HB 1059 – Sales Tax on Recreational Vehicles
Authored by Rep. Doug Miller (R-Elkhart)

Provides that for certain transactions involving a cargo trailer or recreational vehicle that occur after June 30, 2025, the state gross retail tax rate is the rate of the nonreciprocal state or foreign country (excluding any locally imposed tax rates) in which the cargo trailer or recreational vehicle will be titled or registered, as certified by the seller and purchaser in an affidavit prescribed by the Indiana Department of Revenue. Provides that for certain transactions involving a cargo trailer or recreational vehicle that occur after June 30, 2020, and before July 1, 2025, the transaction is exempt from the state gross retail tax regardless of whether the state or foreign country has a reciprocal agreement with Indiana. Provides that the seller and purchaser must certify the requirements of the provision in an affidavit prescribed by the department.

Chamber position: Support

The latest: Heard by the Senate Tax and Fiscal Policy Committee this week; no vote taken.

After receiving testimony, the chairman indicated that the bill is likely to be amended prior to a vote next week.

Indiana Chamber action/commentary: The history of this legislation, exactly what the bill does and the nature of the problem it addresses continue to be the subject of confusion and much discussion among the committee members. What it’s designed to do is remove impediments that Indiana RV dealerships face in sales to residents of eight states with which Indiana does not have reciprocity agreements regarding the collection of sales tax. Being forced to collect Indiana sales tax from these non-resident potential buyers who intend to register/title the RV in their home state puts the Indiana dealers at a disadvantage in competing with out-of-state dealers who do not require local sales tax to be collected from these same non-residents.

The Chamber has consistently supported all efforts to rectify this situation. Our testimony emphasized the illogical position of having policies in place that effectively make it more difficult for Indiana dealers to take advantage of selling RV products that are manufactured in such great volume within Indiana. The committee appears poised to pass an amended bill next week. Moreover, the prospects are good that it will not fall victim to the conference committee disagreements that resulted in a similar bill dying last session.

Resource: Bill Waltz at (317) 264-6887 or email: [email protected]