Can the providers of transportation services claim exemption from the sales or use tax on the purchase of motor vehicles such as taxicabs, limousines, or charter buses?
Taxicab companies are licensed by a local government entity (county, township or municipality) to provide pick-up and delivery of individuals. These companies must provide their service as demanded by the general public. If they refuse to provide their service when demanded and a complaint is filed with the regulating entity, they could lose their authority to operate. Also, as part of the general local government regulations, these companies are only allowed to pick-up individuals within a specified geographical area and their service fees are negotiated and set by the regulating entity. Taxis in the name of the taxicab company should use the PU (public utility) code. While limousines services may be somewhat regulated by a local government entity (county, township or municipality) to provide safe and reliable pick-up and delivery service of individuals, they are not regulated to the same extent as are taxicab companies. There is no requirement that they must provide their services as
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