A proposed law exempting out-of-state residents from Indiana’s sales tax when buying a recreational vehicle or cargo trailer unanimously passed the Indiana House recently.
According to the Peru Tribune, Indiana House Bill 1073 will be sent to the Senate for further discussion.
The proposal would reinstate the full exemption for non-residents that was a standard in the state until it was repealed in 2004.
An amended version was passed last year, requiring non-residents to pay the difference between Indiana sales tax and their home state.
The current legislation is being championed by the Indiana Manufactured Housing Association/Recreation Vehicle Indiana Council (IMHA/RVIC).
“We think it’s real important for the state of Indiana,” said IMHA/RVIC Executive Director Dennis Harney earlier. “Well over 60% of the RVs made in the United States are produced in Indiana, yet motorized sales were off 30% in Indiana from 2004 to 2005.”
Harney maintained that while motorized sales declined nationwide in 2005, the drop in Indiana was more precipitous, ostensibly due to a change two years ago in Indiana’s sales tax laws. “Before this all happened,” he said, “Indiana was well above the averages for sales.”