Section 6-3-2-3.5 - Exemption; fares for public transportation services(a) For purposes of this section, "public transportation services" means the transportation of individuals for hire.(b) All fares collected for public transportation services are exempt from the income taxes imposed by this article if the fares are received by a:(1) public transportation corporation established under IC 36-9-4;(2) public transit department established by ordinance under IC 36; or(3) lessee common carrier that provides public transportation services under IC 36.(c) Fares collected for public transportation services by a private corporation are exempt from income taxes imposed by this article if during the tax year at least eighty percent (80%) of the corporation's total regularly scheduled bus passenger vehicle route miles are within the corporation's designated regional service area. A private corporation's designated regional service area may not be greater than:(1) the county that the private corporation designates as its principal place of business; and(2) all counties contiguous to the county designated by the private corporation as its principal place of business. A private corporation may choose a smaller area as its regional service area.
(Formerly: Acts1975 , P.L. 58, SEC.3.) As amended by P.L. 19-1986, SEC.14; P.L. 192-2002 (ss), SEC.76.