Indiana Rep. Tim Neese, R-Elkhart, has authored legislation to boost recreational vehicle sales in both Elkhart County and throughout Indiana. According to a report in the Goshen News, the bill would exempt sales tax of RVs and cargo trailers for nonresident purchasers who take their new RV purchase out of Indiana.
According to Neese, the bill would exempt from the state’s 7% sales tax on any RV or cargo trailer transported out of Indiana for registration or use in another state.
“The bill’s intent is to bolster Indiana’s RV sales and keep the revenue in Indiana,” Neese said. “Creating an incentive for customers outside of Indiana to purchase RVs in our state will hopefully attract added customers to Indiana RV retailers, strengthening Elkhart County and the state of Indiana’s economy.”
Under current law, Indiana RV and cargo trailer dealers are required to collect the 7% sales tax for sales to nonresidents who plan to register their RV in a state that does not provide reciprocal drive-out exemptions.
“Elkhart County is a nationwide leader in RV manufacturing. We don’t want to penalize those from out of state who are giving Indiana business or lose dollars that could be coming into Indiana,” Neese said. “This is an important issue for RV retailers. My hope is that this will be one step closer to boosting sales for Indiana businesses, to strengthen our economy and provide job opportunities for hard working Hoosiers.”
Neese said the bill is supported by the Indiana Manufactured Housing Association and the Recreational Vehicle Indiana Council.
The bill was read and referred to the Committee on Ways and Means.