Doriot: Bill To Update Sales Tax On Recreational Vehicles Passes Senate
INDIANA — A bill authored by State Senator Blake Doriot (R-Syracuse) that would update the current Indiana law on sales tax on recreational vehicles recently passed the Senate unanimously.
Senate Bill 131 would remove an expiring provision that requires the sales tax rate on certain cargo trailers or RVs to be the rate of the other state or country in which the cargo trailer or RV is titled or registered.
Under SB 131, buyers would be provided with a certificate verifying that they have already paid sales tax. When the buyer titles their vehicle in their home state, they would present the certificate so they are not double charged.
“Currently, when an out-of-state resident buys an RV in Indiana, they may end up being charged Indiana sales tax as well as the sales tax of their home state,” Doriot said. “This is problematic for our state and local businesses, as it deters people traveling to our state to make these purchases. I believe this legislation would greatly boost our state’s RV industry and benefit Indiana’s economy.”
This bill would only affect sales to RV and trailer customers in states where Indiana has no existing reciprocal arrangement.
SB 131 will now move to the House of Representatives for consideration.