Senate Bill 131 – Sales Tax on Recreational Vehicles
Authored by Sen. Blake Doriot (R-Syracuse)
Repeals the provision that provides that the sales tax rate on certain cargo trailers or recreational vehicles is the rate of the other state or other country in which the cargo trailer or recreational vehicle will be titled or registered. (This provision is also set to expire on June 30, 2019, under current law.) Repeals the provision that authorizes the Department of Revenue to enter into reciprocal agreements with other states concerning a sales tax exemption for cargo trailers and recreational vehicles that will be purchased in a state by a nonresident and then titled in another state. Full details.
Chamber Position: Support
The Latest: Tax and Fiscal Policy Committee Chairman Travis Holdman (R-Markle) expressed a desire for some of the background facts to be better flushed out before moving the bill and requested that the bill be held for possible amendment.
Chamber Action/Commentary: The Legislature has struggled with this issue for several years now. The objective is to determine the most desirable policy and procedures regarding the application of Indiana sales tax when an out-of-state resident buys a recreational vehicle in Indiana with the intent to register it in their home state. Not all states provide a credit for sales tax charged in the state of the purchase, or they only provide a partial credit. And in all cases, the process is very administratively cumbersome. These circumstances work to discourage such sales and disadvantage Indiana RV dealers.
The Chamber has supported all past legislative efforts to rectify this situation. The RV industry is a large contributor to our economy and this issue is detrimental to the RV manufacturers of our state as well as to local dealers that serve as a showcase for Indiana’s manufactured products. Admittedly, this is a little complicated by the reciprocal agreements that exist between states concerning sales tax collections, but it needs to be resolved and a flat-out exemption may be the best, simplest solution.
Resource: Bill Waltz at (317) 264-6887 or email: [email protected]