Source: http://www.in.gov/legislative/iac/20130731-IR-045130326NRA.xml.html
Timestamp: 2015-10-08 18:11:38
Document Index: 375251991

Matched Legal Cases: ['§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6']

04-20130225.LOF
Letter of Findings: 04-20130225
I. Sales/Use Tax – Horses Purchased in Racetrack Claiming Transactions.
Authority: IC § 6-8.1-5-1(c); IC § 6-2.5-2-1; IC § 6-2.5-3-2; IC § 6-2.5-1-27; IC § 6-2.5-3-4; Lafayette Square Amoco, Inc. v. Indiana Dep't of Revenue, 867 N.E.2d 289, 292 (Ind. Tax Ct. 2007); Indiana Dep't. of State Revenue v. Rent-A-Center East, Inc., 963 N.E.2d 463, 466 (Ind. 2012); 71 IAC 6.5-1-1; 71 IAC 6.5-1-2; 71 IAC 6.5-1-4; 45 IAC 2.2-3-4; 45 IAC 15-11-2.
Taxpayer protests the imposition of use tax on two claimed horses.
The Indiana Department of Revenue ("Department") determined that Taxpayer had not paid sales tax on two horses that she acquired in claiming transactions that occurred at Indiana racetracks in 2010. Given that Taxpayer had not paid sales tax on these transactions, the Department issued a proposed assessment for use tax and interest. Taxpayer filed a protest regarding the proposed assessment. An administrative hearing was held; this Letter of Findings results. More facts will be provided below as needed.
Taxpayer does not, in this protest, contest the taxability of the acquisition of horses in claiming transactions. Taxpayer, however, does argue that at the time of the purchases that she was "never informed of any such tax by the race track or it's [ sic] agent," and that she was not given any "paperwork stating the State of Indiana was going to assess any Consumer Use tax on the claimed horses."
Regarding the issue of not being informed of the taxability of the horses, 45 IAC 15-11-2(b) provides insight into the issue (although it should be noted, Taxpayer was not assessed a penalty). 45 IAC 15-11-2(b) states, "Ignorance of the listed tax laws, rules and/or regulations is treated as negligence." Thus 45 IAC 15-11-2(b) stands for the fact that Taxpayers are supposed to be aware of the applicable tax laws. Even if a taxpayer was not charged sales tax in years past for claimed horses, a taxpayer should have self-assessed use tax because the horses are tangible personal property purchased in Indiana.
The Department does note that effective July 1, 2013, Indiana will have a statute (IC § 6-2.5-14) that will create an amnesty program for unpaid use tax on claimed horses. As provided by that statute, taxpayers that are eligible for the amnesty program will still have to remit the use taxes that are owed on claimed horses, but among the provisions of the amnesty statute are the abatement of penalties and interest associated with use taxes owed for claimed horses. Under the amnesty program, taxpayers may also enter into a payment plan regarding the use taxes owed on claimed horses.
Composed: Oct 08,2015 2:11:48PM EDT