Section 45IAC10-3-7. Sales to common carriers

   (a) Special fuel sold to a common carrier is exempt from the special fuel tax, provided that the special fuel is placed into the fuel supply tank of a common carrier for the sole purpose of transporting passengers within a service area that is not larger than one (1) county and counties contiguous to that county, all of which are located in Indiana.

  (b) For purposes of this section, the term "common carrier" means any person that holds itself out to the general public to engage in the transportation by motor vehicle of passengers for compensation, whether over regular or irregular routes. However, it shall not be construed to mean motor vehicles that are operated by public transportation corporations or public transit departments.

  (c) In order to qualify for this exemption, common carriers must embark, transport, and disembark passengers within the service area of the common carrier. Special fuel sold and delivered into the fuel supply tank of a motor vehicle operated by a common carrier for the purpose of transporting persons over routes that are outside the service area of the common carrier is subject to tax. (Department of State Revenue; Reg 6-6-2.1-301(6)(010); filed Jan 3, 1983, 2:29 p.m.: 6 IR 297; filed Dec 18, 2015, 3:40 p.m.: 20160113-IR-045140518FRA)