After eight years, the recreational vehicle industry may finally see a change to a sales tax law that virtually punishes people from nine states who want to purchase an RV in Indiana.
The Elkhart Truth reported that 41 states currently have reciprocal agreements with Indiana that exempt out-of-state RV buyers from having to pay the 7% Indiana sales tax, with Indiana residents receiving a similar exemption for purchases in those states.
But for residents in the other nine states — Michigan, Florida, California, Arizona, Hawaii, Massachusetts, Mississippi, North Carolina and South Carolina — there is the potential they could be double taxed. That means customers from one of those states could pay Indiana’s 7% sales tax at the time of purchase and then have to pay the sales tax in their home state, as well.
Senate Bill 172, which eliminates that extra tax burden by exempting out-of-state RV purchasers from having to pay Indiana sales tax even if their home states don’t have a reciprocal agreement, has passed through the Senate and is now in the House.
Rep. Doug Miller, a Republican from Elkhart, said he is getting the general impression that the bill will make it out of committee in the House and he feels that if it can make it to the floor it will be passed. For the RV industry, the results of seeing this bill passed would be “huge,” according to Miller, especially for dealers near the Michigan-Indiana state line.
“At one time we had 12 dealers on Cassopolis Street in Elkhart. We are now down to three,” he said. “If this bill passes industry leaders say those dealerships will all come back and they will bring jobs with them.”
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