Sec. 3. (a) Except as otherwise provided in this section, every commercial motor vehicle leased to a carrier is subject to this chapter to the same extent and in the same manner as commercial motor vehicles owned by the carrier.

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Terms Used In Indiana Code 6-6-4.1-3

  • Carrier: means a person who operates or causes to be operated a commercial motor vehicle on any highway in Indiana. See Indiana Code 6-6-4.1-1
  • Department: means the Indiana department of state revenue. See Indiana Code 6-6-4.1-1
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Motor fuel: means gasoline (as defined in Indiana Code 6-6-4.1-1
  • Motor vehicle: has the meaning set forth in Indiana Code 6-6-4.1-1
     (b) Except as provided in subsection (f), the department may consider a lessor of commercial motor vehicles to be a carrier with respect to the operation of the vehicles it leases to others if the lessor:

(1) supplies or pays for the motor fuel consumed by the vehicles; or

(2) makes rental or other charges calculated to include the cost of the motor fuel consumed by the vehicles.

     (c) The department shall provide, by rules adopted under IC 4-22-2, for the presentation by a lessor to other carriers and to the public of evidence and identification of carrier status determined under this section.

     (d) Any commercial motor vehicles leased from a lessor who is considered a carrier under subsection (b) may be excluded from the lessee’s reports and liabilities under this chapter.

     (e) This section governs the primary liability under this chapter of lessors and lessees of commercial motor vehicles. If a lessor or lessee who is primarily liable fails, in whole or in part, to discharge the lessor’s or lessee’s liability, the lessor or lessee and the other lessor or lessee who is a party to the lease transaction are responsible for compliance with this chapter and are jointly and severally liable for payment of the tax. However, the aggregate taxes collected by the department may not exceed the amount of tax that would have resulted from the operation of the leased vehicle by the owner, plus any applicable costs and penalties.

     (f) This subsection does not apply if the motor vehicle is leased to the same person under two (2) or more consecutive leases. If a motor vehicle is leased for less than thirty (30) days, the holder of an annual permit issued under section 12 of this chapter for the motor vehicle is liable for the motor carrier fuel tax.

As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.96-1989, SEC.10.

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