Leased motor vehicles
Sec. 3. (a) Except as otherwise provided in this section, every
commercial motor vehicle leased to a carrier is subject to this chapter
to the same extent and in the same manner as commercial motor
vehicles owned by the carrier.
(b) Except as provided in subsection (f), the department may
consider a lessor of commercial motor vehicles to be a carrier with
respect to the operation of the vehicles it leases to others if the
lessor:
(1) supplies or pays for the motor fuel consumed by the
vehicles; or
(2) makes rental or other charges calculated to include the cost
of the motor fuel consumed by the vehicles.
(c) The department shall provide, by rules adopted under
IC 4-22-2, for the presentation by a lessor to other carriers and to the
public of evidence and identification of carrier status determined
under this section.
(d) Any commercial motor vehicles leased from a lessor who is
considered a carrier under subsection (b) may be excluded from the
lessee's reports and liabilities under this chapter.
(e) This section governs the primary liability under this chapter of
lessors and lessees of commercial motor vehicles. If a lessor or lessee
who is primarily liable fails, in whole or in part, to discharge the
lessor's or lessee's liability, the lessor or lessee and the other lessor
or lessee who is a party to the lease transaction are responsible for
compliance with this chapter and are jointly and severally liable for
payment of the tax. However, the aggregate taxes collected by the
department may not exceed the amount of tax that would have
resulted from the operation of the leased vehicle by the owner, plus
any applicable costs and penalties.
(f) This subsection does not apply if the motor vehicle is leased
to the same person under two (2) or more consecutive leases. If a
motor vehicle is leased for less than thirty (30) days, the holder of an
annual permit issued under section 12 of this chapter for the motor
vehicle is liable for the motor carrier fuel tax.
As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.96-1989,
SEC.10.
Last modified: May 28, 2006