FAQs - Sales & Use Tax: Motor Vehicles & Watercraft

Is an ambulance service entitled to claim exemption from sales and use tax under the "used directly in the rendition of a public utility service" exemption?

The Department of Taxation has reviewed an assessment appeal and determined that under certain circumstances an ambulance service is entitled to claim exemption from sales and use tax under the “used directly in the rendition of a public utility service” exemption.

Specifically, an ambulance service is eligible for the exemption if:

(a) The service is provided without discrimination,

(b) The territory that the service provider services is restricted and it services that territory exclusively,

(c) The service is highly regulated at both the state and local level, and

(d) The service of providing emergency medical care and transportation of the sick and injured is a service of public consequence or need.

For this exemption, the purchaser must provide two copies of a motor vehicle exemption certificate indicating that the vehicle is "used directly in the rendition of a public utility service.” The clerk will retain one copy and forward one copy to the Department of Taxation’s district office for review. The clerk would issue the title using the ATPS exemption code: “PU: Direct use in a public utility service.”