Service directly used or consumed in rendering public transportation

Sec. 63. (a) The state gross retail tax shall not apply to the sale and the use in this state of service which is directly used or directly

consumed in the rendering of public transportation of persons or property.

(b) Definition. (1) Service: Service as used in this regulation [45 IAC 2.2] means those services which are otherwise

taxable under the Gross Retail Tax Act, such as electrical or telephone services.

(2) Public transportation: Refer to Regulation 6-2.5-5-27(010) [45 IAC 2.2-5-60] for definition of "public

transportation".

(c) General rule. The purchase, sale, storage, use or other consumption in this state of service which is directly used or directly consumed

in rendering public transportation of persons or property is exempt from tax. For meaning of "directly used in rendering public transportation" as

applied to service and for provisions refer to Regs. 6-2.5-5-27(010) and (020) [45 IAC 2.2-5-61 and 45 IAC 2.2-5-

62].