Indiana – Certain Alternative Fuels No Longer Exempt

SALT Report 2498 – Indiana enacted legislation that removes alternative fuel from the exemption from sales and use tax if it will be used for public transportation purposes. Specifically, House Bill 1324 provides that transactions involving alternative fuel, purchased after December 31, 2013 and before January 1, 2017, when used to fuel a motor vehicle that provides public transportation is not exempt from sales tax.

However, transactions that involve alternative fuel purchased by a public transportation corporation to use in a motor vehicle that provides public transportation will remain exempt from sales tax.

The provisions in this Bill are effective January 1, 2014.

For Further Information

Indiana State Legislature – House Bill 1324, Laws 2013