Casual Delivery Creates Nexus in Indiana

Thursday, March 7th, 2013

 
 
Share
Link
Indiana
General

The Indiana Department of Revenue (Department) recently released a letter of finding that denied an out-of-state taxpayer's (Taxpayer) claim that they did not have sufficient nexus with Indiana to be required to collect sales tax. The Taxpayer made auto sales to Indiana consumers and agreed to deliver the vehicles to certain customers because the Taxpayer happened to be traveling past the customer's location en route to an event the Taxpayer was attending.

The Taxpayer argued that casual deliveries alone do not create nexus, and argued that the consumers would have had to pay tax when licensing the vehicles anyway. The Department disagreed, holding that the Taxpayer's delivery using its own conveyance was enough to create nexus. Further, the Department noted that the Taxpayer had not shown sufficient proof that tax was in fact paid by its customers.

Ind. Ltr. of Findings No. 04-20120449 (Dept. of Revenue Feb. 27, 2013).


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 www.ttrus.com or call 866.578.8193.

Texas Releases Detailed Guidance on Exempt Organizations

Thursday, October 18th, 2018 -The Texas Comptroller has released a publication that provides detailed information on how sales and use tax a...

Telephone Answering Services Taxable in Arkansas

Tuesday, October 16th, 2018 -The Arkansas Department of Finance and Administration recently ruled that the service of answering calls on be...

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...