Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Klink Trucking, Inc. v. Indiana Department of State Revenue

Tax Court of Indiana

July 19, 2017

KLINK TRUCKING, INC., Petitioner,
v.
INDIANA DEPARTMENT OF STATE REVENUE, Respondent.

         ON APPEAL FROM A FINAL DETERMINATION OF THE INDIANA DEPARTMENT OF STATE REVENUE

          ATTORNEYS FOR PETITIONER: RANDAL J. KALTENMARK ZIAADDIN MOLLABASHY BARNES & THORNBURG LLP Indianapolis, IN

          ATTORNEYS FOR RESPONDENT: CURTIS T. HILL, JR. ATTORNEY GENERAL OF INDIANA EVAN W. BARTEL DEPUTY ATTORNEY GENERAL Indianapolis, IN

          WENTWORTH, J.

         Klink Trucking, Inc. appeals the Indiana Department of State Revenue's assessments of use tax for the 2008, 2009, and 2010 tax years (the "years at issue"). The Court restates the dispositive issue as whether Klink's trucks and related expense items were predominately used in providing public transportation during the years at issue and, thus, exempt from use tax. Upon review, the Court finds in favor of Klink.

         FACTS AND PROCEDURAL HISTORY

         Klink, an Indiana corporation, is a motor carrier that provides landscaping, construction, and hauling services from its landscaping yard in Fort Wayne, Indiana and from its two aggregate distribution centers in Ashley and South Bend, Indiana. (See Stipulation of Facts ("Stip.") ¶¶ 1, 25-27, Ex. 18-J at 3.) Klink's landscaping and construction divisions sell several industry-related products and provide a variety of other services, including road grinding, road sealing and surfacing, excavating, demolition, and pug-mill operations. (See Stip. ¶¶ 28-31.) The issues in this case do not involve the operations of the landscaping and construction divisions, but solely concern Klink's hauling business.

         Klink's hauling division provides "straight and trailer dump operations, liquid and powder transportation, and equipment and commodity hauling" to its affiliates, governmental agencies, and other third parties. (See Stip. ¶¶ 26, 32-36, Ex. 22-J at 2-4.) Specifically, Klink used its fleet of over 80 trucks to haul an assortment of materials for third parties during the years at issue, including "stone, aggregates, agricultural lime and gypsum, cold-patch asphalt road mixes, landscaping materials, paving grade and emulsified liquid asphalt products, [and] road salt and de-icers[.]" (See Stip. ¶ 26, Ex.18-J at 53-55.) In addition, Klink used its trucks to haul its own property in instances when it purchased materials from pits, quarries, or other suppliers to resell them to its customers. (See Stip. ¶¶ 26, 38.)

         During the years at issue, Klink used several standardized forms to record certain aspects of its hauling activities and to facilitate its billing process. (See, e.g., Trial Tr. at 100-03.) For instance, Klink provided "Klink Tickets" for its drivers to complete for each hauling trip. (See Trial Tr. at 103-05; Stip., Ex. 23-J, Tab 6 at 5.) Each Klink Ticket contained a unique, sequential pre-printed number, and when complete, it identified 1) the date; 2) the purchaser's name and address; 3) the number of the truck that sold the materials; 4) the type and quantity of materials sold; and 5) the pit, quarry, or supplier from where the materials were originally picked-up. (See Trial Tr. at 103; Stip., Ex. 23-J, Tab 6 at 5.) Klink's drivers also completed or acquired three other forms:

1) "Trip Sheets" that summarized a truck's daily hauling activities by providing, among other things, a) the date; b) the truck's beginning and finishing mileage; c) the Klink Ticket numbers for each hauling trip; d) descriptions of the materials hauled; and e) the loading/unloading times for each hauling trip;
2) "Demurrage Sheets" that documented the "excessive" travel time for each hauling trip; and
3) "Pit Tickets" (a/k/a bills of lading) that were prepared by the pit, quarry, or supplier from which the materials were originally picked-up and stated, for example, the type and quantity of materials sold as well as the purchaser's name.

(See Trial Tr. at 102-10; Stip., Ex. 23-J, Tab 6 at 4, 6 and Tab 11 at 6.)

         At the end of a shift, the drivers would place their completed Klink Tickets, Trip Sheets, Demurrage Sheets, and Pit Tickets into an envelope for Klink to use in its billing process. (See Trial Tr. at 101-03, 110.) Typically, the contents of the envelopes were sorted and coded on the following business day. (See, e.g., Trial Tr. at 110; Stip., Ex. 14-J, Tab Vol. 1 of 2 at 2-17.) At that time, each Klink Ticket was sorted by customer, product, and job; and it was given a product code to indicate whether Klink was hauling its own property or that of a third party. (See Trial Tr. 110-13 (explaining that a product code that ended in an asterisk or contained the words "haul only" in the description was used when Klink hauled another's property, not its own).) Then, Klink entered the newly coded information from the Klink Tickets, ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.