic Nexus Rule

Wednesday, January 23rd, 2019 -Effective January 2019, a retailer located outside of New York is required to collect use tax if, during the p...

New Commercial Farmer Certification Process in Louisiana

Monday, January 21st, 2019 -Effective January, 15, 2019, the Louisiana Department of Revenue has a new certification process for commercia...

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...