in-20250430-IR-045250168NRA: DEPARTMENT OF STATE REVENUE

DEPARTMENT OF STATE REVENUE FINAL ORDER DENYING REFUND: 04-20242608 Gross Retail Tax For the Year 2020 HOLDING Indiana Food Producer’s refund claim was barred by the three-year statute of limitations because the limitation began to run on the date Food Producer resubmitted a completed refund request. ISSUE I    Gross Retail Tax – Refund Request Timeliness. Authority: IC 6-2.5-2-1; IC 6-2.5-5-5.1; IC 6-8.1-9-1; Dept. of State Revenue v. Caterpillar, Inc., 15 N.E.3d 579 (Ind. 2014); Tell City Boatworks, Inc., v. Indiana Department of Revenue, 162 N.E.3d 603 (Ind. Tax Ct. 2020); Haas Pub. Co. v. Indiana Department of Revenue, 835 N.E.2d 235 (Ind. Tax Ct. 2005); 45 IAC 2.2-4-13; General Tax Information Bulletin 100 (December 2019). Taxpayer argues that the Department made a mistake when it found that Taxpayer’s 2020 refund request was untimely. STATEMENT OF FACTS Taxpayer is an Indiana company in the business of producing, distributing, and retailing agricultural food products. In conducting its business, Taxpayer consumes electric utilities. Taxpayer concluded that the purchase of these utilities was exempt from Indiana sales tax because the electricity was consumed “for the sole purpose of agricultural use.” Taxpayer submitted claims for refunds of sales tax in the form of multiple GA-110Ls. The Indiana Department of Revenue (“Department”) reviewed the claims and denied the refunds. In a letter issued to Taxpayer, the Department explained: The letter explained further: Taxpayer fulfilled the requirement, including obtaining “predominate use exemption[s].” Taxpayer resubmitted 2020, 2021, 2022, and 2023 GA-110L refund forms. The Department reviewed the updated refund requests and granted some of the amounts requested but denied a portion of the 2020 claim. In a letter dated June 2024, the Department explained why it was denying the approximately $800 sales tax refund. Taxpayer disagreed with the Department’s decision and submitted a protest to that effect. An administrative hearing was conducted during which Taxpayer’s representatives explained the basis for their company’s protest. This Final Order Denying Refund results. I    Gross Retail Tax – Refund Request Timeliness. DISCUSSION The only issue is whether Taxpayer has established that its 2020 GA-110L refund request was timely filed and that the Department made a mistake when it found otherwise. In considering both the Department’s decision denying the refund and Taxpayer’s contentions, the Department points out that it is Taxpayer’s responsibility to establish that the Department’s decision was incorrect. “When a taxpayer claims entitlement to a tax exemption, the taxpayer bears the burden of showing that the terms of the exemption are met.” Haas Pub. Co. v. Indiana Department of Revenue, 835 N.E.2d 235, 236 (Ind. Tax Ct. 2005). “[W]hen a taxpayer seeks a refund of tax based on its eligibility for a certain credit or exemption, the taxpayer bears the burden of proving that it qualifies for that credit or exemption.” Tell City Boatworks, Inc., v. Indiana Department of Revenue, 162 N.E.3d 603, 616 (Ind. Tax Ct. 2020). In addition, the Department bears in mind that “when [courts] examine a statute that an agency is ‘charged with enforcing . . . [courts] defer to the agency’s reasonable interpretation of [the] statute even over an equally reasonable interpretation by another party.’” Dept. of State Revenue v. Caterpillar, Inc., 15 N.E.3d 579 (Ind. 2014). Thus, interpretations of Indiana tax law contained within this decision, as well as the original denial letters, are entitled to deference. Indiana sales tax is imposed pursuant to IC 6-2.5-2-1, which states: An exemption from sales and use tax is provided for tangible personal property purchased for use in direct production of other tangible personal property. This exemption is found in IC 6-2.5-5-5.1, which states: (Emphasis added). In the case of electrical usage, 45 IAC 2.2-4-13 explains: (Emphasis added). If fifty percent or more of electricity sold from a single meter is used in an exempt manner, the purchaser/taxpayer is considered to have predominantly used the electricity for exempt purposes, and the electricity sold through that meter is wholly exempt from sales tax and use tax. IC 6-8.1-9-1(a) affords a taxpayer a statutory right to file a claim for refund if the taxpayer determines that he or she has paid more tax than the amount is legally due for a particular taxable period. In Taxpayer’s case, the 2020 refund request was received by the Department February 7, 2024. A 2020 sales tax refund would necessarily be timely if submitted by “the end of the calendar year which contains the taxable period for which the return is filed.” In this instance, the refund was untimely because it was submitted one month and eight days after the refund due date. Taxpayer suggests that the original 2020 refund request was timely and that the Department wrongfully denied that original refund request. The Department does not agree because Taxpayer has not established that the Department erred when it denied that original refund. Taxpayer has not refuted the Department’s determination that “[T]axpayer [did] not have any valid utility exemptions on file for the location listed on the form.” The Department’s refund denial letter was clear. Once Taxpayer’s “ST-200 application(s) has/have been submitted and approved, [T]axpayer may resubmit a new GA-110L Claim for Refund.” Simply put, Taxpayer’s original refund was denied because Taxpayer did not obtain the approved ST-200 application to substantiate its refund request. Taxpayer was entitled to submit a new GA-110L Claim for Refund after its ST-200 application was approved. It was this “new” refund request that Taxpayer submitted, that the Department reviewed, and that the Department denied, in part, based on statute of limitations. The principle is restated at General Tax Information Bulletin 100 (December 2019), 20200401 Ind. Reg. 045200136NRA (last visited January, 17, 2025). Taxpayer’s 2020 refund request is barred by the three-year statute of limitations. FINDING Taxpayer’s protest is respectfully denied. February 4, 2025 Replaces Finding Document at: New