Golf Simulators Not Eligible For Rental Exemption In Indiana

Golf simulators described as “high tech driving ranges” were not eligible for an exemption provided for property that was acquired for rental or leasing. The Indiana Department of Revenue determined that customers who paid an hourly rate to use the machines were not renting them; they were paying for “the privilege of using the game without interference from other customers.” Since the agreement between the owner of the machines and the customers did not allow the customers to take legal possession of the machines for any amount of time, it did not qualify as a rental and the machines were subject to use tax. (Letter of Findings No. 04-0444, Indiana Department of Revenue, April 2006)

Posted on November 14, 2006