Exemption; fares for public transportation services
Sec. 3.5. (a) For purposes of this section, "public transportation
services" means the transportation of individuals for hire.
(b) All fares collected for public transportation services are
exempt from the income taxes imposed by this article if the fares are
received by a:
(1) public transportation corporation established under
IC 36-9-4;
(2) public transit department established by ordinance under
IC 36; or
(3) lessee common carrier that provides public transportation
services under IC 36.
(c) Fares collected for public transportation services by a private
corporation are exempt from income taxes imposed by this article if
during the tax year at least eighty percent (80%) of the corporation's
total regularly scheduled bus passenger vehicle route miles are within
the corporation's designated regional service area. A private
corporation's designated regional service area may not be greater
than:
(1) the county that the private corporation designates as its
principal place of business; and
(2) all counties contiguous to the county designated by the
private corporation as its principal place of business.
A private corporation may choose a smaller area as its regional
service area.
(Formerly: Acts 1975, P.L.58, SEC.3.) As amended by P.L.19-1986,
SEC.14; P.L.192-2002(ss), SEC.76.
Last modified: May 28, 2006