Proposed Indiana Tax Break May Spur RV Sales
An Elkhart, Ind., lawmaker will take another shot at exempting out-of-state recreational vehicle and cargo trailer buyers from Indiana’s sales tax in the upcoming General Assembly session.
The Elkhart Truth reported that State Rep. Tim Neese, R-Elkhart, said he will sponsor a bill that will remove the state’s 7% sales tax for people who come to Indiana to buy RVs and cargo trailers. Indiana already has reciprocal agreements with 41 states that allow out-of-state buyers to receive a credit against their home state sales tax for Indiana sales tax they pay.
Although Michigan is not one of those states, it still offers the credit to its residents who buy RVs in Indiana, said Russ Fish, finance manager at Total Value RV of Indiana in Elkhart.
Some states have no sales tax, while others have sales tax rates that differ from Indiana’s, and still others have varying rules on the size of the sales tax credit they will allow back home when the buyer registers the vehicle.
“(A sales tax exemption for out-of-state buyers) would make life a lot easier and I think we would sell a lot more because it cuts out a lot of the Mickey Mouse stuff,” Fish said. “But I can see Indiana’s point of view. That’s a loss of money.”
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