Indiana Code § 36-1-10-18

Tax exemption of leased structures, systems, and transportation projects; taxation of rental paid lessor
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Sec. 18. Structures, transportation projects, and systems leased by a lessor contracting with the political subdivision or agency under this chapter are exempt from all state, county, and other taxes. However, the rental paid to a lessor under the terms of a lease is subject to taxation. [Pre-Local Government Recodification Citation: 18-5-3.3-10.]

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