in-20250430-IR-045250173NRA: DEPARTMENT OF STATE REVENUE

DEPARTMENT OF STATE REVENUE FINAL ORDER DENYING REFUND: 47-20241346 Proportional Use Fuel Tax Credit For the Year 2023 HOLDING Indiana Motor Carrier failed to meet its burden of establishing that it submitted its Proportional Use Credit refund claim within the quarterly period for which the proportional credit was claimed. ISSUE

I. Motor Carrier Fuel Tax – Proportional Use Credit Refund.

Authority: IC 6-6-4.1-4.8; Indiana Dep’t of State Revenue v. Kimball Int’l Inc., 520 N.E.2d 454 (Ind. Ct. App. 1988). Taxpayer asks the Department to exercise its discretion and grant a Proportional Use Credit Refund. STATEMENT OF FACTS Taxpayer is an Indiana Motor Carrier. Publicly available information indicates that Taxpayer operates twenty power units (trucks) driven by twenty drivers. Taxpayer provides its customers with stone/gravel hauling needs and road/highway construction needs. Taxpayer submitted a “Claim for Proportional Use Credit” (“MCS-1789”). In that claim, Taxpayer sought a refund of approximately $8,600 in motor fuel tax. The MCS-1789 claimed credit for fuel consumed during the fourth quarter of 2023. The Indiana Department of Revenue (“Department”) denied the refund. The letter explained the reason for denying the refund. Taxpayer disagreed with the decision and submitted a protest to that effect. In that protest, Taxpayer argued that the Department was wrong when it denied the refund on the ground that the Department should have exercised its discretion to grant the refund.

I. Motor Carrier Fuel Tax – Proportional Use Credit Refund.

DISCUSSION The issue is whether Taxpayer has established its refund claim was timely filed. The credit is authorized under IC 6-6-4.1-4.8, requiring the Department to refund tax based on it “proportional use” of motor fuel. IC 6-6-4.1-4.8(c) provides: IC 6-6-4.1-4.8(d) imposes a “cap” on the dollar amount carriers may be refunded. In small part, IC 6-6-4.1-4.8(d)provides: IC 6-6-4.1-4.8(d) provides additional requirements, specifically addressing instances in which the total amounts claimed exceed the $3,500,000 limit. IC 6-6-4.1-4.8(b) explains the means by which a carrier is required to submit its claim. In part, the statute provides: The Department is required to address claims submitted on the MCS-1789. The form explains that in order to claim the credit, the carrier must “[s]ubmit the MCS-1789 (Claim for Proportional Use Credit) by the due date on the form.” Taxpayer’s claim was for the fourth quarter of 2023. Taxpayer indicates that the “Due Date” was December 31, 2023. Since December 31, 2023, falls on a Sunday, the motor fuel return and payment were due January 1, 2024. Taxpayer explains that the MCS-1789 was “mailed [] to the address on the document January of 2024 . . . [and it is] always up to date on [its] filings.” Taxpayer asks the Department to “at least recognize that [this] is an issue with the United States Postal Service. . .” Taxpayer’s explanation is contradicted by the fact that the claim was signed on January 14, 2024. In assessing Taxpayer’s objection, the Department bears in mind that the general rule is that “tax exemptions are strictly construed in favor of taxation and against the exemption.” Indiana Dep’t of State Revenue v. Kimball Int’l Inc., 520 N.E.2d 454, 456 (Ind. Ct. App. 1988). This Final Order Denying Refund addresses only the question of whether the MCS-1789 was submitted within the “taxable period for which the proportional use credit is claimed” as called for by IC 6-6-4.1-4.8(b). It was not, and Taxpayer has not met its burden of establishing that the Department made a mistake when it denied the $8,600. FINDING Taxpayer’s protest is respectfully denied. February 19, 2024 Replaces Finding Document at: New