Indiana Senate Bill 156 would exempt out-of-state RV purchases from Indiana sales tax

Currently, 41 states have reciprocal agreements with Indiana that exempt out-of-state RV buyers from having to pay the 7 percent Indiana sales tax, with Indiana residents receiving a similar exemption for purchases in those states. 

For the nine states that don’t have reciprocal agreements with Indiana — including Michigan, Florida, California, Arizona, Hawaii, Massachusetts, Mississippi, North Carolina and South Carolina — there is the potential out-of-state customers will be double taxed. That means customers from one of those states could pay Indiana’s 7 percent sales tax at the time of purchase only to turn around and have to pay sales tax in their home state as well.

Proposed Indiana Senate Bill 156 would eliminate that extra tax burden by exempting out-of-state RV purchasers from having to pay Indiana sales tax, regardless of whether their states have a reciprocal agreement in place. 

The bill’s author, Sen. Carlin Yoder (R-Middlebury), said the current sales tax law hurts dealers.