Indiana recreational vehicle dealers are applauding proposed legislation that could bring more business and potentially create jobs in Hancock County if approved.
According to the Greenfield Daily Reporter, two nearly identical bills would exempt out-of-state RV buyers from paying sales tax in both Indiana and their home state, a proposal Indiana dealers, including Mount Comfort RV in Greenfield, say will help their business.
Rep. Robert Cherry, R-Greenfield, and Sen. Blake Doriot, R-Syracuse, have proposed two separate bills that would waive Indiana sales tax for all out-of-state RV buys who make a purchase in Indiana. Under current law, only residents in 41 states are exempt from paying sales tax here because their home state offers a similar exemption to Indiana residents.
The proposal, however, faces challenges. A study from the Legislative Service Agency, which calculates the economic impact bills would have on the state, showed Indiana could miss out on $2.6 million in taxes next year if the bill is passed.
But the current law hurts Hoosier RV dealers, business owners say, because residents in states that are charged local state taxes — Arizona, California, Florida, Hawaii, Massachusetts, Michigan, Mississippi, North Carolina and South Carolina — choose to buy their RVs in other states.
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