STATEHOUSE (March 21, 2017) – State Rep. Bob Cherry’s (R-Greenfield) bill helping local RV dealers attract out-of-state consumers could soon be law.
“With this bill, we’re trying to place Indiana RV dealers on an equal playing field with other states,” Cherry said. “Eighty four percent of all RVs produced in North America are made here in Indiana. Unfortunately, Indiana does not have a sales tax exemption agreement with nine states, resulting in many would-be buyers from those states purchasing RVs elsewhere. This bill would simply charge those nonresident purchasers whatever the sales tax rate is in the state they will ultimately register the RV.”
Cherry explained RV purchasers from 40 states are currently exempt from Indiana sales tax because those states extend a similar exemption to Indiana residents. However, nine states do not currently have a reciprocal sales tax exemption agreement with Indiana. Cherry said many purchasers from these non-exempt states have found it advantageous to purchase RVs in states with lower sales tax rates than Indiana, resulting in a loss of sales. The nine states are Arizona, California, Florida, Hawaii, Massachusetts, Michigan, Mississippi, North Carolina and South Carolina.
For these nine non-exempt states, Senate Bill 172 adjusts the sales tax charged by Indiana RV dealers to these nonresidents with the sales tax rate in the state they will register the vehicle, as certified jointly by the seller and purchase in an affidavit.
This legislation can now be considered by the governor for further action. Visit iga.in.gov to learn more about Senate Bill 172.
Rep. Cherry represents House District 53,
which includes portions of Hancock and Madison counties.
A high-resolution photo of Cherry can be downloaded by clicking here.