Sec. 4. (a) A transaction involving the rental of heavy rental equipment is exempt from the tax imposed by this chapter if any of the following apply:

(1) The rentee is:

(A) the United States government;

(B) the state;

(C) a political subdivision (as defined in IC 36-1-2-13); or

(D) an agency or instrumentality of an entity described in clauses (A) through (C).

(2) The transaction is a subrent of the heavy rental equipment from a rentee to another person, and the rentee was liable for the tax imposed under this chapter.

(3) The heavy rental equipment is rented for mining purposes or would be eligible for a property tax abatement deduction under IC 6-1.1-12.1 during the calendar year if the rentee was considered the owner of the equipment for income tax purposes or property tax purposes.

     (b) A rentee asserting an exemption under subsection (a) shall complete the form prescribed by the department and the retail merchant may rely on the completed form.

As added by P.L.188-2018, SEC.3. Amended by P.L.234-2019, SEC.27.