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Court Rules Against Ind. Dealer on Tax Case

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December 6, 2018 by   Leave a Comment

Richardson’s RV Inc., a northern Indiana recreational vehicle dealer that tried to avoid paying Indiana sales tax on out-of-state transactions by moving the RVs into Michigan before handing over the keys to customers, must repay those taxes after a divided Indiana Supreme Court entered summary judgment in favor of the Indiana Department of Revenue.

The Indiana Lawyer reported that Justice Mark Massa, writing a majority opinion joined by Chief Justice Loretta Rush and Justice Christopher Goff, reversed an August ruling from the Indiana Tax Court on Wednesday in Richardson’s RV, Inc. v. Indiana Department of State Revenue18S-TA-22. The case centers around Middlebury-based Richardson’s RV, which sells recreational vehicles both onsite and online.

Customers who lived in Indiana or in one of the 40 states with reciprocal tax exemption agreements with the Hoosier state would take possession of their RVs directly at the dealership. But the remaining out-of-state customers were given the option of either paying Indiana’s sales tax rate or their home state’s rate.

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