42-5062

42-5062. Transporting classification

A. The transporting classification is comprised of the business of transporting for
hire persons, freight or property by motor vehicle, railroads or aircraft from one point
to another point in this state. The transporting classification does not include:

1. Transporting for hire persons, freight or property by motor carriers subject to
a fee prescribed in title 28, chapter 16, article 4 or by light motor vehicles subject to
a fee under title 28, chapter 15, article 4.

2. The business of transporting for hire persons traveling in air commerce by
aircraft if taxation of the business is preempted by federal law.

3. Ambulances or ambulance services provided under title 48 or certified pursuant
to title 36, chapter 21.1 or provided by a city or town in a county with a population of
less than one hundred fifty thousand persons as determined in the most recent United
States decennial census.

4. Public transportation program services for the dial-a-ride programs and special
needs transportation services.

5. Transporting freight or property for hire by a railroad operating exclusively in
this state if the transportation comprises a portion of a single shipment of freight or
property, involving more than one railroad, either from a point in this state to a point
outside this state or from a point outside this state to a point in this state. For the
purposes of this paragraph, "a single shipment" means the transportation that begins at
the point at which one of the railroads first takes possession of the freight or property
and continues until the point at which one of the railroads relinquishes possession of
the freight or property to a party other than one of the railroads.

6. Arranging transportation as a convenience or service to a person's customers if
that person is not otherwise engaged in the business of transporting persons, freight or
property for hire. This exception does not apply to businesses that dispatch vehicles
pursuant to customer orders and send the billings and receive the payments associated
with that activity, including when the transportation is performed by third party
independent contractors. For the purposes of this paragraph, "arranging" includes billing
for or collecting transportation charges from a person's customers on behalf of the
persons providing the transportation.

B. The tax base for the transporting classification is the gross proceeds of sales
or gross income derived from the business, except that the following shall be deducted
from the tax base:

1. The gross proceeds of sales or gross income derived from transporting for hire
persons, freight or property by a railroad pursuant to a contract with another railroad
that is also considered to be engaged in the businesses of transporting persons, freight
or property for hire if the other railroad is liable for the tax on gross proceeds of
sales or gross income attributable to the transportation.

2. The gross proceeds of sales or gross income derived from business activity that
is properly included in any other business classification under this article and that is
taxable to the person engaged in that classification, but the gross proceeds of sales or
gross income to be deducted shall not exceed the consideration paid to the person
conducting the activity.

3. The gross proceeds of sales or gross income derived from a business activity
that is arranged by the person who is subject to tax under this section and that is not
taxable to the person conducting the activity due to an exclusion, exemption or deduction
under this section or section 42-5073, but the gross proceeds of sales or gross income to
be deducted shall not exceed the consideration paid to the person conducting the
activity.

4. The gross proceeds of sales or gross income derived from business activity that
is arranged by a person who is subject to tax under this section and that is taxable to
another person under this section who conducts the activity, but the gross proceeds of
sales or gross income to be deducted shall not exceed the consideration paid to the
person conducting the activity.

5. The gross proceeds of sales or gross income derived from transporting fertilizer
by a railroad from a point in this state to another point in this state.